Regional economic integration, also known as regionalism, is the process whereby countries in a Geographic region cooperate to reduce or eliminate barriers to the International flow of products, people, or capital. There are five main types Of regional economic integration: Free trade area, customs union, common Market, economic union and political union. The economic integration between two Or more countries is at its lowest point in free trade area, and increases from Type to type, all the way to political union, where counties coordinate aspects Of their economic and political systems at its fullest. In the past decade, There has been an increase in the agreement between countries, which has led to A debate on whether regional economic integration has a positive or negative Effect. In this essay we will be reasoning why regional economic integration Has a positive effect on those countries which are involved in these Agreements.
Regional economic Integration has been positive for many countries who are involved into these Agreements. Thanks to this, there has been an increase in trade creation, there Is greater consensus, political cooperation, and more employment cooperation. The European Union is one of many trading blocs, actually the biggest one, Which has an economic union where trade barriers have been removed and the Movement of capital and labor between these countries is coordinated as well as The economic policies. In order to be part of the EU there are some rules that Must be followed as well as requirements. Any country that wants to join the EU Need to have a democratic government. This requirement makes the nations have a Similar way of thinking, which decreases the military conflicts between them, As well as it allows them to have a greater political weight as a whole rather Than individually.
Employment has Been an issue is some European Countries recently, such as Spain, which got into A big crisis in 2008, and now it is starting to recover. Job opportunities in Spain where limited, and students with good college degrees where not able to Find a job. As well, with the crisis wages decreased significantly. Being able To emigrate to a different country, part of the EU expanded the employment Opportunities, and opened doors for your people in Europe looking for a job or A higher wage. Even though regional economic integration pros are evident, There are some people against it with arguments such as trade diversion. Trade Is diverse all over the world, and with these agreements between nations, the Diversity has increased among those nations not belonging to a trading bloc. But trade has also increased among nations from a bloc, generating consumers And industrial buyers have a wider selection of products and services which Were previously not available.
In conclusion, regional trade agreements have a positive Impact on those nations who form an economic bloc. Even though trade diversity may Have increased, and there has been a greater number of shifts in employment, The countries which are part of the world´s main regional trading blocs, have Seen an increase in so many different areas as we have mentioned.