Complete economic integration

Complete economic integration
World trade
A series on Trade
Storck Harbour scene.jpg
v · d · e

Complete economic integration is the final stage of economic integration. After complete economic integration, the integrated units have no or negligible control of economic policy, including full monetary union and complete or near-complete fiscal policy harmonisation.

Complete economic integration is most common within countries, rather than within supranational institutions. A good example of this is a country like the United States of America which can be viewed as a series of highly integrated quasi-autonomous nation states. In this example it is true that complete economic integration results in a federalist system of governance as it requires political union to function as, in effect, a single economy.

Political Integration

Stages of economic integration around the World:
(each country colored according to the most advanced agreement that it participates into.)
  Economic and Monetary Union (CSME/EC$, EU/€)
  Economic union (CSME, EU)
  Customs and Monetary Union (CEMAC/franc, UEMOA/franc)
  Common market (EEA, EFTA)
  Customs union (CAN, CUBKR, EAC, EUCU, MERCOSUR, SACU)
  Multilateral Free Trade Area (AFTA, CEFTA, COMESA, GAFTA, GCC, NAFTA, SAFTA, SICA, TPP)

Political integration is required because for an economic union to be most effective it is necessary for all provinces to be at the same stage of the economic cycle. Although provinces is a narrow description as within a specific geographic area there is a much greater amount of mini-economies, all in different stages of the economic cycle; it is in theory possible for a single town to be in recession/boom whilst another is experiencing the opposite. In a practical sense it is best for as many of these economic microcosms to be at the same stage of the economic cycle as possible as it results in government policy having its effectiveness maximized, whether it be through the employment of fiscal or monetary policy.

To achieve economic harmonization requires increasing central control to pursue an economic area wide policy of inflation combatance and stability promotion. Though this is often viewed as a loss of provincial political sovereignty it is necessary to remove disparities and thus unfair advantages with certain firms across the economic area to provide the best conditions possible for the promotion of competition and therefore economic efficiency.

See also

  • Fiscal union
v · d · eStages of economic integration
Preferential trading area | Free trade area  · Monetary union | Customs union  · Common market | Customs and monetary union  · Economic union | Economic and monetary union  · Fiscal union | Complete economic integration



Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Economic integration — is a term used to describe how different aspects between economies are integrated. The basics of this theory were written by the Hungarian Economist Béla Balassa in the 1960s. As economic integration increases, the barriers of trade between… …   Wikipedia

  • Middle East economic integration — The oil industry significantly impacts the entire region, both through the wealth that it generates and through the movement of labor. Most of the countries in the region have undertaken efforts to diversify their economies in recent years,… …   Wikipedia

  • Integration — is a process of combining or accumulating. It may specifically refer to:*The bringing together of two or more economies, cultures, religions (usually called syncretism), etc.;in sociology and economy *Social integration *Racial integration,… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • ECONOMIC HISTORY — This article is arranged according to the following outline: first temple period exile and restoration second temple period talmudic era muslim middle ages medieval christendom economic doctrines early modern period sephardim and ashkenazim… …   Encyclopedia of Judaism

  • Economic Community of Central African States — Comunidade Económica dos Estados da África Central Communauté économique des États de l Afrique Centrale Economic Community of Central African States …   Wikipedia

  • integration — noun ADJECTIVE ▪ true ▪ complete, full ▪ close, seamless ▪ further, greater, increased …   Collocations dictionary

  • Economic relations of Japan — In its economic relations, Japan is both a major trading nation and one of the largest international investors in the world. In many respects, international trade is the lifeblood of Japan s economy. Imports and exports totaling the equivalent of …   Wikipedia

  • Economic history of Vietnam — Until French colonization in the mid 19th century, Vietnam s economy was uniformly agrarian, subsistence, and village oriented. French colonizers, however, deliberately developed the regions differently, designating the South for agricultural… …   Wikipedia

  • Economic anthropology — is a scholarly field that attempts to explain human economic behavior using the tools of both economics and anthropology. It is practiced by anthropologists and has a complex relationship with economics. There are three major paradigms within the …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”