In Favor of Regional Integration
Integrating regions into a trading bloc can have some positive and influential aspects for the countries within that trading bloc. Free trade within these nations can helps secure stability within the economies, generate more product at a cheaper rate then without the integration, and assist with creating peace between the nations with peaceful conflict resolutions. The Association of the Southeast Asian Nations has created such a trading block between 10 nations over three decades ago which has been helping to build and sustain the economy of these nations in Southeast Asia.
The regional integration of the Association of Southeast Asian Nations (ASEAN) includes Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar, and Cambodia.
Advantages that are seen by this regional integration is to help these nations accelerate in the cultural development, economic growth, and social progress by being able to trade goods or services freely between one another. Another advantage is the existence of peace it brings between the nations. Since the development of the ASEAN trading bloc there have been no conflicts between the nations and they have pledged to peacefully resolve all settlements and disputes, this ensures that the regions live in a peaceful and harmonious environment. Further advantages include sharing common goals, objectives, and visions with one another.
Free trade between the nations allows each to develop more goods or services that they can produce more efficiently allowing for reduced consumer costs between the nations of the trading bloc. By being able to produce in a more efficient manor also has a result of a greater world production which would not be possible with trade restrictions due to tariffs and such.
Economic growth can also be attributed to trading blocs. With nations being able to transfer knowledge from different sectors and the know-how also increases...
References: Hill, Charles W. L. (2007). International Business: Competing in the Global Marketplace (7th
ed.). New York: McGraw-Hill/Irwin. Retrieved on 18 Dec 2008, from https://ecampus.phoenix.edu/content/eBookLibrary/content/eReader.html
South Asian Association for Regional Cooperation (n.d.). South Asian Association for Regional
Cooperation. Retrieved December 19, 2008, from http://www.saarc-sec.org/?t=1
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