Process of Economic Integration in the World Today Essay

Process of Economic Integration in the World Today - Essay Example This paper presents a modern research report on different aspects of economic integration in the world today. The prime purpose involved in the process of economic integration process is reducing costs both for the producers and the consumers as well. The increasing levels of integration help in determining the competitiveness and allowing smooth movement of labour, cost and capital. It can be affirmed that the implementation of economic integration lessens the short-term profits due to the imposition of tariffs. Economic integration reduces the other trade barriers as well. It gives less power to the government of the member nations to make necessary adjustments that might deliver significant benefits to them. The process of economic integration in the context of E.U. generally includes four main features. One of the features is that economic integration reflects increase in intra-euro area trade at large. The second facet of economic integration can be identified to be making smooth and free flow of capital and also contributing towards developing the aspect of financial integration. The third feature of economic integration relating to its process is constituted by labour mobility. The other facet of economic integration in relation to its process can be viewed as synchronizing and coordinating different cyclical positions across the Euro areas It can be apparently observed but deeper economic integration is needed for the creation of developed economy in this increased level of globalisation along with internationalisation. ... These figures reflect the creation of strong Europe (European Central Bank, 2007). The second facet of economic integration can be identified to be making smooth and free flow of capital and also contributing towards developing the aspect of financial integration. Financial integration strengthens the economic mechanism, raises the competition and increases the potential for stronger economic growth. Along with economic integration, financial integration plays an imperative role in determining effective monetary policies and ensuring free along with effective transmission of single monetary policy. However, the actual need of financial integration is being observed in retail banking sector (EUbusiness Ltd, 2013). The third feature of economic integration relating to its process is constituted by labour mobility. As the labour market begins to tighten itself in developing economies, absence of openness may result in generating the risks of wage pressure. In most part of the European U nion, it can be viewed that cross border labour mobility is still limited, restricting in developing the economy by a certain degree through the emergence of regulatory barriers. The other facet of economic integration in relation to its process can be viewed as synchronizing and coordinating different cyclical positions across the Euro areas (Kuroiwa, 2012). Purposes of Economic Integration In order to determine the purposes of economic integration, it can be apparently observed that economic integration has increased among the countries in the European Union, but deeper integration is needed for the creation of developed economy in this increased level of globalisation along with internationalisation. In this similar context, the prime