Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Explain four ways in which trading countries benefits from economic integration

Explain four ways in which trading countries benefits from economic integration.

Answers

Simon
• Economic integration leads to redistribution of incomes favoring low income countries. The overall effect is to expand production in low income countries and restrict production in high income areas leading to the redistribution of incomes.
• Economic integration enables countries to enjoy economies of scale because of the provision of wider markets of commodities before the economic integration.
• Economic integration brings better relations politically and economically between the courtiers that form the trading block.
• Economic integration brings competition between the trading countries and this promotes economic efficiency and enhances consumer sovereignty through a wider variety of goods and services.
• Economic integration encourages foreign investments because of the possibility of making larger profits in a more enabling economic environment.
• It promotes trade stability especially where the regional integration involves the use of a common currency.
• Economic integration reduces the regional unemployment.
skilled writter answered the question on April 26, 2018 at 16:59

Answer Attachments

Next: State six limitations of Ricardian comparative cost theory.

Previous: Explain the four philosophical methods of inquiry

View more Economics Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions