5 forms on economic integration

Regional Cooperation Groups:

Governments agree to participate jointly to develop basic industries beneficial to each economy - European Coal and Steel Community

Free Trade Area:

free trade (no tariffs) among members, but each member is free to set its own external tariffs on imported products from outside the region

Customs Union:

free trade among members, plus a common external trade policy (members have the same external tariffs on imported products from outside the region)

Common Market:

free trade among members, common external tariffs, plus factor mobility (free movement of goods, persons, services and capital among member nations) - EEC (old European Economic Community or European Common Market)

A - Economic Union & B - Political Union

A - all of the above, plus harmonization of economic policies (EU 27)

B - all of the above, plus harmonization of political policies (EU 15)