BUSINESS

International Trade and Regional Integration

International Trade and Regional Integration

Introduction

Regional economic integration has become one of the most striking trends in today's international economic relations, but there isn't any uniform or precise definition of the economic integration at home and abroad. In1950, the economists initiated to define it as a separate or different economic integration as a form of state or process of the larger economy. It was also the integration of description for the formation of a multi-national economic region in the area of this multi-country economic, trade barriers are weakened or eliminated, factors of production tends to the free flow of the so-called "regional" refers to the geographic scope of a multilateral economic cooperation, this range is termed as being greater than the geographical oriented scope of a state said to be sovereign. According to the standpoint of economic geography, the world can be divided into numerous zones, constituting of various regions entailing different economic oriented characteristics. In order to reconcile the relationship between the two regions, advocates with other parts of the conditions, to eliminate the obstacles in the border caused by the economic exchanges, the idea of ??regional system of economic integration. The economic integration and integration organization is fixed contractual and organizational achievements of the integration.

From the 1990s to the present, the formation of a strong new wave of regional economic integration organizations has mushroomed in the global emergence. This new wave propelled rapidly, the deepening of cooperation and broad content, mechanism is flexible, diverse forms, are unprecedented. The current round of regional economic integration, the wave reflects not only the in-depth development of economic globalization, new features, but also reflects the new trend of development of a multi-polar world twists and turns (Agarwal, 2009).

Theoretical and Empirical Aspect of International Trade

Regional economic integration on international trade

The fundamental characteristics of the regional economic integration is the "internal free trade and the external protection of trade, therefore, its multilateral trading system and the global economy must be twofold, both having a positive impact, but also has negative effects. With the continuous development of positive globalization, the negative impact of regional economic integration will become increasingly prominent.

First, the positive impact of regional economic integration

(A) The Regional oriented economic integration can aid in development of ??free trade.

The Regional oriented economic integration to pursue principles of free trade in order to remove all trade barriers. The implementation of free trade policies brought about by a variety of benefits will help Member States to enhance the awareness of free trade within the region to protect trade restraint mechanisms for the protection of the internal trade of the Member States advocated to play a role in containing.

The economic effects of regional economic-integration.

The demonstration effect of regional economic-integration

The confinement effect of regional economic-integration.

(B) Regional economic-integration can become the basis of the multilateral trading system

(C) Regional negotiations and multilateral negotiations with “synergy”

(D) Regional economic integration for multilateral trade negotiations to provide experience and skills

The negative impacts:

(A) ...