A summary of the different levels of economic integration Flashcards
Eliminate trade barriers
Free Trade Area
Customs Union
Common Market
Monetary Union
Common approach to external trade barriers
Customs Union
Common Market
Monetary Union
Freedom of movement of factors of production
Common Market
Monetary Union
Common product standards
Common Market
Monetary Union
Single currency, common central bank, and interest rates
Monetary Union
Free Trade Area
Eliminate trade barriers
Customs Union
Eliminate trade barriers
Common approach to external trade barriers
Common Market
Eliminate trade barriers
Common approach to external trade barriers
Freedom of movement of factors of production
Common product standards
Monetary Union
Eliminate trade barriers
Common approach to external trade barriers
Freedom of movement of factors of production
Common product standards
Single currency, common central bank, and interest rates
Why would you want to go from free trade area to customs union ?
No more boarder checks
Free trade agreement limitation
you have to see where the goods have come from at boarders and then you have to add tarrifs to it if its not from the free trade agreement.
What is the limitation with customs union?
Product standards checks
Benefits of Monterey union?
Reduces the volatility and makes transactions easier
Trade creation
where its now easier to trade with other courtiers so now exports rise within the trading bloc
Trade diversion
trade goes to another country for example china and US so benefits Russia
