GBDA 102 Lecture Notes - Lecture 4: Free-Trade Area, Market Distortion, Customs Union

• School: University of Waterloo
• Department: Global Business and Digital Arts
• Course: GBDA 102
• Professor: Vivian Yang

Document Summary

Regional economic integration: countries of a region cooperating to reduce or eliminate barriers to the international flow of products, people, or capital: eg. There is no perfect competition in the world, only market distortion. Each country has its own benefits and rules, so it is hard to reach a consensus. Different types of rei: free trade area (nafta) Removes trade barriers in goods/services among member countries: customs union. Removes trade barriers in goods/services among member countries: common market. Removes trade barriers in goods/services among member countries: economic union. Removes trade barriers in goods/services among member countries: political union. Removes trade barriers in goods/services among member countries. Benefits and drawbacks of integration: think about how it is different/the same as globalization, benefits: Trade creation if it"s a small country with a small market, it can expand the production/economies of scale with trade. Greater consensus easier to reach a consensus and promote economy and investment.