Regional Paper
What role does regional integration play in promoting global business? Are there advantages and disadvantages of regional integration? This paper will answer those questions as well as compare and contrast the economic development stages of countries within a chose region and the effect of the economic development in global business. The geographical region that will be analyzed will be the countries along the Pacific Rim.
Regional integration is the integration of several countries' markets, trade policies, or other policies. The role regional integration plays in promoting global business is that it is a key instrument of the economic and social development strategies of the countries of the region and of foreign economic and trade policies. Regional integration is essential due to its ability to expedite, and intensify the economic, social, and cultural ties between countries.
Some advantages to regional integration are that regional integration helps to establish free trade and open trade. These investments help economies grow, creates jobs, and provides great opportunities for international trade and investment. Free and open trade helps to lower the costs of production and thus reduces the prices of goods and services. Another example of an advantage is "By linking neighboring economies and making them increasingly dependent on each other, incentives are created for political l cooperation between the neighboring states. In turn, the potential for violent conflict between the states is reduced. In addition, by grouping their economies, the countries can enhance their political weight in the world." (Hill, 2002).
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