Regional Integration In Africa, Trade Liberation, And Stable International Monetary System

The advantages and challenges of regionalism in promoting trade liberation

The theory states that nations existed are as a result of the boundaries that were created aftermaths of wars and peace deals which lead to the development of nationalism. World politics developed due to struggle among selfish states for power and position with each nation considering its own interest. Each country portrays its responsibility as protecting its people against invasions by foreigners. While the modernization of man was at its lowest at that moment, this served as base to response to outsiders and individuals of different nationalities, ways of life, ethnicities or race. For dominance, nations sort economic power over other states. Therefore this lead to colonialism, the conquering of original peoples of less developed countries by European nations so as to obtain raw materials and labor for their industries thus leading to economic, political and military power (Kegley & Blanton, 2014, p. 123). 

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Mercantilism, another form of colonialism, is also state-driven as countries protect the industries within their territories from external competition by use of subsidies. Free trade is created to maintain the economic and political dominance of one nation over the less superior states. 

Neo-colonialism, also known as neo-imperialism, is usually a form of attainment of power by organizations such as intergovernmental agencies and multi-national corporations. These organizations use their market position to influence governments to form policies that suit their ambitions without considering the implications on the natives of that nation, this is a form of suppression (Kegley & Blanton, 2014, p. 115).

Introduction of boundaries therefore served as a means of preventing migration of workers in search of high wages. This therefore led to corporations tapping from the available cheap labor increasing their profitability while workers continue to earn low wages (Kegley & Blanton, 2014, p. 105).

Liberalism is different from realism theory in that it methods partisan and monetary relationships as configurations that are interdependent within the universal context. Liberalism refers to the idea that man is educated and views in improvement and development of a realm where all states effort in collaboration with main aim of betterment of mankind. Economic integration and globalization are enhanced purely by liberalism as it is the liberalist that believe that economics and trade is the route to affluent, safer and free world (Kegley & Blanton, 2014, p. 142).

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Democratic politics is the major basis of liberalist theory. The advancement of free trade and capital markets squarely dependents on principles of democracy which includes property rights, human rights and rule of law.  The profuse philosophy follows the spread of independent and monetary ideologies to harvest globalization, monetary assimilation and interdependence (Kegley & Blanton, 2014, p. 240). 

The possibility of complete monetarism integration

Liberal theorist consider monetary amalgamation as the pathway to international peace under a particular fiscal and social realm order.  The goods that are used around the world are usually as a result of complex interlinked chains of supply globally, which only take place when people have an outstanding dream of prosperity and commerce. Thomas Friedman, in his book, ‘The World is Flat. A Brief History of the Twenty-first Century,’ suggested that two countries will not be able to be antagonist as long as they are a major global supply chain (Kegley & Blanton, 2014, p. 232).

By 2011, largest global companies have created a lot of revenue and employed workers in millions.  Wal-Mart employs millions of people although this has come  at the expense of irresponsibly use of  non-renewable natural resources and employment of unskilled and unqualified labor and paying them low wages (Kegley & Blanton, 2014, p. 243).

Marxist mainly criticizes capitalism on the basis that capitalism will fail because there will be a revolution for economic reasons as workers will revolt against the owners of the corporations due to low wages and exploitation. The result of the revolt will be the onset of socialist as “entrepreneurship propagates the seeds of its own devastation .Marxist formulated three laws that are widely refers as economic laws (Kegley & Blanton, 2014, p. 134).

The law of disproportionality has it that quest for wealth gains and accretion “entrepreneurial frugalities tend to lead to overproduction of certain types of goods. “This will automatically cause perception for wage imbalance and those earners need to buy the goods that are overproduced.  The theory emphasizes on the fact that the disproportionality is brought about by the anarchy of the market and leads to periodic depressions and fluctuations in the economy. Cheap capital leads to the inflation of value and leads to promotion of housing investment (Kegley & Blanton, 2014, p. 125). There is the bubbling of assists in countries such as US and United Kingdom. The market bubbling leads to the creation of overproduction in the housing sector and this leads to destruction of the economy.

Law number two is the law of the accumulation of capital and the concentration of riches among the capital class. The law explains the issues to do with the ever increasing urgency to upgrade the efficacies and also the eradication of the risk of investment. Marx hypothesized that capitalism would push for the accumulation of wealth in the hands of few and hence poverty would prosper. The continued declination in labor will make the capitalists initiate a conflict of demand for the social revolution (Kegley & Blanton, 2014, p. 136).

The necessity of a hegemonic leader for a stable international monetary and financial system

Marxist that law says that when capital accumulates and becomes abundant, there is a decline in the rate of return and therefore the decrease incentives to invest. The last downturn in the United States made the country employ the Keynesian concept through the accumulation of debt and bringing cheap products to the market and also increment of cheap capital (Kegley & Blanton, 2014, p. 278).

The stagnation of wage is not inevitable making reference of the direct effect of the policy options on behalf of the characters with might and riches who have led to the suppression of wealth and who haven responsible for the suppression of the growth of wage for the large lot in the recent past (Kegley & Blanton, 2014, p. 99).  Wage stagnation has therefore been caused by policy and can just be alleviated by use of policy.

The legislators should strive to deliver a shared growth of wage via the monetary and budgetary policies which gives priority to full employment and the strengthening of the labor market with an aim of making employers pay increased salaries so as to maintain the kind of workers that they need and also help in the taxation of other policies that will help in ensuring that there is the existence of economic gains which do not accrue to the top 1%.

This can help to grow wages by raising the minimum wage. An increase in the minimum wage will force all the employers to adjust the wages of low income earners to conform to the stipulated minimum wages. Updating overtime rules concerning the remuneration of workers. Therefore firms will be required to promote their workers and increase their salary periodically .This ultimately leads to increase in the wages of worker with time (Kegley & Blanton, 2014, p. 252).

Strengthening rights to collective bargaining. Trade unions will be better placed to negotiate for better wages for their members. The right of workers to go to strike to demand for better wages will force the corporate owners to consider other alternatives to avert industrial action (Kegley & Blanton, 2014, p. 235).

Regularizing undocumented workers in order to allow workers to be able to move freely in search of better wages. The movement of workers will in turn allow the market forces of demand and supply to adjust the equilibrium wage that will be attractive to the workers. 

Ending forced arbitration in order to allow workers to freely determine the conditions under which they favor to work best and increase efficiency. Workers will be able to negotiate better terms of working and wages (Kegley & Blanton, 2014, p. 182).

Realism theory and its perspective on national boundaries, colonialism, and international trade

 Securing workers’ access to sick leave and paid family leave which will ensure wages increase due to the payment made. Workers will also benefit from family leave as it will not reduce their payment (Kegley & Blanton, 2014, p. 231).

  Closing race and gender inequities. The gap has always been a source of disparities in the wages earned by workers. In most cases, workers do the same type of work but they are paid low wages due to their race or gender status. Therefore eliminating the differences increases the wages of the workers.

  Awarding government contracts only to firms that adhere to wage. Firms will therefore need to strive to make sure that their workers are well paid in order to stand a good chance of getting government contracts. These is because government contracts come with a lot of revenues to the firms and no firm will be willing to miss out on such incomes (Kegley & Blanton, 2014, p. 267).

Health and safety laws that will safeguard the wellbeing of workers. An individual working in a safe environment will be protected against diseases that come with pollution of environment which in turn leads to increased productivity of workers and consequently increase in revenues of the firm. High revenues will lead to increase in wages of workers (Kegley & Blanton, 2014, p. 254).   

Tackling workplace abuses such as misclassification and wage theft. Most employers form a tendency of reducing workers’ wages using underhand methods. Once these abuses are handled the wages of such workers will increase as they will be assured to earn their correct amount. Evaluate the contention that globalization is ‘the golden path that connects and lifts the diverse global community to the next level of prosperity (Kegley & Blanton, 2014, p. 132).’

The Brexit vote held in the United Kingdom and the executive elections in the United States are good indicators that public discontent with integration is on the rise.  The alarm raised by this two nations cannot be ignored. Isolationism and trade barriers can break the trade-based fiscal engine that has conveyed peace to the universe for a long time (Kegley & Blanton, 2014, p. 68).  Trade has improved the living standards of people in developing countries and if developed countries close themselves from global market, world poorest countries will suffer the most.

2. Globalization has to be enhanced in a number of ways as it is the path that has led to prosperity in the global community. First, states need to dismantle the trade barriers and also make sure that they do not implement policies that lead to the distortion of the global markets. Protectionists prevent free trade from taking place thus access to high quality products at cheap price is also prevented (Kegley & Blanton, 2014, p. 143).

Liberalism theory and its perspective on economic integration, globalization, and free trade

Countries should update the universal rules that bind trade and the economic conditions and implement the agreements that they come up with. This is in a bid to make sure that globalization continues unhindered.

Institutions like WTO should perform their duties independently so as to eliminate the trade barriers that lead to the increase in the costs of trade. There should be the abolition of agricultural subsidies and also the removal of restrictions in the trade services and improve the connectivity aimed at increasing trade finance (Kegley & Blanton, 2014, p. 167).

Finally, and most important, wealthy countries should support developing countries’ efforts to integrate themselves further into the global economy. Given trade’s record of reducing poverty, this is a moral imperative; it is also indispensable for peace and stability. Wealthy countries should aid the efforts of developing countries in the integration into the global economy (Kegley & Blanton, 2014, p. 187). Leaders from different countries should foster to encourage trade which would include more individuals. The latter can be done through the adoption of international rules aimed at managing openness and interdependence. Strong social safety nets should be established together with infrastructure.

No country can deliver long-term prosperity to its people on its own. Closer international cooperation and economic integration is the only way forward. Therefore globalization cannot be omitted if the world is to develop (Kegley & Blanton, 2014, p. 122).

3.1 Regional integration concerns the different types of both political and economic agreements. The policies are different and vary from the trade treaties to agreements whereby the member states give part of their patriotism to a higher entity. There exists both merits and demerits of regional integration (Kegley & Blanton, 2014, p. 67).

Trade gains comprise one of the most important merits as far as regional integration is concerned in a multiple number of states.in many cases, the various agreements put across by nations allow easy movement of goods across borders. The latter leads to the benefits of trade. The trade agreements give room for countries that have a good amount of goods to trade overseas with ease.th latter will lead increased gains to trade (Kegley & Blanton, 2014, p. 140). The trade agreements discussed above lead the countries that are highly industrialized to produce more and sell their goods to a bigger market, hence leading to increased economies of scale.

Some of the regional integration the creation of a single currency have been noted to result to monetary crisis.in absence of regional integration given countries can curb the supply of their own money for it to fit their own conditions of the economy (Kegley & Blanton, 2014, p. 142).

Democratic politics and the importance of property rights, human rights, and rule of law in promoting economic integration

The integration of regions comes about with economic demerits mostly in the strong integration like for the case of the European Union, it can cause a loss of the cultures of the unique minority in a given area. The institution possesses a variety of languages and cultures that are termed official in the government of EU. The languages do not include the minority languages that are spoken by the minority cultures in the European countries (Kegley & Blanton, 2014, p. 199).

Regionalism is a political procedure described by monetary strategy co-task and co-appointment among nations” (Kegley & Blanton, 2014, p. 156).

One of the real advantages that the procedure of regionalization offers is the refinement of voting public to progression. “Both in Europe and North America, governments have a tendency to embrace the perspectives of star integrationist business pioneers (and work pioneers too in the majority of Europe), while the people has a tendency to be more careful”. In any case, there has not been sufficient favorable condition for exchange and henceforth there is an extraordinary opportunity to get better. There is much wastefulness in the outskirt organization that should be taken a gander at and handled for thriving to be there (Kegley & Blanton, 2014, p. 173).

3.2 Regionalism is important since it allows for creation of a for trade zone. Integration can help in building regional value chains and also tap global value chains. There is the importance that comes with the integration as it speeds up the ease of clearance at the border and also the increased update on the infrastructure. Increased efficiency in the customs lead to a better collection of tariffs (Kegley & Blanton, 2014, p. 167). With integration, the IT systems have also been easy to implement in most of the African countries.

4.1 Monetarism can be applied where the government wants to control money supply. Without having a currency, a country cannot increase the level of competitiveness. This can also make a country not to boost the economic growth through devaluation. Devaluation of currency is important but it would be more important if at all the world could use one currency (Kegley & Blanton, 2014, p. 143).

With an aim of cutting down a country’s specific risk, a country can ensure that there is equal distribution of resources by the use of complete monetarism. There can however be the problems to do with arising and hence make integration not easy and the latter include the problems of varying fiscal regimes and macroeconomic risks of countries. With economic integration, the problem of balancing budget and high inflation. Monetarism will also applicable when issues of administering the global central bank arises. With complete monetarism, the implications that would arise would include a decentralized system, little human intervention that is self-adjusting (Kegley & Blanton, 2014, p. 35).

The issue of complete monetarism is tough due to the complexity of the euro project. There is also inadequate respect from the individuals who write it off. Complete monetarism can easily lead to risk in currency and untold coups.

4.2 Liberalization is revered due to a number of factors, including the possibility of unwanted competition in the local market, the outsourcing of work to other countries, and the loss of control over the market by the government. The experience they have had in the past and the gains from liberalization within a region may dissipate fear and lend weight to the argument for further region-to-region liberalization (Kegley & Blanton, 2014, p. 46).

This theory of international relationships will also ensure that the fields of political science and also economics and history exercise this form of leadership in several ways which include democracy, coercion or even persuasion. This form of leadership is good since it will lead to the preponderance of power (Kegley & Blanton, 2014, p. 50).

 Hegemonic leader will be important since he will make sure that there is equal distribution of resources across the globe. He will also advocate for a reduced budget. Due to the existence of this kind of leadership, there will be regulation of the valuation of currency as a result of the usage of a common currency. The cross border transactions and businesses would just fall when hegemonic leadership does not take place.by making use of the hegemonic leader, there will be control on the financial crisis and the risk of financial globalization will be taken with seriousness by the investors (Kegley & Blanton, 2014, p. 56).

References

Kegley , C. W. & Blanton, S. L., 2014. World politics: Trends and transformations. 3 ed. Boston: Hill Griffin publishers.

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