Benefits Economic Integration

Benefits Economic Integration

1. Trade Creation:

   • Wide selection of goods and services.
     • Because each country especialize in exploiting the best sector of the market that beneficiates them the most.
       • Example
         • In venezuela, what they produce the most is the petroleum because it beneficiates the most
   • Cost reduction
     • Reduction of production cost due to cheap workforce or cheap raw material
       • Example
         • In china the companies prefer to produce due to the cheap work force. This happens because china`s government does not recognize some labor rights to the workers.

2. Greater Consensus

   • -Engages and empowers the group -Creates shared understanding through discussion that bridges differences -Equalizes the distribution of power in the group - Results in more effective implementation because the entire group takes action on the project. - May be easier with small group of countries than it is in larger groups
     • Example
       • World Trade Center (WTO)

3. Political Cooperation

   • -Treats states as unitary actors. -Improve international competitiveness - Generates Potential constraints and benefits of openness in a market sector. -Reduce the potential for militaryconflict among its members,

4. Creates Jobs

   • -Most likely that the export sector would expand, producing the need of more workforce.-People are allowed to relocate internationally for work. - High wages
     • Example
       • In the call centers are many jobs thanks to economic integration, because the economic integration make way to the comunication system as we know it. These new system connected everything so the costumer doesnt have to go to a country to invest, buy,etc.