Mgt491 final exam notes chapter 8: regional economic integration. N regional economic integration agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between countries. N proliferation of regional trade blocs that promote regional economic integration is high in past 2 decades. N consistent with predictions of international trade theory and the theory of comparative advantage, agreements designed to promote freer trade within regions are believed to produce gains from trade for all member countries. N gatt and wto seek to reduce trade barriers. N by entering into regional agreements groups of countries aim to reduce trade barriers more rapidly than can be achieved under the wto. N eu is the most successful regional economic integration: single currency, 450 million consumers in the regional market, 25 countries.