economic integration Flashcards
economic integration def
agreement among countries in a geographic region to reduce and ultimately remove, tariff and non tariff barriers to the free flow of goods or services and factors of production among each others
stages of economic ntegration
- PTA
- FTA
- customs unions
- common market
- economic and monetary union
- complete economic integration
evaluating trading bloc
- greater market size
- benefits not even
- greater political stability and cooperation
- trade negociation are easier between blocs
- discriminatory policies goes against the WTO
- obstacles to economic integration
trading bloc
group of countries joined together and form an agreement to gain economic benefits
trade creation
the increase in economic welfare from joining a free trade area, such as a customs union
trade diversion
an economic term related to international economics in which trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement or a customs union.
preferential trading areas PTA
trading bloc that gives preferential access to certain products from the participating countries.
free trade areas FTA
refers to a group of countries (two or more) that engage in the
movement of goods and services without protectionist barriers.
custom unions
a unification of two or more countries of their customs and
trade policies.
common market
a group of countries imposing few or no duties on trade with one another and a common tariff on trade with other countries.
economic and monetary union
group of countries that use the single currency-the Euro.
complete economic integration
integrated units have no or negligible control of economic policy
economic sovereignty
Economies of the countries that were once divided by high transport
discriminatory policies
discriminate other countries that are not part of te trade union by using protectionism
