Theories of Economic Integration

Economic integration refers to how countries work together to create stronger economic ties. There are several theories explaining this, including: 1. **Customs Unions**: Countries eliminate tariffs among themselves while imposing a common tariff on outside nations. 2. **Common Markets**: These allow freer movement of goods, services, capital, and labor between member countries. 3. **Economic Unions**: These involve deeper integration, including shared monetary policies and regulations. 4. **Political Unions**: These create a unified government overseeing economic policies. Overall, economic integration aims to enhance trade, boost economic growth, and foster cooperation among nations.