What are the five different types of economic integration?

Economic integration can be classified into five additive levels, each present in the global landscape:

• Free trade. Tariffs (a tax imposed on imported goods) between member countries are significantly reduced, some abolished altogether.
• Custom union.
• Common market.
• Economic union (single market).
• Political union.

What are the types of regional integration?

There are four main types of regional economic integration.

• Free trade area. This is the most basic form of economic cooperation.
• Customs union. This type provides for economic cooperation as in a free-trade zone.
• Common market.
• Economic union.

What are the different types of economic integration?

Economic integration

• Simple free-trade area. The most basic type of economic integration is a simple free-trade area.
• Second-generation free-trade area.
• Customs union.
• Common market.
• Monetary union.
• Economic community or union.

What is regional economic integration?

Regional economic integration occurs when countries come together to form free trade areas or customs unions, offering members preferential trade access to each others’ markets.

What are the different types of regional economic integration?

Regional economic integration has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbors. There are four main types of regional economic integration. Free trade area.

Which is an example of a regional trade agreement?

Overview | Research | Data | Blogs. Examples of regional trade agreements include the North American Free Trade Agreement (NAFTA), Central American-Dominican Republic Free Trade Agreement (CAFTA-DR), the European Union (EU) and Asia-Pacific Economic Cooperation (APEC).

How did regional economic integration lead to NAFTA?

Some of the regional blocs also created side agreements with other regional groups leading to a web of trade agreements and understandings. The North American Free Trade Agreement (NAFTA) came into being during a period when free trade and trading blocs were popular and positively perceived.

Which is an example of Regional Economic Cooperation?

This is the most basic form of economic cooperation. Member countries remove all barriers to trade between themselves but are free to independently determine trade policies with nonmember nations. An example is the North American Free Trade Agreement (NAFTA). Customs union. This type provides for economic cooperation as in a free-trade zone.