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Lecture International business (9e): Chapter 9 - Charles W.L. Hill - Trường Đại học Công nghiệp Thực phẩm Tp. Hồ Chí Minh

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A political union involves a central political apparatus that coordinates the economic, social, and foreign policy of member states.. What Are The Levels Of [r]

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9e 

By Charles W.L Hill

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Regional Economic

Integration

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What Is Regional  Economic Integration?

between countries in a geographic region to

reduce tariff and non-tariff barriers to the free

flow of goods, services, and factors of

production between each other

promote free trade?

situation in which a number of regional trade blocks

compete against each other

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What Are The Levels Of  Regional Economic Integration?

1 A free trade area eliminates all barriers

to the trade of goods and services

among members

2 A customs union eliminates trade

barriers between members and adopts a common external trade policy

3 A common market has no trade barriers

between members, a common external

trade policy, and the free movement of

the factors of production

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What Are The Levels Of  Regional Economic Integration?

products and factors of production between

members, a common external trade policy, a

common currency, a harmonized tax rate, and

a common monetary and fiscal policy

apparatus that coordinates the economic,

social, and foreign policy of member states

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Regional Economic Integration?

Levels of Economic Integration

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Why Should Countries  Integrate Their Economies?

 All countries gain from free trade and

investment - regional economic integration

is an attempt to exploit the gains from free trade and investment

 Linking countries together, making them

more dependent on each other

creates incentives for political cooperation

and reduces the likelihood of violent conflict

gives countries greater political clout when

dealing with other nations

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