BUSI2025 Chapter 9: Chapter 9
Document Summary
Bilateral integration: two countries cooperate closely, usually in the form of tariff reduction. Regional integration: a group of countries located in the same geographic proximity decide to cooperate, ie. european union. Global integration: countries worldwide cooperate through the wto. Regional economic integration: agreements between countries in a geographic region to reduce tariff and non-tariff berries to the free flow of goods, services and factors of production between each other. Trade diversion: trade diversion occurs when higher cost suppliers within the free trade area replace lower cost external suppliers, shifts in employment, loss of national sovereignty. The eu consists of 28 members, 19 which are in the eurozone. Lack of fiscal discipline within eurozone nations have contributed to a debt crisis, since. Differences in policy solutions have resulted in imbalance between countries. Poor economic prospects have led to anti-eu sentiments and the rise of ultra- nationalist parties e. g. greece and spain.
