Economic Intergration Flashcards
Economic integration
Unification between different countries via partial or full removal of protectionist policies
Preferential trade area
Exists when counties agree to reduce or eliminate tariff barriers in selected goods imported from other members of the area
Free trade area
When 2+ countries in a region agree to reduce or eliminate barriers to trade on all goods coming from other members
Customs union
Involves the removal of tariff barriers between members of a trade area together with the acceptance of a common external tariff against non-members
Single market
Free movement of goods, services, capital and labour
Economic unions
Composed of a common market with a custom union
Monetary union
Involves scrapping individual currencies and pairing a single, shared currency
Economic and monetary union
• Single economic market
• Common trade policy
• Single Currency
• Common monetary union
