Question

talk about the five different regional economic integration forms? Which one do you think GCC can achieve with the next 5 years?

Answer 1

The 5 different economic integration forms are:

1. Free trade area: This basically represents an agreetment between two or more countires. These are formed to reduce internal trae barriers. Under this, goods and services can flow freely between countries without any duty or duty free. These basically help companies expand their market area. Eg. NAFTA, ASEAN

2. Custom Unions: This is an agreement between various countires formed with the purpose of opening free trade to all and also to form a common policy that can be used by non-members also for the purpose of trading.

3. Common markets: This type of integration is a combination of freetrade area and custom unions. It also has added benefits, like it helps to eliminate the barriers related to factors present across the globe, lile, labor, tehnology, etc.

4. Economic Union: Economic union is a more further step towards integration. This would mean less of national autonomy. It is achieved by integrationg the economic policies of all the members like monetary policy, fiscal policy, taxes, etc.

5. Political union: People who are me,bers of the trading block have the advantage of adding a political dimension to the economic factors that are already present in the country. This would help them form policitcal union. Under this, a form of international government is formed. Eg: Europeon Union.

The GCC plans on achieving economic union integration till the end of 2025.