ARBUS301 Lecture Notes - Lecture 6: Economic Union, Single Market, Mercosur
16 Dec 2019
School
Department
Course
Professor
Document Summary
Levels of regional integration: free trade area: simplest, most common arrangement. Member countries agree to gradually eliminate formal trade barriers within the bloc, while each member maintains an independent international trade policy with countries outside the bloc. One example is nafta: customs union: similar to a free trade area except the members harmonize their trade policies toward nonmember countries by enacting common tariff and nontariff barriers on imports from non-member countries. Mercosur is an example: common market: like a customs union, except products, services, and factors of production such as capital, labor, and technology can move freely among the member countries. E. g. , the eu countries put in place many common labor and economic policies: economic union: like a common market, but members also aim for common fiscal and monetary policies, and standardize commercial regulations. The eu is moving toward an economic union by forming a monetary union with a single currency, the euro.
