Name : Edwin A.

Wangke
SIN 18061102133
Class : IBA – 4A

International Business Management

Regional Integration
1) There are four main types of Regional Integration.
1. Free trade area. This is the most basic form of economic cooperation. Member
countries remove all barriers to trade between themselves but are free to
independently determine trade policies with nonmember nations. An example is the
North American Free Trade Agreement (NAFTA).
2. Customs union. This type provides for economic cooperation as in a free-trade zone.
Barriers to trade are removed between member countries. The primary difference
from the free trade area is that members agree to treat trade with nonmember
countries in a similar manner.
3. Common market. This type allows for the creation of economically integrated
markets between member countries. Trade barriers are removed, as are any
restrictions on the movement of labor and capital between member countries. Like
customs unions, there is a common trade policy for trade with nonmember nations.
The primary advantage to workers is that they no longer need a visa or work permit
to work in another member country of a common market. An example is the
Common Market for Eastern and Southern Africa (COMESA).
4. Economic union. This type is created when countries enter into an economic
agreement to remove barriers to trade and adopt common economic policies. An
example is the European Union (EU).
In the past decade, there has been an increase in these trading blocs with more than one
hundred agreements in place and more in discussion. A trade bloc is basically a free-trade
zone, or near-free-trade zone, formed by one or more tax, tariff, and trade agreements
between two or more countries.

2) In the last decade regional integration has accelerated and deepened around the
world, in North America and Latin America, Europe, Africa, and Asia, with the formation of
new alliances and trading blocks. The Americas are one of the most integrated regions in the
world. The countries of the Americas are at a crossroads: their intra-regional integration is
increasingly complete and mature, and many regional countries have already established
ties with numerous extra-regional partners. More than 5,800 people have been diagnosed
with the virus in the U.S. Globally, the death toll is over 7,500, with the most aggressive
outbreaks still spreading in Europe and Iran that make economic totally decreased.
 Latin America has been hit hard by the current global economic crisis; however, its
impact has been largely felt in trade as opposed to finance. The crisis has forced a rethinking
of the conventional wisdom regarding regional integration plans, Latin America's role in
reforming the international financial architecture, and the ability of inter- and intra-regional
trade to spur economic growth.
In Europe the process of economic integration has been always incremental in
nature, and often ‘forged in crises’ It took 35 years to establish the internal market, and yet
in this period there was no doubt about the path of economic integration to be followed.
Conversely, the issue with the Union Era lies in the uncertainty and ambiguity of some of its
final goals. This is in turn a by-product of the very high degree of national sovereignty
pooling implied at this stage, which calls for properly addressing the ultimate question of
democracy in Europe. In this context, the traditional incremental approach becomes much
more precarious and the outcome of crises much less predictable.
Economic integration in Asia has progressed over the last 30 years through the
formation of greater trade and investment linkages, which have been driven by market-led
integration, underpinned by international commitments, but lately declined because of
corona virus (COVID-19). A strategy of economic development based on export orientation
and integration into regional and global value chains has served the countries in the region
well.
Africa’s regional integration record is not impressive. The fact that the large number
of RIAs has done little to promote intra-regional trade raises questions about the
appropriateness of this linear model for addressing the real challenges that inhibit regional
trade The specific factors that have resulted in Africa’s, and sub-Saharan Africa’s, relatively
disappointing economic performance over the past few decades have been the focus of
much enquiry. Reliance on very few export commodities – primary commodities
representing more than 80 percent of Africa’s total exports in recent years.

3) After three years of haggling in the British Parliament, convulsions at the top of the
government and pleas for Brussels to delay its exit, Britain closes the book on nearly half a
century of close ties with Europe on Jan. 31.
Its split with the European Union was sealed when Prime Minister Boris Johnson’s
Conservative Party won a resounding victory in December’s general election. That supplied
Mr. Johnson with the parliamentary majority he needed to pass legislation in early January
setting the terms of Britain’s departure, a goal that repeatedly eluded his predecessor,
Theresa May. European lawmakers gave the plan their blessing later in the month.
The impact of Brexit on the European Union (EU) will result in social and economic changes
to the Union, but also longer term political and institutional shifts. The extent of these
effects remain somewhat speculative until the precise terms of the United Kingdom's post-
Brexit relationship with the EU becomes clear. With the EU's policies on freedom of
movement and the economic benefits and drawbacks which the UK and the EU provide each
other with, there will be a clear impact with consequences for both institutions.
Why is it such a big deal?
Europe is Britain’s most important export market and its biggest source of foreign
investment, while membership in the bloc has helped London cement its position as a global
financial center.
With some regularity, major businesses have announced that they are leaving Britain
because of Brexit, or have at least threatened to do so. The list of companies thinking about
relocating includes Airbus, which employs 14,000 people and supports more than 100,000
other jobs.