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economic integration reduces or eliminates trade barriers among nations and coordinates monetary and fiscal policies the aim is to reduce costs for consumers and producers as well as to increase trade between the countries participating in the agreement the more integrated economies become the fewer trade barriers exist and the more politically coordinated they are countries can agree to different levels of economic integration a preferential trade agreement is a trading bloc where members reduce or remove tariffs on certain goods imported and exported throughout their region a free trade area is a bloc in which countries reduce or remove tariffs on all goods among member nations an example is the north american free trade agreement in a customs union member countries reduce or remove tariffs among themselves and impose a common tariffs against non-member countries countries involved in a calm and markets bloc freely exchange all goods services labour and capital and economic union is