BUSI 1701 Lecture Notes - Lecture 5: Caribbean Community, Mercosur, Political Union

• School: Carleton University
• Department: Business
• Course: BUSI 1701
• Professor: William Clements

Document Summary

Fta = a group of countries committed to removing barriers to the free flow of goods and services between each other but pursuing independent external policies. Customs union = a group of countries committed to (1) removing all barriers to the free flow of goods, service between each other, and (2) pursuit of a common external trade policy. Common market = a group of countries committed to (1) removing all barriers to the free flow of goods, services, and factors of production between each other, and (2) the pursuit of a common external trade policy. Political union = a central political apparatus that coordinates economic, social, and foreign policy. Regional economic integration can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries. Linking neighbouring economies and making them increasingly dependent on each other creates incentives for political cooperation between neighbouring states.