The Role Of Regional Integration Essay
1476 Words6 Pages
Global Business as pertaining to our topic describes changes in our world's economy that result from dramatically increased internationational trade and cultural exchange. This paper will analyze the role of NAFTA (North American Free Trade Agreement) in promoting global business. Besides NAFTA, regional integrations such as: EU, APEC, ASEAN, CAFTA, or others may be discussed for the purpose of comparing advantages and disadvantages of regional integration. Also discussed will be the economic development stages of countries within NAFTA (United States, Canada, and Mexico) and any ramifications of NAFTA development for global business.
NAFTA is an agreement between Canada, the US, and Mexico that took effect on January 1, 1994,…show more content…
It represents more restricted trade to the extent that it results in trade diversion by shifting of production from an efficient nonmember country to a less efficient member country and promotes global business in this way. NAFTA was destined to recast the economic landscape of North America. For over a century, the U.S. economy had been shaped by growth along an east-west axis. NAFTA was going to be responsible for a sea of change in North American economic and transportation patterns. The business growth along the north-south axis would probably exceed that along the east-west axis in U.S and that NAFTA would be the engine propelling change.
Advantages and disadvantages NAFTA Of course the obvious point of regional integration is to benefit all involved. Under most circumstances the advantages of integration out way the disadvantages. NAFTA is voluntary as are many other regional integrations. Some reasons countries band together are: Costsharing on regional projects, a stable financial region, Pooling of technical expertise, Joint representation at international conferences and meetings, and having a stable financial region. The North American Free Trade Agreement (NAFTA) creates a single, North American market of nearly 400 million consumers larger than the 12 countries of the European Community and a combined GDP of $11 trillion. United States, Mexico, and Canada are
Essay about Regional Integration Ireland and the European Union
1180 WordsDec 14th, 20105 Pages
David Gregory Buetow
Regional Integration Ireland and the European Union First let us look at (regional economic integration). The (REI) “Agreements among countries in a geographic region are to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other”(allvoslog 2009) Pro Integration for Ireland Irelands experience with regional integration is the history of the involvement between Ireland and the E.U. In January of 1973 Ireland joined the EEC and participated in all the economic, monetary, and social programs. Many of the programs that came about by the integration are; common agricultural policies break with estg 1979, European social…show more content…
These agreements have allowed these Micro states to use the currency within their own boarders, and the European Central Bank has little complaint with the spread of the currency outside of the E.U specifically due to the increase in power the currency creates as it is adopted worldwide. Ireland at the current moment is struggling with the employment rates hitting an all time low, as of September of 2010 the rates listed at 14.1% and rising, (euro stat Google). These rates of unemployment have hit a 16 year high (USA TODAY), however a recent dip in the recession has given a slight light of hope for a more productive country, all the while Integration has had a major impact on this by assisting countries reactively sending manufacturing over to Ireland with the promise and removal of all tariffs. (Hill 2007)
Anti Integration for Ireland The growing amount of citizens collecting state benefits for unemployment has increased 1.2% up to a new all-time high of 437,922. The number that includes residents in part-time work who continue to be eligible for unemployment has gone down from Ireland's prior record high of 437,000. When Ireland had suffered double-digit unemployment in the 1990s, the country labor force was a third smaller than its current level of 2 million. “Ireland's work force