International economic integration denotes an economic structure of the international economy which removes all artificial hinderances among the member countries. So friends, in today’s article we are going to know about economic integration and also know the various forms of economic integration. So let’s discuss in details.
Table of Contents
What is economic integration?
Economic integration meaning – The term economic integration means the integration of economic affairs. The main aim of the integration is obtain economic benefits and increase the scale of production. In this integration process there is no barriers in the trade relation.
What are various forms of economic integration?
The various forms of economic integration or the various types of economic integration are mentioned in the following grounds –
• Free Trade Area – The first form of economic integration is the free trade area which is a grouping of countries to facilitated free trade between them. The free trade area abolishes all restrictions on trade among the members.
• Customs Union – It is a more advanced level of economic integration than the free trade area. It is not only eliminates all restrictions among members but also adopts a uniform commercial policy against non-members.
• Common Market – A common market allows free movement of labour and capital within the common market, besides having two characteristics.
• Economic Unions – A more advanced level of integration is the economic union. It comprises all the characteristic of free trade area, customs union and common market.
Besides it achieves some degree of harmonization (or unification) of national economic policies and monitorial fiscal policies. As for example – European Union.
• Economic integration – Economic integration is the highest form of integration. It abolishes all barriers regarding trade, movement of goods and services, factors of production.
Unification of social as well as economic policies of all the members countries. Here there is a super national organizational structure.
Conclusion
So friends, this was the concept of economic integration and the various forms of economic integration. Hope you get the full details about it and hope you like this article.
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