Disadvantages Of Economic Integration

To begin, throughout the Gilded Age, economic power was held in the hands of few. Many cooperations aimed to reduce competition through the use of horizontal and vertical integration. Vertical integration is the combination of all phases of production into one organization. Horizontal integration is the combination of competitors into one organization in order

Globalisation is the process of integration of national economies through international trade of markets in goods and services, international trade in assets, and international spread of ideas, from consumer tastes to intellectual ideas (Frankel, 2006).

Growing through integration is concerned with mergers and takeovers of businesses. There are a number of different ways of integrating: Horizontal (same industry, same stage of production), backward vertical (same industry towards a supplier), forward vertical (same industry towards the customer) and Conglomerate (different industries).

One or more nations may benefit from the move, but other nations may suffer as a result. National sovereignty is also a major concern for most nations considering integration. Concerns about national sovereignty arise because close economic integration demands that countries give up some degree of their control over certain policy issues, such as monetary, trade, and fiscal policies (Hill, 2004).

Horizontal integration involves buying out other companies and taking over one single step of an industrial process. It establishes a monopoly because, with horizontal integration, everyone must go the company that has monopolized that step.

These are all about how and to what extent a government mediates in the economy. This can incorporate – government policy, political steadiness or precariousness in foreign markets, foreign trade policy, tax policy, labor law, environmental law, trade restrictions and so on.

Defined by the International Monetary Fund as "the increasing integration of economies around the world, particularly through the movement of

Integration is the combination of two or more things to form a whole. In this case integration is the bringing together of all of the European countries as one. The nationalistic causes of the world wars had devastated

Although there is still not agreement on a common definition of this phenomenon, in this paper I will accept the one developed by R.M. Joshi (2009). He identifies, indeed, Economic Globalization as “the increasing economic integration and interdependence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital”

Europe has been quite successful in integrating its economies because of the various geopolitical and economic activities. The first and foremost reason is that these countries are small and the economy of the one country can be integrated with the economy of the other country. Their integration has been made possible because the aspiration and believe of the different countries are very much similar. Moreover, their cultural and economic history is moreover same. European Union as it has been called now has been the most developed model of the regional integration though challenged by economic crisis now a days.

Globalisation is the growth and integration between the economies in different countries for movement of goods and services. Globalisation

3. What specific factors should the company take into account when integrating the different cultures, who should be responsible for the integration process, when and how should the integration process take place and how should its success or failure be evaluated?

The idea of common market (or internal) is one of the centrepieces of modern liberal political thought which aims to promote economic and social progress through the creation of an area without internal frontiers and through the establishment of economic and monetary union. In this area, the free movement of goods, persons, services and capital must be ensured in accordance with the provisions of the Treaty. These four ‘freedoms’ are the vital elements of the internal market and through the years have been a subject of considerable legal reinforcement. However in order to achieve the four ‘freedoms’, two main integrations were considered. Positive integration which aims on the

Another definition would be that: “Globalisation describes a process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation.”4

To begin with the benefits of trade liberalization, while country starts to open the country borders for foreign trade with lowering tariffs and import restrictions, basically, the gains from import and export will be rise. Moreover, with the allowance of trading for foreigners who bring with them technology, investment and production skills inside borders of the country, country will achieve to fill up the lack of production skills and increase the amount of manufacturing goods, job opportunities for community, while sometimes foreign firms will benefit only from low labor costs. In the other words, a country will start to earn from comparative advantage as sector specialization and exporting goods while making sectoral transformation due to trade liberalization continuously which is also explained with an expansion of investment on research and development. Additionally, the industrialization degree of the manufacturing will be affected positively by Foreign Direct Investment (FDI) according to the country’s sector of comparative advantage. These processes can cause to make new job opportunities, boost in income per capita, advantages for consumers. All in all, these benefits can be listed as, (Arsalan Hasan,