Why is economic integration important in international business?

Economic integration is important in international business because it promotes interdependence among economies. When countries engage in economic integration, they reduce trade barriers such as tariffs and quotas, allowing for smoother trade flows and greater economic cooperation. This interdependence can lead to increased efficiency, as countries capitalize on their comparative advantages, specialize in certain goods or services, and create more competitive markets.

As economies become more interconnected through agreements such as free trade areas, customs unions, or common markets, they not only boost trade but also foster deeper relationships among countries. This can lead to greater political stability and collaboration on various issues, such as environmental concerns, security, and technology sharing.

The other choices reflect concepts that run counter to the idea of economic integration. Increased trade barriers, isolation from international markets, and focusing solely on national interests are generally seen as hindrances to the global flow of commerce, whereas economic integration encourages openness and collaboration among nations.