What are the economic and political arguments for regional economic integration PDF

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Regional economic integration...

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What are the economic and political arguments for regional economic integration? Given these arguments, why don't we see more integration in the world economy? o

Regional Economic Integration is an agreement between countries to reduce and eventually remove tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other. My believe is that agreement can cause lot of problems on developing countries because they depend on developed countries to smooth the process of doing business. The economic argument for regional economic integration is when you put the restriction in free trade it slows down the development of the country’s objectives and financial growth. Also, That deal decrease the surplus of the consumer which is not good for the economic. But some people do give counter response that those deals can increase the trade diversion. The political argument is that those deals can build up good relationship between countries which can reduce the wars tensions. Countries were more dependable on each other and link with each other. We do not see more integration in the world economy because those can take lot of time and lot of economic/pollical resourcees. Many developed countries can take benefits from those deals, but the developing countries will lose everything. Also, on pollical point countries who will be included in the deal will lose their absolutive power on those countries.

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Select a current global trade agreement event e.g. BREXIT (UK withdrawal from the European Union), USMCA (the new North America Free Trade Agreement or NAFTA) etc. Briefly describe the Trade Agreement (who’s involved, when was it established, scope of trade agreement etc.) This could be from a news or other credible source, such as electronic newspapers, New York Times, International Business Times, Economic Times, or CNN News.

The trade agreement that I choose is Israel Free Trade Agreement. In that agreement US and Israel is involved. It was established first time in 1985. It was the first FTA that represent the US. It was the foundation Agreement that increasing trade and investment between the United States and Israel by easing obstacles and boosting governing clarity. According to the article “In 2017, the United States and Israel agreed to adopt new procedures making it easier for exporters to gain approvals when claiming duty-free status under the FTA for individual products.” (ustr.gov)

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Provide a summary of the article, relating it to the material you have read in chapters 1, 2, and 3. Include an explanation of what you learned in this article about regional economic integration/partnership and if you agree with the author's perspective. When I read the article, it shows that political relationship become good. They are dependable on each other. It not only effects the political relationship but also it grows

trade. We read in chapter 3 that with those agreement one country can get more then other. And same thing happens in that agreement. Article said “In 2017, U.S. goods exports to Israel decreased 4.9 percent to $12.5 billion from 2016. Since 1985, when the United States-Israel FTA came into force, U.S. exports to Israel have risen by 456 percent, although in 2017, the United States ran a $9.4 billion bilateral deficit in goods.) (ustr.gov). And I agree with the article perspective that both countries are getting benefits from that deal. In service sector US have more advantage and in goods sector Israel have more advantage....