Fall 2008 International Marketing: Final Exam Study Guide The Economic Environment . Regional Economic Integration ? Levels of economic integration ? Free Trade Area . Goods and services are freely traded among all members. . Each country maintains its own trade barriers vis-à-vis nonmembers. ? Customs Union . Members establish a common trade policy with respect to nonmembers. ? Common Market . The mobility of factors of production is emphasized. . A common external tariff is adopted. ? Economic Union . Integration and harmonization of economic and monetary policies is achieved leading to political union. . The Free Trade Area ? Eliminates tariff and quota barriers among member countries. ? Each country is free to set its own tariff and quota barriers against nonmember countries. ? Can be formed for certain classes of goods or services only. ? Rules of origin requirements restrict transshipment of goods from the country with the lowest tariff to another ? Ex: equipment made in Canada ca...