Intro — Overview of main economic integrated groups (the acronyms) and the five levels according to Hill. Using Brexit as an example.
1) free trade area (reduce tarriffs and import quotas)
Example. NAFTA. Allows specialization.
2) customs union (same import duties)
Allows not necessarily free trade
3) common market (european economic area)
You can work elsewhere, not just
4) economic union (common market with customs union)
5) political union (state composed or created from smaller states)
A good case study surrounding regional economic integration can be found in the trucking industries of the US and Mexico during the establishment of the North American Free Trade Agreement (Hill). As usual, both sides argued the free trade would allow each individual economy to specialize on what it is most efficient at, and therefore create synergy between the two nations (Hill). However, the American truckers were not keen on this idea. They argued that the low standards of the Mexican trucking industry (including quality of trucks and regulations on amount of hours truckers could drive) would be a safety issue on American roads.
Needless to say, that the truckers were citing American safety as a reason against a measure that would create economic synergy between the two nations is a political motive. This is an excellent example of a political argument against economic integration and an economic argument for regional economic integration.
According to Hill, regional economic integration refers to "agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, ser...
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.... The United Kingdom has one of the lowest unemployment rates in the world. Further, according to a 2013 publication from University College London shows European migrants pay more in taxes than they take out in state benefits. European migrants are a financial positive-sum game for the United Kingdom. Therefore by definition any anti-immigration argument for Leave is rooted in nationalist sentiment based on fear and insecurity, and not in quantitative economic policy.
One could even venture to say the fact that Brexit was a referendum in itself suggests there is potentially something politically wrong with the referendum process. Though the exact terms are still being sorted, a true Brexit would be disastrous for the economy of the United Kingdom. This would extend to the global economy as well, as London is the largest global financial center in the world.
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