Today, two trends are evident in the economy: the strengthening of the world economy, its systematic globalization and the economic rapprochement of countries at the regional level.
Economic integration is the union of countries at the political and economic level through the creation and development of international relations and the division of labor of the economies of individual countries. This interaction begins with the cooperation of enterprises in neighboring countries (for example, by creating branches abroad). At the macro level, integration takes the form of creating economic associations of different states by coordinating national policies.
Economic integration at the micro and macro levels requires government regulation, and in some cases supranational. The purpose of such regulation is to ensure the free movement of goods, money capital and labor (labor) between different countries; conducting a joint economic, financial, monetary, social, scientific, technical, defensive and foreign policy. As a result, integrated economic complexes are created with a single infrastructure, currency system, general financial funds and interstate governance bodies.
Economic integration is developing under the influence of a combination of many factors. Among them, the most significant are the following: globalization of farms, development of scientific and technological progress, division of labor at the international level, openness of national economies. All these factors are interconnected and interdependent.
At the fastest pace, economic integration is taking place at the regional level. Therefore, today the main trend in the globalization of farms is the process of formation of integration zones and megablocks around certain countries. Examples are the United States on the territory of the American continent, Japan in alliance with the United States in the Pacific, the most developed countries in the West.
Economic integration requires national economies to increase their openness. This implies their deeper involvement in the system of international relations, the relaxation of restrictions on the movement of goods, labor and capital between countries, and the convertibility of their currencies.
What forms of economic integration exist? The simplest form is a free trade zone , in which restrictions are removed between participants (countries). In relations with third countries, an independent policy is allowed. The EU began with this form, today the Latin American region is at this stage of development.
The next form is the customs union, which along with the free trade zone requires the establishment of a single tariff for trade and a common foreign policy in relation to non-union countries. Often the customs union is supplemented by a payment union, which facilitates the convertibility of currencies and the circulation of a single monetary unit.
A more complex form is the common market, which provides the removal of obstacles to the movement of production factors and the harmonization of economic policies in order to align the performance of countries. With this form of integration, general (supranational) governing bodies are created and a single economic, informational and legal space is formed.
At a higher level of development, economic (common economic policy) and currency (joint circulation of national currencies, fixed rates, then the creation of a single currency and bank) unions are formed. These forms are characteristic only for the countries of Western Europe.
The last form is full economic integration, in which the legislative base is unified, uniform standards, labor legislation, etc. are established.