Regional Integration for and Against Articles Research Paper

Regional Integration for and Against Articles - Research Paper Example This basically means that the member states of CAIS are subjected to zero tariffs and customs duty when selling goods and services to other member states. Improvements in cross-border regional logistics might also play an significant role. Secondly, producers and manufacturers of goods and services within a regional integration block benefit from the larger market size. A big market size, is an imperative factor that facilitates innovation. In this case, members of the Central American Integration System are able to apply innovation to reduce some of the fixed costs. Simultaneously, consumers of goods and services will also benefit from larger competition in the product market. However, these effects vitally depend not just on the establishment of a single customs area, but also doing away with barriers to market access. In this case, key progress has been achieved in this respect to the Central American Integration System where companies have equal access to public contracts in all member countries. Thirdly, exporting within the Central American Integration System serves as the first step towards the extension of exports worldwide. In this case, the block initially builds export capacity taking using the low tariff and non-tariff barriers within the region. Then, they leverage this huge capacity to achieve competitive advantage in exporting to other non-member countries. In this case, member countries accumulate their export and make a collective bargaining for the best price and terms of sake for their products. Fourthly, larger extent of regional economic integration can assist member to strengthen their political and economic institutions. As some specialist are delegated to newly founded supranational bodies, and other parameters of economic policy experience cross-country synchronisation, the opportunity arises to revise and review laws, policies and