Regional Economic Integration (half page)
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 previewpolitical point of view, regional economic trade helps countries to reduce disputes among themselves. Additionally, linking economies of the neighboring countries together it improves their negotiation power in the global market. However, it’s not easy to achieve economic integration among the neighboring countries despite all the praises it has received. The reasons behind this rationale are that the regional economic integration result interferes with the sovereignty and autonomous of the nation. Secondly, it associated with high costs and only a few individual countries benefit.
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