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Economic Integration, Screen Shot 2022-03-16 at 1.28.58 AM - Coggle Diagram

- - - - formed by a trading bloc of counties signing trade agreements to remove most or all barriers to trade with the other countries involved in the agreement
        
        FTA - Multilateral & Regional
        
        United States-Mexico-Canada Agreement (USMCA) - July 1, 2020
        
        FTA - Bilateral
        
        Canada-Chile Free Trade Agreement (CCFTA) - July 5, 1997
      - Embargos
        
        Restriction on trade imposed by a foreign country. Could be set on a product or even as a ban on an entire nation
    - - First major step towards creating a single market or economy. There must customs union that allows the free movement of factors of production such as land, labor, entrepreneurial talent and capital resources
    - - Very similar to FTA, but countries participating in the agreemnt set a common external policy towards non-members, while still engaging in free trade among themselves.
  - - - Greater employment opportuities with labour mobility
      - Stronger bargaining power in multilateral negotions
      - Greater access to markets and the potential benefit from economics of scale
      - Greater political stability and cooperation
    - - Loss of sovereignty
      - The difficulties of engaging in multilateral trade negotiations
- - - - A trade agreement made between countries in the same geographic region
        
        E.g. APEC, EU, USMCA (NAFTA)
        
        All countries must notify the WTO of which RTAs they engage with
    - - A trade agreement made between two countries to engage in "freer" trade by reducing tariffs for some products
    - - A trade agreement involving more than two countries with the ultimate goal of strengthening relationships or establishing free trade
  - - - Increased economic growth for the parties involved
      - Increased global competitiveness
      - Lower government spending of subsidies, which means the money can be re-allocated elsewhere
      - Increased globalization meaning larger markets
      - Technological expansion from multinational partners
    - - Theft of intellectual property due to lack of laws and regulations
      - Domestic workforce reduction since international companies will provide substitutes
      - Inadequate labor protection
      - Degradation of natural resources (poor sustainability)
      - Reduced tax revenue from demolishment of tariffs and taxes
  - - - Selected nations (12 countries) provide trade benefits to less developed countries
- - - - Environment protection which leads to the improvement of public health, plant health, and animal health
      - Predictibility and Transparency, meaning that stakeholders trust the standards and policies
      - Open trade done by lowering trade barriers
      - Non-discrimination is applicable for high and low income nations, but not trading blocs
    - - Setting a template of standards for global nations
      - Providing additional support for developing nations
      - Settling trade disputes
      - Administering and monitoring WTO trade agreement applications
    - - All countries must notify the WTO of their current trade involvement situation
      - One country provides the preferential tariff reduction but not the other
- - - - A common external policy
      - Free movement of factors of production
      - There is free trade
      - A shared currency
    - - Consists of 19 countries
  - - - More competitive business environment
      - Stronger relations between countries
      - Reduction of uncertainties
      - Stronger position in global trade
      - Price stability
    - - Political difficulties
      - Loss of control over monetary policy
      - Restrictions on the use of fiscal policy
      - Large initial outlay to change currency
        
        Euro banknotes