economic integration, process in which two or more states in a broadly defined geographic area reduce a range of trade barriers to advance or protect a set of economic goals.
Economic integration is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Economic integration aims to reduce costs for both consumers and producers and to increase trade between the countries involved in the agreement.
1
Economic integration is sometimes referred to as regional integration as it often occurs among neighboring nations.
Economic Integration Explained
When regional economies agree on integration, trade barriers fall and economic and political coordination increases.
Specialists in this area define seven stages of economic integration: a preferential trading area, a free trade area, a customs union, a common market, an economic union, an economic and monetary union, and complete economic integration.
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The final stage represents a total harmonization of fiscal policy and a complete monetary union.
Answers & Comments
Explanation:
economic integration, process in which two or more states in a broadly defined geographic area reduce a range of trade barriers to advance or protect a set of economic goals.
Economic integration is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Economic integration aims to reduce costs for both consumers and producers and to increase trade between the countries involved in the agreement.
1
Economic integration is sometimes referred to as regional integration as it often occurs among neighboring nations.
Economic Integration Explained
When regional economies agree on integration, trade barriers fall and economic and political coordination increases.
Specialists in this area define seven stages of economic integration: a preferential trading area, a free trade area, a customs union, a common market, an economic union, an economic and monetary union, and complete economic integration.
2
The final stage represents a total harmonization of fiscal policy and a complete monetary union.