BUSN2019 Lecture Notes - Lecture 8: Preferential Trading Area, Trade Bloc, Regional Integration
27 Nov 2018
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Document Summary
The eu is the world"s most advanced and largest regional economic bloc, with half a billion people and about us trillion in annual gdp. Regional economic integration countries coming together to trade with each other and how we can more effectively trade. Increased product choices, productivity, living standards (because price of goods is coming down) A geographic area consisting of two or more countries that agree to pursue economic integration by reducing tariffs and other barriers to the cross-border flow of products, services, capital, and, in more advanced cases, labour. Five levels of regional integration: free trade area: simplest, most common arrangement. The official languages are spanish, portuguese, and guarani. The eu: a full-fledged economic union: market access. Tariffs and most nontariff barriers have been eliminated: common market. Barriers to cross-border movement of production factors labour, capital, and technology: trade rules. Cross-national customs procedures and regulations have been eliminated, which has streamlined transportation and logistics within europe: standards harmonisation.
