Economic Integration Flashcards
1
Q
Trading blocs
A
- Preferential trading areas
- Free trade areas
- Customs union
- Common markets (EU)
- Economic and monetary union (eurozone)
- Complete economic integration
2
Q
Preferential trading areas
A
Preferential trading conditions (tariff reductions, not elimination)
between certain countries
for certain goods/services
3
Q
Free trade areas
A
Free trade inside
Trade whatever way each member wants outside
4
Q
Customs union
A
Free trade inside
Common external trade barriers to non-members who try to import G/S into the union
5
Q
Common markets
A
Harmonization of economic policy, including trade policies, macro/microeconomic policies
e.g. EU
6
Q
Economic and monetary union
A
Common market Common currency Common central bank *lacks coordination in fiscal policies e.g. eurozone
7
Q
Complete economic integration
A
Complete integration of monetary and fiscal policies
8
Q
Pros of trading blocs
A
1.
