What does economic integration involve?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

Economic integration primarily involves reducing trade barriers among countries. This process allows for the free movement of goods, services, labor, and capital across borders, which helps to enhance trade and economic cooperation between nations. Reducing tariffs, quotas, and other forms of trade restrictions can lead to increased market access, improved economic efficiencies, and a more interconnected global economy.

Economic integration can take various forms, such as free trade agreements, customs unions, and economic unions, all aimed at creating more substantial economic ties and benefiting all participating countries. By lowering trade barriers, countries can gain access to a wider variety of resources and markets, ultimately leading to greater mutual growth and development.

In contrast, the other options represent actions that counteract the principles of economic integration. Increasing tariffs would create more barriers to trade, focusing on military alliances does not address economic cooperation, and creating isolated national economies would restrict trade and investment opportunities.

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