a) ECONOMC INTEGRATION

Is the co- operation of several countries for the sake of enjoying economic benefits.
Examples are European economic cooperation, preferential trade areas (PTA) for eastern
and southern African countries economic organization for West African states
(ECOWAS).

b)
i. TYPES OF ECONOMIC INTREGRATION
The following are the types of economic integration
 FREE TRADE AREA
o Is the type of integration which involves the abolition of all trade restrictions
within the group, but each individual country in the group is free to maintain any
sort of relation with the non- member countries.
 CUSTOMS UNION
o Is the type of integration which involves a common external tariff against non-
member countries.
 ECONOMIC UNION
o Is the case of absolute integration, there is free mobility of factor resources and
commodities in such a union.
 SECTORAL OF PARTIAL INTEGRATION / COMMON MARKET
o In this type of integrations member of countries have customers union hence
allow a free movement of the factors of production from one member country to
another member country.
 PREFERENTIAL TRADING
o Is the type of economic integration in which a sort of trade techniques involving
various measures for promoting trade among the members of the group.
 THE LONG-TERM TRADE CONTRACT
o Is a type of bilateral arrangement, either in a single product or many products of
trade between any two nations.

ii. OBJECTIVE OF ECONOMIC INTEGRATION

The following are the objectives of economic integration
 TO INLARGE MARKET
o Economic integration leads to abolition or production of trade barriers among the
member of countries. The abolition of trade barrier increases the size of goods
produced by the member of country.

 TO ENABLE MEMBER COUNTRIES TO SPECIALIZED

 o Economic integration enable each member country to specialized in the
production commodities of its comparative advantage specialization leads to
increase output and gain from trade.
 TRASFER OR TO EXCHANGE TECHNOLOGY
o Integration leads to exchange the technology among the member of countries.
 TO REDUCE EXCHANGE DIFFICULTIES
o In monetary union country adopt a common currency which eliminate all the
difficulties that trader of different countries and between the people of member of
country.
 TO INCREASE POLITICAL AND SOCIAL UNDERSTING
Economic integration promotes goods political relationship between the government of
the member countries and between the people of the member.

c) PRINCIPLES OF ECONOMIC INTERGRATION

The following are principle of economic integration.
 GOOD INFRASTRUCTURE
o In order for economic integration to be successful counties in the region in order
for economic integration must be having goods infrastructure that may facilitate
the movement of goods and people from one area to another.
 POLITICAL WILLING AND COMMITMENT
o Common language for regain integration to be successful the political leader must
be willing a commitment to implement the various resolution that are made
 COMMON LANGUAGE
o Common language ability among the people in an economic integration facilitates
easy communication among the people in the region as they engage in social
economic and political integration.
 COMMON CURRECY
o In order to have a smooth exchange a common currency is very important for
integration. Absence of a common currency makes exchange difficult.
 DIFFERENTIATED PRODUCT
o Exchange cannot take place in country product similar products. Each country
should therefore specialized in a commodity which it has comparative advantage.