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).
The Essay on Regional Integration (Advantages And Disadvantages)
... trade barriers, and regional integration also allows the three countries a larger market share and the opportunity to increase competition. Regional integration has been a successful economic ... as the trading bloc to state my favor of regional integration for the region, and my disapproval of it. It is important as ...
Integration helps to overcome fragmentation, it creates larger markets to permit economies of scale, wider competition and increase foreign investment. Integration accelerates opening of economies to the rest of the world, enhances credibility of national reform through lock-in policy mechanisms, strengthen unit for international negotiations, and reduce or resolves inter-state conflicts. Some disadvantages to regional integration are; the costs associated with such integration. For example, as a result of the 1994 establishment of NAFTA, some U. S.
and Canadian workers, in certain fields lost their jobs. Another disadvantage is the concern over national sovereignty. This concern arises because economic integration demands that countries give up some degree of their control over certain policy issues, such as monetary, trade, and fiscal policies. Another disadvantage or concern is that high cost domestic producers will be replace by low-cost producers, and that lower-cost external suppliers will be replaced by higher-cost suppliers.
A final disadvantage is being faced with the need for better local and regional regulations.” The Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitation economic growth, cooperation, trade and investment in the Asia-Pacific region.” (web 2005).
APEC was established in 1989 at the suggestion of Australia, to further enhance economic growth, prosperity and strength for the Pacific Rim area. APEC consists of twenty-one countries such as; Australia, Brunei Darussalam, Canada, Chile, People’s Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, New Guinea, Peru, The Republic of the Philippines, The Russian Federation, Singapore, Chinese Taipei, Thailand, United States of America, and Viet Nam. (The chart below shows the geographical region of APEC).
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Over the last few decades, the resilience and ability of the BRIC countries to withstand economic, social and political forces that have brought down big economies is exciting and worth noting.BRIC is a label that defines Brazil, Russia, India and China which according to demographics and recent economic performance have been identified as the countries to watch when it comes to economic ...
The twenty-one members that make up APEC are referred to as “Member Economies” which account for more then one third of the world’s population consisting of 2. 6 billion people, approximately sixty percent of the world Gross Domestic Product, and about forty-seven percent of the world trade.
APEC also represents the most economically dynamic region in the world having generated nearly seventy percent of the global economic growth in its first ten years. APEC works in large areas of trade and investments to help APEC member economies grow and prosper. APEC also works to create an environment for the safe and efficient movement of goods, services and people across borders in the region through policy alignment and economic and technical cooperation. APEC operates in three broad areas to meet the Boor Goals of free and open trade, these areas are know as Ape’s Three Pillars and these pillars consist of; Trade and investment liberalization, Business facilitation, and Economic and technical cooperation. By establishing these three pillars, APEC members are enabled to strengthen their economies by pooling available resources within the region and achieving efficiencies. There are vast arrays of companies that fall under the APEC agreement, and the differences between some of countries are staggering.
For example the economic indicators provided in the chart below clearly illustrate some of the differences in the countries. Member Economy and Year Joined Area (‘000 sq km) Population (million) GDP (US$bn) GDP per capita (US$) Exports (US$m) Imports (US$m) Australia (1989) 7, 682 19. 5 622. 7 30, 695 70, 779 93, 200 Brunei Darussalam (1989) 6 0. 36 5. 2 14, 352 3, 996 1, 859 Canada (1989) 9, 971 31.
The Essay on The World That Trade Created
The topic of The World That Trade Created by Kenneth Pomeranz and Steven Topik is mostly dealing with society, culture and economy. The book takes place all over the world from 1400 to present. The time periods are so interesting because it relates to the modern day economy. It also shapes how our economy came to be, where these ideal strategies for industry and etcetera originated- the cultural ...
3 970. 3 30, 439 271, 572 263, 324 Chile (1994) 757 15. 6 89. 3 5, 571 21, 461 19, 413 China (1991) 9, 561 1, 294 1, 601 1, 227 438, 473 413, 096 Hong Kong, China (1991) 1 7 164 23, 592 228, 654 233, 194 Indonesia (1989) 1, 904 217. 5 222 1, 003 72, 360 43, 211 Japan (1989) 378 127. 5 4, 621.
2 36, 184 471, 913 383, 361 Korea (1989) 99 47. 4 667. 4 13, 806 193, 817 178, 827 Malaysia (1989) 333 23 112. 5 4, 418 120, 693 99, 600 Mexico (1993) 1, 973 101.
8 663. 1 6, 377 156, 422 165, 410 New Zealand (1989) 271 3. 8 92. 9 23, 120 16, 261 18, 466 Papua New Guinea (1993) 463 5. 7 4. 0 686 3, 585 1, 367 Peru (1998) 1, 285 26.
5 66. 2 2, 290 8, 420 8, 162 Philippines (1989) 300 78. 6 84. 2 1, 019 43, 190 47, 005 Russia (1998) 17, 075 143.
8 517. 8 4, 016 132, 089 62, 869 Singapore (1989) 1 4. 2 103. 6 23, 999 144, 121 127, 996 Chinese Taipei (1991) 36 22. 5 307. 5 13, 359 144, 059 127, 506 Thailand (1989) 513 64.
3 165. 7 2, 556 80, 253 75, 679 United States (1989) 9, 373 288. 5 11, 750. 4 39, 991 724, 771 1, 257, 121 Viet Nam (1998) 331 80.
2 40. 4 494 20, 838 25, 773 Conclusion APEC is a strong believer that strong and vibrant economies are not built by governments alone, but by partnerships between governments and stakeholders. Regional integration has its pros and cons, and each company may be affected differently then another company as a result of this integration. Integration is not easily achieved or sustained but with the implementation of regional integration a company might greatly benefit from such integration. Reference: University of Phoenix, (2003).
International Business: Competing in the Global Marketplace [University of Phoenix Custom Edition e-text].
Upper Saddle River: Prentice Hall Publishing. Retrieved August 15, 2005, from University of Phoenix, Resource, MGT/448-Global Business Strategies website: web Economist: Pocket World in Figures: 2005 Edition Source: The APEC Region Trade and Investment 2004.
