ABSTRACT
There are generally four potential effects associated with economic integration; they are as follows: static effects, dynamic effects, trade deflection, and counterfeit labeling. Essentially, the static effects that are associated with the process of economic integration emanate from shifts in the production of certain export products from one member-country to another member-country, or from a nonmember-country to one of the member-countries. Accordingly, economic integration, as Sunny, Babikanyisa, Forcheh, and Akinboade have espoused, can enhance the socio-economic welfare of people in an integrated region, provided that trade creation exceeds trade diversion. Basically, the dynamic effects of economic integration come about as a result of changes in member-countries economic performance and/or structures occasioned by a country's membership in an inter-governmental organization (IGO). In a free trade area, therefore, high-tariff member-countries can lose much of their potential revenue from import duties to low-tariff member-countries through trade deflection.
