Regional economic integration refers to agreements among countries in a geographic region to reduce, and ultimately remove, tariff and

nontariff barriers to the free flow of goods, services, and factors of production between each other. 1.Free Trade Area:
1) No barriers to trade among members 2) With different trade policies to non-members

2. Customs Union
No trade barriers inside 2) With common external trade policy 3) Desiring greater integration

3.Common Market
No barriers to trade 2) Common external trade policy 3) Factors of production moving freely 4) Harmony and cooperation on fiscal, monetary and employment policies

4. Economic union
Free flow of products and factors of production 2) Common external trade policy 3) A common currency, tax rates, monetary and fiscal policy e.g. EU

5.Political Union
) A coordinating bureaucracy

Reasons for Regional Integration

 Economic enhancement of the member states Free trade Fee FDI

Political Reasons Linkages of economies create interdependencies that reduce the potential for violent conflict Grouping gives countries more political clout world-wide

Benefits of Regional Economic Integration

Trade Creation Greater Consensus Political Cooperation Global presence of local businesses Foreign competition

Drawbacks of Regional Economic Integration

Trade Diversion Shifts in Employment Less National Sovereignty Backlash of Globalisation

ECGC

Export Credit Guarantee Corporation of India Limited , was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit.
Functions of ECGC Provides a range of credit risk insurance covers to exporters against loss in export of goods and services. Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them. Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.

What does ECGC do?

1. Provides a range of credit risk insurance covers to exporters against loss in export of
2.

goods and services 3. Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them 5. Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan

4.

How does ECGC help exporters?

Offers insurance protection to exporters against payment risks Provides guidance in export-related activities Makes available information on different countries with its own credit ratings Makes it easy to obtain export finance from banks/financial institutions Assists exporters in recovering bad debts Provides information on credit-worthiness of overseas buyers

Need for export credit insurance

EPC

FUNCTION To provide commercially useful information and assistance to their members in developing and increasing their exports To offer professional advice to their members in areas such as technology up gradation, quality and design improvement, standards and specifications, product development, innovation, etc. To organize visits of delegations of its members abroad to explore overseas market opportunities. To organize participation in trade fairs, exhibitions and buyer-seller meets in India and abroad. To promote interaction between the exporting community and the Government both at the Central and State levels. Service Offered By EPCs

PROJECT EPC ACTIVITIES AND SERVICES: Briefly the councils activities and services can be summarized as under: 1.acts as the co-coordinating agency to facilitate quantum increase in project exports 2.regularly collects, collates and disseminates technical and other information pertaining to overseas markets and new project possibilities world-wide to member companies through monthly magazine : GPO (Global Project Opportunities) 3.Promoting, facilitating project exports/export of project construction items/goods joint ventures, technical collaborations & strategic alliances 4.disseminating market information, trends & policy implications and publishing information on commercial, technical and technological developments pertaining to project exports sector 5.participating in major International fairs & specialized trade shows across the globe, organizing buyer-seller meets in India and abroad besides B2B meets in focus countries 6.offering technical, marketing & export assistance to Indian exporters

7.inviting key resource personnel for fairs, seminars and lectures for exchange of information, knowledge, ideas and strategies 8.serving as a focal point between the government and the industry members, while focusing on the overall growth and development of the Indian project exports sector 9.co-ordinating the promotion of technical and/or economic co-operation between Indian project exporters and foreign companies a) by promoting technology transfer especially in sophisticated technology fields which would encourage Indian companies to jointly bid for mega projects b) by assisting in formation of consortia and/or joint venture arrangements to facilitate bidding for or executing large projects 10.co-ordinating the functioning of the Screening Committee (a statutory committee set up by the Government) to appraise and approve the project exporters (construction engineering) in terms of their technical, financial or managerial competence against pre-set norms so as to permit only capable companies undertake projects overseas