ECONOMIC INTEGRATION AND COMMERCIAL BLOCK

ECONOMIC INTEGRATION AND COMMERCIAL BLOCK

1. The term economic integration is a process that involves two or more countries in the construction of a common economic space. For this it is necessary to create a group of countries that come together to facilitate free trade in customs duties and other barriers such as quotas and restrictions.

   • Economic cooperation involves reducing the levels of discrimination between countries
   • CATEGORIES OF COMMERCIAL INTEGRATION
     • In a free trade zone, tariffs and most trade barriers between member countries are eliminated.
     • A customs union involves the free movement of goods between member states(elimination of tariffs) and the establishment of common economic measures against the rest of the world.
     • in a common market, in addition to freely circulating the goods, workers,capital and services must also do so.
   • INTERNATIONAL ECONOMIC ORGANIZATIONS
     • The International Monetary Fund (IMF) , which acts principally in underdeveloped countries, providing loans in exchange for the adoption of severe economic policies.
     • The World Bank Group (WBG) was established in 1944. Today, the World Bank fights poverty by providing development assistance to low- and middle-income countries through lending and by offering advice and training in both the private and public sectors.
       • The WBG has complementary institutions that contribute to its assistance objectives.
     • The World Trade Organization encourages agreements to promote trade and liberalize more and more sectors. It is made up of 164 member countries that deal with the rules of trade between nations.
       • The WTO is the only international organization that deals with global trade rules.
     • The Organisation for Economic Co-operation and Development (OECD) is a group of 34 member countries that debate and implement economic and social policy. OECD members are democratic countries that support a free market economy. Over the years, it has dealt with a variety of issues, such as raising living standards in member countries, contributing to the expansion of world trade and promoting economic stability.
     • The G -8, is composed of eight countries with the largest economies in the world (United State s, Japan, Germany, France, Italy, United Kingdom, Canada and Russia). Its objective is to guide the direction of the world economy and politics and hold an annual meeting to foster consensus on global issues.
     • The European Union (EU) , which brings together countries with common economic policies and whose asstes and capital circulate freely throughout the community.