The negative and positive of market integration

As we can see in the world different countries have their own advantages and disadvantages , such as
China and India are labor intensive on the other hand Japan and German are techonology intensive .
Different countries produce the same products costs are different , it depends on labour, original
resources, land...etc this is comparative advantage, global economic integration make comparative
advantage more distinct.

NEGATIVE

Many multinational set up branches in other countries, use the natural resources which can reduce their
costs . Such as New Zealand land, India labour , or Japanese high technology, each company just
produce one part of the good that they are good at. This way can save time,energy and reduce waste, it
saves costs and make the companies more efficiency, encourage the developing countries

It also gives good chances to developing countries to learn new tachonology from developed countries ,
it urges the competitive among countries stronger and more intension. Market integration provides
more opportunities to domestic firms and provider wider consumers choice , government reduce the
tariff to fetch more foreign investment

Market integration also brings the a lot of benefits to consumers; they can shop locally and have more
choices , people can choose what they want from the worldwide . Another important point need to
mentioned is market integration an avoid monopolization

In the past the policy was blockage, people have to buy the products in the local markets otherwisw
thay have to pay a big amount of money on tariff so some companies are lazy-faire. They don’t care the
quality of the products and put the price on the top because don’t have the compertitors , However,
economic integration can avoids this bad situation, it push companies do better because they have
strong competitors around the world, forces firms to produce quality products and encourages firms to
innovate

POSITIVE

Country rely on each other too much than ever before, so that they become a chain, if one country in
trouble, others will in trouble as well. It influencing the whole world and difficult to avoid. Such as the
financial crisis in America in 2008, at the beginning just American bank bankrupt, but as we know, many
multinationals cooperate with the USA, they all play a role in the business chain, one part bkoken the
other will broken one after another. Another example is in 1997. The currency crisis in Thailand, it
contagion quickly to the southeast of Asia including Japan and South korea => it become the global
economic crisis

The power of control their economic was decreased when the global economic integration was
increased. For example : in 1999 the EU start to use EURO instead of their own currency, in order to
promote greater integration in the global economic , they have to give up or make a concession to
currency dominion and tax policy

The global market integration makes a big gap between rich and poor . because of the higher growth ,
but regulation maybe laxer in developing countries , they are developing on political , economic and
diplomatism , the stativity economic situation will influence the developing countries