Regional Economic Integration : International Trade Area

Integration and agreements made will reduce tariffs barriers that are associated with trades of goods, services and the factors of produced goods between countries (Hill, 2004). As this paper will demonstrate a proper analysis of how integration will promote global advantages in business, and will deliberate the disadvantages and advantages of integration. Therefore touching basis of contrast and comparing the development of economic stages within a region and the effect on the process of development of business globally.

Free trade agreements are in force all over the world today. A free trade agreement is an “agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics” (www.naftanow.org, 2013). These agreements are essential for the countries if they want to trade goods and services with each other without having to be bothered with each other’s laws and regulations.

For the integration, the intersection of the economic need, life style of the people, and size of the economy must be same. Due to inappropriate way and lack of proper political integration by countries and surge in the national feeling over the common economic goal of the region has adversely impacted the area. European unions is comprised of many countries which include different countries which are in different stage of their economic development

Latin America is composed of seventeen countries which was colonized by Spain’s and Portugal. They are large in diverse population with four hundred and ninety million people in total. The percentage of the Indian and African that lives in Latin America is basically seventy-five percent just in the cities. The industrial and development grew since the 1960’s; also the free Trade Area of the Americas (FTAA) proposes to integrate economies of Latin America, North America and the Caribbean (except Cuba). Prisons for quite a long time have been a gateway to try to save society. However, the only thing that it’s doing is hurting the social order. This happens because it creates more problems that are not being treated from the beginning. Crime has become a big problem during these hard times with the poor economy, but it has especially affected Latin America very deeply because of all the problems that overcrowded prisons have brought forward. In Latin America Brazil and Mexico are the two largest and strongest countries that have been affected with having the highest percentage of crimes, inmates in prisons, and concerns with overcrowded prisons. And these increase with the high crime rates in Latin America that are rising due to drug trafficking wars in Brazil and Mexico. Brazil and Argentina are again the two of Latin America’s strongest and largest countries because they make up most of the common market where other nations come to trade, buy goods and buy cash

It is beneficial to us when assessing said statement to begin by considering the main reasons for the formation of social and economic groupings. First and foremost considering the 4 main types of alliances. Between Free Trade Areas and Customs Unions it is fair to say that the main goal is to restrict imports from non-member countries, in turn allowing the economies of the member countries to flourish and provide for themselves, amongst themselves, in terms of trade. Common Markets on the other hand keep import tariffs in place, instead allowing the free movement of labour and

The United States, Mexico, Canada constitute the North American Free Trade Agreement (NAFTA), which in principle has eradicated all the barricades to trade among these states and developed a large North American market. Myriad economic advancements have taken place because of this treaty and are intended to enhance business in the region. Some of the most significant advancements encompass the removal of tariffs and also import and export shares; the establishment of government procurement markets to corporations in the other two countries; a rise in the opportunity to make savings in each other's state; an increase in the experience of travel among nations; and the eradication of limitations on agricultural produces, energy goods and auto

The current biggest free trade blocs consist of the European Union (EU), the North American Free Trade Agreement (NAFTA) and the Association of Southeast Asian Nations (ASEAN).

For decades, there has been many trade barriers to import and export goods from one country to another. The North American Free Trade Agreement (NAFTA) was established to diminish tariff barriers and to remove investment restrictions. NAFTA has broadened the agreement of countries being able to import and export goods and to provide better servicing. Over the period of time, the use of tariffs and any trade barriers have been reduced as the economy has become more integrated. This integration has generated less power for the government to control trade due to the benefit of economic growth. The goal of economic integration is to increase the volume of trade between countries and reduce the

Common Market - allows for the creation of economically integrated markets between member countries. Trade barriers are removed, as are any restrictions on the movement of labor and capital between member countries. Like customs union, there is a common trade policy for trade with non-member nations. The primary advantage of common markets is workers are no longer needing visa or work permit to work in another member country of a common market. For example, The Common Market for Eastern and Southern Africa or simply known as COMESA.

One of the economical trends in the past years is to have open markets and to trade among different states. This can be seen more then ever in the Americas where the majority of states are involved in regional trade blocs and also bilateral trade agreements. Since the 1990’s the Free Trade Area of the America’s (FTAA) as been in negotiation, which involves two main groups Southern Common Market (MERCOSUR), which is an economic and political agreement between states such as Argentina, Brazil, Paraguay, Uruguay, Venezuela and associate states Chile, Colombia, Bolivia, Ecuador and Peru. Then there is The North American Free Trade Agreement (NAFTA). NAFTA is an

United States of America, Mexico and Canada built the trading bloc which is known as North American Free Trade agreement and removed the trade barrier and tariff between in order to accelerate their economy. Three governments aimed to utilize each countries competitive advantage like labor from Mexico, natural resources from Canada and financial resources and technologies from USA. In brief, the agreement include market access for goods, protection for foreign direct investment, protection for intellectual property, rules of origin and commitment to the

Since the mid-20th century, countries have progressively reduced barriers, subsidies to domestic industries and diverse restrictions on international commerce in order to promote specialization and greater efficiency in production. In theory, free trade allows nations to focus on their main comparative advantages and profit from cooperation and voluntary trade. This strategy is usually reinforced by treaties between two or more countries where commerce of goods and services can be handled across their common borders, without tariffs and other trade obstacles. As a key component of regional integration in the Americas, CAFTA-DR is one important example of this economic ideology.

Free trade areas, FTA, are economic integration arrangements in which barriers to trade (e.g. tariffs), exchange of goods and information among member nations are removed. It is arguable to say that fair trade aims to create equilibrium between LEDC's, less economically developed countries and developed nations in terms of trading activities and ethics. In saying this, free trading between more economically developed countries and LEDC's will mean

Trade agreements facilitate the free exchange of goods and services between nation-states, and contribute to varying degrees to complete economic integration between two or more states. Autarky refers to a non-trading status, a phenomenon rarely seen in today’s increasingly integrated globe. The steps taken to fully integrate are referred to as stages, a categorization that makes evident the variability in degree of integration. At the first stage, a preferential trade area can be set up as a less formal means of encouraging trade by enacting preferential tariffs to target specific countries’ exports (usually developing countries), in addition to other unilateral trade benefits. Free trade areas are the next step up along the full

This co-operation usually begins with economic integration and as it continues it also embrace political integration. Economic integration is the merger of economic policies between different states through either the partial or full eradication of tariff and non-tariff barriers on trade taking place among them before their integration. This in result leads to lower prices for distributors and consumers with the goal of increasing the level of welfare, while ultimately