Economic Integration Review

These flashcards cover the key concepts and details of economic integration as presented in the lecture notes.

Economic integration is a process in which two or more states reduce a range of trade barriers to advance or protect a __.

set of economic goals.

The most basic type of economic integration is a __.

simple free-trade area.

In a second-generation free-trade area, the basic nature of simple free trade is expanded to include __.

trade in non-goods such as services.

A __ union relies upon a common external tariff.

customs.

The idea of a common market stems from the adoption of a __.

common external tariff.

With the evolution of a common market, a __ is formed to address transaction costs.

monetary union.

The EU's main economic engine is the __.

single market.

An economic community or union imposes a common economic policy system on all countries in the __.

region.

The benefits of economic integration include economies of scale, international specialization, and __ improvement in output.

qualitative.

One disadvantage of economic integration is that it can lead to the creation of __ against non-member countries.

trading blocs.