Business, Entrepreneurship
Integration Processes
In Latin, "integration" means merging, the combination of individual parts into a whole, a common, a single. The general definition of a term can be formulated as a union, convergence or fusion of parts, forming a common, unified whole, but at the same time maintaining its identity.
The development of such processes in the modern world at the micro and macro levels is the most important sign of integration. At the micro level, integration takes place through the interaction of monetary funds of individual companies and enterprises through the formation of economic agreements, transactions and contracts between them, through the establishment of branches in other countries. Integration processes can also be created in other areas besides the economic one. At the macro level, integration is global and regional. It is based on the development of the world market, production and communications.
In the modern world in the economic sphere, there are several forms and types of integration processes. One of the simplest forms is the free trade zone . In such a zone, various trade restrictions between the countries participating in the union are canceled, and trade duties are also lifted. The second form can be called the customs union. In it, in addition to the free trade zone, another foreign trade tariff is set, uniform for all, and foreign trade policy is applied to other countries.
The third, more complex form of the integration process, is a common market. It provides for the union members and free mutual trade, a single foreign trade tariff, freedom of movement of labor and, accordingly, capital, as well as the coordination of economic policy. And, finally, the highest form of interstate integration in the field of economy is an economic and monetary union that combines all the above-mentioned forms of integration. At this stage, political integration with its unified governing bodies appears.
Along with integration processes there are also special associations, the feature of which is their successful development at the regional level.
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