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International Economic Integration - Coggle Diagram
International Economic Integration
Economic Integration
Economic integration is the process of reducing or eliminating trade barriers between countries.
It can be achieved through a variety of means, such as free trade areas, customs unions, common markets, and economic and monetary unions.
The Benefits of Economic Integration
Increased trade and investment
Lower prices for consumers
Economic growth and job creation
Enhanced regional cooperation and integration
The Challenges of Economic Integration
Loss of unskilled jobs
Increased competition for domestic industries
Environmental damage
Increased wage inequality
Economic Integration in North America
The North American Free Trade Agreement (NAFTA)
NAFTA is a trade agreement between the United States, Canada, and Mexico.
It was signed in December 1992 and came into force on January 1, 1994.
NAFTA has led to increased trade and investment among the three countries, lower prices for many goods for consumers, and the creation of skilled jobs.
The Impact of NAFTA on the US
Increased trade and investment
Lower prices for many goods
Creation of skilled jobs
Loss of unskilled jobs in some industries
The Impact of NAFTA on Canada
Increased trade and investment
Lower prices for many goods
Creation of jobs in the export and import sectors
Smaller impact than in the United States and Mexico
The Impact of NAFTA on Mexico
Increased trade and investment
Boosted economy
Created jobs
Unemployment rate fell from 7% in 1994 to 3.4% in 2023
Economic Integration in Other Regions
Economic Integration in Asia
Less advanced than in North America or Europe
A number of regional trade agreements, such as the ASEAN Free Trade Area (AFTA) and the South Asian Association for Regional Cooperation (SAARC) Preferential Trading Arrangement (SAPTA)
Economic Integration in Africa
Less advanced than in North America or Europe
A number of regional trade agreements, such as the Economic Community of West African States (ECOWAS) and the Southern African Development Community (SADC)
Economic Integration in Latin America and the Caribbean
More advanced than in Asia or Africa
Less advanced than in North America or Europe
Most successful regional trade agreement is the Southern Common Market (MERCOSUR)
The Pros and Cons of NAFTA in Terms of Economic Integration
Pros: increased trade and investment, lower prices for consumers, creation of skilled jobs
Cons: loss of unskilled jobs, increased competition for domestic industries, environmental damage, increased wage inequality