Economics · Unit 4: The global economy

EC4.4 — Economic integration

Economics · SL / HL · syllabus-mapped notes

1. EC4.4.1

   Preferential trade agreements

   Define bilateral, regional and multilateral preferential trade agreements.

2. EC4.4.2

   Trading blocs

   Explain how free trade areas, customs unions and common markets differ in how far integration goes.

3. EC4.4.3

   Advantages and disadvantages of trading blocs

   Evaluate trading blocs: trade creation and access to larger markets against trade diversion and loss of sovereignty.

4. EC4.4.4

   Monetary union

   Explain what a monetary union involves and how it goes beyond a common market.

5. EC4.4.5

   Advantages and disadvantages of monetary union

   Evaluate monetary union, weighing a single currency against the loss of independent monetary policy.

6. EC4.4.6

   The World Trade Organization (WTO)

   Explain the objectives and functions of the WTO, and what limits its influence.