economic integration

What are the Levels of Economic Integration?

There are several levels of economic integration, each with varying degrees of complexity and commitment:
Free Trade Area: Member countries remove tariffs and trade barriers among themselves but maintain individual trade policies with non-member countries.
Customs Union: Member countries not only remove internal trade barriers but also adopt a common external tariff policy towards non-member countries.
Common Market: In addition to a customs union, member countries allow the free movement of labor and capital across their borders.
Economic Union: This level involves integrating economic policies, including a common currency and harmonized tax and welfare policies.
Political Union: The highest level of integration where member countries unify under a single political and economic framework.

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