3.5 Economic Integration

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By the end of this unit you should be able to:
Preferential trade agreements:
  • Distinguish between bilateral and multilateral (WTO) trade agreements.
  • Explain that preferential trade agreements give preferential access to certain products from certain countries by reducing or eliminating tariffs, or by other agreements relating to trade.
Trading blocs:
  • Distinguish between a free trade area, a customs union and a common market.
  • Explain that economic integration will increase competition among producers within the trading bloc.
  • Compare and contrast the different types of trading blocs.
Monetary union:
  • Explain that a monetary union is a common market with a common currency and a common central bank.
  • Discuss the possible advantages and disadvantages of a monetary union for its members. 

Effects of Economic Integration (A-Level)

European Monetary Union