Discuss the distinguishing features of various forms of regional economic integration, including their benefits and costs. Give recent examples including both developing and more industrialized countires.© BrainMass Inc. brainmass.com December 24, 2021, 4:55 pm ad1c9bdddf
Regional economic integration is agreements among countries in a geographic region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other.
Different levels of economic integration:
Free trade area: all barriers to the trade of goods and services among member are removed. Example of it is the European Free Trade Area: EFTA is all the 15 countries that formed the European Union, Norway, Iceland, Liechtenstein, and Switzerland. Benefit: remove tariffs, quotas and administrative impediments.
Custom union: a custom union eliminates trade barriers between member countries and adopts a common external trade policy.
Example: NAFTA, ANDEAN PACT (BETWEEN BOLIVIA, COLOMBIA, ECUADOR AND PERU). The Andean ...
Characterize the key features of various forms of regional economic integration, including their benefits and costs.