Economic Integration and Globalization: Phases and Impacts
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Economic Integration
Economic integration is the phenomenon of the progressive elimination of economic borders among a group of countries. It occurs in phases:
- Preferential Agreement: A number of countries grant each other customs advantages not applied to other countries.
- Free Trade Area: Member states eliminate tariff obstacles but maintain their own tariffs against third parties.
- Customs Union: A common external tariff is applied to all imports coming from third countries.
- Common Market: This is a customs union in which there is also a free flow of factors of production.
- Economic Union: This means a complete common market with coordinated macroeconomic policy and the implementation of common economic policies.
- Monetary Union: All currencies of