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Should cause sharp friction between groups as those. Inevitably thatAlways there will be communities of interest (communities of interest), and on members of each
Such generality certain event or a certain measure will influence Equally. However it is obvious in interests of unity larger whole, That these groupings were not constants and, even more, that diverse
Communities of interest did not creep away territorially and that with them never
Inhabitants of this or that concrete region identified themselves for a long time.
We will consider later, as in existing federal formations, even if The separate states making them also do not possess such heavy tools Protectionism, as tariffs and own currency, more latent forms
Protectionism conduct to increasing friction, chain reaction to sweep and even
To force application between separate member states federations. And it is easy
To present, it would accept what forms, if the separate states could Freely to use all arsenal of protectionism. It is represented enough Obvious that the political union between is no time sovereign states not Will exist long if it will be not not accompanied by the union economic.
Absence of tariff barriers and free movement of people and the capital between
Member states federations has certain important consequences, which Often are not noticed. They largely limit sphere economic
Politicians of the separate states. If the goods, people and money can freely
To cross the interstate borders, the separate state loses everyone
Possibilities to influence the actions on the prices of the various goods. The union
Becomes one uniform market, and the prices in its different parts start to differ
Only because of cost of transportation. Any change in any part of the Union
Conditions of production of any product which is giving in to transportation in others
Parts, will influence its prices everywhere. In the same way any
Change of possibilities of investment or payment in any part of the Union More or will less fast affect the capital and labour offer and on them The prices in all other parts of the Union.
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