PART B – ANSWER 2

Regional economic integration is an important driver of globalisation. However, recently

Britain has decided to exit from the European Union. Discuss costs and benefits of this
move to Britain.

Economic integration is an arrangement between different regions that often includes the

reduction or elimination of trade barriers, and the coordination of monetary and fiscal policies. It
is not a new occurrence where it originates since our ancient times. Initially people tend to use
barter system for trading purposes where people give something to receive something. With the
increment of needs and wants of people, then people use some unique items for buy the products
and gradually it becomes coins. Further with the development of the trading between countries,
need has being arising for a better method for payment thus money came into existence from
coins and papers. Up to now these money is the main material which take care of the needs and
wants of people in any country as well as needs and wants of any country as well. Thus it means
as the main bond between regional and global economic integration of countries.

This economic integration is not only about money whereas it integrates countries through factor
endowment and factor movement, communication specifications, knowledge and etc which have
been transferred among integrated countries. However, degree of integrations could mainly
classify as follows.