Analyse the role of regional integration in promoting global business of Kenya, Africa. Can you please discuss in detail the advantages and disadvantages of the regional integration (NAFTA, EU, APEC, ASEAN, CAFTA, etc.). Compare and contrast the economic development stages of countries within Kenya, Africa and the ramifications of this region economic development for global business.
Please try to be detailed and specific as the one I found on another region that is already a Brainmass post.
Global Business Strategy/ North America Region
Topic: Business Analysis
Posting ID: 88190 OTA ID: 104898 Solution Rating: N/A
In general regional integration consists of an agreement between a group of countries involving free trade that moves progressively towards deeper economic integration, culminating in economic and monetary coordination. In some cases, it is unclear whether such close ties would be beneficial. However, it is essential to Kenya's economic prosperity that it forges new trading agreements.
Free trade agreements permit each country to focus on its comparative advantage, so everyone profits. An open economy leads to concentrated costs (and diffuse benefits) in the short run and significant benefits in the long run. Protectionism generates pain in both the short and long run. The main advantage of regional integration is economy of scale. By allowing countries and thus industries to locate where they are most efficient, they can produce goods for less cost. When goods and workers to move freely, companies can quickly achieve the necessary size to maximize their profits. Other advantages that companies benefit from include: the opportunity for smaller companies to expand globally quicker, having more choices when recruiting a workforce and lastly the opportunity to target a larger customer base (which translates to greater earning potential). In addition, free trade agreements promote the establishment of legal protections for investors, improvements in intellectual property protection, more transparent and efficient customs procedures, and greater transparency in government and commercial regulations. ...
Compare and contrast the economic development stages of countries within Kenya, Africa and the ramifications of this region economic development for global business.