For instance, integration in the international division of labour accelerates structural change and calls for more internal flexibility, especially on the labour market. And liberalising capital movements places demands on the domestic financial sector, which must be able to handle international capital flows that may rapidly change direction.
Second problem area: to be really efficient, market integration with the elimination of barriers may require a minimum of policy integration. This applies, for example, to some protection provisions for products and in the production process. Different tax systems may of course likewise distort cross-border goods and financial flows. And if capital markets are globalised, different approaches to monetary policy may contribute to volatility.