International Business Chapter 9. Regional Economic Integration

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What is regional economic integration?

Agreements among countries in a geographic region to reduce or remove barriers to the free flow of goods, services and factors of production

Is REI good for producers?

It presents a challenge to some producers but are good for consumers

How many levels they are of economic integration?

What level is the common market and what it states?

3. Factor of production are free to move among member countries

What level is the customs unions and what it states?

2. Members adopt a common external trade policy

What level is the free trade area and what it states?

1. Barriers to trade of goods and services are removed. Each country determines own trade policies

What level is the economic union and what it states?

4. Common currency and monetary/fiscal policies