6.10

Economic Integration and Trade Agreements

AP Macroeconomics

What is economic integration?

Levels of economic integration

Benefits of economic integration

Based on comparative advantage

Specific benefits

Costs of economic integration

Trade creation and trade diversion

Trade creation

Trade diversion

Key trade agreements

USMCA (United States-Mexico-Canada Agreement)

European Union (EU)

World Trade Organization (WTO)

Impact of trade agreements on the forex market

Impact on economic growth

The debate: free trade vs. protectionism

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