Economic Integration
Cooperation and coordination between countries and their economic policies, to make them more economically interconnected.
Countries hope to derive benefits through cooperating as they could:
There are different degrees of these economic integrations which determine how interconnected certain economies are to each other. This is discussed below.
Preferential Trade Agreements
An agreement between countries to reduce the amount of trade restrictions imposed between them on specific products.
A PTA, oftentimes are settled on certain products, whilst other products can still have trade barriers.
The goal for all these agreements is ultimately to achieve trade liberalisation.
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