Globalization has brought remarkable benefits to the world, and an even greater reliance on others for products and services. This calls for closer international cooperation to ensure that regional integration is ever more inclusive and works for the benefit of all. Regional economic integration is motivated by a desire to exploit the gains from free trade and investment. This paper will analyze the role of regional integration in promoting global business, discuss the advantages and disadvantages of the Asia-Pacific Economic Cooperation (APEC), compare and contrast the economic development stages of countries within APEC and ramifications of APEC economic development for glo ...view middle of the document...
Along with advantages come disadvantages. A disadvantage is the costs associated with regional integration. Another is low cost producers will replace high cost producers and external suppliers offering lower prices will be replaced by those charging higher prices. Finally, the regions are in need of better local and regional regulations (Hill, 2004). It is important to remember regional integration is not an easy process. There are many costs in addition to the benefits. Certain countries can lose while others benefit from a free trade agreement and many adjustments are necessary. The loss of national sovereignty was another concern of member states. This means countries would have to give up some level of control over policy issues involving monetary, fiscal or trade (Hill, 2004). While free trade can be a good thing, we cannot ignore the potential costs associated with it.There are economic and political aspects of regional integration. Economically, free trade allows countries to specialize in a particular good and/or service they produce more efficiently. This would definitely be the result of greater production worldwide. Another important fact is that free trade stimulates a country's economic growth. Foreign Direct Investment (FDI) opens up the possibility of economic growth for a country in that the host country can transfer knowledge in technology and management skills. Political cooperation is the result of connecting nearby economies. This connection makes them more dependent on each other while reducing the potential for violence (Hill, 2004)"Numerous attempts at regional economic integration have been tried through Asian and Africa. The Asia Pacific Economic Cooperation (APEC) forum has recently emerged as the seed of a potential free trade union," (Hill, 2004). From the beginning, they helped to reduce trade barriers and tariffs along the Asia-Pacific. This created domestic economies to be efficient and increased their exporting. "APEC's vision are what are referred to as the 'Bogor Goals' of free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and 2020 for developing economies. These goals were adopted by Leaders at their 1994 meeting in Bogor, Indonesia," (APEC, 2006).There are currently 21 members of APEC. The members are Vietnam, United States, Hong Kong China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, People's Republic of China, Chile, Canada, Brunei Darussalam, and Australia. The members must take action in order to open their markets and encourage economic growth in their country (APEC, 2006).Since the beginning of APEC, their region has been vigorously the most economical part of the world. In the first 10 years of operation, they generated almost 70% of the global economic growth. The APEC region constantly outdid the rest of the world while even facing the Asian monet...
