Regional Economic Integration

What are the economic and political arguments for regional economic integration? Given these arguments, why don’t we see more substantial examples of integration in the world economy?

Currency Flows and Regional Economic Integration (half page)

This week we studied currency rates, flows, and regimes as well as regional economic integration. As you think about how countries manage those currency flows, do you think that those policies adopted by individual countries are impacted by the onset of regional economic integration activities? Do you think that it impacts the Purchase Price Parity (PPP) and overall currency exchange rates

Answer preview

Question 1

According to Fratianni, (2006), Regional economic integration refers to an agreement between neighboring countries to reduce tariffs and allow free flow of goods, services, and factors of production between them. It fosters cooperation and helps countries among the member states the member countries. There are five categories of regional economic integration, and they include a free trade area (FTA), customs union, common market, economic union, and political union.  From the economic point of view, unrestricted free trade gives a chance for countries to specialize in the production of goods and services efficiently. In turn, the net worth effect of the regional economic trade is that it promotes…

 

(400 words)