In: Economics
Answer -1
Development of an economy is consider as migrating of economy from agriculture economy to non-agriculture economy. It’s require huge amount of investment, technological development, and access of new markets. According to Wikipedia source Uruguay has highest per capita income in Mercosur member’s countries. So Uruguay has highest power of per capita investment in Mercosur member’s countries and investment cause new industry, technological development, less unemployment. Well, investment is not enough for development industry require demand for products, and MERCOSUR trading bloc has open new market for the industry.
Uruguay is small country with very low population and area wise, it can not save its sovereignty alone. So Uruguay need alliance and MERCOSUR have proven good alliance as for.
Answer – 2
For companies economic integration mean is fair and free trade between and particular regions. MERCOSUR members countries has fair and free trade between country, by joining them its become a very large market for any company or plant like Nordex auto assembly plant. That create high demand of Nordex products.
Answer – 3
Each country is specialize in something and have advantage over other countries. Mostly trade union try to make economic policies so all country can gain surpluses/profits by working on there specialties and this call as trade creation. Sometime trade union economic policies become disadvantage for some country and they did not get any surpluses or profit but some get it a lot, this is known as trade diversion. well, in the case of MERCOSUR each member country is gaining its GDP, by using there geographical advantage each member county is specializing in something ( except Venezuela, cause of political conflict in country).
Answer – 4
European Union is a result of world war and conflict in trade tariff. It members have different social, political, economical and ideological history. But MERCOSUR members had been exploit by own country same time and got freedom in same era, economical and social problem in these was almost same. MERCOSUR is a result of integration of trade.