GEB 3375 Chapter Notes - Chapter 9: North American Free Trade Agreement, Common Agricultural Policy, Mercosur
Document Summary
There is a worldwide trend toward regional economic integration. Region economic integration- (regional integration) - the growing economic interdependence that results when 2 or more countries within a geographic region form an alliance aimed at reducing barriers to trade and investment. Regional integration increases economic activity and makes doing business easier among nations within the alliance. Free trade agreement - a formal agreement between two or more countries to reduce or eliminate tariffs quotas and other barriers to trade in products and services. Member nations undertake cross border investments within the bloc. Free trade that results from regional integration fosters the internationalization of countless firms. Living standards typically rise due to increased specialization, lower priced. , greater choices, increased productivity and more efficient use of resources. 2 examples are the eu and nafta. Regional integration results from the formation of a regional economic integration bloc or an economic bloc.
