Economic Integration

Syllabus tag: KCSE | Business Studies | Form 4 | Topic 29 Economic Integration

Lesson objectives

By the end of this topic, you should be able to:

• Describe the four forms of economic integration in order of depth.
• Explain the importance and the problems of economic integration.
• Describe the regional blocs to which Kenya belongs.
• Describe recent trends in international trade.

Summary

Economic integration is the joining of countries to trade on preferential terms. Its four forms form a ladder of increasing depth: a free trade area removes internal tariffs; a customs union adds a common external tariff; a common market adds free movement of factors; and an economic union adds common policies and often a common currency.