Free trade area
All barriers to trade of goods/services are removed
Each country allowed to determine non-member policy
Customs Union
Eliminates trade barriers between member countries
Adopts common external trade policy
Common Market
No barriers to trade among member countries
Common external trade policy
Allows factors of production to mover freely among members
Economic Union
Free flow of products & factors of production
Adoption of common external trade policy
Requires common currency, common monetary & fiscal policy
Political Union
Central political apparatus coordinates economic, social & foreign policy of members