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economic integration

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economic integration

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Also known as regional economic integration

unification of economic policies between different states

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economic policy
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Encyclopedic overview

Economic integration is the unification of economic policies between different states, through the partial or complete abolition of tariff and non-tariff restrictions on trade.

The trade-stimulation effects intended through economic integration are part of the contemporary economic Theory of the Second Best: where, in theory, the best option is free trade, with free competition and no trade barriers at all. Free trade is treated as an idealistic option, and although realized within certain developed states, economic integration has been thought of as the "second best" option for global trade where barriers to full free trade exist.

Excerpted from Wikipedia’s “economic integration” article, available under the CC BY-SA 4.0 licence.

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