Reply to statement below in 100 words or more about levels of economic integration
The levels of economic integration are a free trade area, a customs union, a common market, an economic union, and, a full political union. For a free trade area there are no barriers on trading goods and services between countries, which allows each country to determine their own trade policies. A customs union eliminates trade barriers only to those countries who are members of the union. A common external trade policy is also created for trading with non-members. A common market also eliminates trade barriers to trading amongst members and has an external trade policy, but it also allows factors of production to move freely amongst members. With an economic union there is free trade amongst members, but they have to have similar currency, tax rates, and fiscal policies. In a political union, a central political figure will determine what the economic, social, and foreign policies of the members’ will be.