3- Region Economic Integration

Question 1

Regional integration

Answer 1

Implementation of a multitude of economic and/or political steps by member states to increase their global competitiveness, including preferential trade access.

Question 2

Spatial transformations

Answer 2

Process of allowing efficient geographic distribution of business activities within and among countries.

Question 3

Stages of RI

Answer 3

FT area - customs union - common market - economic/monetary union - political union

Benefits: creating larger pool of consumers, encouraging economies of scale in production, freeing flow of capital/labour/tech to most productive areas, increase cooperation, increase social welfare.

Costs: undermining MFN rule, imposing uniform laws that don’t consider econ cultural and social differences, eliminating jobs, losing sovereignty, reducing power of national gov, increase probability of drugs/terrorism