An Analytical Study on the Role of Regional Economic Integration in Foreign Trade

Abstract

    The Regional Economic Integration plays an effective role in the movement of Foreign Trade Either in side of exports or imports of goods and services. However, this positive and effective role may not always be achieved by reason of member countries in integration have changed the direction of trade from time to time because of economic fluctuations and transformations, whether by their own economic policies or because the policies imposed by the global economic changes. Thus it may become the effect of Economic Integration may become sterile for the countries transforming in their trade course.

    The purpose of this paper is to evaluate the effect of regional economic blocs on foreign trade in general. The study came to the basic conclusion that most Economic Blocs have a positive impact (Trade Creation) and negative impact (Trade Diversion).