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Running head: INTERNATIONAL INTEGRATION1Business StudiesAuthor’s NameInstitutional Affiliation:
INTERNATIONAL INTEGRATION2International IntegrationPart A: Economic Cooperation and Regional Economic IntegrationThe purpose of this paper is to discuss various types of trading blocs, their impacts on theglobal markets as well as how they influence foreign investment. This paper will also link to theprevious project with regard to expanding my Modern Designer textile industry in U.S.A. andChina.Trade Bloc:Due to the increasing business competition, nations resort to form alliancesto improve the competitive advantage of the members of such unions. The integration betweencountries is crucial as it helps to eliminate or reduce the potential barriers that can hinder trade inthe foreign countries (Wild & Wild, 2017).The typical examples of trading blocs are free trade areas, customs unions, economicunion, and political union. The common examples of international economic integrations includeEuropean Union (EU), Association of South East Asian Nations (ASEAN), North America FreeTrade Agreement (NAFTA) and African, and Continental Free Trade Area, AFCFTA, amongothers (Wild & Wild, 2017).For this assignment, the two countries I chose to establish the Modern Designer Textileindustry were America and China. To begin with, America is a signatory to the North AmericanFree Trade Agreement (NAFTA), whose other members are Canada and Mexico (Wild & Wild2017). On the other hand, China belongs to Shanghai Cooperation Organization and is currentlya strong partner to the Association of South East Asian Nations (ASEAN) trading block.NAFTA’s primary goals are to remove the trade barriers for its members so as to promote freetrade, increase investment as well as to protect the intellectual properties. On the very note,
INTERNATIONAL INTEGRATION3ASEAN works towards revitalizing the economic performance in the South Asian regions byeliminating restrictions among the member state and by promoting collaboration.Advantages of Trading BlocsFDI:The trading blocs greatly influence the development of the nation’s economy. Thatis, they attract and promote direct investment (FDI). In such a case, there are increased jobopportunities for the citizens. It is, therefore, important to note that the regional integrationsprovide direct benefits to the citizens, investors, as well as the economy of the member states.For example, research indicates that NAFTA has made a crucial contribution to the growth of theeconomy among the North American states. Therefore, withdrawal of America’s membership orrenegotiation would severely harm the nation’s economy by exposing it to unfriendly economiccompetitions.On the same note, China has demonstrated a high potential and satisfactory economicoutlook. For example, the foreign direct investment has facilitated rapid economic developmentas new opportunities are exploited (Ping, Chen, & Xiaojin, 2017). Moreover, FDI promotes the

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