Question

Explain why the phrase “to create larger pools of land, labor and capital resources” is often used as a justification for international economic integration efforts.

Thanks a lot !

Answer 1

The phrase “to create large pools of land, labour, and capital resources is often used in international economic integration efforts because as we turn towards globalization or an economic integration, the resources in which an economic agent deals will increase. An agent will have the advantage of choices between land, labour and capital. Large pools of land, labour and capital increase benefits the consumer and producer both. A producer gets an enormous amount of consumers and because the competition level increases the consumer welfare also increases.