preview

Economic And Political Arguments For Regional Economic Integration

opinionated Essay
1017 words
1017 words
bookmark

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

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)

Political

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 …show more content…

In this essay, the author

  • Explains the economic and political arguments for regional economic integration.
  • Analyzes how the us and mexico argued that the north american free trade agreement would allow each individual economy to specialize on what it is most efficient at, creating synergy between the two nations.
  • Opines that the truckers were citing american safety as a reason against creating economic synergy between the two nations.
  • Explains that 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, services and factors of production.
  • Explains that the political case for regional economic integration stems from national security and the european union.
  • Explains that there are multiple levels of regional economic integration, such as the free trade area, customs union, common market, economic union and political union.
  • Opines that in a perfect world, there would be absolute regional economic integration which would allow each country to become quite specialized and, therefore, quite efficient.
  • Explains that brexit is an effort to reverse regional economic integration. the united kingdom was a member of the european union.
  • Argues that leaving the european union will save money by lowering prices and abstaining from "membership fees."
  • Explains that london generates as much tax revenue as the next 37 largest cities in the united kingdom. london is the leading international finance center due to its access to the european union.
  • Explains why leaving the european union would put the united kingdom in a bad way financially.
  • Opines that any anti-immigration argument for leave is rooted in nationalist sentiment based on fear and insecurity, not in quantitative economic policy.
  • Opines that a true brexit would be disastrous for the united kingdom's economy, as london is the largest global financial center.

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, services, and factors of production between each other." The prevailing economic argument for regional economic integration is that it creates economic synergy by allowing each country to focus only on what it is most efficient at producing. Much of the political case for regional economic integration stems from national security. Another case study provided by Hill is the European Union. The nation states of Western Europe bonded together in an effort to deal with the political giants of the USSR to the east and the USA to the west. Further, regional economic integration can facilitate political harmony between nations due to their increased level of …show more content…

The United Kingdom was a member of the European Union. The European Union is an example of the second most integrated arrangement, the economic union. Therefore, voting to leave is a direct effort to reverse regional economic integration. The main arguments to leave are to control immigration, reject the excessive bureaucracy (and associated cost) of Brussels and to lower prices for goods and services in the United Kingdom. I will focus on the economic argument to leave: leaving the European Union will save money by lowering prices and abstaining from "membership fees." According to the British think tank Z/Yen, London is the top-ranked center for global finance. According to another think tank, the Centre for Cities, London generates as much tax revenue as the next 37 largest cities in the United Kingdom. The tax alone on financial services in London is immense. The European Union combined has the highest GDP in the world (above that of the United States) (GDP SOURCE). One of the principal reasons for which London is the leading international finance center is its access to the European Union, the world 's largest economy. Obviously, the United Kingdom being a member of the European Union is enormously helpful to ease the operations of the incredible amount of financial services that happens between London and the European

Get Access