Answer to Question #193379 in Economics for Anna

Question

Clearly distinguish between these three regional groupings; SACU, SADC, & AfCFTA.

Answer 1

Regardless of the geographic location and level of economic development of the countries forming the integration associations, the development of integration processes around the world, their goals, cooperation, principles of creating conditions has common laws.

Integration groupings of schemes of both countries close in terms of economic development developed (European Union, EFTA, ANZCERTA) or developing countries (SAARC, ALBA, CARICOM, CAN, UEMOA, ECOWAS, EAC, etc.), and countries whose level of development noticeably different (NAFTA, SACU, SADC, SPARTECA, etc.). In the first case, the participation of countries in the integration association, as

The rule is the same. This can be an increase in competitiveness and acceleration of economic growth through the implementation of accelerated economic growth.

In the second case, the participating States do not duplicate, but

complement each other. More developed countries in such associations pursue the goal of achieving new markets for products by removing barriers in mutual trade, access to energy resources of less developed countries, reducing the cost of goods produced,

supplies to the domestic and foreign markets. Less developed states are aimed, first of all, at creating new jobs by placing new industries on their territory, attracting the economy of foreign investment, innovative technologies, highly qualified personnel, and as a result - an increase in the level of their economic development.

In addition, all integration connections have a core integration - a country or a group of countries that are most developed in terms of the economy and the main driving force behind the integration processes. This "integration" is more pronounced in the case of the unification of countries with the engine of economic development (in NAFTA).

this is the United States, in SACU and SADC - South Africa, in SPARTECA - Australia and New Zealand). However, in the case of integration of countries with similar levels of economic development, it can also be determined (in the European Union, such a “core of integration” includes Germany and France, the EAU - Kenya, Alba - Venezuela, and ASEAN - Singapore and Indonesia).

In general, the game goals of the states participating in the integration association, regardless of the level of their economic development, to obtain additional economic benefits from integration. Exactly

an increase in economic results due to participation in integration processes is the main motive for the formation of economic integration groups. Thus, the creation of an integration association.

The country must clearly define why it wants to participate in this association, the solution of what tasks to achieve with the help of each integration. The common goals coincide or complement each other, that is, the next stage of defining the strategy of integration cooperation, i.e. the possibility of implementation, taking into account the competitive advantages of the integrating countries.