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Free trade area
where countries agree to remove trading barriers within blocs but maintain separate trading arguments with other countries outside their blocs
-eg) US, Canada, Mexico
customs union
Has free trade among members and the same tariffs on other non-member countries → called common external tariff
- free movement of labour between member countries
- safety measures for all imports for all members
-common trade policy - guides trading relationship
-eg) EU
common market
the same as a customs union but allows free movement of resources between countries
currency union
extends the feature of a common market by adopting a single currency
-eg) ECB European central bank
Single European market
-free movement of goods, services, capital, labour between memebers
costs of trading blocs
benefits of trading blocs
-creates more free trade = lower costs for consumers
-better price transparency means
