Examine the factors that may encourage the formation of an economic union in Eastern Africa.
- Interest in a wider market. Cooperating countries must be interest in widening market for their nationals
- Geographical accessibility. All member states should be geographically near each other to minimize transport costs and avoid trade barriers in international trade.
- Development level. All member states must be of the same levels of development otherwise resources will flow from less developed to the more developed ones in the cooperation.
- Common political ideology. All member countries should have the same political ideologies say capitalism or not.
- Different resource endowment. This promotes interdependency leading to mutual benefits by each country.
- There must a good transport network connecting all the countries in the region to facilitate easy movement of goods and services and factors of production.
- Political interest. The leaders of the integrating countries should be interested in implementing the terms and conditions of economic integration.
CATEGORIES Economics
TAGS Dr. Bbosa Science
