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1.++Introduction+and+Overview

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10 views

1.++Introduction+and+Overview

Uploaded by

momsmiu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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economic

integration
introduction and overview
economic integration
• overarching idea
– it’s like a couple going from meeting to marriage
– economic integration describes the process whereby countries coordinate and
link their economic policies
– as the degree of economic integration increases…
• the trade barriers between countries decrease => fiscal and monetary policies are more
closely linked => until they are one

• six stages of integration


1. preferential trade agreements 4. common markets
2. free trade areas 5. economic and monetary union
3. customs unions 6. complete economic integration

source: jocelyn blink


economic integration: key terms
• bilateral trade agreement
– definition: an agreement relating to trade between two countries
– the aim is usually to reduce or remove tariffs and/or quotas that have been placed on
items traded between the two countries

• multilateral trade agreement


– definition: an agreement relating to trade between multiple countries
– aims to reduce or remove tariffs and/or quotas that have been placed untraded items, but
the agreement applies to all of the countries involved

• trading blocs
– definition: a group of countries that join together in some form of agreement in order to
increase trade between themselves and/or to gain economic benefits from cooperation on
some level
– this coming together is economic integration

source: jocelyn blink

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