The paper "How Globalization and Regional Economic Integration Affects Emirates Steel Company" is an impressive example of a Macro & Microeconomics essay. Regional economic integration is an agreement between groups of countries to ultimately remove or reduce non-tariff and tariff barriers in a geographic region. This integration allows for the flow of factors of production between each other as well as the free flow of services and goods. Countries, under regional economic integration, have been able to encourage trade between neighbors and focus on issues relevant to their development stage. The common types of regional economic integration are free to trade area, customs union, common market, and economic union.
In 1981, the Arab States engendered the Gulf Cooperation Council (GCC) with six member states; United Arab Emirates (UAE), Qatar, Oman, Saudi Arabia, Bahrain, and Kuwait. Through reduced barriers to entry and consistent investment criteria and trade, the GCC and global businesses have benefited from the regional trade agreements. Steel manufacturing companies that opt to manufacture in one country find it cheaper and easier, in a trading bloc, to move the goods between member countries without additional regulations or incurring tariffs. Given the diffusion of technology and changing costs, western nations can no longer dominate the steel industry; hence, developing countries with favorable government policies are experiencing high growth.
The steel industry exhibits not only significant political, strategic, and economic importance but also remarkable entrepreneurship and technological dynamism. In the 2008 and 2009 economic recession, steel export capability reduced because of decreased total output and domestic demand. As a result, the countries were forced to increase export through capital outflows. The availability of coal and iron ore dictates the geographical location of steel mills.
Fortunately, neo-liberal policies and globalization have increased mergers, and privatization of state firms, cross-national investments, and steel trade. However, subsidized steel imports are still perceived as hypocritical since the slow industrial adjustment is inhibited by bailouts of firms and trade barriers. Nonetheless, higher steel prices benefit shareholders rather than workers and results in protectionism with potential job losses.
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6. Ibid 2014.
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