Explain four ways in which trading countries benefits from economic integration

      

Explain four ways in which trading countries benefits from economic integration.

  

Answers


Simon
• Economic integration leads to redistribution of incomes favoring low income countries. The overall effect is to expand production in low income countries and restrict production in high income areas leading to the redistribution of incomes.
• Economic integration enables countries to enjoy economies of scale because of the provision of wider markets of commodities before the economic integration.
• Economic integration brings better relations politically and economically between the courtiers that form the trading block.
• Economic integration brings competition between the trading countries and this promotes economic efficiency and enhances consumer sovereignty through a wider variety of goods and services.
• Economic integration encourages foreign investments because of the possibility of making larger profits in a more enabling economic environment.
• It promotes trade stability especially where the regional integration involves the use of a common currency.
• Economic integration reduces the regional unemployment.

skilled writter answered the question on April 26, 2018 at 16:59


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