April 8, 2013
Nigeria, located on the west side of Africa near Benin is one-third larger than Texas and the most populous country in Africa. There are six different trading blocs in Nigeria, Africa; however, the one that sticks out the most is the East African Community or EAC. This paper will explore the advantages and disadvantages of EAC while providing examples of each one. East African Community
“At the end of November 1999, Kenya, Uganda, and Tanzania signed a treaty for the establishment of the East African Community (EAC), the EAC was initiated to create a free trade zone in East Africa.” (MBendi, 1995-2013) The vision of EAC is “prosperous, competitive, secure, stable and politically united East Africa.” (EAC, 2013) The current status of the regional integration process is high due to the encouraging progress of the EAC customs union and common market. The East African Community has several advantages as well as disadvantages. Some of the advantages are Comparative advantage, greater freedoms for its populations, and benefits of globalization. Some of the disadvantages would be less cultural diversity, trade still limited, and previous precedents. Let’s discuss advantages first. Advantages
The first advantage is comparative advantage for Nigeria is reducing the barriers to trade within the EAC, because there are no taxes so it should open up more ways to trade which in the end will result in specialization. Lead to higher living standards and a better life as well as more jobs.
The next advantage is greater freedoms for its populations. Africa doesn’t have the freedoms as we do here in the United States. Living in Africa is different than the states. For instance, in the United States homosexuality is illegal, but in Africa its quiet popular so popular they may legalize this.
The last advantage is benefits of globalization. Africa uniting with other...
References: Article retrieved from (2013) East African Community-The Advantages
Article retrieved from (2013) East African Community Portal.
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