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Economic Integration, Preferential Trade Agreement, World Trade…

- - - - Monetary Union
        
        Advantages/Disadvantages for members
        
        Advantages
        
        More Competitive business environment
        
        Stronger relations between countries
        
        Reduction of Uncertainties
        
        Stronger position in global trade
        
        Price Stability
        
        Disadvantages
        
        Large initial outlay to change currency
        
        Loss of control over monetary policy
        
        Political difficulties
        
        Restrictions on the use of fiscal policy
        
        Common Market
        
        Common Central Bank
        
        Common Currency
        
        single currency agreement
      - Customs Unions
        
        common external policies
        
        internal free trade
      - Common Markets
        
        must also be a customs union which allows free movement of factors of production
        
        Eg. the European Common Market
      - Free trade Areas
        
        free to set external policies
        
        internal trade agreements
        
        Eg. North American Free Trade Alliance (NAFTA): between Canada, USA, and Mexico
  - - - Advantages
        
        Stronger bargaining power in multilateral negotiations
        
        Greater political stability and cooperation
        
        Greater employment opportunities with labor mobility
        
        Eg. IF there is high unemployment in Greece, workers can move to other countries in the EU to find employment opportunities
        
        Greater access to markets and the potential to benefit from economies of scale
      - Disadvantages
        
        Loss of sovereignity
        
        Difficulties of engaging in multilateral trade negotiations
        
        Eg. different stakeholders will be affected in different ways and will all have different intentions