Regional Integration Essay

Submitted By AshleyKruempel1
Words: 721
Pages: 3

Both Sides of Regional Integration

Both Sides of Regional Integration The increasingly strong force that business globalization has put on the world is pressuring countries to form alliances with the countries closest to promote international trade. Two of the largest bloc groups are the North American Free Trade Act (NAFTA) and the European Union (EU) that combined forces with surrounding countries to lower tariffs and remove barriers to increase production and trade of all market items and products. These groups are now a dominant force in the world and a source to be learned from. The EU consists of over 300 political officials from the 27 member states that are located in central Europe. 30 years ago Europe was a crumbling mess trying to rebuild its foundation after the two world wars it survived (Hill, 2009). Aligning forces for the EU started in the 50’s and has now become such a dominant force it is trailing the gross domestic profit margins of the United States and Japan and could be an independent force for a dominant world order. The EU has now far surpassed the benefits that come with a free trade agreement but are now a dominant political force known as the European Parliament. The member states of the EU have come together and not only removed tariffs and barrier but now follow the same policies and regulations regarding the production and trade of products. This forms an assurance to consumers that the products being purchased are the same quality and standard that is issued in that country. Another step further, the EU has dropped its individualized government run monetary system and opted for a European currency that is valued the same amongst all countries; the euro (Hill, 2009). The level of economic integration the EU is at brings forth power to smaller countries that would never be in this position without these agreements. The EU is focusing on unifying there electric and gas services as well in a free market which will increase competition and lower prices for consumers. By joining forces the EU now has direct access to over 450 million consumers and is becoming extremely efficient (Hill, 2009). Regional integration is not a one-step solution to the world’s international business market; it is a very complex, expensive, and time consuming project that is often not initially received well by consumers. When countries join together in trade agreements the benefit to the economy is a slow process that is often the target focus of any and all media coverage. In the meantime local production companies, warehouses, and resources are being removed or relocated. Thousands of people in the EU have lost their jobs and had to close the doors to small businesses because the products being…