Trade diversion happens when countries form a trade bloc (like a customs union or free trade area) and
Tag: regional integration
trade creation
Trade creation happens when countries form a free trade area or customs union, causing production to shift from
economic union
An economic union is a high level of cooperation between different countries. It allows for the free movement
monetary union
A monetary union is an economic agreement where member countries share a single currency and a central authority
customs union
A customs union is an agreement between countries to cooperate on trade. Member countries benefit in two main
free trade area
A free trade area (FTA) is a region where member countries agree to remove tariffs and other trade