MGC2120 Lecture Notes - Lecture 4: Existential Crisis, Single Market, European Central Bank
19 Sep 2018
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Document Summary
Week 4: economic integration & the rise of. Regional: efforts to reduce trade & investment barriers within 1 region. Global: efforts to reduce trade & investment barriers around the globe: benefits of global economic integration. + promotes peace by promoting trade & investment. + builds confidence in a multilateral trading system. + rules make life easier & discrimination impossible for all participating countries. + free trade & investment raise incomes & stimulate economic growth. Loss of sovereignty: types of regional economic integration. Free trade areas: reduce tariffs & non-tariff barriers to trade products, they"ll have their independent polices to impose tariff on non-member countries. Custom union: reduce tariffs & non-tariff barriers & follow same instruction as free trade barriers. Common market: don"t have any tariff within the region but allow countries to bring capital from other country; capital & people movements are allowed. Economic union: countries adopt a single policy to run the economy (eg. monetary, fiscal)
