IB CH11
Free trade agreement
A formal arrangement between two or more countries to reduce or eliminate tariffs, quotas, and barriers to trade in products and services.
Economic union
A stage of regional integration in which member of the countries enjoy all the advantages of early stages, but also strive to have common fiscal and monetary policies.
Free trade area
A stage of regional integration in which members countries agree to elimanate tariffs and other barriers to trade in products and services within the bloc.
Custom union
A stage of regional integration in which the members countries agree to adopt common tariff and nontariff barriers on import from nonmember countries.
Common market
A stage of regional integration in which trade barriers are reduced or removed; common external barriers are established; and products, services, and factors of production are allowed to move freely among the member countries.
Regional economic integration
The growing economic interdependence that result when two or more countries within a geographic region form an alliance at reducing barriers to trade and investment.
