Definition of Global markets and regional market groups

Economic integration is a process where barriers to trade are reduced or eliminated to facilitate trade
between regions or nations. There are varying degrees of economic integration ranging from theoretically
completely free trade the use of preferential trade agreements to stimulate relationships between specific
trade partners. Removing trade barriers comes with costs and benefits, depending on the degree of
economic integration and the level of cooperation between member regions or nations. Many economies
have attempted some degree of economic integration. Some nations use free trade zones, for example, to
stimulate trade with partners. Others sign free trade agreements the North American Free Trade
Agreement (NAFTA). In the European Union (EU), a high degree of economic and monetary integration
has been accomplished between member nations. Various EU nations may also have trade agreements
with nations outside the union.
Reducing barriers to trade has the tendency to cut costs associated with economic
activities. Not having to pay taxes, tariffs fees, and other expenses can be beneficial
for trading partners. This causes the volume of trade to increase, as trading
partners actively seek out deals in regions where some degree of economic
integration has been achieved. For nations outside integration agreements,
however, barriers to trade can be created as they may not be able to compete with
preferred trading partners. When economies are strong, economic integration has
benefits for all members, and every member of an agreement, union, or treaty can
experience economic growth. The same holds true of economic downturns. When
individual members of a trade agreement start to be dragged down, their economic
problems can spread. This was notably seen in the European Union during the
economic crises of the early 2000s, when bad debt in nations like Greece and
Portugal caused problems across the EU, including in nations with relatively strong
economies, like Germany.