Contents

• This report is based on the following task -
• There are hundreds of economic integration agreements in effect around the world. Virtually every country is party to one or more free trade agreements. Supporters argue that free trade is good for nations. Undertake a research that would enable you to address the following task:
• Critically evaluate the specific benefits that countries seek by joining an economic bloc. To support your argument assess the main economic bloc for one of the MINT countries (Mexico, Indonesia, Nigeria or Turkey). From your perspective, what advantages has bloc membership brought in the country? How does membership to the economic integration initiative impact upon the competitive position of the firms from this country? Illustrate by discussing the experience of a firm (or firms) from this country.

Description

The economic integration initiatives are taken up by countries within a range of geographic district, takes up initiatives to foster economic growth of the region with trade developments. In 2004, an agreement was passed between Canada, America and Mexico, institutionalised a plan that decreased a number of tax related tariffs and encouraged free trade participation in between the North American nations. The trade deliberation is called the NAFTA, and the NAFTA zone is a trade free zone. In the NAFTA zone, all the members enjoy trade liberalisation, exemptions from trade tariffs and taxes and enjoy freedom from all other non-tariff obstacles. In other words, economic integration within regions is simply an agreement amongst neighbouring nations, to promote regional integration, free flow of traded goods and enjoy positive economic growth. It has been observed that economic and regional integration is imperative for countries to develop their economical efficiency, expand their resource allocation by reducing political negotiations (Behrens et al., 2007). The strategy of economic integration has facilitated technology and knowledge transfer between countries. This also has made countries to be more aware about intellectual and property rights and increased regional economic competition as well (Park & Lippoldt, 2008). This report aims to critically evaluate the economic integration initiatives of one of the MINT (Mexico, Indonesia, Nigeria and Turkey) nations and the advantages the country enjoys by being a member of an economic bloc. For this purpose, Mexico has been selected, out of the MINT nations and a critical evaluation of Mexico’s economic integration and the benefits that the Mexican economy enjoys through its economic blocs have been studied in this report.