Question

What are the economic and political arguments for regional economic integration among ASEAN nations? Given these arguments, why don’t we see more substantial examples of integration in the world economy?

Answer 1

ANSWER: Generally, the economic case for the regional integration is here straightforward. as said in chapter 5 the unrestricted free trade allows countries to specialize in the production of the goods and services that they can produce them most effectively. For suppose if this happens as the result of the eonomic integration within a geographical area, therefore the net effect is greater than the prosperity for the countries of the region. From different perspective of physcology and regional economic integration can be seen as an attempt to attain extra gains from the free flow of the trade and the investment between the nations beyond those attainable under the international aggrements such as the world Trade Organization. The political case for the integration is also really compelling. By the process of linking the neighbouring economies and making them as increasingly dependent on each other creates incentives for the political co-operation between the neighbouring states. Also the potential for violent conflicts between the states is also decreased a lot. In addition to this, due to the grouping of the economies, the political weight is enhanced for the nations. There are two main reasons for not achieving the meaningful level for integartion. They are:

First and foremost thing is, Eventhough majority gets benefit due to the economic integration , it will surely have its costs. While a set of countries as a whole may get benefited importantly from a regional free trade agreement , few groups may loose.

And the second impediment to the integration arises from the several comcerns over the national sovereignty.

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