Economic Integration Theory

Economic integration theory explains how countries collaborate economically to reduce barriers and increase cooperation. It involves stages like free trade (removing tariffs), customs unions (standardized tariffs), common markets (free movement of goods, services, capital, and people), and economic unions (shared policies and possibly a common currency). The goal is to boost economic growth, improve efficiency, and expand markets by working together more closely. It highlights the benefits of cooperation but also recognizes challenges such as loss of some national control and the need for coordination among member countries.