What does economic integration involve?

Economic integration involves the unification of economic policies and practices across countries, which leads to increased cooperation and interdependence among nations. This process can take several forms, such as free trade agreements, customs unions, and economic unions, all aimed at reducing barriers to trade and fostering a smoother flow of goods, services, and capital across borders.

The rationale behind economic integration is that by aligning policies and practices, countries can enhance trade efficiency, boost economic growth, and create a larger market that benefits participants through economies of scale and increased competition. This interconnectedness not only promotes trade but also allows nations to collaborate on broader economic strategies, potentially leading to shared prosperity.

In contrast, some choices suggest a focus on national contexts, local promotion, or isolation from international relations, which do not encapsulate the essence of economic integration. Thus, the emphasis on collaboration across borders in formulating cohesive economic policies is what defines economic integration.