Types of Economic Integration - SS3 Economics Past Questions and Answers - page 1
Which type of economic integration involves the least integration?
Free Trade Area (FTA)
Customs Union
Common Market
Political Union
Which type of economic integration involves the free movement of goods, services, capital, and people between member countries?
Customs Union
Common Market
Economic Union
Political Union
Which type of economic integration involves the coordination of economic policies such as taxation and social welfare?
Customs Union
Common Market
Economic Union
Political Union
Which type of economic integration involves the formation of a single political entity?
Free Trade Area (FTA)
Customs Union
Economic Union
Political Union
Which type of economic integration involves the adoption of a common external trade policy with other countries or regions?
Free Trade Area (FTA)
Customs Union
Common Market
Economic Union
What is the difference between a Free Trade Area (FTA) and a Customs Union?
A Free Trade Area (FTA) involves the removal of tariffs and trade barriers between member countries while maintaining their own external trade policies, whereas a Customs Union involves the removal of trade barriers between member countries and the adoption of a common external trade policy with other countries or regions.
What is the main difference between an Economic Union and a Political Union?
An Economic Union involves the removal of trade barriers, adoption of a common external trade policy, free movement of goods, services, capital, and people between member countries, and coordination of economic policies such as taxation and social welfare. A Political Union involves the formation of a single political entity, with a common government, legal system, and foreign policy.