Regional Integration, Trade, And Capital Flows

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    This week you are exploring the issues that surround the formation of  regional economic agreements. You are also considering the idea that  multiple levels of economic integration are possible.

    To prepare for this Discussion, look at the multiple levels  of economic integration and their effects on countries, regions, and  trade.

    By Day 3

    Post your general findings about regional agreements, including your answers to these questions:

     

    • How do regional trade agreements affect labor, financial, physical, and intellectual capital mobility?
    • In what ways do these agreements increase capital and resource mobility and expansion decisions?
    • In what ways do they cause trade diversion versus trade expansion?

    Provide a specific example of the effect of a regional  agreement on a company's production/facility location decisions or  capital flows (or your assessment of a possible effect based on  decisions made by the company) and explain how that decision in turn  likely affected trade flows (exports and imports). Be sure to address  the three questions above in your analysis of your example.

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