IntMgt Ch8 Posting - Chapter 8 Regional Economic...

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Click to edit Master subtitle style Chapter 8 Regional Economic Integration 11
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Regional Economic Integration Regional economic integration refers to Agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other 22
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Levels Of Economic Integration There are 5 levels of economic integration: 1. Free Trade Area Eliminates all barriers to the trade of goods and services among member countries Members determine their own trade policies for nonmembers European Free Trade Association (between Norway, Iceland, Liechtenstein, and Switzerland) North American Free Trade Agreement (between the 33
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Levels Of Economic Integration 2. Customs union Eliminates trade barriers between member countries and adopts a common external trade policy Andean Pact (between Bolivia, Columbia, Ecuador and Peru) is an example of a customs union 3. Common market No barriers to trade between member countries, a common external trade policy, and the free movement of the factors of production MERCOSUR (between Brazil, Argentina, Paraguay, and Uruguay) is aiming for common market status 44
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Levels Of Economic Integration 4. Economic union Free flow of products and factors of production between members Common external trade policy Common currency, a harmonized tax rates, and a common monetary and fiscal policy European Union (EU) is an imperfect economic union 5. Political union Involves a central political apparatus that coordinates the economic, social, and foreign 55
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Levels Of Economic Integration 66
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Case For Regional Integration Economic All countries gain from free trade and investment Regional economic integration is an attempt to exploit the
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IntMgt Ch8 Posting - Chapter 8 Regional Economic...

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