Economic integration can unintentionally reward a less efficient producer within a trading bloc.

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Economic integration can lead to a reduction in trade barriers, which can create a larger market for producers within a trading bloc. This can unintentionally reward less efficient producers who may not have been competitive in a smaller, more isolated domestic market. These less efficient producers may benefit from increased demand in the larger trading bloc market and may not feel pressure to improve their efficiency or productivity. This can lead to a situation where the trading bloc as a whole is not realizing the full benefits of economic integration.

Economic Integration Can Unintentionally Reward a Less Efficient Producer Within