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Economic Theory of Trade - Coggle Diagram
Economic Theory of Trade
Regional focus
Customs union
agreement between several countries
adopt a set of common barriers
Common Market
customs union
free movement of all factors
Free trade area or association
two or more countries
eliminate all import duties
Preferential trade club
when two or more countries
countries reduce their respective import duties on all goods
they exchange small tariff preferences.
Economic Union
Common Market
they unify policies
commercial
monetary
fiscal
socioeconomic
Customs union theory
Freer trade
increased competition
trade between member countries
The nature of preferential trade
branch of tariff theory
countries can form agreement
Theory of Comparative Advantage
specialize in production and export
fuels
minerals
raw materials
food
Failures to regional integration
political difficulties
transportation problem
prevention between countries
International trade organization
Instrument at the service
better distribution of wealth
Central American integration
was born by CEPAL
At the end of the eighties
the common market stagnated
European Economic Community
international organization
created by one of the two Treaties of Rome