Challenges of Global Economic Integration

Abstract

Economic integration is facing threat throughout the world. Brexit (2016) is the biggest blow to the European Union as well as to the global concept of economic integration. Endless calculation is going on to measure positive and negative impact of Brexit on British economy and rest of the world. On the other hand US President Donald Trump calls for 20% tax on Mexican imports to help pay for the border wall. Further such initiative of the new American President could lead the NAFTA agreement into inactive position. Similarly he has canceled the potentials of TPP agreement with an executive order. Sri Lanka and Nepal is going to reconsider their existing trade regime with India due to their protectionist feelings. Thus a global movement of protectionism could be weaved further and hit the multilateral system of economic integration and free market economy.

Keywords: Economic Integration, Globalization, Free Market Economy

JEL Classification: F15, F36