INTERNATIONAL BUSINESS

ASSIGNMENT:1
GROUP: 3

MEMBERS

1. Faadumo Shaafici Maxamed

2. Suleekha Deeq Macalin Wali
3. Yaasiin Maxamed Xasan
4. Shukri Abukar Cumar
5. Cumar Cabdullaahi Jaamac
INTRODUCTION:
Governments often seek to join communities or integrate with other governments for various
reasons, depending on their developmental stage. Whether they are developed, developing, or
least developed countries, the decision to join such communities is influenced by perceived
benefits and potential drawbacks. In this analysis, we’ll explore the motivations, requirements,
advantages, and drawbacks of government integration for countries across different development
categories.

DEFINITION OF GOVERNMENT INTEGRATION

Government integration: refers to the process by which separate governmental entities, such as
countries or regions, come together to collaborate, coordinate, and often unify certain aspects of
their governance. Governments around the world are increasingly recognizing the benefits of
working together through international communities and integration.

HISTORICAL EXAMPLES OF GOVERNMENT INTEGRATION

European Union
The European Union (EU) is perhaps the most prominent example of successful government
integration, with 27 member states cooperating on a wide range of political, economic, and social
issues. The EU has evolved from a primarily economic union to a more comprehensive
community, with institutions like the European Parliament and the European Commission.
African Union
The African Union (AU) is an intergovernmental organization of 55 African states that aims to
promote unity, peace, and prosperity on the continent. The AU has played a key role in conflict
resolution, democracy promotion, and economic development across Africa.
ASEAN
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental
organization comprising 10 Southeast Asian countries. ASEAN has facilitated economic
integration, cultural exchange, and political cooperation among its member states, contributing to
stability and prosperity in the region.

WHY DO COUNTRIES COOPERATE?

• Economic Benefits:
 • Developed nations: Can expand markets for established industries, but may face
competition from developing economies.
• Developing nations: Gain access to new technologies, investment, and expertise.
• Least developed countries (LDCs): Crucial for receiving aid and resources for basic
development.
• Security:
• All nations benefit from collaboration on issues like terrorism and organized crime.
Sharing intelligence and resources strengthens collective security.
• Environmental Protection:
• Global challenges like climate change require international cooperation to develop
sustainable solutions.
• Shared Challenges:
• Pandemics, natural disasters, and human rights concerns necessitate a coordinated
global response. Cooperation allows pooling resources and expertise.
• Peace and Stability:
• International cooperation fosters diplomacy and dialogue, which can prevent conflicts
and promote peace. This benefits all nations.

REQUIREMENTS FOR JOINING COMMUNITIES

Requirements can vary, but some common themes exist:
• Shared Values:
• Developed nations may emphasize democratic principles and human rights.
• Developing and LDCs may prioritize economic development goals.
• Commitment to Rules:
• All members must adhere to established regulations within agreements.
• Economic Stability:
• Developed nations: Expected to contribute financially and technically.
• Developing and LDCs: May have different contribution expectations based on their
circumstances.
• Political Stability:
 • A stable and functional government is generally preferred for effective participation.

ADVANTAGES AND DRAWBACKS

Advantages:
• Increased Market Access and Resources: All countries can benefit from expanded trade
opportunities and access to essential resources
• Improved Security: Collaborative efforts enhance security for all members.
• Solutions to Global Challenges: International cooperation is crucial for tackling
problems that no single nation can solve alone.
• Greater Influence: Developed countries may gain more influence in shaping global
rules, while developing and LDCs can gain a voice on the international stage.
• Peace and Stability: Cooperation fosters peaceful relations between nations.
Drawbacks:
• Loss of Sovereignty:
• Developed nations may have to adjust policies to comply with agreements.
• Developing and LDCs may have less bargaining power and feel pressure to
accept unfavorable terms.
• Bureaucracy: Negotiating and implementing agreements can be slow and cumbersome.
• Free Riders: Some members may benefit without fully contributing.
• Domestic Opposition:
• Developed nations: Citizens may fear job losses due to competition.
• Developing and LDCs: Concerns may arise about exploitation of resources or
cultural identity.

IMPACT ON DIFFERENT DEVELOPMENT LEVELS

• Developed Countries:
• Advantages: Leverage their economic strength for market access and influence.
• Drawbacks: Balancing free trade with protecting domestic industries.

• Developing Countries:
• Advantages: Access to resources, technology, and expertise for development.
• Drawbacks:
• Ensuring fair trade practices and avoiding resource exploitation.
• Balancing economic growth with potential environmental consequences.

• Least Developed Countries:

• Advantages: Crucial for receiving aid and support for basic needs and development.
• Drawbacks: Limited bargaining power and vulnerability to unfair agreements.

CONCLUSION
International cooperation is a powerful tool for addressing global challenges and achieving
shared goals. However, countries at different development stages should carefully consider the
potential benefits and drawbacks to ensure participation serves their national interests. By
understanding these nuances, nations can navigate the complexities of international cooperation
and leverage it for a more prosperous and secure future