Regional economic integration improves the political cooperation between the neighboring states and reduces the potential for violent conflict.
Do you agree or disagree? Provide your views with examples.
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Regional economic integration improves the political cooperation between neighboring states. Also, it helps to reduce conflicts in the states since it offers members in the states preferential trade access through custom unions, economic unions, common market, and free trade. In free and open trading activities, political cooperation between the states involved is enhanced. Peaceful political cooperation between states has numerous benefits for peaceful coexistence between the involved parties and members; hence, violent conflict abstains at all costs.
Regional economic benefits have advantages for the involved members of states. First, it creates job opportunities for the residents of these states – it helps remove restrictions on economic integration and labor movement; by so doing, state members coexist peacefully hence promoting political stability. Regional economic integration also creates trade by removing investment and trade barriers in the involved states. This factor promotes the growth rate of the involved states and lower prices for consumers; hence, peaceful coexistence is promoted. In addition, Regional economic integration also promotes consensus, cooperation, and increased trust in the involved states (Strachan, 2018). This factor has a high impact on political stability and peaceful coexistence in the involved states since it facilitates regional similarities, agreements, and understanding in the involved states.
An example of regional economic integration in North America is The North American Free Trade Agreement (NAFTA), whose primary goal is to encourage free trade within Mexico, the USA, and Canada. NAFTA has had numerous advantages in promoting peaceful existence and political stability. CAFTA-DR regional trade has also impacted peaceful and political stability within North America and Central American states.
Regional economic integration is a course of action among countries that regularly incorporates the decrease or end of exchange boundaries and the coordination of money related and monetary approaches. Financial mix expects to lessen costs for the two buyers and makers and to increment exchange between the nations engaged with the arrangement.
I agree that regional economic integration very useful and will provide many benefits, including :
The most famous example on this subject that adequately illustrates the term is the European Union (EU). The European Union (EU) was made in 1993 and included 27 part states in 2022. Beginning around 1999, 19 of those countries have embraced the euro as a common money. As per information from The World Bank, the EU represented generally 18% of the world’s total national output.
The United Kingdom casted a ballot in 2016 to leave the EU. In January 2020 British legislators and the European Parliament casted a ballot to acknowledge the United Kingdom’s withdrawal. The UK authoritatively split from the EU on January 1, 2021.