Which of the following is not the level of Regional economic integration ?

The correct answer is - National union

Key Points

• National union
  • National union is not a recognized or formal level of regional economic integration.
  • The levels of regional economic integration are defined based on agreements that reduce trade barriers and enhance economic cooperation between countries.
  • National union does not fit into any of the standard classifications used in international trade and economic studies.
  • It is likely a distractor option in this question to test your understanding of the correct levels of economic integration.

Additional Information

• Levels of Regional Economic Integration
  • Free Trade Area
    • Member countries remove trade barriers such as tariffs and quotas among themselves.
    • Each country maintains its own trade policies towards non-members.
    • Example: NAFTA (North American Free Trade Agreement).
  • Customs Union
    • In addition to removing trade barriers, member countries adopt a common external tariff policy towards non-members.
    • Example: MERCOSUR (Southern Common Market).
  • Common Market
    • Allows free movement of goods, services, capital, and labor among member countries.
    • Example: European Economic Community (EEC).
  • Economic Union
    • Member countries integrate their economies further by adopting common economic policies and potentially a shared currency.
    • Example: European Union (EU).
• Exam Tip
  • Focus on understanding the key differences between the levels of integration to differentiate them easily in objective-type exams.
  • Memorize examples of each level for quick identification during tests.