reginal economic integration

reginal economic integration

refers to agreements between countries in a geographic region to reduce tariff and non- tariff barries to the free flow of goods, services, and factors of production between each other,

trade creation

occurs when low cost producers within the free trade area replace high cost domestic producers

reginal economic integration

refers to agreements between countries in a geographic region to reduce tariff and non- tariff barries to the free flow of goods, services, and factors of production between each other,

trade creation

occurs when low cost producers within the free trade area replace high cost domestic producers

trade diversion

occurs when higher cost suppliers within the free trade replace lower cost external suppliers

customs union

eliminates trade barriers between member countries and adopts a common external trade policy

common market

has no barriers to trade between member countries, a common external trade policy and the free movement of the factors of production

economic union

has the free flow of products anf factors of production between members, a common external trade polivy, a common currency, a harmonized tax rates and a common monetary and fiscal policy

political union

involves a central political apparantus that coordinates the economic, social and foreign policy of member states