Answer to Question 1
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One of the more important obstacles to regional economic and political integration is the threat of losing national identity and sovereignty as part of the larger regional structure. Countries have many icons of national identity that generations have fought for centuries to maintain.
Answer to Question 2
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Even firms that have at one point adopted a decentralized model to compete effectively in the international market have rethought their strategies and opted for a centralized model because it helps avoid duplication and, consequently, it lowers costs.