In this video we work through the different stages of economic integration between countries.
Nations might decide to deepen their economic ties for example through membership of a customs union or single market. Or they might opt to widen their integration by bringing more countries into an arrangement.
The issue of integration at a macro level has heightened in importance given the UK’s vote to leave the European Union.
Here are the main types of integration that we will look at. There are some interesting examples to look at from emerging and developing countries – to what extent can economic integration act as a catalyst for increased trade and investment and stronger rates of economic growth and development?
Free Trade Areas
A customs union comprises countries which agree to abolish tariffs and quotas between member nations to encourage free movement of goods and services. A customs union also adopt a common external tariff (CET) on imports from non-members countries.
Single markets aim to achieve
Monetary union involves countries sharing a single currency. Examples include:
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