Regional Integration for and Against Article-EU Essay

With all complex political and scotch ventures there argon pros and cons. Regional integrating is no different and has many benefits and risks. In range for one to gain a better understanding of the issue, it is necessary to break down both the advantages and disadvantages of regional integration. In this paper I will saying at some of the advantages and disadvantages of regional integration in the European compass north. I will also discuss the scotch stages and growth of France and Austria. The European Union (EU) was created in the of late 1950s to bring ab aside peace, equality, and the value of benignant rights. It has grown into one of the strongest regional groups in the world and has acquired a nitty-gritty of 27 outgrowths. With these values at the helm of the European Unions work its membership has grown. Many countries flock to join the EU because of its numerous benefits. These benefits validate the formation of regional integration as an effective way to fulf ill peace, security, and prosperity.There are many economic advantages of regional integration. It advise produce bigger markets with more trading opportunities, while boosting competition and cut prices for consumers. It has also been shown that integration introduces higher levels of domestic help and foreign ratement. EU has advanced by introducing common currency-Euros. The presence of a common currency is a benefit to consumers because some of the transaction costs are reduced. When members of EU vocation there is not a need to buy or shift foreign currencies therefore the losses of exchange is removed due to regional integration. In this situation firms are satisfactory to pass on their savings to consumers by reducing their prices. Trading generates a lot of wealth which helps European Union give its citizens a better life and future. The EU whole shebang to achieve fair championship and wants to ensure that its partners in developing countries scum bag join their system. With the formation of the regional organization, firms are able to harbour greater and easier access to the markets of opposite(a) members. This change magnitudes market size and allows firms to be intimate higher electric potential profits.Firms alsoare able to have greater access to resources from some other members states. This has been said to lower costs of inputs to allow them to extend their profits as well. Regional integration also allows firms to expand and adjoin profits and when profits and output increase, this will assist to promote economic growth in the country and the region. With regional integration member states have the support of other member states and this increases investors agency in the region. With more confidence in a region investors are willing and able to invest in EU with confidence. All of these things will help EU to achieve its goal, promote growth and increase standard of living across the entire region. Austria and its economy greatly benefited after entry into the EU in the late 1990s but with this interdependency Austria has become vulnerable to financial instableness. A few of the banks there required assistance from the government such as nationalization. In an effort to strengthen banking groups Austria National Bank came up with a system of measures and moved up implementation of the Basel III rules.They will wait to restructure and encourage greater labor flexibility and increase alliance of labor to offset many of its problems. France came up with a series of economic plans that would provide a growing governmental direction of the economy. Some of their plans include an expansion of their basic sectors which exceeded the goals they set. Another plan was to create monetary stability and balance foreign payments. This increased production by 20% and brought forwards a major economic expansion. France faced poor growth, lowered cosmos finances, and elevated unemployment before joining the EU. Af ter joining France moved into liberalization. immense shares of utilities and telecommunications were privatized. In spite of the European Union (EU) being most authoritative regional in the world many countries arent interested in joining. This is largely due to the disadvantages of regional integration. One disadvantage to regional integration would be the loss of sovereignty. To establish integration member nations are make to give up their sovereignty to a regional parliament, council, or other body.This body will have authority and make decisions that may ingrain every member. Regional integration also makes it hard for national governments to issues and carries out policies based on what they need. These policies which may be beneficial to one member could hinder the economies of other member nations. (Alfredo, D.2011) In regional integration members enjoy lower tariffs for trade but this could result in an unfair comparative degree advantage over non-member states. This wo uld mean countries are no longer able to trade based on their comparative advantage because of the discriminatory tariffs and barriers that EU practices. When countries are unable to trade according to their comparative advantage, production is less(prenominal) efficient and they will no longer reap the benefits of free trade such as higher world output and lower prices. up to now though it has been argued that regional integration allows firms to gain greater access to markets of other member states and thus enjoy higher potential profits. Regional integration also exposes firms to greater competition from firms of other member states as well. adversity to compete with firms may cause local firms to close down. This will increase unemployment rate in the country. (Advantages & Disadvantages.2010) After reading this paper it appears evident that regional integration brings member nations together in quantify of prosperity and times of difficulty. The advantages and disadvantages d iscussed in this paper can each be seen as beneficial, harmful, or neutral, depending on what is going on in the world economy and the domestic situation of member nations.ReferencesAdvantages & Disadvantages. Retrieved April 18, 2010 fromhttp//library.thinkquest.org/19110/english/advantag/advantag.htmlAlfredo, D. 2011. Advantages & Disadvantages of Regional Integration. Updated on May 21, 2011http//www.ehow.com/info_8461841_advantages-disadvantages-regional-integration.html