ABSTRACT
This chapter describes the theory of integration, with its costs and benefits and discusses the static and dynamic effects of European economic integration. It explains the main features of the various stages in the process of European integration, from a free trade area to total economic integration, also describes its opponents and proponents and explains its impact on individuals and businesses. The chapter looks at the European Union from a global perspective and compares it with other trading blocs, such as the North American Free Trade Agreement. Regional economic integration reduces or eliminates tariff and non-tariff barriers to trade for member countries. Regional economic integration refers to the growing economic interdependence that results when two or more countries within a geographic region form an alliance aimed at reducing barriers to trade and investment. Economic integration refers to the elimination of economic frontiers between two or more economies.
