Disadvantages Of Economic Integration Essay

1767 Words8 Pages

After World War II, Europe was left a shell of itself. The War was immensely destructive and had a negative impact on many industries such as housing, transportation and power generation. However these industries were resilient and roads and bridges along with power generation systems could be repaired quickly (Eichengreen 2007). The War’s most profound damage was to the economic and social system as many nations still relied on rationing and price controls. European countries did not work together to get Europe back on track. There was an evident divide between the East and the West of the continent. Solutions towards post-war problems were conflicting among the sovereign nations (McDonald and Dearden 1999). The ravages of war made it clear …show more content…

It is a dynamic process in which the economies of partner states become more and more interwoven (Molle 1990). There are five major types of integration which include: a free trade area, a customs union, a common market, an economic union and an economic and monetary union (McDonald and Dearden 1999). Economic integration is yearned for as it is known to yield certain economic advantages such as higher output thus leading to higher growth and wealth (Molle 1990).These different unions outline the contrasting dilutions of free trade within a region and often develop from one …show more content…

It shows that the majority of member states were willing to come together for the greater good of the Community and the European economy as a whole. The common currency now makes everything a lot easier for all stakeholders within the EU. There is now perfect transparencies in prices for participating nations benefiting consumers, suppliers and businesses operating within Europe. Exchange rate and inflation rate worries are a thing of the past amongst

Open Document