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Economic integration beyond removal of barriers at each country's border. Deep integration requires changes in domestic laws and regulations that sometimes inadvertently restrict trade.
Foreign direct investment (FDI)
The purchase of physical assets such as real estate or businesses by a foreign company or individual. It can be outward (citizens or businesses in the home country purchase assets in a foreign country) or inward (foreigners purchase assets in the home country). (See also foreign portfolio investment.
Gross domestic product (GDP)
The market value of all final goods and services produced in a year inside a nation.
A numerical limit on the volume of imports.
Regional trade agreement (RTA)
Agreements between two or more countries, each offering the others preferential access to its markets. RTAs provide varying degrees of access and variable amounts of deep integration.
The elimination or reduction of tariffs, quotas, and other border-related barriers (such as customs procedures) that restrict the flow of goods across borders. (see also Deep integration)
Taxes imposed on imports. Tariffs raise the price to the domestic consumer and reduce the quantity demanded.
The ratio of exports plus imports to GDP; often used as an indicator of the relative importance of international trade in an national economy.