Consider the following:

  1. Cartel
  2. Common market
  3. Free trade area
  4. Custom union

Which of the above are examples of Economic Integration?

Answer: [C] 2, 3 & 4 Only

Economic integration is an economic arrangement between different geographic region to reduce and ultimately remove, tariff and non tariff barriers and allow the free flow of goods or services and factors of production among each others. Cartel is an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition. A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff.

This question is a part of GKToday's Integrated IAS General Studies Module