Question

What level of regional integration is the CARICOM Skills Market Economy, the Organisation of Eastern Caribbean States (OECS) and the European Union (EU) according to the theory postulated by Bela Balassa (1961) Discuss the characteristics of each defined level of integration.

Provide an overview of the CSME Regime which facilitates the establishment of businesses across the CSME.

Provide two examples of businesses from your home established under the regime identified in (b) above and discuss the overall impact of these businesses on your country's national development.

Critically discuss with the use of statistical data to justify your position whether the CSME has enabled trade creation or trade diversion.

Answer 1

" Integration" denotes bringing together of parts into a whole. In the economic literature the turn " economic integration" does not have such a clear-cut meaning. It means integrating the trade among the countries.It formulates policies to avoid discrimination among the countries.The " BELA BELASSA" thoery is based on the implicit assumptions that discrimination actually affected economic intercourse. A CARICOM national integration is a single market and economy also known as the Caribbean single market and economy is an integrated development strategy which took place in 1989 in july. The key features are;;

1) Depending economic integration by advanced beyond a common market towards a single market and economy.

2) widening the membership and there by expanding the community.

3) Progressive insertion of the of the region into the global trading and economic system by strengthening the trading links.

regionally it establishes the directly supervised,supervised skilled workers,independent ,specialised,managerial workers.

Carribean Single Market Economyas an initiative currently being explored by the CARICOM that would integrate all of its memberstates in to single economic unit,This would result in elimination of all tariff barriers with in the region. This will resolve number of issues faced by small countries. The CSME is combined the econamic units, decreased tariffs and foster compitation. The heads of CSME have agreed to increase the advancement to reach globalization. The market decreased tariff on imports and exports. The goal of CSME aimed to reduce proffessional restructions between the Nations. The fundamental aspects includes

1. Consumer affairs.

2. Compitation policy.

3. Social security.

4. Contingent rights.

5. Administrative agents.

6. Immigration arrangements.

7. Trade and Compitativeness.

OECS, the organisation of estern Caribbean states is an economic union comprising of Ten Islands located in the eastern caribbian that promote unification of economic trade policies. It was formed in 1981. It was implimented number of pilicies to remove trade barriers.
Single Market comprises five (5) regimes:

1. Free movement of skills/labour.
2. Free movement of goods.
3. Free movement of services.
4. Free movement of capital.
5. The right of establishment.

The reasonal business having impact of CSME. The condition for successful reasonal Integrations and the pitfalls to be avoided are identified are identified and analaysed. The findings are then applied to the challenges confronting the CARICOM and CSME. It provided Integration , coordination of the members of country .It must be dynamic in global economy including the largest trading parners likevEuropean Union.This integration helps lead to free flow of the market like supply and labour ,goods and pooling resources to the global economy.The implication of these trends of CARICOM implimenting in the industry and agriculture.