This involves agreements between countries that usually include the elimination of trade barriers and aligning monetary and fiscal policies, leading to a more interconnected global economy.
Economic integration
This theory argues that the global economy is better off when markets can function in unison with minimal government intervention
Economic theory
Which is the least restrictive level or stage of regional integration?
Free-trade area
In this level, there is partial or complete elimination of trade tariffs on goods and services between member countries. Each country still remains control over its trade policy.
Free-trade area
This level assures a better and preferred offering to member countries by cutting tariffs on imports for one another.
Preferred Trade Area
This level concerns agreeing on fixed relative exchange rates and introducing a common currency to participate in foreign exchange and settle international transactions.
Monetary union
This level involves the coordination of monetary, fiscal and taxation policies and government expenditure to promote the free flow of commodities and services.
Economic union
This level establishes common external trade tariffs on imports from non-member nations, making external production factors easier to track and tax.
Customs union
This level is similar to free trade zones and customs union. It facilitates the free movement of production factors between member countries and liberalizes cross-border labor mobility and investment.
Common market
This level combines coordination of fiscal policies with comprehensive monetary unification.
Complete economic integration
The urge to have common defense and foreign policies may lead to this union.
Political union
True or False: Regional integration is more than just cross-border trade liberalization.
True
What are the 3 fundamentals of the appropriate approach to regional integration?
Start small
Think Global
Compensate the least fortunate
Where is the headquarters of the European Union?
Brussels
This is considered to be the most highly evolved example of regional integration.
European Union
This was the origin of the EU and its objectives was to encourage member countries to cooperate in steel production.
European Coal and Steel Community (ECSC)
When was the Treaty of Rome signed?
1957
This called for free trade among members as well as a common external tariff for non-members.
European Economic Community (EEC)
This established the European Economic Community.
Treaty of Rome
This was signed which made the EEC to become a full economic union or single market.
Maastricht Treaty
When was the Eurozone’s single currency introduced?
Jan. 1, 1999
When was the European sovereign debt crisis?
2009
This is the apex central bank for the Eurozone countries. It maintains responsibility for Eurozone’s monetary policy.
European Central Bank
Where is the European Central Bank based in?
Frankfurt
