BusinessEntrepreneurship

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. Countries can come together, forming various alliances, for example, trade, economic, political, cultural and so on, thereby preserving their national identity. The main purpose of integration can be called the expansion of the volume of goods and services, which are based on the effective provision of activities, for example, integration processes in trade.

Integration also includes in its definition processes and phenomena in various spheres of life of society and the state: political, cultural, economic and others. Integration processes in the modern world are examples of movement, the development of a certain system, in which the connection of participants becomes stronger, and their independence is reduced, new forms of interaction begin to appear. As before, and now, in the era of modern technology, integration processes are accompanied by significant progress in science, economics, culture and even politics.

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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