Question

Describe how the creation of a single market through regional economic integration offers significant opportunities. Provide an example.

Answer 1

Regional economic integration enables a group of countries that are geographical neighbours to form an integrated market- a single trading bloc which protects member countries from imports from non-members in other geographical regions. This facilitates more trade within member countries as barriers to trade are generally removed. Trade restrictions of other kinds are also removed and there is free movement of capital and labour between members. Workers can easily shift between member countries without need for visas and work permits. For a successful integration into a common market, member countries also harmonize their trading policies for both member and non-member countries.

A great example is the European Union or EU which is a commonly integrated market for all member counties. It  guarantees the free movement of goods, capital, services, and labour within the member countries without any regulatory obstacles or other barriers to free trade. This commonly integrated market structure has boosted competition and trade, improved efficiency and quality while helping cut prices for the European Single Market.