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Customs Union, Monetary Union, Free Trade Area, Economic Union - Coggle…
Customs Union
Cons
Problems when exiting the union
Unequal tariff distribution
Members cant negotiate trade deals
Pros
Increased trade flow
Less developed nations able to sell goods
Economic integration with other countires
Monetary Union
Cons
May be destabilized due to tensions and conflicts
High degree of political integration is needed
Likely to fail
Pros
No exchange rate ambiguity
Boosts trade between members
Reduces transaction costs
Free Trade Area
Pros
Consumers have acces to wide range of high quaity goods with low prices
Encourage development
Improves efficiency by increasing competition
Cons
Loss of employment
Small firms struggle with high competition
Prevents the growth of infant industries
Economic Union
Cons
Potential instability
Problems with exiting the union
Pros
Development opportunities for members
Acceleration of economic growth