economic integration and trading blocs

Question 1

what is economic integration

Answer 1

process by which countries co-oridnate to reduce trade barriers and harmonise monetary and fiscal policy

Question 2

trading bloc

Answer 2

-a group of countries that join together and agree to increase trade between them

Question 3

bilateral/multilateral trade agreement

Answer 3

-agreement between to reduce tarriffs/quotas between 2 or more countries

Question 4

different trade agreements (6)

Answer 4

-preferential trade area: countries join together to reduce tarrifs/quotas on certain goods and services. African carribean and Europe: commodities and in return get back certain manufactured goods
-free trade agreement:countries join together to eliminate all trade barriers but free to trade to anyone outside. NAFTA (Mexico, USA and Canada)
-customs union: free trade area without freedom of trade. EU, Switzerland and lichentstein first one
-common market(single market): customs union, free movement of labour and capital. but regulation between them
-economic and monetary union: everything before, countries decide to adopt same currency and same central bank. eurozone
-full economic integration: governed by one parliament. i.e. UK