Regional Economic Integrations

Regional economic integration

This page discusses briefly Regional Economic integration and the recent impact is has been having in North America. A regional economic integration is a trading block that is formed by two or more countries whom are normally in close proximation to each other geographically; however, this isn’t always the case. Some countries that are geographically far away from each other can be in a kind of agreement. For example, China is known to be trading a lot with western countries like the U.S. & Canada because it is in a trade agreement with them. When an agreement is formed, usually the World Trade Organization (WTO), the organization that looks over all agreements, is informed. A regional Economic Agreement is important because most countries are part of some kind of economic block. These affect our country and—in turn—us in a significant way: our country’s health economic wise affects us. It determines our income, our prices and our options. There are many kinds of trade agreements and many countries are part of various kinds, some examples of a type of agreement are: European Union, NAFTA, APEC, MERCOSUR, and many more. Trading blocks are usually made to make trading easier but the usual reason why its created between specific countries in the first place is for it to act as a solution to rising conflicts between countries. These agreements help to reduce any chance of wars and disputes by promoting cooperation by trading and working together. It is a way to build relationships with each other. In turn, building some kind of agreement with each other gives them greater power and role in world affairs.