What is the role of economic integration in a market economy?

Economics Market Economy Questions



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What is the role of economic integration in a market economy?

The role of economic integration in a market economy is to promote the free flow of goods, services, capital, and labor between countries or regions. It aims to eliminate trade barriers such as tariffs and quotas, and encourages competition and specialization. Economic integration allows for increased market access, economies of scale, and efficiency gains, leading to higher economic growth and welfare for participating countries. It also fosters cooperation and coordination among nations, facilitating the development of common rules and standards for trade and investment.