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Chapter 9

Chapter 9 regional economic IntegrationGlobal Talent CrunchThe Global Talent CrunchOver the next decade, it is estimated that the growth in demand for college-educated talent will exceed the growth in supply for most of the developed world. India s educated workforce is growing 2% annually, while America s is shrinking each Graphic Source: Oxford Economics(Fortune 9/22/14) regional economic IntegrationRegional economic integrationAgreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other Designed to promote free trade, BUT Causes competition among regional groupsTax differences and Starbucks FilmHarmonization can help governments to collect more taxesHear about Swiss b

Regional economic integration Opens new markets Companies can realize cost economies by centralizing production in those locations where the mix of factor costs and skills is optimal But within each grouping, the business environment becomes competitive

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