Objectives of Economic Integration - SS3 Economics Lesson Note
Economic integration refers to the process of countries or regions coming together to remove trade barriers and increase economic cooperation. The objectives of economic integration are to promote economic growth, increase trade, and create greater political and social cooperation between participating countries or regions.
The main objectives of economic integration include:
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Increase trade: The primary objective of economic integration is to increase trade between countries or regions. By removing trade barriers, such as tariffs and quotas, countries can access new markets, increase exports, and reduce the cost of imports.
Increase economic efficiency: Economic integration aims to increase economic efficiency by allowing countries to specialize in the production of goods and services in which they have a comparative advantage. This can lead to lower costs, higher productivity, and increased competitiveness.
Increase economic growth: By promoting trade and economic efficiency, economic integration can lead to increased economic growth and higher living standards for participating countries.
Increase political cooperation: Economic integration can also increase political cooperation between countries or regions, leading to greater stability and cooperation on issues such as security, the environment, and social policies.
Reduce political tensions: Economic integration can reduce political tensions between countries or regions by creating mutual economic benefits and promoting cooperation.