REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART I:
the past never experienced large increase technological achievements. This achievements
are characterizes by two specifics. The number of new technical solutions important for
standard and new production or to other business activities is growing fast in last decades;
inventions in telephony, electronic, informatics and elsewhere else in economy based on
interactions of inventions mentioned already. The second in past economic history newer
experienced fact about technological solutions in last decades is that new inventions
have relative short live in economic terms because new inventions make them obsolete
or change the specifics an abilities related to older inventions. A good example is fast
aging in reducing use of telefax machines. Nowadays only around 20 years after their first
commercial introduction, fax machines are mostly replaced by multiple functional scanning
and printing devices which are supported directly by computers. Technological progress
offers new challenges and opportunities to business. Due to its relative faster change and
introduction of more able new technological it pushes businesses into stronger competition
by cutting production and other costs and increasing quality and multi functionality of
products. Businesses can be fast in introducing and replacing new technologies if they can
earn much and fast on their implementation. Product based on use of new technology need
larger free accessible markets. Concept of large free market open markets, exceeding even
the market potential of the largest world economies, are demanded by all industries and
businesses (MNCs) involved in producing and trading standard or easy to imitate products
often called commoditized products (Peng, 2009, p.91). Competitive elements important
to succeed on the market with such types of products are mostly reduced only to level
of price competition. Easy and secure investments (FDIs) and easy access to the large
market to utilize the economics of scale effects are (or have been) the must important
bases for business success of companies dealing in commoditized productions. On the
other side those product are becoming increasingly important in GDP formation of many
emerging market countries, who partially from that reason too often involve themselves
into overlapping integration (RTAs) schemes (see chart 2).
In many cases sectors of so called commoditized production are still important for GDP
formation in developed countries too. Among such important industries in developed
nations whether due to the their part in GDP formation or due to high share of employed
workers, most important are: car production, textile and closing production and trading,
pharmaceutical products in the generic segment, products for sport and entertainment
(bicycles, gym and fitness equipment,..), home appliances and many other industries and
products.
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