useful for B.Com. BBA and MBA students. it helps to understand various forms of international integration.

1. International Economic
Integration
Prepared By:
Mohd. Shahnawaz
(Assistant Professor)
MBA (UGCNET-Management)
MA (UGCNET-Education)
B.Ed.

2. International Economic Integration
 International economic integration is concerned with the
discriminatory removal of all trade impediments between
the participating nations and with the establishment of
certain elements of cooperation and coordination
between them.
 Different forms of international integration can be
envisaged and some have actually been implemented:

3. 1. Free Trade Areas (FTA)
 Where the member nations remove all trade impediments
among themselves but retain their freedom with regard to
the determination of their policies vis-a-vis the outside
world (the non-participants) - for example, the European
Free Trade Association (EFTA) and the demised Latin
American Free Trade Area (LAFTA);

4. 2. Customs Unions
 Which are very similar to free trade areas except that
member nations must conduct and pursue common
external commercial relations.

5. 3. Common Markets
 Which are customs unions that also allow for free factor
mobility across national member frontiers, i.e. capital,
labour, enterprise should move unhindered between the
participating countries-for example, the demised East
African Com-munity (EAC), the EC (but again it is more
complex);

6. 4. Complete Economic Unions
 Which are common markets that ask for complete
unification of monetary and fiscal policies, i.e. a central
authority is introduced to exercise control over these
matters so that existing member nations effectively
become regions of one nation.

7. 5. Complete Political/ integration
 Where the participants become literally one nation, i.e.
the central authority needed in not only controls
monetary and fiscal policies but is also responsible to a
central parliament with the sovereignty of a nation's
government.

8. THANK YOU