Send your good work in the knowledge base is simple. Use the form below

Good work to the site">

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Posted on http://www.allbest.ru/

international integration economic union

Introduction

1.1 Essence, reasons for the emergence of international economic integration

Conclusion

Introduction

Internationalization of economic life in the second half of the 20th century beginning of XXI centuries has become a leading trend in the development of the world economy.

National economies have long been part of the dynamic system of the world economy. Today it is obvious that the more actively a country is included in the system of world economic relations, the more precisely its course of interaction with the rest of the world is calibrated, the higher the well-being of society and its citizens. Therefore, knowledge of the patterns of development of the world economy, the measure of success of some countries and the crisis state of others, is simply necessary to know today.

Relevance of the topic test work is that the development of integration processes is the most important characteristic of the modern world economy and economic integration helps countries use raw materials, fuel, and labor resources more rationally, improve the territorial division of labor, economic integration differs from ordinary economic cooperation based mainly on trade further deepening of comprehensive ties, merging production processes of individual countries.

Goals and objectives of studying the topic: to study the essence, reasons for the emergence and forms of international economic integration; reveal the features of the development of integration processes in different regions peace, as well as the economic consequences of joining trade and economic unions.

The subject of this test is the definition of international economic integration as a process of economic and political unification of countries based on the development of deep stable relationships and division of labor between national economies, the interaction of their reproductive structures at various levels and in various forms.

The object of this test is to determine the essence of the concept of international economic integration and highlight its stages.

1. General concepts on economic integration

1.1 Essence, reasons for the emergence of international economic integration

International economic integration is the process of merging the economies of neighboring countries into a single economic complex based on deep and sustainable economic ties between their companies.

International economic integration is a process of economic and political unification of countries based on the development of deep sustainable relationships and division of labor between national economies, the interaction of their reproductive structures at various levels, in various forms.

An example could be the steady strengthening of ties between American corporations and Canadian and Mexican corporations throughout the 20th century (many of them are branches of American TNCs) or the rapid growth of relationships between Western European companies in recent decades.

An integration association is an economic group created to regulate integration processes between its member countries. Currently, there are dozens of integration associations in the world. In developed countries, this is primarily the EU and NAFTA, in developing countries - MERCOSUR in Latin America and ASEAN in Southeast Asia, in countries with transition economies - the CIS, in the Asia-Pacific region - APEC.

In the most full form Currently, integration processes have found their expression in the creation of the European Union. The USA, Canada and Mexico have set their sights on creating a common economic space in the foreseeable future. Bolivia, Venezuela, Colombia and Peru are seeking to create an Andean common market. Strengthening interstate integration is also occurring in Southeast Asia, Africa, Arab world and Central America.

Integration processes vary significantly in nature, depth and intensity. They are predominantly regional in nature, but interregional integration processes are also taking place at the same time. Thus, recently economic interaction between the North American and Asia-Pacific regions has been intensively developing and the possibility of Japan joining the American-Canadian-Mexico integration is being studied. The issue of creating a free trade area based on the EU and NAFTA is also being discussed.

Characteristic features of MPEI

· High level of MRI and economic cooperation. Thanks to preferential conditions, intensive exchange of goods, services, capital and labor resources is developing between countries connected by integration.

· Countries pursue a generally coordinated domestic and foreign policy in trade, agriculture, transport, currency and other areas

· In the context of economic integration, the areas of cooperation between countries are constantly expanding, common projects are being implemented between them, joint ventures, banks, monetary unions, collective currency units, etc. are being organized.

1.2 Signs, conditions and prerequisites for international integration

Signs of international integration are:

· Interpenetration and interweaving of national production processes;

· Deep structural changes in the economies of participating countries;

· Purposeful regulation of integration processes;

· The emergence of interstate (supranational or supranational) structures (institutional structures).

Integration levels:

· macroeconomic (state level). The purposeful activity of the state promotes the integration processes of intertwining labor and capital within a particular group of countries and ensures the functioning of special integration instruments. Coordination of national policies within the framework of joint economic, scientific, technical, financial, monetary and defense policies. This creates the best conditions for the free movement of goods, services, capital, and labor within a single region.

· microeconomic (intercompany - TNC) - at the level of individual companies that, in their economic activities, enter into integration processes, create branches, joint ventures.

MPEI prerequisites:

· deepening the international division of labor

· growing internationalization of economic life

· general scientific and technological revolution

· increasing the degree of openness of national economies

Conditions and prerequisites for international integration

Approximately equal level of economic development of countries

This is desirable, but not required. It takes a sufficiently long period of time for a country that has significantly lower economic indicators, was able to participate on equal terms in integration processes. Economically stronger partners will be forced to allocate part of their funds to strengthening the weak economies of these countries, and not to developing integration processes.

Of course, today we can cite as an example the situation in the European Union, where special funds for regional development have even been created. However, Greece still failed to meet the Maastricht criteria at the first stage and did not enter the euro zone. NAFTA is also experiencing certain difficulties, in which the “weight categories” of the United States and Mexico are clearly different.

The European Union itself has outlined very clear criteria for admitting new members, with the most stringent approaches formulated in the economic sphere.

· Integration develops more successfully when countries' economies are on the rise

Countries in crisis find it extremely difficult to integrate with each other. During a crisis, the economy is busy with survival and searching for strong partners who can pull it out of the crisis hole. During a crisis, countries take anti-crisis measures, laws, restrictions, for example, restrictions are introduced on the export of capital. While integration, on the contrary, requires freedom of movement of labor, capital, goods and services.

· Geographical proximity of participating countries

To achieve the main goals of integration, for example, to reduce production costs and the final price of a product, it is necessary to reduce all components of the price, including transportation costs. If countries are geographically located at a distance of several time zones, then it is not clear how you can save on transport.

Analyzing the integration processes in South America, experts drew attention to the fact that, despite the geographical proximity, integration between the current MERCOSUR member countries did not develop until a certain time period, because There was virtually no decent transport infrastructure between them. There were no elementary roads that Europe had long been entangled with. Country orientation South America for more than two hundred years, the metropolis has shaped the economies of these countries with an eye to exporting products from ports, rather than inland. Plus the presence of serious difficulties for the development of roads: mountains, tropical forests, etc. In this case, geographic proximity should be interpreted as the presence or absence of transport communications.

· Political will of the leadership of the integrating countries

The impetus for the creation of all the major integration groups today - the European Union, NAFTA, MERCOSUR - were the initiatives of the political leaders of the interested countries.

The role of the political leadership is to set goals for their country that can be achieved through integration, clearly predict all the political and economic consequences for the country, calculate the costs that the country will incur at the initial stage, when they will pay off and when the country will begin to reap really big fruits of integration. In addition, the country's political leadership must clearly understand which powers will be delegated to the “common basket” and which should be transferred to more late period. It is necessary to be aware that if the country is not ready to create supranational structures, then integration will remain on paper.

· Creation at the outset of structures to which countries should gradually transfer and delegate certain powers and tools for their implementation

Integration confronts the participants in this process with the task of taking collective action on a whole range of issues with the participation of all countries. To solve problems that require joint action, it is necessary to create cooperation mechanisms to harmonize national approaches and develop mutually acceptable solutions.

It has been proven that to create an optimal decision-making regime, the adoption of general rules, norms, regulations and the creation of institutions that will guide the process are required. The role of such institutions in an interdependent system is the most important. It is necessary for the state to delegate its powers to such an institution. Moreover, it is necessary to strictly approach the delegation of powers and strictly monitor how these decisions are implemented, subject to their mandatory implementation by countries.

· Creation of an initiating center of one or two states, which should unite partner countries

The formation of a collective choice will largely depend on how economic power is distributed between countries within the integration grouping. It is necessary to achieve a situation where stronger countries do not infringe on less powerful ones, and they, in turn, must clearly understand the role of the stronger ones. It is necessary to determine that the asymmetry in the distribution of “economic power” will be overcome over time, which, in fact, is the essential meaning of integration.

According to one of the hypotheses for the development of integration processes, the strongest country in the group, if it is also comparable to the rest of the partners combined, should take on a proportionately larger part of the cost burden.

In this regard, the theory of hegemonic stability was even developed, according to which the most powerful country acts as the hegemon. At the same time, it is pointed out that a powerful country does not mean the largest in size. In order to be a hegemon, a country must:

- control markets for the production and sale of raw materials

- control capital flows

- control the largest markets

- control the production of the most expensive and high-tech products.

- the currency of the hegemonic country should play a vital role in settlements between member countries of the integration group.

Two countries can also play the role of hegemon. The main thing is the presence of a powerful initiating force - which is an important plus for an economic group.

As for the decision of the country itself - to join or not to join an integration grouping, then, of course, it is necessary first of all to determine its possible and real place in the world economy after joining such a grouping. Joining the integration group will require a serious change in approaches to social sphere, will necessitate certain reforms in this area. The purpose of a country’s entry into an integration group is to create conditions for high growth rates over a long period of time, overcoming, if possible, negative external influences (from financial, raw material and other factors), “covering up” with the strength and power of the economic integration group.

Modern enterprises in a competitive environment carry out many functions in interaction and relationship with partners. They implement centralized or coordinated purchasing activities, albeit informally, but in a coordinated manner, they introduce new products to the market.

Turning to the theoretical foundations of the formation of integration processes, it should be noted that although Lajoux talks about the choice between “integrate or ignore,” many modern researchers believe that integration benefits can only be achieved through integration to one degree or another, albeit the most minimal. In their understanding, integration is “….the creation of a certain kind of interaction between two organizations (in addition to property relations), which should lead to the desired results. These relationships may be limited to areas of financial interest, which means (as in the case of market focus) the possibility of combining additional market shares or turnover." Based on the results of scientific research conducted in the 70s of the last century, Barker G., Helmink J. identified three areas (types) of integration, on the basis of which integration processes are divided.

Integration options:

Full integration.

This type of integration involves bringing together all aspects of the companies or divisions involved in the integration process, from business strategy, product range, market portfolio, clientele and ending with the operating model.

The result of this integration process There will be a new company with a unified business strategy, operating and financial model, united portfolios of markets and products. This type of integration is accompanied by integration benefits such as economies of scale and cost reduction.

The process of full integration affects all key areas or areas of activity of the companies involved, while very strong impact personnel are exposed. However, in some cases this the only way achieve your goals. Business strategy, people, business processes, subsidiaries - all will be included in the integration, which will result in one new company. Product portfolios will be combined and a single, new operating model will emerge.

This kind of integration is most often observed in crisis situations, when real economic instruments cannot help the enterprise get out of the crisis on its own.

Partial integration.

With partial integration, some, but not all areas or areas of activity are combined, depending on the goals set.

Among the factors that motivate a decision in favor of this type of integration is the balance of costs and profits (partial integration is usually cheaper, therefore, it makes sense to accept a lower level of profit). In addition, sometimes they decide to involve only part of the organization in the integration process in order to avoid unwanted resistance from within. This is particularly true in cases where the ultimate success of the integration important role cultural or national differences based on established traditions or religion play a role. Another common reason for partial integration is geographic location: there is a need to exclude certain areas of activity from integration due to the fact that the consequences of relocation or transportation may be negative. As with full integration, no last role The type of industry also plays a role. For example, in the airline and travel sectors, contemporary authors note, it is common practice for document processing departments to be consolidated while customer service departments remain separate.

In any case, with partial integration, the two companies may still follow different business strategies, but one will always dominate. Product portfolios may vary, but it is possible that some products will be common. Operating models may also have some differences, but financial model will be united.

Partial integration is most often found when service companies combine with enterprises of the main production cycle.

Minimal integration.

In the case of minimal integration, two different companies or divisions continue to exist as independent organizations, combining only financial structures and some corporate procedures. This type of integration is typically used for financial consolidation purposes and may involve the transfer of small amounts of knowledge or key capabilities. New business development strategies usually concern acquisitions in markets unrelated to those already developed, when it is advisable to leave the organizational unit free to develop. Most often, in cases of minimal integration, there is a single dominant corporate strategy, but the strategies of the business units are different, as are their products and target markets. This type of integration is often found in newly emerging or rapidly growing markets where the main emphasis is on maintaining market share or sales volumes.

1.3 Forms of international economic integration

MPEI goes through separate stages in its development (forms of MPEI):

1. Free trade zone

2. Customs union

3. Common market

4. Economic and monetary union

All these forms of integration have a common characteristic feature: certain economic barriers are eliminated between countries that have entered into one form or another of integration. As a result, a market space is emerging within the integration association, where free competition unfolds. Under the influence of market regulators - prices, interest, etc. - more efficient territorial and sectoral production structures emerge in this space. Thanks to this, all countries benefit from increased labor productivity, as well as savings in the costs of customs control over foreign economic relations. At the same time, each form of integration has specific features.

Moreover, each subsequent more complex form of integration associations includes the previous one as a separate element.

1. Free trade area - a form of integration association in which the participating countries are limited to the abolition of trade restrictions and the reduction or abolition of customs duties in mutual trade. At the same time, in relation to third countries they act individually, i.e. retain their economic sovereignty. With third countries, each participant in the free trade zone sets its own tariffs. The participating countries retain the right to abolish or introduce new customs duties or other restrictions, and the right to conclude treaties, agreements, alliances (in relation to third countries).

As a result, customs borders and posts that control the origin of goods crossing their state borders are maintained between countries.

As practice shows, interstate agreements on the creation of free trade zones usually provide for a gradual, over a number of years, mutual reduction of customs duties on industrial goods and services until their subsequent abolition, as well as the elimination of non-tariff restrictions on these goods and services. Often a special place is given to agricultural products, in relation to which, as a rule, integrating states pursue a policy with a certain degree of protectionism in defense of national farmers.

Agreements establishing FTAs ​​are usually based on the principle of a mutual moratorium on increasing duties (Standstill), according to which partners cannot unilaterally increase customs duties or erect new trade barriers.

Agreements on free trade zones may provide for special cases, in which the contracting parties may extend, for a specified period under mutually agreed circumstances, the scope of protective measures, including an increase in customs duties by a specified amount. IN legal aspect international agreements on free trade zones have preferential status in relation to the domestic legislation of the countries participating in the agreement.

The interaction of the FTA member states and the regulation of the relevant field of activity occurs without the creation of permanent supranational management systems or the adoption of special general decisions. All decisions are made by the highest officials participating countries - according to political problems and heads of ministries and departments (foreign trade, financial, etc.) - according to economic problems. These decisions are binding.

Participation in free trade zones and import liberalization threatens bankruptcy for national producers who cannot withstand competition with foreign suppliers, whose products may be of a higher quality and technical level.

Examples:

· NAFTA is a free trade agreement between Canada, the United States and Mexico.

· EFTA (European Free Trade Association), which has existed since 1960. Currently, EFTA members are Switzerland, Norway, Iceland, and Liechtenstein. In trade between EFTA member countries, all customs duties have been abolished, and external customs regimes have been maintained.

2. A form of closer cooperation is a customs union. It is characterized, along with the abolition of foreign trade restrictions within the integration association, by the establishment of a single customs tariff and the implementation of a unified foreign trade policy in relation to third countries. Those. The CU involves replacing several customs territories with one, with the complete abolition of customs duties within the CU and the creation of a single external customs tariff. At the same time, customs services at internal borders are abolished, and their functions are transferred to the corresponding services at external borders. In a number of cases, the customs union is supplemented by a payment union, which provides for the mutual convertibility of currencies and the functioning of a unified settlement system. However, financial institutions, banks, and insurance companies created within the CU play a secondary role.

Within the framework of the customs union, the participating countries pursue a coordinated foreign trade policy, mainly in the field of customs rules and procedures. This gives them the opportunity to regulate commodity flows in the interests of developing production, exports and better satisfying the import demand of the countries participating in the customs union. Practice shows that a customs union creates more attractive conditions for foreign investors.

The difference between an FTA and a CU: An FTA provides for a gradual reduction of customs duties, the elimination of non-tariff barriers, etc. Ultimately, the FTA is designed to provide duty-free trade between member countries. The Customs Union already has duty-free trade between member countries and a common customs tariff in relation to countries outside the union.

If the tariff established on the external borders of the member countries of the customs union for any product becomes higher than the weighted average tariff that existed before the creation of the integration group, then the countries reduce their dependence on imports in order to develop intra-union resources. The CU member countries are abandoning external sources of supply, which are cheaper, in favor of intra-Union resources, which are more expensive. Such measures can be applied if countries jointly decide to begin intensive development of new materials, energy resources, etc., in order to get away from external dependence.

If the tariff for any product established at the external borders of the participating countries of the customs union becomes lower than the weighted average tariff, then the participating countries focus on the markets of third countries and take measures to increase competition between domestic and external producers (an incentive for domestic producers to create competitive products ).

The presence of one or two major powers in its composition is of great importance for the Customs Union. Then the problems of resources are technically solved more easily than within the framework of the Customs Union, which unites resource-poor countries.

If the FTA does not stipulate the creation of permanent bodies, then the need for regulatory institutions already arises in the Customs Union, because:

· The transition to common customs duties and joint implementation of coordination measures requires a significant revision of approaches to the development of many sectors of the economy in each country

o It becomes necessary to coordinate the development of individual industries at the macroeconomic level, which leads to the emergence of new problems, approaches to both social issues and issues in other areas of activity

o There is a need for large-scale negotiations to harmonize not only customs and tariff policies, but also coordination or adaptation of domestic markets to emerging common interests.

The question arises about the creation of supranational bodies that will have to develop, coordinate, and control the activities of certain areas of foreign trade and production.

Example:

· MERCOSUR (Mercado Comъn del Sur - Southern Common Market): Argentina, Brazil, Paraguay, Uruguay, Venezuela (since 2006). In intrazonal trade, a single external customs tariff is introduced for all participants on products imported from third countries (the rate of import duties for different goods ranges from 0 to 20%).

· Southern African Customs Union: South Africa, Botswana, Lesotho, Swaziland and Namibia. One of the oldest in the world - since 1910.

3. With further development, the process of integration of the member countries of the group reaches the form of a common market. Barriers between participating countries are being eliminated not only in mutual trade in goods and services, but also in the movement of labor and capital.

The creation of a common market requires the harmonization of many industrial standards and legal norms. At the same time, special attention is paid to the system of measures that prevent violation of norms and regulate competition.

The EU experience shows that the implementation of policies within the framework of the common market must be subject to mandatory compliance by the participating countries with mutually agreed regulations (as their national laws). At the same time, directives addressed to member states are also binding, but each country is given freedom to choose the forms and methods of their implementation.

The creation of a common market involves the implementation of a number of major tasks, which cannot be accomplished within the framework of the Customs Union, namely:

· Abolition of customs duties between member states (also implemented within the CU)

· Development of a unified trade policy in relation to third countries (implemented within the framework of the Customs Union)

· Development of a general policy for the development of individual industries and sectors of the economy. When choosing them, one should proceed from how important this is for the subsequent consolidation of integration, what the social resonance will be after taking appropriate measures, and how this will affect the needs and requirements of a particular consumer. It is no coincidence that in the EU, during the transition to the common market, agriculture and transport were identified as selected areas

· Creation of conditions for the free movement of capital, labor, services and information, complementing the unimpeded movement of goods

· Formation of general funds for promoting social and regional development, which implies a turn to the interests and needs of the consumer directly, a focus on meeting local needs, allowing one to really feel the benefits of integration processes

· Coordination of measures for harmonization and unification of national laws. At the same time, a special place is given to the introduction of a system of measures to prevent violations of rules governing competition

· The need to form special, including supranational, management and control mechanisms. In the EU, these are the European Parliament, the Council of Ministers, the European Commission, the Court of Justice, and the European Council.

These three forms of international economic integration cover mainly the sphere of exchange, formally creating equal conditions for the participating countries for the development of trade and mutual financial settlements.

Example: European Union.

4. The most complex form of international economic integration with highly developed, strong, long-term foreign economic and political ties is an economic and monetary union. When it is achieved, agreements on a free trade zone, a customs union and a common market are complemented by agreements on the implementation of a common economic and monetary policy. Supranational institutions for managing the integration community are being created - the council of heads of state, the council of ministers, the central bank, etc. Major economic transformations are underway in all participating countries.

At a certain stage of the formation of an economic and monetary union, it is envisaged to implement a single monetary policy and introduce a single currency. These activities are carried out with the active participation of a single central bank.

In practice, the boundaries between different types of integration associations are quite arbitrary.

Example:: European Union.

5. Further development and improvement of forms of international economic integration may lead to complete economic and political integration (political union), i.e. to the transformation of an integration association into a confederal state with all the ensuing consequences.

Signs:

· the transformation of supranational governing bodies into central governing bodies with even greater powers and authority;

· general tax system;

· existence of uniform standards;

· unified labor legislation.

The Swiss Confederation of Cantons can serve as a prototype of a political union.

Currently, only one international integration group of countries - the European Union - has gone through four of these stages. Other integration groups have so far passed the first and partly the second levels in their development.

2. Integration processes in various regions of the world and the general consequences of joining trade and economic unions

2.1 Features of the development of integration processes in various regions of the world

European Union(European Union) - a unique international community 27 European countries(since January 1, 2007), signatories to the Treaty on European Union (Maastricht Treaty). The European Union is responsible for issues relating, in particular, to the common market, the customs union, single currency(with some members maintaining their own currency), the Common Agricultural Policy and the Common Fisheries Policy. In 1992, all states belonging to the European Community signed the Treaty establishing the European Union. Members: Belgium, Germany, France, Italy, Luxembourg, Netherlands, Denmark, Ireland, Great Britain, Greece, Portugal, Spain, Austria, Finland, Sweden, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Bulgaria, Romania.

North American Free Trade Association (NAFTA)

Members: USA, Canada, Mexico.

Officially - a free trade zone. A start towards the creation of a common market and economic union.

Created on the basis of an agreement that entered into force on January 1, 1994 between Canada, the United States and Mexico (signed in 1992).

The main provisions of the agreement establishing NAFTA, devoted to various aspects of business activity within North America:

· Access to markets

· Investments

· Guarantees

· Services

· Intellectual property rights

· State procurements

· Measures related to compliance with standards

Temporary entry for businessmen

· Dispute resolution

Currently, there are more than 15 regional economic groupings of third world countries. Developing countries see the creation of this kind of economic association as one of the means of overcoming economic backwardness.

Association of Southeast Asian Nations (ASEAN): Indonesia, Malaysia, Singapore, Thailand, Brunei, Philippines, Vietnam.

Andean group: Bolivia, Colombia, Peru, Ecuador, Venezuela.

Latin American Integration Association (LAAI): Argentina, Bolivia, Venezuela, Colombia, Mexico, Uruguay, Chile, Ecuador.

South Asian Association for Regional Cooperation (SAARC): Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.

UDAK - customs union of Central Africa: Gabon, Cameroon, Congo, Central African Republic.

2.2 Economic consequences of joining trade and economic unions

Consequences of international economic integration for the economic development of participating countries:

Advantages:

For companies participating in foreign trade activities:

+ no need to maintain trade missions in each country;

+ increased benefits of narrow export specialization due to economies of scale;

+ increase in demand within the region;

+ increasing the degree of price competitiveness due to the elimination of tariff and non-tariff barriers: growing incomes, which make it possible to more successfully develop the markets of third countries;

+ the growing market capacity makes it possible to increase R&D spending.

At the macro level:

+ intraregional trade becomes more efficient;

+ new opportunities for using the optimal location of enterprises on the territory of the integration group;

+ the costs of production and marketing of goods and services are reduced;

+ dissemination of advanced technology.

+ increased competition between countries;

+ ensuring the best trading conditions;

+ expanding trade in parallel with improving infrastructure;

Negative consequences:

- the outflow of resources (factors of production) from more backward countries leads to redistribution in favor of stronger partners;

- oligopolistic collusion between TNCs of participating countries leads to higher prices;

- the effect of losses from increasing the scale of production with very strong concentration.

The accession of a country to a trade and economic union, even in its simplest form, inevitably has a certain impact on the parameters of its economic functioning. At the same time, it is customary to distinguish two main directions in which the consequences of a country’s entry into an integration union can be considered: static analysis and dynamic analysis.

Within the framework of a static analysis, it is possible to distinguish two options for the consequences of a country’s entry into an integration trade and economic grouping:

flow-forming effect (trade creation effect);

flow diverter effect (trade diversion effect).

The flow-forming effect means a switch (due to the country's accession to an integration group) of the country's demand and, accordingly, consumption from a domestic manufacturer with higher costs to a foreign manufacturer with lower costs.

The flow-diverting effect means the switching of demand and, accordingly, consumption caused by joining a trade and economic union from a manufacturer outside the union, which has lower costs, to a manufacturer, which has higher costs, but is a member of the union.

Let's look at these effects in more detail.

An example of the flow-forming effect. Suppose that before the formation of the European Community, France and Germany independently produced a sufficient amount of good X, since there were high tariffs on the import of this good. Suppose also that after the formation of the EU and the subsequent abolition of tariffs within the community, France discovered that it was more profitable to import product X from Germany1. Thus, a new branch (new stream) of trade between France and Germany was formed.

A more realistic situation, of course, is when, even before the formation of an integration group, one country imports a certain amount of goods from another country - a future partner (in our example, France from Germany). In this case, after their unification within the EU, the flow of exports of product X from Germany to France will increase significantly.

However, in both cases, the removal of trade barriers caused by joining an economic and trade union represents an opportunity for the development of greater specialization in accordance with the principle of comparative advantage. As a result, instead of spending relatively big funds for the production of a particular product by domestic firms, it can now be imported at relatively low prices, developing in the country those industries in which it has a comparative advantage.

An example of the flow-diverting effect. Now suppose that before the formation of the EU, France imported good Y from the United States, which produced this good at the lowest cost in the world. After the formation of the community and the subsequent abolition of tariffs on intra-community trade, France discovered that it was more profitable to import the product from Germany because there was no duty on imports from Germany.

Germany thus diverted (diverted) the import of product Y for France. As a result, the efficiency of resource use in the world economic system decreases.

Dynamic analysis

In addition to the static effect, trade and economic alliances have several interesting dynamic effects. The positive dynamic effects can be summarized as follows:

1. Increasing the size of the market can allow firms to obtain the corresponding effect from increasing the scale of production, which leads to a reduction in production costs for the following reasons: more complete use of factory capacity, increasing the level of qualifications of labor and management personnel. This effect is especially important for developing countries.

2. The expansion of integration contacts between countries often entails an improvement in the production and non-production infrastructure of the member countries of the unions (automobile and railways, financial services, etc.). In turn, this leads to even greater long-term benefits from cooperation, in particular, a reduction in costs associated with export-import transactions.

3. The position of each of the countries included in the integration group as participants in various trade and economic negotiations is more preferable compared to the position of an individual outsider country. This may allow member countries to secure, for example, better terms of trade or other advantages.

4. Joining trade and economic unions leads to increased competition between countries. Monopolistic and oligopolistic market structures in this case become not protected from external influences. Competition becomes less individual, more effective and leads to the development of new industries. This creates a climate conducive to faster diffusion of advanced technology and faster economic growth.

5. The formation of trade and economic unions, as a rule, is accompanied by a significant increase in the volume of investment from third countries in the economies of the countries participating in such unions. Firms from third countries build their factories in union countries in order to avoid customs discrimination in the future (after the formation of the union). This factor, for example, was fundamental in the decision of American firms to invest huge sums in the European economies after 1955.

The main negative consequences that may be associated with joining a trade and economic union are as follows.

1. Under a certain set of circumstances, an outflow of resources from the country may begin, redistributed in favor of economically stronger members of the union. In this case, the country may turn into a “backward region.”

2. In the event that integration contributes to the establishment of closer integration ties between individual firms of the participating countries, the result may be a wider spread of oligopolistic collusion, entailing higher prices for the relevant products. In addition, the number of mergers may increase, which, in turn, will lead to increased monopoly dominance.

3. In some cases, there may be a loss effect from increasing the scale of production associated with the formation of too large companies (negative economies of scale).

It should be noted that it is extremely difficult to evaluate all these arguments in a comprehensive manner, especially since many of the consequences, both positive and negative, are very long-term in nature and depend on the general situation on the world stage.

Conclusion

During the test, the essence of the concept of international economic integration was described, objective prerequisites, levels, goals, objectives and advantages of integration were determined.

In general, international economic integration is characteristic feature the current stage of the world economy. At the end of the 20th century. she became powerful tool accelerated and harmonious development of regional economies and increased competitiveness in the world market of countries participating in integration groups.

International economic integration is the process of merging the economies of neighboring countries into a single economic complex based on stable economic ties between their companies. Classic forms of international economic integration: free trade zones, when trade restrictions between countries participating in the integration association are abolished and, above all, customs duties are reduced or abolished altogether; a customs union, when, along with the abolition of foreign trade restrictions, a single customs tariff is established and a unified foreign trade policy is pursued in relation to third countries; the common market, marked by the signing of a treaty covering the “four freedoms” of crossing national borders for goods, services, capital and people; economic and monetary union, when agreements on a free trade zone, customs union and common market are supplemented by agreements on the implementation of a common economic and monetary policy, and supranational institutions for managing the integration association are introduced.

Further development and improvement of forms of international economic integration may lead to a political union, i.e. to the transformation of an integration association into a confederal state with all the ensuing consequences, including the formation of central bodies with even greater powers and power than supranational governance institutions.

The process of international economic integration is driven by the development and deepening international division labor. From a simple exchange of goods - to sustainable large-scale international trade in goods and services to the international movement of capital and the creation of new industries - to close industrial and scientific and technical cooperation - to joint production and management. As a result, national economies “penetrate” each other. The internationalization of economic life becomes obvious when many different phases of scientific, technical, production, investment, financial and commercial activities are intertwined.

The economic interdependence of countries and peoples is becoming a tangible reality. Comprehensive world economic regional ties are gradually taking shape and becoming especially close, covering many countries. International economic integration is becoming practical, determining the prospects for further economic progress.

List of used literature

1. Avdokushin, E.F. International economic relations // M.: Yurist, 2001. 368 p.

2. Bulatova.A.S. World economy: Textbook / Ed. prof. A.S. Bulatova. M.: Yurist, 2000. 734 p.

3. Glinkin. A.N. Integration in the Western Hemisphere / Rep. ed. A.N. Glinkin. M.: ILA RAS. 2000.s. 80.

4. Zhuravleva G. P. Economics. M.: Yurist, 2004. 254 p.

5. Yu.A. Shcherbanin, K.L. Rozhkov, V.E. Rybalkin, G. Fischer. M.: International economic relations. Integration: Textbook. A manual for universities/Banks and Exchanges. M, UNITY, 1997. 128 p.

6. Brief foreign economic dictionary-reference book. M.: International relations. M, 1996. 89 p.

7. Kireev A.N. International Economics. M.: International Economics, 1999. 34 p.

8. Kudrov.V.M. World economy. M.: Beck, 2002. 112 p.

9. Lesnyakov G.L. Strategy of Western European integration and attitude towards Russia.//Economics. 1998, no. 1.

10. Movsesyan A. G., Ognivtsev S. B. World economy. M.: Finance and Statistics, 2001.

11. Mosey G. Processes of globalization and regionalization in the world economy // Economist, 2006, No. 9.

12.Nikolaeva.I.P. World Economy / Ed. Nikolaeva I. P. M.: UNITY-DANA, 2005. 78 p.

13. Ovcharenko. NOT. Models of modern integration processes. M.: Prospekt, 2003. 451 p.

14. Pebro M.L., International economic, currency and financial relations. M. Papyrus, 1994. 56 p.

15. Pankov V.A. Pan-European economic space: opportunities and prospects // World Economy and International Relations, 2007, No. 3.

16. Heifetz. V.L. Ovdenko. A.A. International integration - St. Petersburg: GUAP, 2003. 68 p.

17. Journal "World Economy and International Relations", 2006 No. 7.

1. Barker G., Helmink J. How to successfully merge companies / Hans Bakker, Jeren Helmink; translation from English T.I. Mitasova scientific editor. G.A. Yasnitsky, A.G. Yasnitskaya. Minsk: Grevtsov Publishing, 2008. 288 p.

2. Bogachev V.F., Veretennikov N.P. Formation of an organizational and economic mechanism for regulating the consumption of aquatic biological resources // World of Economics and Law No. 7-8 2013. With. 4-11.

3. Zelenina N.L. Transformation of state property in the Russian economy // abstract of the dissertation for the degree of Candidate of Economic Sciences MGEI, Moscow, 2004. 19 p.

4. Morozova E.Ya. Endowment - funds as a stable source of financing for non-profit organizations SCS - utopia or reality // Economics and management in the service sector: current state and development prospects. - Materials of the XI All-Russian Scientific and Practical Conference on February 7, 2014. St. Petersburg: SPbGUP Publishing House, 2014.

5. Kholnova E. G., Novikova L. N. The system of insurance of bank deposits in Russia, problems and development prospects / monograph Kholnova E. G., Novikova L. N. / Vologda Scientific Coordination Center CEMI RAS, St. Petersburg State . Engineering and Economics University Vologda, 2006.

6. Shlafman A.I. Legislative regulation of entrepreneurship, theoretical foundations government regulation entrepreneurial activity // Russian Entrepreneurship. 2009. No. 1-1. pp. 25-29.

7. Shlafman A.I. The place and role of state regulation of integration processes of entrepreneurship in new economic conditions //Economic Sciences. 2013. No. 105. pp. 26-28.

8. Lajoux A.R. The art of M&A Integration: a guide to Mergering Resources, processes and responsibilities/ A.R. Lajoux - New York: McGraw-Hill, 1997.

Posted on Allbest.ru

...

Similar documents

Forms of international economic integration. The main integration groups in the modern world, their place in the international economy. International economic integration using the example of NAFTA. Prerequisites and features of North American integration.

course work, added 02/19/2011


Signs of economic integration. Prerequisites for international integration. Types of international economic integration. Features of integration associations of the countries of the American continent. NAFTA is a North American free trade area.

course work, added 09/20/2006


The essence and prerequisites of international economic integration, its necessity and significance. Development of trade and economic relations between Russia and the European Union. Prospects for Russia's accession to the WTO. Ways of Russia's integration into the world economy.

thesis, added 10/13/2014


The concept and essence of integration processes, their classification and functioning. Consideration of the largest integration centers. The role and goals of a single economic space. Determining Russia's place in the processes of modern international integration.

abstract, added 10/25/2014


Internationalization of economic life in the second half of the 20th and early 21st centuries. Trend in the development of the world economy. Essence, theories, objective foundations and stages, consequences of international economic integration. Models of integration processes.

course work, added 10/21/2008


The development of integration processes as the most important characteristic of the modern world economy. The concept of international economic integration (IEI) as a process of economic and political unification of countries. Principles of MPEI, its regional character.

report, added 03/17/2012


Theoretical basis, essence and reasons for the emergence of economic integration processes in Western Europe, main stages of development. The current state of Western European integration, its role on the world stage. Problems and prospects for development.

course work, added 03/03/2009


The concept, necessity and historical inevitability of international economic integration. Conditions and prerequisites for effective integration, its theoretical concepts and schools. Economic integration in Western Europe. Problems and prospects for the development of the EU.

course work, added 03/25/2011


Objective foundations, prerequisites and factors for the development of international economic integration, its stages and consequences. Role international organizations in modern international relations. The place of integration among other global factors of world development.

course work, added 05/06/2013


The role and types of trade intermediaries in the international economy. Trade intermediation in Russia. Economic integration and its significance for the development of Europe. Reasons and forms of development of economic integration. Modern integration groups of Europe.

International economic integration is a process of economic interaction between countries, leading to the convergence of economic mechanisms, taking the form of interstate agreements and coordinatedly regulated by national or interstate authorities.
Economic integration is characterized by some significant features that together distinguish it from other forms of economic interaction between countries:
interpenetration and interweaving of national reproductive processes;
the widespread development of international specialization and cooperation in production, scientific and experimental development on the basis of their most progressive and deep forms;
deep structural changes in the economies of the participating countries, subordinated to the strategic goals of integration;
targeted regulation of the integration process, coordination of the economic strategy and policies of the participating countries.
Prerequisites for creating integration groups:
the proximity of the levels of economic development and degree of market maturity of the integrating countries. In most cases, interstate integration develops either between industrial developed countries, or between developing ones;
the geographical proximity of the integrating countries, the presence in most cases of a common border and historically established economic ties;
the commonality of economic and other problems facing countries in the field of development, financing, economic regulation, political cooperation, etc.;
demonstration effect. In countries that have created integration associations, positive changes usually occur (acceleration of economic growth, lower inflation, increased employment, etc.), which has a certain psychological impact to other countries. The demonstration effect was manifested, for example, in the desire of countries former USSR become members of the EU as quickly as possible, even without macroeconomic prerequisites for this.
"Domino effect". After the majority of the countries of a particular region have become members of the integration association, the remaining countries remaining outside of it are experiencing some difficulties associated with the reorientation of economic ties of the countries included in the grouping. This could lead to a reduction in trade for countries left outside of integration. As a result, they are also forced to join the integration association. For example, after Mexico joined NAFTA, many Latin American countries rushed to enter into trade agreements with it.
The participation of countries in integration associations provides them with a number of advantages in the process of economic development, the most significant of which include:
wider access of business entities to various types of resources: financial, labor, material, the latest technologies, as well as the ability to produce products for a larger (regional) market;
the ability to operate in a wider international (integration) market space;
creating privileged conditions for firms from participating countries, protecting them to a certain extent from competition from firms from third countries;
joint solution by the participating countries of complex socio-economic, scientific, technical, environmental and other problems (for example, reducing unemployment, equalizing the conditions for the development of individual regions, etc.).
Historically, integration evolves through several main stages, each subsequent one gradually developing from the previous one. The main stages of the integration process in the logic of their historical development are:
1. Preferential trade agreements are concluded either on a bilateral basis between countries, or between an already existing integration grouping and an individual country or group of countries. In accordance with them, countries provide each other with more favorable trade treatment than third countries. Interstate governing bodies, as a rule, are not created at this stage.
2. The free trade area provides for the complete abolition of customs tariffs in mutual trade in goods (all or most) and services while maintaining national customs tariffs in relations with third countries. A free trade zone can be coordinated by a small interstate secretariat, but often does without it, coordinating the main parameters of its development at periodic meetings of the heads of relevant departments.
3. Customs Union is distinguished by the agreed abolition of national customs tariffs between member countries, the introduction by them of common customs tariffs and a system non-tariff regulation trade with third countries. Duty-free intra-integration trade in goods and services is assumed and absolute freedom their movements within the region. Usually at this stage a system of interstate bodies is created that coordinates the implementation of a coordinated foreign trade policy. Most often, they take the form of periodic meetings of ministers heading the relevant departments, which in their work rely on a permanent interstate secretariat.
4. A common market, in which integrating countries agree on the freedom of movement of not only goods and services, but also factors of production - capital, labor and technology. Coordination is carried out at periodic meetings (usually 1-2 times a year) of the heads of state and government of the participating countries, and at much more frequent meetings of ministers. At the same time, a permanent interstate secretariat is created (for example, in the EU - the European Council of Heads of State and Government, the Council of Ministers and the Secretariat).
5. Economic and monetary union, at the level of which full integration occurs, implying that the participating countries carry out a single economic, currency, budgetary, and monetary policy, the introduction of a single currency, and the establishment of supranational regulatory bodies within the integration grouping. Governments consistently renounce some of their functions in favor of supranational bodies, which are given the right to make decisions on issues related to integration without coordination with the governments of member countries (for example, in the EU - the EU Commission).
Despite their large numbers and different levels of development, all integration groups in the world pursue approximately the same goals:
taking advantage of economies of scale based on expanding market size, reducing transaction costs, and influx of foreign direct investment. Such goals are especially clearly expressed among integration groups Central America and Africa;
creating a favorable foreign policy environment by strengthening mutual understanding and cooperation of the participating countries in political, military, social and other non-economic fields; especially typical for the countries of Southeast Asia and the Middle East;
solving trade policy problems by strengthening the negotiating positions of participating countries within the framework of multilateral negotiations at the WTO. In addition, regional associations make it possible to create a more stable basis for mutual trade. Similar motives are present in the integration associations of North and Latin America and Southeast Asia;
promoting structural restructuring of the economy through the use of market experience, capital, and technologies of more developed members of the group. These integration goals are most fully manifested within the EU;
supporting the development of national industries due to the emergence of a wider regional market. This goal was the leading one for the integration associations of Latin America and sub-Saharan Africa.
Thus, as a result of integration, certain groups of countries create among themselves more favorable conditions for trade and for the interregional movement of factors of production than for all other countries. Such regional formations are assessed as a positive factor in the global economy, but provided that the group of integrating countries, liberalizing mutual economic ties, does not establish less favorable conditions for trade with third countries than before the start of integration.

Control questions
What is the essence and goals of international economic integration?
In what forms is the economic effect of a country’s participation in an integration association manifested?
What stages are distinguished in the process of international economic integration?

International economic integration is a process of economic and political unification of countries based on the development of deep stable relationships and division of labor between national economies, the interaction of their reproductive structures at various levels and in various forms.

At the micro level, this process occurs through the interaction of capital of individual economic entities (enterprises, firms) of nearby countries through the formation of a system of economic agreements between them and the creation of branches abroad.

At the interstate level, integration occurs on the basis of the formation of economic associations of states and the coordination of national policies.

The rapid development of intercompany relations calls for the need for interstate (and in some cases suprastate) regulation aimed at ensuring the free movement of goods, services, capital and labor between countries within a given region, at coordinating and conducting joint economic, scientific, technical, financial and monetary , social, foreign and defense policy.

As a result, integral regional economic complexes are created with a single currency, infrastructure, general economic proportions, financial funds, and common interstate or supranational governing bodies.

Forms of international economic integration:

1. Free trade Area , within the framework of which trade restrictions between participating countries, and above all customs duties, are abolished.

2. Customs Union – Along with the functioning of a free trade zone, it assumes the establishment of a unified foreign trade tariff and the implementation of a unified foreign trade policy in relation to third countries.

3. Common Market – provides its participants, along with freedom of mutual trade and a common external tariff, freedom of movement of capital and labor, as well as coordination of economic policies.

4. Full economic union – combines all of the above forms with the implementation of a general economic and monetary policy. The main forms of integration and the relationship between them are presented in Fig. 9.

Rice. 9 . Main forms of economic integration

Economic integration provides a number of favorable conditions for the interacting parties.

Integration cooperation gives business entities (product producers) wider access to various types of resources - financial, material, labor; to the latest technologies throughout the region; allows you to produce products based on the capacious market of the entire integration group.

The economic rapprochement of countries within a regional framework creates privileged conditions for firms from countries participating in economic integration, protecting them to a certain extent from competition from firms from third countries.

Integration interaction allows its participants to jointly solve the most pressing social problems, such as equalizing the conditions for the development of individual, most backward regions, easing the situation on the labor market, providing social guarantees to low-income segments of the population, and further developing the health care system, labor protection and social security.

At the same time, one cannot fail to mention the problems that may arise in the process of integration interaction.

A free trade zone creates an inconvenience, which lies in the risk of diversion of trade flows: manufacturers from third countries can import their goods into the zone through member countries with the lowest customs duties, which distorts the movement of trade flows and also reduces customs duties of member states of the community.

The creation of a free trade area or customs union can either increase or decrease welfare.

Many Western economists have turned to the problem of customs unions to compare the advantages resulting from the liberalization of exchange within the union with the disadvantages that discrimination causes to third countries.

Works Ya. Weiner And J. Mead lead to ambiguous conclusions. The Union expands exchange within its borders and thereby creates economic benefits for member countries. However, to a certain extent it also discourages trade and thus generates losses for the rest of the world. In some cases, it can be concluded that, at a global level, losses may exceed benefits. Research shows that the creation of a customs union has a greater chance of being overall positive the more more comparable nature of production in countries stnits, the higher the customs duties duties before the formation of the union, the greater was that part of the partners' trade that they already carried out among themselves, and what larger number participating countries. In addition, the dynamic approach allows us to state that the union over time generates additional benefits that are not taken into account in the static analysis: positive effects of scale and the development of competition due to market expansion; increasing foreign investment; gradual economic integration, etc.

The formation of the Western European Customs Union provided an opportunity for a practical assessment of the results of trade integration. According to the world's leading economists, within European Community The increase in trade caused by the customs union exceeded its decrease. M. Kreinin will calculate what image The increase in new trade flows within the Community amounted to approximately 8.4 billion dollars, while imports from third countries decreased by only 1.1 billion dollars.

Although the formation of a customs union within the European Community brought benefits to the world economy as a whole, it had a negative impact on the economies of some countries. Thus, the USA and Canada lost part of their European markets. Within the Community, the Netherlands and Germany had to raise import duties to the general level of a single tariff, thereby depriving themselves of trade advantages. As for agriculture, Great Britain suffered the greatest losses here, losing x years advantage of cheap agricultural imports products from the countries of the British Commonwealth.

The interaction of national economies develops with varying degrees of intensity and on different scales, manifesting itself more clearly in individual regions.

Factors determining integration processes:

1. Increased internationalization of economic life.

2. Deepening of the international division of labor.

3. A scientific and technological revolution that is global in nature.

4. Increasing the degree of openness of national economies.

All these factors are interdependent.

Internationalization represents the process of developing sustainable economic relations between countries (primarily based on the international division of labor) and the expansion of the reproduction process beyond the national economy. Transnational corporations (TNCs) are especially actively contributing to the growth of internationalization.

Another factor in the development of integration processes is profound shifts in the structure of the international division of labor, occurring primarily under the influence of scientific and technological revolution. The term “international division of labor” itself, on the one hand, traditionally expresses the process of spontaneous distribution of production responsibilities between nations, the specialization of individual countries in certain types of products. On the other hand, production responsibilities are systematically distributed within and between firms. Intra-industry specialization is becoming widespread.

The current stage of scientific and technological progress takes the internationalization of both the market and production to a qualitatively new level, despite the uneven distribution of scientific and technological progress in different countries. The scientific and technological revolution is an independent factor determining the increasing role of foreign economic relations in modern social reproduction. It is difficult to imagine the successful development of science and technology in a particular country without connections with other states.

In recent years, the intensive development of cooperation between firms from different countries has led to the emergence of large international production and investment complexes, the creation of which is most often initiated by TNCs. For them, the intra-company division of labor went beyond national boundaries and essentially became international. On this basis, the degree of openness of national economies increases. An open economy is being formed on the basis of a more complete inclusion of the country in world economic relations.

A significant role in the formation of an open economy in developed countries is played by the foreign economic strategy of states to stimulate export production, promote cooperation with foreign companies and create a legal framework that facilitates the influx of capital, technology, and qualified personnel from abroad.

Previous

Worldwide (each country is color coded according to the form of most advanced integration it is participating in): Economic and monetary union (CSME/EC$ , EU/€ , Switzerland–Liechtenstein/CHF) Economic Union (CSME, EU, EAEU, MERCOSUR, GCC, SICA) Customs and Monetary Union (CEMAC/XAF, UEMOA/XOF) General market ( EEA – Switzerland ASEAN) Customs Union (CAN, EAC, EUCU, SACU) Multilateral Free Trade Area (CEFTA, CISFTA, COMESA, EFTA, GAFTA, NAFTA, SAFTA, AANZFTA, PAFTA, SADCFTA)

International economic integration is the process of international unification of the economies of countries and states into one, common market, in which the gradual abolition of tariff and non-tariff restrictions leads to the unification of economic policies in sectors of the economy and has a number of pronounced consequences.

These include the law of one price (price equalization), a sharp increase in trade volume, an increase in labor productivity, migration of labor flows, equalization of the amount of domestic savings, and the emergence of a single tariff grid at the borders of an economic association. It is believed that economic integration is the second the best option after the free trade regime in terms of the degree of favorability (its stimulation).

Another definition of economic integration is the process of rapprochement, mutual adaptation and merging of national economic systems with the ability of self-regulation and self-development on the basis of coordinated interstate economics and policies.

Highlight following forms economic integration (with increased list integration):

The main features of integration are:

• interpenetration and interweaving of national production processes;
• structural changes in the economies of participating countries;
• necessity and targeted regulation of integration processes.

Structural levels of integration processes

Level	The essence of integration at this level
Local	Phases of the production process within one microeconomic unit
Micro level	Phases of the production process within a set of economic units
Regional (regional)	A complex of interacting economic entities in a certain region within a state
National	Interacting sectors of several regional complexes within the state
Mesoregional	Interacting sectors of regional complexes within several border states
Macro level	Interaction of national complexes in a certain region of the planet
Mega level	Integration across the global economic space

Encyclopedic YouTube

• 1 / 5

  Advantages:

  • an increase in market size is a manifestation of the production scale effect;
  • competition between countries is increasing;
  • increasing foreign direct investment;
  • expanding trade in parallel with improving infrastructure;
  • dissemination of new technologies.

  Negative consequences:

  • for more backward countries, this leads to an outflow of resources (factors of production), and there is a redistribution in favor of stronger partners;
  • oligopolistic collusion between TNCs of participating countries, which contributes to higher prices for goods;
  • the effect of losses from increasing the scale of production.

  Integration of individual enterprises

  Distinguish

  • vertical integration of enterprises, in which they are united from suppliers to buyers, ideally covering the entire chain from the resource-extracting enterprise to trading network selling the finished product to the end consumer
  • horizontal integration of enterprises, in which enterprises from the same industry are united
  • circular integration of enterprises, in which enterprises from different industries are united, which reduces unsystematic risks of loss of profitability
  • integration of enterprises producing complementary goods

  Modern scientists differ in their interpretation of the concept forced economic integration. In some scientific works it has a dual interpretation depending on the chosen methodological approach (dynamic or static). Within the framework of the dynamic approach, forced economic integration is the process of forced formation of a stable dependence of some economic entities from others, their interpenetration and fusion, aimed at maximizing the benefits of the dominant party. In a static approach forced economic integration appears to us as an unequal association of economic entities, within which the dominant unit, ignoring third-party interests, forces the remaining participants to cooperate beneficially for it.

  However, there is a slightly different interpretation of this concept: forced economic integration- this is an unequal alliance of 2 or more parties (states) imposed by military-political force during military operations on the captured territory of the state or after the surrender of the losing party during the period of dependence of the losing party on the aggressor for the purpose of economic exploitation captured country. Examples include the three-century oppression of the Tatar-Mongol yoke in Rus'; colonization of Africans, Asian countries developed countries (England, France, etc.); a period of major military operations between different countries, including during the First World War and the Second World War. And although this type of integration does not fully fit the definition of economic integration in the classical sense, it has a number of signs of economic integration processes:

  • the use of labor for free or for reduced pay from people of the conquered country (including captives; the local population of the colonies);
  • local consumption and export from the occupied country to the conquering country of production assets, goods, precious metals, cultural property captured during expansion or acquired at a forcibly reduced price;
  • the use of the production assets of an occupied country for the needs of the aggressor at a reduced price (the minimum price of exploitation);
  • there may be elements of a tax system imposed by the conquering country (tribute from Rus' in favor of the Tatar-Mongol yoke, payments of indemnity by the countries of the Hitlerite coalition in favor of the victorious countries);
  • the use of coin regalia taking into account the economic interests of the conquering country.

  Monetary circulation (in addition to the usual one) with forced economic integration can be considered as elements of a supranational or international monetary unit.Internationalization (economics)

  Bibliography

  • Avladenev A. A. Clarification of the concepts of “economic integration” and “forced economic integration” / A. A. Avladenev // Young scientist. - 2014. - No. 21. - P. 260-263.
  • Shchepotyev A.V. Forced economic integration.// Collection of articles of the III All-Russian scientific and practical conference “Socio-economic development of Russia in the 21st century”. Penza: Volga House of Knowledge, 2004. - p. 19-22.
  • Shchepotyev A.V. Monetary circulation under forced economic integration. //Solomon’s decision: financial and legal bulletin. 2005. - No. 1. - p. 57-59.
  • Shchepotyev A.V. Military awards in monetary circulation in Russia.//Smolensk regional magazine for collectors, local historians, museum workers “Collection”. 2006. - No. 3. - p. 19-25
  • Balassa, V. Trade Creation and Trade Diversion in the European Common Market. The Economic Journal, vol. 77, 1967, pp. 1-21.
  • Dalimov R.T. Modeling international economic integration: an oscillation theory approach. Trafford, Victoria 2008, 234 p.
  • Dalimov R.T. The dynamics of the trade creation and diversion effects under international economic integration, Current Research Journal of Economic Theory, 2009, vol. 1, issue 1; www.maxwellsci.com
  • Dalimov R.T. Dynamics of international economic integration: non-linear analysis. Lambert Academic Publishing, 2011, 276 p.; ISBN 978-3-8433-6106-4 , ISBN 3-8433-6106-1 .
  • Johnson, H. An Economic Theory of Protection, Tariff Bargaining and the Formation of Customs Unions. Journal of Political Economy, 1965, vol. 73, pp. 256-283.
  • Johnson, H. Optimal Trade Intervention in the Presence of Domestic Distortions, in Baldwin et al., Trade Growth and the Balance of Payments, Chicago, Rand McNally, 1965, pp. 3-34.
  • Jovanovich, M. International Economic Integration. Limits and Prospects. Second edition, 1998, Routledge.
  • Lipsey, R. G. The Theory of Customs Union: Trade Diversion and Welfare. Economica, 1957, vol. 24, pp. 40-46.
  • Meade, J.E. The Theory of Customs Union." North Holland Publishing Company, 1956, pp. 29-43.
  • Machlup, Fritz (1977). A History of Thought on Economic Integration. New York: Columbia University Press. ISBN 0-231-04298-1 .
  • Negishi, T. Customs Unions and the Theory of the Second Best. International Economic Review, 1969, vol. 10, pp. 391-398
  • Porter M. On Competition. Harvard Business School Press; 1998; 485 pgs.
  • Riezman, R. A Theory of Customs Unions: The Three Country-Two Goods Case. Weltwirtschaftliches Archiv, 1979, vol. 115, pp. 701-715.
  • Ruiz Estrada, M. Global Dimension of Regional Integration Model (GDRI-Model). Faculty of Economics and Administration, University of Malaya. FEA-Working Paper, No. 2004-7
  • Tinbergen, J. International Economic Integration. Amsterdam: Elsevier, 1954.
  • Tovias, A. The Theory of Economic Integration: Past and Future. 2d ECSA-World conference “Federalism, Subsidiarity and Democracy in the European Union", Brussels, May 5-6, 1994, 10 p.
  • Viner, J. The Customs Union Issue. Carnegie Endowment for International Peace, 1950, pp. 41-55.

  In the modern world there are global processes related to the merger foreign countries in various unions and formations. This happens for a number of reasons, the main ones of which are the following:

  • the interdependence of economies is growing;
  • gaining momentum at the micro and macro levels;
  • The higher the civilization of a state, the faster it transfers its economy from national economic isolation to openness to the outside world.

  The market for the production and consumption of goods and services, international corporations and spheres of influence that regulate ruinous competition - all this is based on the joint balanced economic interaction of countries connected by common business interests.

  Definition

  It is generally accepted that international economic integration is a conscious process, directed and regulated by heads of state, caused by objective reasons. It is based on the convergence of individual economic systems, their merging, and adjustment to each other. Naturally, such unions are not planned for one day; they have long-term potential and elements of self-development.

  International benefits many individual countries who, running their own farm separately, face a number of difficulties. By uniting, these difficulties are overcome much easier, solving many problems of an economic and technical nature.

  If we consider the economic micro level, then international integration is the creation in nearby states of firms, organizations, and enterprises that have common trade and economic ties. For example, in one country, enterprises produce products from raw materials supplied by another. And production is carried out on equipment produced in a third partner country. This type of connection is established on the basis of economic agreements, the organization of foreign branches, etc.

  If we talk about the macro level, it is equated to the interstate level, and here international integration is an economic unification of states, agreed upon not only on but also on individual national-political foundations. An example is the European Union.

  Intensive development of integration requires the free movement of goods in different state regions, services, Money, labor resources. This, in turn, entails the need for coordinated joint actions in finance, foreign exchange transactions, science and technology, and economics. Moreover, over time, both social and defense are included in the orbit of joint actions. Thus, international economic integration is a complex, multi-level phenomenon, possible at a certain stage of development of state systems. For its emergence, a high level of public consciousness is needed, overcoming narrow proprietary ideology and confrontation, which is characteristic of states with a militaristic bias in government.

  Forms of international economic integration

  Traditionally, there are several such forms:

  • The simplest of them is considered to be free trade zones. When such zones are formed between the participating countries, various restrictions related to the import and export of goods, customs duties, etc. are eliminated.
  • A customs union - this type of form of international economic integration involves introducing not only a free trade zone between the participating countries, but also a common foreign trade policy, and a certain price regulator in relation to countries not included in the integration union.
  • A more complex formation is It makes it possible not only to organize a common market space with free mutually beneficial trade, a uniform pricing policy, but also free input and output of capital, movement of labor resources, consistency in the economic legislation of the participating parties.
  • International economic integration at the highest level is an economic and monetary union. Such a community, among other things, presupposes a unified interstate monetary, financial, and economic policy.