Regional Integration for and Against Articles - Article Example

Regional Integration for and Against Articles Task Introduction Regional integration is a powerful concept that enhances coordination and formulation of coherent operating policies in diverse facets of operation. It is set with an aim of advancing economic performance and achievement of exemplary benefits by the member states. Evidently, most of the countries are organizing themselves into various economic blocks, such as the Association of Southeast Asian Nations (ASEAN), for example, in order to boost productivity and social coherence. The nations recognize that sound economic integration is a central pillar in ensuring absolute achievement of the aspired performance levels. Nations that seek to operate effective commercial activities with clear-cut goals should organize themselves into vibrant trading blocks. This is to enhance their competitiveness, especially in the current dynamic trade environment. This paper analyses the impact of regional integration with the focus on the ASEAN’s region that comprises several countries, for example, Thailand, Singapore, Malaysia and others. Article on Support and against the Concept Hill, C. W. L. (2005) Hill (2005), a renowned writer and economist, gives insightful information that focus on the imperativeness of economic integration between nations as a performance measure. He asserted that nations with strong performance aspirations and expansion ideals should embrace conventional methods of engagement and execution of business operations. This is to facilitate the formulation of strong economic policies, trading guidelines, political agreements and creation of common markets. The elements are critical in advancing exemplary performance, since the development of coherent trading policies open up exchange of products with limited bottlenecks. As stated, building a vibrant economy with adequate job opportunities for the citizens, good infrastructure and ideal GDP performance cannot be achieved in isolation due to the present dynamic complications. This has prompted most authorities to design superior economic and political integration guidelines to foster growth and productivity with an aim of satisfying citizen’s diverse needs. Evidently, realization of the coherent trading policies requires absolute coordination and pursuance of common standards that guides operations. This explains the significance of the economic integration concept that was established in the ASEAN community. It is to open up trade and encourage participation of small economies in policy formulation. The integration will lead to the development of sound unity between economically challenged states with the strong performing nations for example Thailand. This is to ensure that equal support is provided within the block to boost holistic competitiveness. Julias, D. (2011) Julias (2011) noted that regional integration is a noble concept that holds the capacity to advance economic performance in various nations. However, its practice presents severe complications that delimit the realization of its intentions. The concept leads to uneven distribution of possessions and inferior participation in policy formulation by the small economies. That is big economies within the blocks develop overriding policies that do not present fair participation and distribution of benefits. The author asserted that huge economic, social and cultural disparities are hampering the realization of effective integration between the nations in the ASEAN region. Critically, nations cannot develop strong trading blocks with coherent values under hostile relations and divergent business practices. The disparities provide evident disquiet between nations that compromises the realization of equal benefits. He stated that such integration requires proper guidelines to ensure that all the nations benefits from the trading opportunities. This is vital since current operations in various blocks present severe complications that discredit the concept’s capacity to revolutionize economic setting and competitiveness of all participatory nations irrespective of their potentials. The author bases his arguments on the “non rival principle of economics” that demands equal capacity and potential of the entities that seek for integration. That is, the entities should have common ideals and potentials ranging from trading policies to human capital to foster understanding and formulation of mutual guidelines. In short, the author explains that the inability by the partnering nations to determine the appropriate process to deal with the economic disruption issues, distribution of resources and the free trade complications severely discredit the concepts nobleness. Importance and Limitations of Regional Integration Regional integration is a central growth element especially in the current environment where institutions and nations are pursuing competitiveness in the global market place. It is significant since it focuses on the advancement of free trade between nations and the development of common markets. Variably, it enhances the eradication of unwarranted trade barriers, and formulation of viable commercial policies. It also fosters the creation of relevant bodies to advance economic cooperation. According to Hill (2005), regional integration aid creation of large markets in diverse settings since it allows various nations to form a unity of purpose. The unity advances the development of common market through formulation of favorable trade policies that are economically viable and socially relevant. This is achievable through opening up of borders and elimination of trade barriers for example, tariffs on imports and exports between member states. Consequently, there are limitations of regional integration that influences the participation of diverse nations in ensuring superior economic performance. First, the concept leads to loss of sovereignty of individual nations since the authorities in the newly created blocks assume the role of policy formulation. This deprives respective nations the capacity to making sole decisions and policies regarding diverse issues pertaining to economic growth (Hill, 2005). Variably, the concept delimits the nation’s flexibility in making relevant economic decisions for example, adjustment of the money supply or increasing borrowings to finance infrastructural development with an aim of serving the particular needs of its members. It also fails to provide clear-cut guidelines on how the participatory levels of small economies in policy formulation should be affected. Relations to the Potential Business Opportunities Indeed, regional integration creates immense business opportunities that widen performance parameters. It provides requisite incentives that advance the geographical scope of demand and supply of products that in turn leads to improved proceeds (Hill, 2005). Economic integration also seeks to boost the regions global competitiveness and growth in terms of market share, distribution network and realization of huge proceeds. The integration has leveraged the ASEAN block’s performance in comparison to other nations by providing new and lucrative business opportunities. It has enhanced the regions economic output and efficiency in service delivery through free trade policy guideline that allows member nations to offer various products in the international market. Conclusion Clearly, regional integration between ASEAN nations has advanced the regions competitiveness in the global arena and building of sustainable social coherence. The integration provides requisite synergies and incentives with development orientation that is socially acceptable. Its main aim is to boost the GDP status of the member countries through conventional trading guidelines that are quite favorable. References Hill, C. W. L. (2005). International business: Competing in the global marketplace. Boston: McGraw Hill/Irwin. Julias, D. (2011). Regional Integration for and Against Articles. Retrieved from Read More