Economic Integration Is Defined As An Economic Adjustment Essay

Economic Integration Is Defined As An Economic Adjustment Essay

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Economic integration is defined as an economic disposition between different divisions that are associated together through the synchronisation of fiscal and monetary policies as well as the reduction or elimination of barriers to entry for trading. The sole aims of economic integration are to succour both consumers and producers, by minimising costs, and also to maximise trade between the countries which are involved.

In total, there are 8 stages in the economic integration operation, starting from a highly loose alliance of countries in a preferential trade area, to a completely economically integrated coalition, whereby all the economies of the member countries in the union are thoroughly integrated. The first stage is when all countries start out as independent economies, then they proceed on to the ‘preferential trade area’ stage, followed by a free trade area. The fourth stage is when participating countries would come together to form a custom union, where they would have a common external trade policy, and the next stage would be the formation of a common market. After, there would be a fiscal and monetary union of all the countries involved, and lastly, a political union.

The notion of the European Union might sound unexacting at the beginning, but it has a rich history and a very distinctive organisation, all which has been of assistance to the current success of the organisation and its capability to consummate their mission for the 21st century. The European Union (EU) was founded and created following the aftermath of World War II in response to the political, social and economic desolations; resulting from nationalist divisions within the European region. The EU is also a politico-economic union comprising of 2...


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...output capacity in the economy, but when there is an overcrowding of foreign workers, the level of labour input will be greater than the level of output, and thus, in the long run, companies will be confronted with shut-down prices and will no longer be able to sustain their businesses.

On the other hand, the UK also faces social issues as the fleetingly increasing population due to migration may cause a fall in living standards. As an example, the problem of drastic shortages of housing is very prominent in the country as well as the unwillingness to build more houses on green belt land that is becoming more and more scarce. In many of the major cities, the number of cars are escalating and the government is unable to build more roads due to the limited space in the country. As a result, roads are becoming more congested and the amount of air pollution is rising.

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