Year: 2024 | Month: February | Volume 69 | Issue 1Special
Economic Integration and Cooperation in the Conditions of Globalization
Ievgen Akhromkin
Dmytro Riznyk
Elena Varaksina
Ilona Balak and Liudmyla Herman
DOI:10.46852/0424-2513.1.2024.38
Abstract:
It has been proved that integration processes in modern conditions are carried out within the framework of a “non-linear” model, and the processes of globalization and regionalization significantly complement each other. As the limit of reducing tariff barriers to trade has been reached, the obvious way to expand economic interactions is to reduce non-tariff barriers and further harmonize domestic economic policies, which has begun to give rise to mixed integration formats. The process of regionalization began to create conditions for increasing trade in the world within the framework of reducing non-tariff barriers, thus, complementing the functions of the WTO, in particular through establishing open trade blocs, significantly increasing the costs of armed conflicts between countries. Moreover, the trade agreements that are being implemented are now seen as the basis for the creation of large trade formats in the global economy. Along with the obvious achievements, the current process of international economic integration faces challenges, including as follows: significant complications of the integration process due to the transformation of free trade rules and manifestations of discrimination; unsystematic fragmentation of the global economic space in terms of creating trade mega-formats, and even the exclusion of some countries from the processes of harmonization of trade relations; manifestation of disintegration in the context of creating barriers in a number of key economies of the world as a result of the expansion of trade protectionism, which can lead to large-scale trade conflicts and narrow the functions of the multilateral regulation system of trade interactions. It is noted that these challenges can significantly affect the integration directions in the global and subglobal dimensions. The heterogeneity of economies is indeed one of the factors that significantly adjust the integration processes in the world.
Highlights
- Integration processes in the modern world are characterized by a non-linear model, where globalization and regionalization complement each other, leading to the emergence of mixed integration formats
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