Case for Regional Integration Economic Political Allow countries to specialize Creates incentive in products they produce for political efficiently cooperation. Easier to gain agreement Reduces potential for than Gatto violent confrontation Role of fdi is enhanced Enhanced clout to deal with Exploit gains from free flow of goods and services and superpowers investment
Case for Regional Integration n Economic – Allow countries to specialize in products they produce efficiently. – Easier to gain agreement than GATT/WTO. – Role of FDI is enhanced. – Exploit gains from free flow of goods and services and investment. n Political – Creates incentive for political cooperation. • Reduces potential for violent confrontation. – Enhanced clout to deal with ‘superpowers’. Case for Regional Integration
Impediments to Integration Although a nation may benefit, groups within a nation may be hurt Concerns about national sovereignty Global Integration urth ■ Debate: Trade creation Trade diversion
Impediments to Integration n Although a nation may benefit, groups within a nation may be hurt. n Concerns about national sovereignty. n Debate: – Trade creation. – Trade diversion. Global Integration
Figure 2: The European Community at the beginning of AlM: the"Europe of the 12+EATA 小 fmhe“ Europe of the 1+EFTA Iceland ofa European European free %fiNland Community Belg Association United King do (EFTA) Denm Austria rance Ireland Netherl an dse wede finland erm any Iceland Luxemb ece Germ any Liechtenstein Treland ustr a Italy Luxembourg Switzerland Portugal Netherlands ortega Switzerl ain Italy United King dom
EU Evolution n Product of two political factors: – Devastation of WWI and WWII and desire for peace. – Desire for European nations to hold their own, politically and economically, on the world stage. n 1951 - European Coal and Steel Community. n 1957- Treaty of Rome establishes the European Community. n 1994 - Treaty of Maastricht changes name to the European Union
NAFTA Jan.1,1994 Remove Abolish cross-border tariffs flow of Protect Services intellectual property Remove FDI 北美自由贸易区 restrictions Apply national environmental Two commissions standards to enforce treaty
NAFTA Apply national environmental standards Protect intellectual property Abolish tariffs Two commissions to enforce treaty Jan. 1, 1994 Remove cross-border flow of services Remove FDI restrictions 北 美 自 由 贸 易 区
CANADA UNITED STATED Power hierarchy Dominican Republic in the Americas Antiqua and Barbuda 1991-1994 Mexico St Kitts and Nevis t vince的 Panama Trinidad and tobago Ecuador Percentile ranking BRAZIL 50to100 151020 BoliMa 051010
南锥体共同体（The Mercosur） n 1988: Argentina, Brazil. 1990: Paraguay, Uruguay n 1995: Agreed to move toward a full customs union. n Trade quadrupled between 1990-1998. n Has significant issues. – Yeats Report. n Economic problems, first in Brazil (1999), then in Argentina (2001) has put plans for the customs union on hold