The Role of Regional Integration in Promoting Global Busines

Solution Preview

The Role of Regional Integration in Promoting Global Business

Regional integration is defined as association of states that are combined for the purpose of increasing regional cooperation and lessening regional tensions. These regional integrations focus on increasing the free movement of goods, capital, labor and people across national boundaries, removing barriers to free trade and creating a larger market for trade and investment. Thus, it is a process to support economic growth strategies and to promote development through greater efficiency.

//In the following part, I am taking an example of a European region. You are free to take any other region for your query. I am going to tell you how to write on any region with regional integration. For example: //

Regional Integration in the European Union

The flow of goods, services, capital, money, technologies and people spreading worldwide is globalization. Globalization increases productivity through increasing competitiveness. It is the process of integration of economic, social and political systems of various countries.

The European Union is the region that represents and negotiates the largest trading group in the world. The European Union has created a solid basis for Europe's economic recovery by creation of the single market and abolition of national trade barriers. The regional integration process has been pioneered by the European Union and it works for pooling and balancing national sovereignty against the needs of common structure and policies. It puts impact on the intra-region trade and investment.

The European monetary union was also set up by the European Union that took a more concrete shape in the form of the European Monetary System. Then the monetary unit of the European Monetary System was The European Currency. EMS was a composite monetary unit made up of a basket of a specified amount of the currencies of EU member countries. The amount was determined on the basis of the country's GDP and foreign trade. The ECU was replaced by the Euro in January 1999. (Sharan, V., 2003)

Regional integration leads to widening the size of the market, reaping of the economies of scale, building up of self-reliance among the member countries, and increased foreign direct investment in the European Union. Through this strategy, Europe made a contribution to overcome global inequalities and poverty. It has made Europe an even stronger power that increased the necessity to engage with the world. This means that the role of regional integration is very vast in the European Union that makes it more competitive in the global World.

The European Union works for transparent and fair trade worldwide ...