世界经济教学资料 7. regional economic integration.pdfVIP

International Business 8e By Charles W.L. Hill Chapter 8 Regional Economic Integration What Is Regional Economic Integration? ?Regional economic integration - agreements 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 ?Question: Do regional trade agreements promote free trade? ?In theory, yes, but the world may be moving toward a situation in which a number of regional trade blocks compete against each other 8-3 What Are The Levels Of Regional Economic Integration? 1. A free trade area eliminates all barriers to the trade of goods and services among member countries ? European Free Trade Association (EFTA) - Norway, Iceland, Liechtenstein, and Switzerland ? North American Free Trade Agreement (NAFTA) - U.S., Canada, and Mexico 2. A customs union eliminates trade barriers between member countries and adopts a common external trade policy ? Andean Pact (Bolivia, Columbia, Ecuador and Peru) 3. A common market has no barriers to trade between member countries, a common external trade policy, and the free movement of the factors of production ? MERCOSUR (Brazil, Argentina, Paraguay, and Uruguay) 8-4 What Are The Levels Of Regional Economic Integration? 4. An economic union has the free flow of products and factors of production between members, a common external trade policy, a common currency, a harmonized tax rate, and a common monetary and fisc