What are the forms of economic integration?

      

Explain forms of economic integration.

  

Answers


Maurice
(i) Economic union
This is a common market however the agreement includes member countries work on joint economic institutions such as a central bank, common currency or even common public services such as railways and communication network.

(ii) Common market.
This is Free Trade and Customs Union but by extension, member states allow for free movement of factors of production such as labour, capital and entrepreneurship. It includes the Central American Customs Common Market (CAM).

(iii) Customs union.
Member countries abolish trade restrictions among themselves but at the same time impose a common tariff on trade with non-member countries such as the East African Customs Union (EACU).

(iv) Free Trade are.
Member countries abolish or relax all trade barriers among themselves but each individual country remains free to impose restrictions on trade with non-member countries for example, The Preferential Trade Area (PTA).
maurice.mutuku answered the question on July 6, 2017 at 08:32


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