Name describe the five levels of economic integrationSolutio

Name describe the five levels of economic integration????

Solution

Economic integration are classified into 5 stages-

1.Free trade-The member countries reduce or sometimes abolish tariffs.The objective is to develop economies of scale and achieve comparative advantage.

2.Custome union-It sets common tariff rates among member countries.

3.Common market-Goods and capitals are free to move among member countries, helping countries to achieve economies of scale and comparative advantage.

4.Economic union-All tariffs are removed within the participating countries and a single market is formed.Free movement of labour is also allowed.

5.Political union- Sovereignty of the member countries is significantly reduced.It can be only found within nation states.