economic integration
Joining national economies
Economic integration is the process by which countries reduce barriers between their economies—lowering tariffs, harmonizing regulations, allowing free movement of goods, labor, or capital.
The term spans a spectrum from limited trade agreements to full monetary union: The European Union represents the most advanced economic integration in history.
Deeper integration typically means surrendering some national sovereignty over economic policy.
Tariff-aligned trading partnership
- single marketIntegrated trading bloc
- ASEANSoutheast Asian intergovernmental body
- NAFTAContinental free-commerce bloc
- EUEuropean political-economic bloc
APEC · eurozone · free movement · common market · cross-border · harmonization · tariff reduction · regionalism
Unrestricted international exchange
- trade agreementPact governing international commerce
- tariffTax on traded goods
- quotaFixed assigned amount
- exportForeign-bound sale
import · trade barriers · WTO · customs union · trade policy · duty-free · trade deficit · trade surplus
Creating consistency across systems
- standardizationImplementing uniform technical specifications
- convergenceProcess of approaching sameness
- treatyBinding pact between nations
- protocolPrescribed conduct rules
accession · membership · compliance · sovereignty · governance · ratification · common currency · central bank
Worldwide economic and cultural integration
- interdependenceReciprocal reliance between entities
- multilateralismMulti-party international cooperation
- supranationalGoverning beyond single states
- transnationalCrossing country lines
IMF · World Bank · G20 · global supply chain · offshoring · outsourcing · multinational · international cooperation
Removing governmental business restrictions
- privatizationState sells public assets
- liberalizationReducing state economic controls
- competitionStruggle for supremacy
- foreign investmentFunds placed in another country
labor mobility · supply chain · capital flows · investment climate · commodity market · market opening · monetary union · exchange rate
customs union
Tariff-aligned trading partnership
- single marketIntegrated trading bloc
- ASEANSoutheast Asian intergovernmental body
- NAFTAContinental free-commerce bloc
EU · APEC · eurozone · free movement · common market · cross-border · harmonization · tariff reduction · regionalism · African Union
free trade
Unrestricted international exchange
- trade agreementPact governing international commerce
- tariffTax on traded goods
- quotaFixed assigned amount
export · import · trade barriers · WTO · customs union · trade policy · duty-free · trade deficit · trade surplus · most favored nation
harmonization
Creating consistency across systems
- standardizationImplementing uniform technical specifications
- convergenceProcess of approaching sameness
- treatyBinding pact between nations
protocol · accession · membership · compliance · sovereignty · governance · ratification · common currency · central bank · acquis communautaire
globalization
Worldwide economic and cultural integration
- interdependenceReciprocal reliance between entities
- multilateralismMulti-party international cooperation
- supranationalGoverning beyond single states
transnational · IMF · World Bank · G20 · global supply chain · offshoring · outsourcing · multinational · international cooperation · global trade
deregulation
Removing governmental business restrictions
- privatizationState sells public assets
- liberalizationReducing state economic controls
- competitionStruggle for supremacy
foreign investment · labor mobility · supply chain · capital flows · investment climate · commodity market · market opening · monetary union · exchange rate
economic integrationprotectionism
Shielding local producers
isolationism · mercantilism · import substitution · economic nationalism · autarky
economic integrationnational sovereignty
State's ultimate governing power
economic independence · economic autonomy · unilateralism · going it alone
economic integrationdisintegration
Process of breaking apart
decoupling · deglobalization · Balkanization · economic segregation · compartmentalization
economy, economic, economical, integrated, economics, integrate, integration, disintegrate, economize