Economic Integration and Free Trade
This book is a good introduction to the theories behind Economic Integration and Free Trade. It explains the benefits and drawbacks of the two, as well as how they relate to one another. It explains how free trade agreements are a good idea, and what you can do to benefit from them. The author focuses on the benefits of free trade agreements for developing countries. He gives an extensive overview of relevant theories and research findings.
Free trade and economic integration are critical factors in reducing poverty and promoting economic growth. As such, it is important to find ways to promote economic growth and integration. For instance, the Association of Southeast Asian Nations (ASEAN) is a regional grouping with members from six different countries. The countries in ASEAN have achieved some success in economic integration through free trade, as their combined GDP is $3.2 trillion. In 1992, ASEAN signed the ASEAN Free Trade Area. Its goals were to create a single market, increase intra-ASEAN trade, and attract foreign investment. The ASEAN Free Trade Area prioritized eleven sectors for integration.
Many economic integration agreements have elements of several classifications. For example, the European Union is a free-trade area, while the North American Free Trade Agreement is a customs union. The European Union also has a common currency and monetary policy, and it also includes rules to regulate government deficits. Free trade zones are also often defined as areas in which the customs authorities of two or more countries are not required. They also include provisions that encourage investment flows and improve access by professionals.
While free trade allows for increased competition, some free trade practices are not ethical. Some countries restrict labor rights while allowing for unfair competition. A dislocation of labor among these countries may indicate that economic integration and free trade aren’t as ethical as they appear. In many cases, the goods produced in a free-trade partner state are subsidized in a way that is incompatible with ethical standards. Further, a free trade policy may result in undervaluation of labor in the lower-cost country.
There are two main reasons why this is important. First, it would allow for a simpler, more transparent trading environment. Second, it would make it easier for people to transact with each other, while facilitating trade. Third, a free-trade area would create an even more open marketplace for goods and services. Moreover, free trade agreements would create jobs in developing countries. Lastly, economic integration and free trade would make it possible for countries in the region to become more competitive in the world market.
Another important factor to consider is the degree of free trade agreements between countries in the region. For example, the Southern Cone Common Market was created in 1991 by countries such as Uruguay, Argentina, Brazil and Paraguay. The Treaty had three main elements. The first phase ended on 31 December 1994 when internal trade barriers were eliminated. Second, a common external tariff was implemented on 1 January 1995, removing all barriers to free trade between member countries.