单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,chapter 05 Regional Economic Integration,In this chapter,well cover:,Characteristics and Effects of Regional Synergy,Driving Factors for Regional Integration,Growing Complexity of Regional Integration,Major Regional Groups and Agreements,Characteristics and Effects of Regional Synergy,the North American Free Trade Agreement(NAFTA),the European Union(EU),the Southern Cone Common Market(SCCM),the Association of Southeast Asian Nations(ASEAN),the Southern Common Market Treaty(MERCOSUR),Southern African Development Community(SFDC),Characteristics and Effects of Regional Synergy,Regional Economic Integration,occurs when a group of countries located in the same geographic proximity decide to cooperate based on agreements.,Characteristics and Effects of Regional Synergy,The classic schema of regional integration ranks integration arrangements according to the depth of integration,Preferential trade area,Free trade area,customs union,common market,economic union,economic and monetary union,Total economic integration.,Characteristics and Effects of Regional Synergy,Two kinds of effects:static and dynamic.,Static effects involve trade creation and trade diversion.,The dynamic effects,：,competitiveness,technological development,scale economies,resource allocation and investment.,Characteristics and Effects of Regional Synergy,Beneficial influence of,regional synergy,：,1.allows several different countries to come together and form common markets,2.the effect of a larger market not only allows the internal economic output within the regional block to increase,it also puts the block at an advantage in relation to other countries around the world.,Characteristics and Effects of Regional Synergy,negative effects of regional integration:,loss of sovereignty,loss of flexibility,Driving Factors for Regional Integration,Two explanations for phenomenon of regional integration:,Gravity model,focuses on both tangible and intangible factors,with an emphasis of the importance of proximity and the relative economic size of partners in accounting for international trade patterns.,Driving Factors for Regional Integration,Optimum currency area theory,seeks to gauge the economic and financial linkages among countries with the objective of identifying groups suited to monetary integration.Indeed,trade and common currency are keys to becoming economically integrated.,Driving Factors for Regional Integration,Examples of regional integration:,1993 the European Union(EU),North American Free Trade Agreement(NAFTA),the ASEAN Free Trade Area(AFTA),1995 the Southern Common Market Treaty(MERCOSUR),Driving Factors for Regional Integration,Commonwealth of Independent States(CIS),1981 the Gulf Cooperation Council(GCC),1967 the Association of Southeast Asian Nations(ASEAN),the Asia-Pacific Economic Cooperation(APEC),Driving Factors for Regional Integration,Latin America:,the Central American Common Market(CACM),the Caribbean Community and Common Market(CCCM),Andean Community(AC),the Free Trade Area of the Americas,(FTAA),Driving Factors for Regional Integration,Africa:,The Economic Commission for Africa(ECA),Economic Community of West African States(ECOWAS),the Economic Community of Central African States(ECCAS),the Arab Maghreb Union(AMU)in North Africa,Driving Factors for Regional Integration,West African Economic and Monetary Union(WAEMU),Economic and Monetary Union of Central Africa(CEMAC),Southern African Customs Union(SACU),Southern African Development Community(SADC),Growing Complexity of Regional Integration,The first wave of regional integration:the establishment in 1957 of the forerunner of the European Union.,A second wave of regional integration started during roughly the second half of the 1980s.,Growing Complexity of Regional Integration,New wave of regionalism:,1.the modern motivation for forming RTAs is to open up markets and promote competition.,2.the new regionalism is marked by an increase in the size of regional groupings.,Growing Complexity of Regional Integration,3.There is the emergence of overlapping regionalism.,4.RTAs follow a strategy that combines internal liberalization with external liberalization agreements.,5.The present regionalism as a process is driven by many motivations.,6.regionalism is on the rise in scope and scale.,Major Regional Groups and Agreements,1.The European Union,The European Union is an economic and political union of 27 member states which are located primarily in Europe.,operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the member states,Major Regional Groups and Agreements,Governing Bodies of the EU,the European Parliament,the European Council,the Council of the European Union,the European Commission,the Court of Justice of the European Union,the European Central Bank,the Court of Auditors.,Major Regional Groups and Agreements,The Single Market,EUs main economic engine,enabling most goods,serv