(a) What is economic integration? (b) Highlight any three problems of economic integration in west...
(a) What is economic integration?
(b) Highlight any three problems of economic integration in west Africa.
Explanation
(a) Economic integration is a condition of international trade in which all trade barriers and restrictions are removed. There is perfect capital mobility, complete freedom of migration, complete freedom of establishment of business and unhindered flow of information and technology.
(b) The problems of economic Integration include
(i) Uneven development among member nations which will create fear and suspicion of domination.
(ii) Ideological differences may polarize member nations.
(iii) Excessive loyalty to former colonial masters may hamper economic integration among former colonies.
(iv) Currency differences and difficulty in converting these currencies
(v) Inadequate infrastructural facilities especially among developing nations.
(vi) Absence of large and well developed markets among member nations.
(vii) Absence of political will and political Instability among member nations create problems to economic integration.
(viii) Differences in monetary and fiscal policies