ADVENTAGES OF ECONOMIC INTEGRATION
Progress in trade.
All countries that follow economic integration have extremely wide assortment of goods and services from which they can choose. Introduction of economic integration helps in acquiring goods and services at much low costs. This is because the removal of trade barriers reduces or removes the tariffs entirely.
2. Political Cooperation: This integration is an essential strategy to address the effects of conflicts and political instability that may affect the region.
3. Employment Opportunities: As economic integration encourages trade liberation and leads to market expansion, more investment into the country and greater diffusion of technology, it creates more employment opportunities for people to move from one country to another to find jobs or to earn higher pay.
4. Increase in Foreign Direct Investments.
Economic integration helps to increase the amount of money in Foreign Direct Investment, through new operations or by merger, takeover, it becomes a international enterprise.
Disadvantages of economic integration
Trade Diversion: Because of trade barriers, trade is diverted from a nonmember country to a member country despite the inefficiency in cost.
National Sovereignty: Economic integration requires member countries to give up some degree of control over key policies like trade, monetary and fiscal policies. The higher the level of integration, the greater the degree of control .