8.2: The Case for Regional Integration Flashcards
What are the two main cases for regional integration?
The two main cases for regional integration are economic and political.
What economic theories support the case for regional integration?
Economic theories that predict unrestricted free trade allows for specialization in production and stimulates economic growth, along with the transfer of technology and managerial know-how through FDI, support the case for regional integration.
What are the two primary impediments to regional integration?
The two primary impediments to regional integration are the costs to certain groups within countries, leading to short- to medium-term losses, and concerns over national sovereignty.
How did the establishment of the European Community (EC) address the political case for integration?
The establishment of the EC was aimed at linking European nations to prevent further wars, enhance their collective political weight in the world, and address the need for a united Europe in world markets and politics.
What was the political aspect of establishing NAFTA?
The political aspect of establishing NAFTA was the belief that it would promote democracy and economic growth in Mexico, and reduce the flow of illegal immigration to the United States.
What is one effect of NAFTA that has been observed concerning immigration?
Since the establishment of NAFTA, the strong Mexican economy has contributed to a reduction in illegal immigration from Mexico to the United States.
Why is regional economic integration considered easier to achieve than global agreements?
Regional economic integration is considered easier to achieve because it involves fewer countries, which simplifies coordination and policy harmonization compared to the global community.
