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    Regional Integration in South America

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    Prepare a 1,050-1,750-word paper in which you analyze the role of regional integration in promoting global business in the South American countries. Discuss the advantages and disadvantages of regional integration (NAFTA, EU, APEC, ASEAN, CAFTA, etc.). Compare and contrast the economic development stages of countries within your chosen region and the ramifications of your region's economic development for global business.

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    I have taken South American region for this assignment

    Establishment of trade zones like MERCOSUR, NAFTA have enabled countries to cooperate more with each other, take advantage of each other's strengths, and promote international trade volumes. Technology transfers between countries have enabled countries to enforce standards like ISO: 9000 etc. Policies like carbon credits, which are being used by countries worldwide to benefit by decreasing pollution, is being made possible by bilateral trade agreements between countries.
    There are many regional blocks in this region. In Latin America, for example, the four subregional agreements currently in operation are the Southern Common Market (MERCOSUR), the Andean Community (AC).

    The Andean Community of Nations (CAN) is a trade bloc comprising the South American countries of Bolivia, Colombia, Ecuador, Peru and Venezuela (which is in the process of leaving the bloc). It has around 120 million inhabitants living in an area of 4,700,000 square kilometers, whose Gross Domestic Product amounted to US$745.3 billion in 2005, including Venezuela.

    The Mercosur is discussed below.

    Unification of South American Markets

    They are in process of unifying the South American markets. The step towards that is the formation of South American Community of Nations (CSN) which will be a continent-wide free trade area that will unite two existing free-trade organizations?Mercosur and the Andean Community?eliminating tariffs for non-sensitive products by 2014 and sensitive products by 2019.

    2. Discussing the advantages and disadvantages of regional integration in regards to the Mercosur and South America countries.

    MERCOSUR is a trade bloc between Argentina, Brazil, Paraguay, Uruguay and Venezuala. The bloc comprises a population of more than 263 million people , and the combined Gross Domestic Product of the member nations is larger than 2.42 trillion dollars a year (PPP) according to World Bank numbers, making ...

    Solution Summary

    Regional integration in South American is discussed. The solution compares and contrasts the economic development stages of countries within the region.