Question

What is good and what is bad about regional economic integration?

Answer 1

Regional Economic integration typically includes the reduction of trade barriers between different regions or nations and coordination of fiscal policies among them.

The good about economic integration is trade benefits (reduction in cost of trade), employment, political cooperation, availability of goods or services, encourage investment, more rapid growth and economics of scale.

The bad about economic integration is trade diversion may occur which leads to small members become a depressed region of the group and high cost producers could be taken over.

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