Despite its benefits, economic integration also presents several challenges:
Economic Disparities: Differences in economic development levels among member countries can lead to unequal benefits and tensions. Loss of Sovereignty: Member countries may need to cede some control over their economic and political policies, which can be contentious. Adjustment Costs: Businesses and workers may face short-term disruptions and costs as they adapt to new competitive environments. Policy Coordination: Effective integration requires harmonization of policies, which can be complex and time-consuming. Social and Cultural Differences: Integrating countries with diverse social and cultural backgrounds can lead to conflicts and misunderstandings.