Chapter 9 - Regional Economic Integration

Question 1

Regional Economic Integration

Answer 1

The growing interdependence that results when two or more countries within a geographical region form an alliance aimed at reducing barriers to trade and investment

Question 2

Regional Economic Integration Bloc

Answer 2

A geographical area consisting of two or more countries that have agreed to pursue economic integration by reducing barriers to cross-border flow of products, services, capital and in more advanced states, labour

Question 3

Free Trade Agreement FTA

Answer 3

A formal arrangement between two or more countries to reduce or eliminate tariffs, quotas and barriers to trade in products and services

Question 4

Free Trade Area

Answer 4

A stage of regional integration in which member countries agree to eliminate tariffs and other barriers to trade in products and services within the bloc

Question 5

Customs Union

Answer 5

A stage of regional integration in which the member countries agree to adopt common tariff and non-tariff barriers on imports from non-member countries

Question 6

Common Market

Answer 6

A stage of regional integration in which trade barriers are reduced or removed, common external barriers are established, and products, services and factors of production are allowed to move freely between the member countries

Question 7

Economic Union

Answer 7

A stage of regional integration in which member countries enjoy all the advantages of early stages, but also strive to have common fiscal and monetary policies

Question 8

Political Union

Answer 8

A stage of regional integration in which member countries enjoy all the advantages of an economic union but also have central government and military that represent all member states