Regional Analysis
According to De Lombaerde and Van Langenhove (2007), regional integration is a scheme that connects states to foster interaction between their local and regional components to form an organization that conforms into a state-led organization. Regional integration also pertains to the joining of various states within the region to create a larger entity. The success of regional integration depends on the state’s willingness and loyalty to the regional group, sharing their sovereignty and openness in accepting policies that would require them to open their sovereignty. Integration deeper than the average connection is noted to be very difficult if it pertains to global business . In lieu of global business and economics, regional economic integration is noted to be the best medium to foster free trade and negotiation for possible global integration with other regional organizations. Peng (2010) notes that one good example as to how global business is assisted by regional integration is the European Union. Since its inception, the EU is now the representative of all its member states in negotiations with the World Trade Organization. The EU takes care of both regional and local affairs of its member states in the WTO, no longer requiring them to attend individually for these talks. However, regional integration in both economic and political integration is contradicted by some experts, seeing them as a hindrance to total global integration. Observers believe that regional integration fosters preferential treatment to all members, while giving the opposite treatment for non-members. Returning back to the example of the WTO, preferential treatment is accepted; nevertheless, it is seen as a form of protectionism .
Out of the regional organization that has been developing at present; the European Union is the most developed of them all. According to Metcalf and Papageorgiou (2005), the organization is considered a sui generis body, an organization that is still not a full federation, but it goes ahead of its duty to integrate each state in the European Region. As of today, the European Union constantly grows as it allows other prospective member states around the region are allowed to join, as well as its roles in global business have increased as it grew. Although the EU can already be considered in the league of traditional superpowers, the organization gradually expands to reach equivalent status as with the traditional superpowers. The success of the EU and the entire expansion project noted in the Maastricht Treaty, as well as the political and economic prosperity of the organization, has enabled its members to gain the interest of other markets and supporters.
However, the limitations of the EU in terms of regional integration is that it only concentrates on economic stability and integration, crucial in fostering global business and the prevention of political goals from hindering economic integration. Economic integration goals in the EU were only aimed in expanding economic markets and opening channels for free trading zones. The EU supports its member states with foundations in creating beneficial trading and business between the states. However, once the EU is presented with political and historical problems, the organization would forgo understanding the issue and would not connect with other regional organizations to integrate the political standpoint of the EU. Studies have also noted that although the EU has managed to develop the Eurozone due to regional integration, the organization still has flaws over its creation and concept of regional integration .
In the European Union, three countries vie for the position as the leaders of the European member states and they are United Kingdom, Germany and France. Both Germany and United Kingdom had not seen eye to eye in various economic agreements, especially with the crisis happening in the Eurozone. For Britain, its economic development could be stemmed from its long history of trading and commerce, enabling it to reach out to other regions and territories through navigation and exploration. According to Markesenis (2002), Britain’s Pound has gained its high price throughout Britain’s stance as a trading nation. European nations had served as Britain’s closest and biggest trading partner, allowing most of its exports and imports sustain 750,000 British companies to gain businesses. However, by the time the EMU and the Eurozone came into the picture, Britain’s economic development has rapidly declined as the Eurozone countries and had slowly removed Britain from the decision-making influence regarding thecurrent Euro crisis. Britain had also served as the scapegoat for EU to sustain the dwindling nations part of the Eurozone like Greece, Italy and Spain as their citizens are forced to pay taxes to pay the budget of the dwindling nations. For Germany, its economy has rapidly increased throughout the years despite the World Wars. In the European Union and in the Eurozone, Germany works alongside France and some time with UK to sustain the member states in economic development. However, in comparison to the UK Germany’s economy is sustained by its membership to the Eurozone and has benefited from its membership as additional investments and revenue enters the country despite the crisis .
In comparison with Germany and the United Kingdom, Greece’s economic development has turned from better to worst, especially with the introduction of the Eurozone. Kupchan (2012) noted that the Greeks had a strong economic in the early civilizations, rivalling that of Rome as it has traded and developed new types of items sought by all nations. The country had acceded to the European Union in 1981, eventually joining the Eurozone in 2001. Before the Eurozone crisis in 2009, Greece had a stable economy, earning highly from trading and its membership to the Eurozone. Before its application of the Eurozone, Greece was able to sustain its economy through cheap capital and investor confidence caused by their adherence to the Eurozone. Nevertheless, the Greek government had failed to sustain their debts despite the investor confidence the country receives. However, by the 2008 economic crisis struck the region, Greece was unable to recover from the damages caused by the rapidly dwindling economy and recession had caused the government to divert its budget to compensate inflation and unemployment. There was also a lack of understanding in discovering the signs of the economic crisis, leading to the problems on recovering from the crisis. In comparison with Germany and the UK, Greece was unable to recover from debt as the present administration has yet to understand the workings of the country’s economy. The EU has also noticed that Greece’s 2010 budget is controversial considering that the Greek government can no longer sustain the Euro currency .
In lieu of this topic’s concentration to regional integration, I belong to the NAFTA region or the North American Free Trade Agreement. According to Carlsnaes (2002) the NAFTA has been established in 1993, as part of the development of regional integration of America. The NAFTA concentrates its activities and negotiations in creating trade and investment agreements across North America. Recently, the NAFTA has become a forum for various US states to discuss the implementation of policies pertaining to labor and the environment as it is connected not only to regional trading, but also to global trading. The organization is also a medium to settle disputes between members. The NAFTA provides global business a framework of procedures to ensure dispute settlement, especially for foreign traders who would require proper enforcement leaders in the organization. The NAFTA decisions would be crucial for foreign traders and businessmen as their decisions are binding within the member states, as well as a direct effect on each member’s domestic policies, ensuring immediate abidance of the member in question .
References
Carlsnaes, W. (2002). Handbook of International Relations. London: SAGE Publications.
De Lombaerde, P., & Van Langenhove, L. (2007). Regional Integration, Poverty and Social Policy. Global Social Policy, 7(3), 377-383.
Kupchan, C. (2012). No One's World: The West, the Rising Rest, and the Coming Global Turn. New York: Oxford University Press.
Markesinis, B. (2002). The British Contribution to the Europe of the Twenty-first Century: The British Academy Centenary Lectures. Portland: Hart Publishing.
Metcalf, K., & Papageorgiou, I. (2005). Regional Integration and Courts of Justice. Oxford: Intersentia.
Peng, M. (2010). Global Business. Boston: Cengage Learning.
