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Which of the following represents a “higher level” of integration?  MERCOSUR   The European Union   NAFTA   The Central American Common Market

Question

Which of the following represents a “higher level” of integration?  MERCOSUR   The European Union   NAFTA   The Central American Common Market

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Solution

The European Union represents a "higher level" of integration.

Here's why:

  1. The European Union (EU) is a political and economic union of 27 member states that are located primarily in Europe. It has developed an internal single market through a standardized system of laws that apply in all member states in those matters, and only those matters, where members have agreed to act as one.

  2. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market; enact legislation in justice and home affairs; and maintain common policies on trade, agriculture, fisheries, and regional development.

  3. For travel within the Schengen Area, passport controls have been abolished. A monetary union was established in 1999, coming into full force in 2002, and is composed of 19 EU member states which use the euro currency.

  4. The EU has often been described as a sui generis political entity (without precedent or comparison) with the characteristics of either a federation or confederation.

Comparatively, MERCOSUR, NAFTA, and The Central American Common Market are primarily trade agreements, which means they focus on economic integration rather than political integration. They don't have the same level of integration in terms of common policies, law, and currency.

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