LA TEORIA DE INTEGRACION UNION EUROPEA.

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BUSINESS ADMINISTRATION

CYCLE: 7th

BENEFITS OF ECONOMIC INTEGRATION IN DEVELOPED COUNTRIES

STUDENTS:

CALLE SEBASTIAN

CHALAN MARIA JOSÉ

CHUNI JONNATHAN

MARCA JOSÉ

NARVAEZ MARCO

PINOS XAVIER

CUENCA, 02/12/2016

THEORY OF INTEGRATION

INTRODUCTION

     Economic policy mechanisms have been developed to improve the standard of living of people through Economic Integration, by understanding that development should be fair and balanced among nations. A clear idea is formed that the form for the economic growth and development of a country is through the economic integration that is the process of union of markets that has as objective the formation of new economic markets allowing the free flow of goods and of capital.

DEVELOPMENT

     Already several centuries ago, there were ideas of integration and cooperation between countries, especially among those who share a common continental territory.

     Integration is based on eliminating the barriers in a progressive way, that is to say removing them gradually comprises measures that lead to the elimination of some forms of discrimination, including the economic borders between each country. Jan Tinbergen distinguishes between negative integration and positive integration: negative measures mean eliminating barriers between economies, for example, eliminating tariffs among member countries; Positive measures entail cooperation mechanisms, for example, to harmonize macroeconomic policies, which are being expanded as integration progresses and are more complicated to implement. Customs unions would allow for an improvement in global welfare and may be a step towards free trade. In analyzing the effects of economic integration, we assume that some will inevitably benefit and others will be harmed. Developed countries are benefiting as they have strong bargaining power and can easily absorb new markets and make proposals that encourage the integration of developing countries by benefiting them in a minority way from the benefit they generate for themselves.

     The economy for the developed countries with the economic integration is very prosperous since it allows to acquire more goods, services and productive factors for the development of the same making them thrive at great speed improving the way of life of its inhabitants.

EXAMPLE

     To understand the integration of the European Union we analyze the stages that went from its origin to the end of the Second World War, where Europe was destroyed for the promotion of economic and political reconstruction. In 1947 the United States launched the "Marshall Plan" aimed at rebuilding Europe through economic strengthening to achieve political stability and peace. The Treaty of Brussels (military alliance) was formed in 1948, the European Coal and Steel Community (ECSC) was formed in 1951, consisting of Belgium, Holland, Luxembourg, Italy, France and Germany. Europe unified with shared principles. In 1958, the Treaties of Rome came into force, establishing the principles for developing a common market, the development of an economic policy, the creation of a customs union with free trade and a common agricultural policy. The European Monetary System (EMS) in order to prepare the Union for the entry of the single currency a few years later.

     The overall benefits of the EU are the stability and growth of the Internal Market, the contributions of the new members to the budget, the diversity of ideas and the new proposals that each member, including the simple fact of belonging to one of the blocks The stronger the international scenario.

     The most integrated or consolidated economy today, between independent nations, is the European Union and its 'Euro' zone with 28 member countries. For international trade specialization is encouraged, each European region can specialize in those sectors in which it is most endowed. This will contribute to higher and higher quality production and to increased productivity. In addition, administrative and bureaucratic costs are reduced. Economies of scale are favored because companies in need of high technology have large fixed and structural costs, these costs could not be offset by sales in the markets of individual member countries because they are too small on an individual basis. One of the most developed and growing countries thanks to integration is Germany "a great world power" which has a remarkable quantitative and qualitative increase in trade, communications and transport main beneficiaries.

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