Levels of Economic Integration
Free Trade Area
- All barriers of trade among members are removed but each member can determine its own trade policies with non-members
Custom Union
- All barriers of trade among members are removed and a common external trade policy is adopted.
Common Market
- All barriers of trade among members are removed, a common external trade policy is adopted, and factors of production are allowed mobility between countries.
Economic Union
- Common market + common currency + tax rates are harmonized, + common monetary and fiscal policy.