Regional Economic Integration: Unlocking Global Benefits
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Regional Economic Integration: Benefits & Types
Regional economic integration, also known as regionalism, is the process whereby countries in a geographic region cooperate to reduce or eliminate barriers to the international flow of products, people, or capital. There are five main types of regional economic integration:
- Free Trade Area: Member countries eliminate tariffs and quotas among themselves, but each maintains its own external trade policies.
- Customs Union: Builds on a free trade area by adding a common external trade policy.
- Common Market: Extends a customs union by allowing the free movement of labor and capital among members.
- Economic Union: Combines a common market with the coordination of national economic policies (e.g., monetary,