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A. Individual Activity: Based on the explanation about the global economy and your understanding about the topic, make a list on the advantages and disadvantages

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A. Individual Activity: Based on the explanation about the global economy and your understanding about the topic, make a list on the advantages and disadvantages of the global free trade. The Global Economic Integration Advantages Disadvantages Trade creation: Member countries Trading Blocks Creation: It can also have a broader range of products Raise trade barriers towards non- and services not previously member countries. available; purchasing goods and services at a reduced cost after trade restrictions due to reduced tariffs or the elimination of tariffs; promoting further cooperation between Member States to offset money spending on cheaper goods and services; and can be used to import further goods and services. Greater Consensus: Unlike WTO Trade Diversion: Despite the members with huge membership wasteful cost, trade is redirected (147 countries), regional integration from a non-member country to a is easier to find consensus among member country due to trade smaller members barriers. For example, a nation must avoid trading in a non- member country with a low-cost output and trade with a higher-cost maker in a member country. Political Cooperation: A nation- National Sovereignty: allows group may have much more Member States to relinquish any political power than any country degree of power over main policies can separately. This convergence is such as trade, political, and fiscal. an important strategy for tackling The higher the extent of the consequences of wars and convergence, the greater the political uncertainty that may degree of restrictions that need to influence the region. Useful tool to be gave up, particularly in the case counter globalization-related social of an economic unification of and economic issues political union that allows nations to surrender a high degree of sovereignty

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