Integration and Economic Globalization: Analysis of Selected Western Balkans’ Countries

Integration and globalization are two social phenomena which are not shown only in modern societies, instead have been present since the earliest times. The purpose and intent of both of them remains the same, however the difference between integration and the globalization at early time and today is in the form and intensity of their occurrence. Advantages and the benefits of economic cooperation are numerous for integrated member countries, but two of them to be singled out are: the promotion of economic growth and growth of human welfare. When we talk about the economic cooperation among member states we have in mind not only the implementation of international trade as one of the most common economic activities, but also other activities which have recently been more numerous, such as: the provision of international services, loan and lending, the harmonization of trade policies, taxes, adoption and implementation of international conventions and rules, foreign direct investment flows, the functioning of international capital markets, the issue of ownership etc. Regional economic integration is realized in different forms and different levels. Depending on their intensity they can be: a free trade area, customs union, common market, economic union and political union. Shortly after Second World War, economist Haberler named this period as "integration period". End of the last century and the beginning of this century culminated in the establishment of these integrations. Undoubtedly, the gains and the benefits of integrating these countries exceed integration economic reasons and a number of them also have in mind the political reasons as well. Globalization is a social phenomenon, for some it is a social process, which has also affected the way of functioning of the country and the whole world in general. In countries where the globalization influence is great, the benefits are greater, and vice versa in countries where the globalization influence and his presence is small, the benefits are limited. There are different opinions regarding the impact of globalization on a society. A number of them support it, while a number of others are against it. Since our countries are countries with open economies to the global economy, they cannot avoid this phenomenon. It is understandable and also ability of our countries to try to profit as much as they can from the positive side of the process of globalization. By using different economic methods, in this paper I will try to focus on the study of the impact of these two phenomena in the economic development of countries in general. Special treatment will be given to regional trade and foreign direct investment.