Sample Essay

As far as the economic integration is concerned there are five additive levels of economic integration. These five levels are free trade, custom union, common market, economic union and political union. Tariffs between the members are reduce or in certain cases they are abolished such a scenario is known as free trade and the general goal of the free tariff is to develop the economies of scale. Similarly, the customs unions set common external tariffs among the members implying the tariffs to the third parties.

Custom unions are used to address the issue of re-exports. Finally, the monetary and fiscal policies are synchronized because of the common currency. Although this type of union and integration doesn’t exists but the closest example of that is European Union.  The European Union achieved the economic integration in 1968 and afterwards a common currency which is known ‘Euro’ was created.  A European steel and coal community was created whose main purpose was to integrate the economic efforts of France and Germany and to amalgamate entire Europe (Freirer). Two treaties were quite prominent in the history of EU’s development these two treaties were the treaty of Rome and the treaty of Paris. In the treaty of Rome the element of progression of national economies were discussed and emphasis was laid on the progressive harmonization of their social policies. Similarly, the treaty of Rome focused on the nuclear power establishment with Europe.  Thus we can say that this economic integration has helped the European Union in both the short and the long run.

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