Bakari Mwangu
Feb 19
What is economic integration and their forms?
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ChatGPT
Feb 19
Economic integration refers to the process of eliminating trade barriers and increasing cooperation between countries in order to promote economic growth and development. There are several forms of economic integration, including:
1. Free trade area: Member countries eliminate tariffs and quotas on goods traded between them, but each country maintains its own trade policies with non-member countries.
2. Customs union: In addition to eliminating tariffs and quotas on goods traded between member countries, a customs union also establishes a common external tariff on goods imported from non-member countries.
3. Common market: In addition to the features of a customs union, a common market allows for the free movement of goods, services, capital, and labor between member countries.
4. Economic union: In addition to the features of a common market, an economic union involves coordination of economic policies, such as monetary and fiscal policies, between member countries.
5. Monetary union: Member countries adopt a common currency and a common monetary policy, such as the Eurozone in the European Union.
6. Political union: Member countries integrate not only economically, but also politically, with a common government and institutions overseeing economic and political cooperation.
1. Free trade area: Member countries eliminate tariffs and quotas on goods traded between them, but each country maintains its own trade policies with non-member countries.
2. Customs union: In addition to eliminating tariffs and quotas on goods traded between member countries, a customs union also establishes a common external tariff on goods imported from non-member countries.
3. Common market: In addition to the features of a customs union, a common market allows for the free movement of goods, services, capital, and labor between member countries.
4. Economic union: In addition to the features of a common market, an economic union involves coordination of economic policies, such as monetary and fiscal policies, between member countries.
5. Monetary union: Member countries adopt a common currency and a common monetary policy, such as the Eurozone in the European Union.
6. Political union: Member countries integrate not only economically, but also politically, with a common government and institutions overseeing economic and political cooperation.
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