ONE PARAGRAPH ANSWERING THE BELOW QUESTION”What is the ultimate goal of regional economic integration (REI)? Identify a potential benefit and a drawback of REI.
Greece is a member of the European Union and the Eurozone and received an economic bailout that resulted in economic pain. Discuss this situation in light of the second question. Is integration worth it to Greece or should they leave the Eurozone? Support your answer by sourcing your work and citing the text.
ANOTHER PARAGRAPH EXPLAINING WHAT YOU THINK OF THINK OF THIS PERSON POSTING.Regional economicintegrationor REI is the process whereby countries in a geographic region cooperate to reduce or eliminate barriers to the international flow of products, people, or capital (Wild, PG 201). The ultimate goal of regional economicintegrationis to not only increase cross-border trade and investment but also to raise living standards for their people (Wild, PG 201). Regional economic integration sometimes has additional goals, like protection of intellectual property rights or the environment, or even eventual political union (Wild, PG 201). A group of nations in a geographic region that is undergoing economic integration is called a regional trading bloc (Wild, PG 201).
Nations engage in specialization and trade because of the potential for gains in output and consumption. Higher levels of trade between different nations can result in greater specialization, increased efficiency, consumption andhigherstandards of living (Wild, PG 213). Seeming that this relates to REI, a potential benefit of REI is employmentopportunities Regional integration can expand employmentopportunitiesby enabling people to move from one country to another to find work, or simply, to earn a higher wage (Wild, PG 213). With this there is also potential drawbacks. Even though REI tends to benefit countries, it can also have substantial negative effects (Wild, PG 213).
A potential drawback could be shifts in employment. The most controversial aspect of regional economic integration is its effect on people's jobs (Wild, PG 214). The formation of a trading bloc promotes efficiency by significantly reducing or eliminating barriers to trade among its members (Wild, PG 214). The surviving producer of a particular good or service, then, is likely to be the bloc's most efficient producer.
As for Greece and whether or not they should leave the Eurozone, I believe Greece should remain in the euro. A big problem about having a country exit the Eurozone is that it is never planned, so no one knows what it going to happen. Based in this kind of situation, things could become even more messy. Exiting is not a situation that you plan and try to figure our end results. Remaining with the euro can protect Greece from a poverty they do not want to experience (Monaghan).
- http://www.telegraph.co.uk/finance/financialcrisis/9486188/Debt-crisis-Greece-must-remain-in-eurozone-minister-warns.html
- John J. Wilder, Kenneth L. Wilder. International Business: The Challenges of Globalization. 6th Edition. Upper Saddle River: Pearson Education, Inc: Prentice Hall, 2010.
Lastly another paragraph explain what you think of this person posting as well
As per studentsflatworldknowledge, “Regional economic integration has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbours.” Ultimate goal of REI is to bring regional advancement in terms of growth and employment. Potential benefit of REI : Sharing of resources helps in development of the economies of the Region. Drawback of REI: It may help just few strong countries and weak countries may be left behind.
The European Union (EU) is the most integrated form of economic cooperation. As you learned in the opening case study, the EU originally began in 1950 to end the frequent wars between neighbouring countries in the Europe. Greece is a member of the European Union and the Eurozone and received an economic bailout that resulted in economic pain. Now we need to discuss whether integration is worth to Greece or should they leave the Eurozone.
The Greek government-debt crisis started in 2009 and the cause of crisis can be a combination of structural weaknesses of the Greek economy coupled with the incomplete economic, tax and banking unification of the European Monetary Union. Currently Greece should not leave Euro zone as Euro economy is one of the largest economy in the world and it can reap the benefits of large integrated economy.
1. http://students.flatworldknowledge.com/bookhub/reader/3158?e=fwk-168388-ch06_s02
2. ^ Higgins, Matthew; Klitgaard, Thomas (2011). "Saving Imbalances and the Euro Area Sovereign Debt Crisis".Current Issues in Economics and Finance (Federal Reserve Bank of New York) 17 (5). Retrieved 5 April 2012.
3. George Matlock (16 February 2010). "Peripheral euro zone government bond spreads widen". Reuters. Retrieved 28 April 2010.
4."Acropolis now". The Economist. 29 April 2010. Retrieved 22 June 2011.