Economic integration

• Economic integration - Wikipedia, the free encyclopedia

  • The degree of economic integration can be categorized into six stages

    1. Preferential trading area
    2. Free trade area, Monetary union
    3. Customs union, Common market
    4. Economic union, Customs and monetary union
    5. Economic and monetary union, 
       • Fiscal union
       • Complete economic integration

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    A "customs union" introduces unified tariffs on the exterior borders of the union (CET, common external tariffs

  • A "common market" add to a FTA the free movement of services, capital and labor.
  • A "fiscal union" introduces a shared fiscal and budgetary policy.
  • An "economic union" combines customs union with a common market