Regional Integration Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½2Ã¯Â¿Â½
Running head: REGIONAL INTEGRATION
University of Phoenix
4Economic Development Ã¯Â¿Â½
5Global Business Ã¯Â¿Â½
Global business can be encouraged by regional economic integration. With regional integration, advantages and disadvantages exist. This paper will examine the regional integration of the North American Free Trade Agreement (NAFTA). This will include the different economic development stages of the countries in NAFTA and the ramifications of the region's economic development for global business.
The concept of regional economic integration is defined as nations of a geographic region coming together in some type of agreement to foster trade and development. Investorswords.com defines NAFTA as the (NAFTA, 2007) "North American Free Trade Agreement. A 1994 agreement reached by the United States, Canada, and Mexico that instituted a schedule for the phasing out of tariffs and eliminated a variety of fees and other hindrances to encourage free trade between the three North American countries."
Under this trade agreement, all non-tariff barriers to agriculture will be eliminated by 2008. NAFTA is considered a free trade area type of agreement. The first characteristic of a free trade area is the liberalization of trade regulation for members. Second, the removal of trade barriers placed against members. This includes the removal of tariffs, quotas, and various non-tariff barriers, or a pledge to remove such trade barriers by a certain date.
NAFTA allows the member countries to specialize in their exported product and therefore, become more efficient in its production. This agreement spurs growth, generates jobs and protects the environment in the member nations. NAFTA promotes competitive advantage by the use of modern technology and the use...