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ASEAN consists of Thailand, Vietnam, Laos, Cambodia , Brunei, Myanmar, Singapore, Malaysia, Indonesia, Timor Leste and Phillipines. 

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ASEAN consists of Thailand, Vietnam, Laos, Cambodia , Brunei, Myanmar, Singapore, Malaysia, Indonesia, Timor Leste and Phillipines. 

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One of the main purposes of forming ASEAN is economic integration; generally discuss the advantages and disadvantages of this economic integration:

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One of the main purposes of forming ASEAN is economic integration; generally discuss the advantages and disadvantages of this economic integration:

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The elimination of tariff and non tariff barriers to the flow of goods, services, and factors of production between a group of nations, or different parts of the same nation.

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Economic integration can be defined as a kind of arrangement where countries get in agreement to coordinate and manage their fiscal, trade, and monetary policies in order to be mutually benefited by them. There are many degrees of economic integration, but the most preferred and popular one is free trade.

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Provide training and research for human capital

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Provide training and research for human capital

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To provide assisantance to each member of asean in terms of training and research in educational  professional, technical and administrative areas.

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To accelerate the economic growth through cooperation between members and  strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations, greater utilisation of their agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade.

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Improved availability and wider selection of goods and services; and efficiency gains that lead to greater purchasing power

(a) wider selection of goods and services not previously available; (b) acquire goods and services at a lower cost after trade barriers due to lowered tariffs or removal of tariffs (c) encourage more trade between member countries the balance of money spend from cheaper goods and services, can be used to buy more products and services.

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To safeguard the political stability of the region against big power rivalry, and promote regional peace and stability

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Employment Opportunities: As economic integration encourage trade liberation and lead to market expansion, more investment into the country and greater diffusion of technology, it create more employment opportunities for people to move from one country to another to find jobs or to earn higher pay. For example, industries requiring mostly unskilled labor tends to shift production to low wage countries within a regional cooperation

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Employment Opportunities: As economic integration encourage trade liberation and lead to market expansion, more investment into the country and greater diffusion of technology, it create more employment opportunities for people to move from one country to another to find jobs or to earn higher pay. For example, industries requiring mostly unskilled labor tends to shift production to low wage countries within a regional cooperation

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Disadvantages Of Economic Integration

Creation Of Trading Blocs: It can also increase trade barriers against non-member countries.

Trade Diversion: Because of trade barriers, trade is diverted from a non-member country to a member country despite the inefficiency in cost. For example, a country has to stop trading with a low cost manufacture in a non-member country and trade with a manufacturer in a member country which has a higher cost.

National Sovereignty: Requires member countries to give up some degree of control over key policies like trade, monetary and fiscal policies. The higher the level of integration, the greater the degree of controls that needs to be given up particularly in the case of a political union economic integration which requires nations to give up a high degree of sovereignty.

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1. creation of trading blocs
2. trade diversion
3. national sovereignity

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Creation Of Trading Blocs: It can also increase trade barriers against non-member countries.

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Creation Of Trading Blocs: It can also increase trade barriers against non-member countries.

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Unlike WTO with hugh membership (147 countries), easier to gain consensus amongst small memberships in regional integration

Political Cooperation: A group of nation can have significantly greater political influence than each nation would have individually. This integration is an essential strategy to address the effects of conflicts and political instability that may affect the region. Useful tool to handle the social and economic challenges associated with globalization

Employment Opportunities: As economic integration encourage trade liberation and lead to market expansion, more investment into the country and greater diffusion of technology, it create more employment opportunities for people to move from one country to another to find jobs or to earn higher pay. For example, industries requiring mostly unskilled labor tends to shift production to low wage countries within a regional cooperation

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Economic integration removes barriers to foreign investors, minimizing or abolishing extra tax, while advanced integration policies, such as a monetary union, can even eliminate the cost of currency exchange.

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Economic integration removes barriers to foreign investors, minimizing or abolishing extra tax, while advanced integration policies, such as a monetary union, can even eliminate the cost of currency exchange.

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Opportunity to earn more.

Since the region’s 10 economies are integrated into one large economy, the move could lead to larger market opportunities for intra-ASEAN trade in local materials and products, thereby creating more job opportunities across the ASEAN, meaning more foreign investments in our country, and for business owners, more potential customers to sell their products to.

Opportunity for more jobs locally.

Similar to the one stated above, an integrated and open ASEAN economy and allows for more cross-border investments that will mean more job opportunities not only in our country but across the ASEAN region. It is important to note that one of the goals of the AEC is to decrease unemployment and underemployment across all ASEAN Member States.

Opportunity to work in any country in the region.

Having a job while being able to immerse yourself in a different country and culture is what most of us can only dream about before. Thankfully, ASEAN is already paving the way for us so we can make our dreams turn into a reality. Through the Mutual Recognition Agreement,  skill-sets honed in one ASEAN country will be held with equal value in another ASEAN Member State.

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Study the problems of international trade

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Study the problems of international trade

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To study the problems of international community trade, the improvement of their transportation and communications facilities and the raising of the living standards of the nations.