The Role Of Regional Integration Essay - 1476 Words

Global Business as pertaining to our topic describes changes in our worlds economy that result from dramatically increased internationational trade and cultural exchange. This paper will analyze the role of NAFTA (North American Free Trade Agreement) in promoting global business. Besides NAFTA, regional integrations such as: EU, APEC, ASEAN, CAFTA, or others may be discussed for the purpose of comparing advantages and disadvantages of regional integration. Also discussed will be the economic development stages of countries within NAFTA (United States, Canada, and Mexico) and any ramifications of NAFTA development for global business. NAFTA NAFTA is an agreement between Canada, the US, and Mexico that took effect on January 1, 1994,†¦show more content†¦It represents more restricted trade to the extent that it results in trade diversion by shifting of production from an efficient nonmember country to a less efficient member country and promotes global business in this way. NAFTA was destined to recast the economic landscape of North America. For over a century, the U.S. economy had been shaped by growth along an east-west axis. NAFTA was going to be responsible for a sea of change in North American economic and transportation patterns. The business growth along the north-south axis would probably exceed that along the east-west axis in U.S and that NAFTA would be the engine propelling change. Advantages and disadvantages NAFTA Of course the obvious point of regional integration is to benefit all involved. Under most circumstances the advantages of integration out way the disadvantages. NAFTA is voluntary as are many other regional integrations. Some reasons countries band together are: CostÂâ€"sharing on regional projects, a stable financial region, Pooling of technical expertise, Joint representation at international conferences and meetings, and having a stable financial region. The North American Free Trade Agreement (NAFTA) creates a single, North American market of nearly 400 million consumers larger than the 12 countries of the European Community and a combined GDP of $11 trillion. United States, Mexico, and Canada areShow MoreRelatedThe Role of Regional Integration in Promoting Global Business.1157 Words   |  5 PagesThe Role of Regional Integration in Promoting Global Business. Regional integration is growing as a means for economic growth for many countries. Throughout this paper we will discuss the promoting of regional integration into the Northern South America region. In addition, the paper will discuss the advantages and disadvantages of regional integration as it relates to (NAFTA, EU, APEC, ASEAN, CAFTA). 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