Stages of Economic Integration

Question 1

What are the 2 types of tools used as a Trade Barrier? Give an example for both types of tools

Answer 1

Tariff Barriers

Non-Tariff Barriers

Question 2

What are the stages of economic Integration? (In order)

Answer 2

1. Free Trade Area
2. Customs Union
3. Common/Single Market
4. Monetary Union
5. Complete Integration

Question 3

What are the characteristics of a Free Trade Area?

Answer 3

Remove all the barriers on trade of goods between members. Each member of the FTA has their only policy with non members

Question 4

What are the characteristics of the Custums Union?

Answer 4

FTA (free trade of goods) + common trade polices with countries that are non members.

Question 5

What are the characteristics of the Common/Single Market? EU 27

Answer 5

custums union (so they have a trade deal in between them that removes all the barriers on the trade of goods in between them and also have similar policies on other countries).

In addition to that there is the free movement of goods, services, lavor and capital.

Question 6

What are characteristics of the monetary union?
Euro Zone Countries!

Answer 6

On top of the common market (that includes FTA, custums union and free flow of goods, services, labor and capital), The country has a common monetary policy and currency in between members!

Question 7

What are the characteristics of complete economic integration? (US)

Answer 7

Monetary Union + Common Fiscal Policy + Common Legislation