"Economic integration is the unification of economic policies between different states, through the partial or full abolition of tariff and non-tariff restrictions on trade."
The process of countries coming together to deepen economic cooperation through the elimination of trade barriers and the harmonization of policies.
Trade Agreements: An agreement between two or more countries for the exchange of goods and services without any tariffs or any other trade barriers.
Customs Unions: An agreement between two or more countries, where member nations have common external tariffs concerning trade with non-member countries.
Free Trade Areas: An agreement between two or more countries to remove tariffs and other trade barriers on goods between member countries while keeping their individual tariffs on goods from other countries.
Economic Zones: A geographic region where trade regulations are different from the rest of the country.
Common Markets: A trade bloc where members have free trade of goods and services, movement of capital and labor, implementation of common policies, and removal of barriers.
Monetary Integration: The process of creating a common currency or using a single currency within a group of countries.
NAFTA: North American Free Trade Agreement, an agreement between the United States, Canada, and Mexico to remove trade barriers between the countries.
ASEAN: Association of Southeast Asian Nations, an economic bloc that aims to promote economic growth and trade cooperation among Southeast Asian countries.
EU: European Union, a political and economic union of 27 member states in Europe, aiming to create a single market for goods, services, capital, and people.
Globalization: The process of increasing interconnectedness and interdependence of the world's economies, leading to the integration of markets, cultures and institutions.
Protectionism: Trade policy that restricts or limits imports with the goal of protecting domestic industries from foreign competition.
Multilateral trade agreements: An agreement where several countries negotiate the terms of trade with each other.
Bilateral trade agreements: An agreement between two countries that governs the terms and conditions of their trade.
Nationalism: The belief that a country should prioritize its own interests above those of other countries.
Balance of payments: The accounting record of a country's economic transactions with the rest of the world.
Comparative advantage: The ability of a nation to produce goods and services more efficiently and at a lower cost than other countries.
Capital mobility: The free flow of financial investments between countries.
Exchange rates: The value of one currency in terms of another, and the mechanism by which currencies are exchanged.
Foreign direct investment: An investment made by a firm or individual into companies and assets located in foreign countries.
Trade deficits and surpluses: The difference between a country's imports and exports, which determine whether the country has a trade deficit or trade surplus.
Free trade area: A free trade area involves member countries reducing or eliminating trade barriers, such as tariffs and quotas, between themselves while maintaining their own trade policies with non-member countries.
Customs union: A customs union involves member countries having a common external trade policy and eliminating trade barriers between themselves, as well as agreeing to uniform trade policies with non-member countries.
Common market: A common market is a customs union with the additional feature of allowing for the free movement of factors of production, such as labor and capital, between member countries.
Economic union: An economic union involves a high degree of economic integration with member countries adopting common policies in areas such as monetary policy, fiscal policy, and social policy.
Political union: A political union involves economic integration being accompanied by political integration, such as a common government and legal system.
Monetary union: A monetary union involves member countries adopting a common currency and monetary policy, such as the Eurozone.
Fiscal union: A fiscal union involves member countries adopting a common fiscal policy, such as a common budget and tax system.
Banking union: A banking union involves member countries coordinating their financial regulation and supervision, as well as creating a common system for deposit insurance and crisis management.
Energy union: An energy union involves member countries coordinating their energy policies, such as promoting renewable energy and improving energy security.
Digital single market: A digital single market involves member countries harmonizing their laws and regulations around digital goods and services, promoting cross-border e-commerce and innovation.
Transport union: A transport union involves member countries coordinating their transportation policies, such as developing common standards for safety and infrastructure.
Defense union: A defense union involves member countries developing a common defense policy and creating a common military force.
"The trade-stimulation effects intended by means of economic integration are part of the contemporary economic Theory of the Second Best."
"Free trade is treated as an idealistic option, and although realized within certain developed states..."
"Economic integration has been thought of as the 'second best' option for global trade where barriers to full free trade exist."
"Economic integration is meant in turn to lead to lower prices for distributors and consumers..."
"...with the goal of increasing the level of welfare..."
"...leading to an increase of economic productivity of the states."