Please answer these questions according to the below excerpt and you can use your own knowledge (I trust you )

1. Define regional economic integration?
2. What are the levels of economic integration? Give example on each level?
3. What is the difference between trade creation and trade diversion?

Attempts at regional economic integration in central america, the andean region of south america, southeast asia and parts of africa. There are five levels of economic integration that are possible, in theory from least integrated to most integrated. They are free trade area, it customsunion, a common market and economic union and finally, a full political union. Let's discuss each of them individually level, one free trade area in a free trade area, all barriers to the trade of goods and services among member countries are removed in the theoretically

ideal free trade area, no discriminatory tariffs, quotas, subsidies or administrative impediments are allowed to distort trade between members. However, each country is allowed to determine its own trade policies regarding non members. Therefore, the terrorists placed on the products of non member countriesmay vary from member-tomember trade agreements are the most popular form of regional economic integration, accounting for almost ninety percent of regional agreements level. Two customs unions the customs union is one step further along the road to for economic and political integration. A customs unioneliminates trade barriers between member countries and adopts a common external trade policy. Establishment of a common external trade policy knesset to tate's significant administrative machinery to oversee trade relations with non members, most countries to enter into a customs union desire even greater economic integration down the road. The e? U began as a customs union, but it has now moved beyond the stage. Other aspiring customs unions around the world include the current version of the andean community between bolivia, colombia, ecuador and peru, but so far it's implementation has been

flawed. The andean community establish free trade between member countries and imposes a car paris five to twenty percent on products imported from the outside level. Three common market, the next level of economic integration, known as a common market, has no barrier to trade betweenmember countries, includes a common external trade policy and allows factors of production to move freely between members, labor and capital are free to move because there are no restrictions on immigration, image ration or cross border flows of capital between member countries, establishing a common market

demands of significant degree of harmony and cooperation on fiscal, monetary and employment policies. Achieving this degree of collaboration has proven very difficult. The european union functioned as a common market for years, but it since made even more progress toward economic integration, marcus or this

south american grouping of argentina, brazil, paraguay and uruguay hopes to eventually establish itself as a common market. Venezuela was also accept.

As a former member of marcus or but then was indefinitely suspended from the group and december of twenty sixteen, due to it's undemocratic policies, level for economic union, an economic union and even more economic integration and cooperation than a common market like the common market andeconomic union, involves the free flow of products and factors of production between member countries and the adoption of a common external trade policy. But it also requires a common currency, harmonization of members, tax rates and a common monetary and fiscal policy. Such a high

degree of integration demands not only a coordinating bureaucracy, but also the sacrifice a significant amount of national sovereignty to that bureaucracy. The e? U is an economic union, but it is an imperfect one because not all members have adopted the euro. Additionally, differencesin tax rates and regulations across trees still remain, and some markets, such as the market for energy, are still not fully deregulated level. Five political union, the move toward an economic union, raises the issue of how to hold a coordinating bureaucracy accountable to

the citizens of member nations. The answer is sort of political union in which a central political apparatus coordinates economic, social and foreign policies of the member states. The e? U is on the road to at least a partial political union. The european parliament,

which plays an ever more important role in the emu, has been directly elected by citizens of the eu countries since the late nineteen seventies. In addition, the council of ministers is a controlling and decision-making body of the emu and it is composed have government ministers

from each easy. You remember. Regional economic integration has both benefits and costs. The major benefits of creating regional agreements include the following first trade creation regional agreements create opportunities for countries to trade with one another by removing barriers to trade and investment due to either a

reduction or removal of tariffs. Cooperation result in cheaper prices for consumers in the bloc countries. Studies indicate that regional economic integration significantly contributes to the relatively high growth rates in less developed countries. Second, employment opportunities by removing restrictions on labor movement. Economic integration can help expand job opportunities. Normally employees would have to deal with visas and immigration policies in order to work in another country. However, with economic integration, employees can move freely. It also leads to to a greater market, expansion and technology sharing, which ultimately benefits all economies. Third, consensus and cooperation member nations may find it easier to agree with the smaller number of countries. Regional understanding and similarities may also facilitate closer political cooperation.

Although most economists and business scholars believe that overall effects of regional economic integration on regional and global economies are positive, it is still true that not every country, industry, company and individual can equally benefit from these integrations. This is why we have recently seen many countries hit the brakes. The regional integration progress as the major costs that accompany the creation of regional agreements include the following. First trade diversion member countries may trade more with each other than with non member nations. This may mean increased trade with the less efficient or more expensive producer, simply because they are in a member country. In this sense, weaker companies can be inadvertently protected with the block agreement acting as a trade barrier. Essentially, regional agreements can for I'm new trade barriers with countries outside of the trading block.

Second, employment shifts and productions, nations may move production to cheaper labor markets and member can trees. Similarly, workers may move to gain access to better jobs and wages. Sudden shift in employment can put a strain on the resources. A member countries, thirdloss of national sovereignty with each new round of discussions and agreements within a regional bloc nations may find that they have to give up more of their political and economic rights. One notable feature of economic integration is a loss of individual central banks that control monetary policy.This leads to less national autonomy in and the responsibilities of central banks are instead delegated to an external body. This outside control can become troublesome in terms of managing a cohesive fiscal and monetary policy among many different countries. Fourth rising crime rate associated with immigration in manyeuropean countries, local residents complain about the increasing number of criminal cases that are caused by illegal immigrants in two thousand and eighteen, for example, an official report from the germany government. The immigrant group makes up about two percent of the overall population, but containseight-point, five percent of all suspects. Now, let's do a quick review of today's topic. Regional economic integration is an agreement between groups of countries in a geographic region to reduce and ultimately remove tariffs and non tariff barriers to the free flow of goods,services and factors of production between each other. There are five levels of economic integration that are possible, in theory from least integrated to most integrated. They are a few free trade areas, a customs union, a common market and economic union and finally, afull political union. Major benefits of regional economic integration include tray creation, employment, opportunity and consensus and cooperation among members. Although most economists and business practitioners believe that the overall effects of regional economic integration on regional and global economies are positive, not every country.