economic integration and trading blocks

• What area of international economics is the video about?

  Macroeconomics, specifically economic integration
• What are the two main topics discussed regarding economic integration?

  Definition of economic integration and trading blocks
• What does economic integration involve?

  Reducing trade barriers and coordinating policies
• According to the video, what is encompassed in the definition of economic integration?

  Reducing trade barriers and harmonizing policies
• What is the difference between basic and deeper forms of economic integration?

  Deeper integration harmonizes monetary and fiscal policies
• What is a trading block?

  Countries agreeing to increase trade between themselves
• What do bilateral and multilateral trade agreements aim to do?

  Reduce tariffs and quotas on trade
• What is a bilateral trade agreement?

  Agreement to reduce tariffs between two countries
• What is a multilateral trade agreement?

  Agreement to reduce tariffs between multiple countries
• How many types of economic integration did Balassa define?

  Six
• According to Balassa, what does the progression of economic integration types represent?

  From least to deepest integration
• What does PTA stand for?

  Preferential Trading Area
• What is the main characteristic of a Preferential Trading Area?

  Reduced tariffs/quotas on certain goods/services only
• In a PTA, are all tariffs and quotas eliminated?

  No, only on certain goods and services
• What type of agreement is exemplified by the EU's negotiations with African and Caribbean nations?

  Preferential Trading Area
• What is a key characteristic of a Free Trade Area?

  Elimination of trade barriers between members
• In a free trade area, how can member countries trade with nations outside the area?

  Freely, however they want
• What is a key feature of a Free Trade Area's trade policy with non-member countries?

  Each member can set own trade policy
• Which countries are part of NAFTA?

  Mexico, USA, and Canada
• What is a Customs Union?

  Free trade area without trade freedom outside
• What distinguishes a Customs Union from a Free Trade Area in terms of external trade?

  Common external barriers
• What is a "common external tariff" in the context of a customs union?

  Tariff imposed on non-member nations
• How do common external trade barriers affect nations outside the customs union?

  Negatively, due to increased trade barriers
• What does ACM stand for in the context of Customs Unions?

  Not mentioned in study material
• Which Customs Union was the first one to exist?

  Switzerland-Liechtenstein
• What type of trade barrier is commonly used by the EU as its common external barrier?

  A tariff
• What is another name for a common market?

  Single Market
• What deeper integration does a common market add to a customs union?

  Free movement of labor and capital
• What is a key aspect of a Common Market?

  Free movement between member nations
• What characterizes an Economic and Monetary Union?

  Same currency, same central bank, same policy
• What is the final stage of economic integration?

  Full economic integration
• What is the hallmark of full economic integration?

  Complete policy harmonization
• In full economic integration, where is political power typically vested?

  One governing body