The Theory of International Economic Integration

The Theory of International Economic Integration describes how countries gradually reduce trade barriers—like tariffs and quotas—to work more closely together economically. This process can lead to various levels of cooperation, from simple trade agreements to full-economic unions where countries coordinate policies and share currencies. The goal is to increase trade, investment, and economic growth by easing cross-border economic activities. Integration benefits member countries through larger markets, increased efficiency, and shared prosperity, though it also involves managing differences in policies and interests among nations.