As with most things in economics, there are potential benefits and costs of economic integration. The advantages of economic integration tend to fall into three categories: (1) trade benefits, (2) employment, and (3) political cooperation. More specifically, economic integration typically leads to a reduction in the cost of trade; improved availability and wider selection of goods and services; and efficiency gains that lead to greater purchasing power. Employment opportunities tend to improve as trade liberalization leads to market expansion, sharing of technology, and cross-border flows of investment. Political cooperation can also improve with stronger economic ties, which can help resolve conflicts peacefully and lead to more stability.
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