INTB 1203 Chapter Notes - Chapter 9: European Free Trade Association, Andean Community, Trade Diversion

• School: Northeastern University
• Department: International Business
• Course: INTB 1203
• Professor: Raynus Joseph

Document Summary

Regional economic integration- agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other. Examples of regional economic integration: nafta- canada, mexico, u. s, mercosur agreement- south america- 1991- argentina, brazil, paraguay, and. Free trade agreements are the most popular form of regional economic integration, accounting for almost 90% of regional agreements. Example: european free trade association(efta)- norway, iceland, Liechtenstein, and switzerland- free trade on industrial goods: customs union- a group of countries committed to, removing all barriers to the free flow of goods and services between each other, the pursuit of a common external trade policy. Example: andean community (andean pact)- bolivia, colombia, Example: the eu: political union- a central political apparatus coordinates economic, social, and foreign policy. Examples: u. s. with independent states effectively combined into a single nation; the european parliament and council of minister in eu.