Economic Integration Models

Economic integration models describe how countries collaborate economically to reduce barriers and increase cooperation. Levels include free trade areas (eliminate tariffs among member countries), customs unions (add common tariffs for non-members), common markets (allow free movement of goods, services, capital, and people), economic unions (harmonize economic policies), and full political-economic unions (integrate fully, like a single country). These models help foster economic growth, improve efficiency, and strengthen relationships, but also require coordination and adjustments among member nations to manage complexities and differences.