WHAT ARE THE LEVELS OF
REGIONAL ECONOMIC INTEGRATION?
4. An economic union has the free flow of products and factors of
production between members, a common external trade policy, a
common currency, a harmonized tax rate, and a common monetary
and fiscal policy
European Union (EU)
5. A political union involves a central political apparatus that
coordinates the economic, social, and foreign policy of member states
The EU is headed toward at partial political union