Negotiation

Running head: REGIONAL INTEGRATION FOR AND AGAINST ARTICLES

Individual Week 2

Julie

University of Phoenix

Global Business Strategies

MGT/448

Sherine El Hag

October 22, 2009

“Regional integration is a process in which states enter into a supranational regional organization in order to increase regional cooperation and diffuse regional tensions.” (Regional, n.d.) “Agreements in the regional integration are made to reduce, and at the end of the day remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between countries.” (Hill, 2004 ch.8) (NAFTA)

The pros of this would are, connecting and having them become more dependent on each other. This will give them an opportunity to view the political part of this and this should decrease the likelihood of violent encounter. By categorizing economics, countries will improve the political burden in the world. Economic integration involves members to give up some type of control over the financial policy, fiscal/tax policy and trade policy. Regional integration will help bring nearby countries together and make it better available for governing in each bloc, which contributes to the success of each country and the strength in this complicated economy.

The cons are the rewards of regional integration that has been sold excessively low, and the costs that have often been ignored. Domestic producers that are selling there goods and services at a high price have been replaced by the producers that are selling at a lower amount within a region, and low prices of the external suppliers were replaced by supplier that are charging a higher price within the region. Regional trading associations could then become known. The integration ob bloc of NAFTA has its ups and downs. Critics against NAFTA regional integration have argued that globalization affects their country’s economy. The argument would be in reference of loss of jobs, competiveness, and probably...