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On the other hand, regional integration also refers to an outcome, occurring when pre set criteria are met. Over the last couple of decades, we have seen an increase in the number and depth of regional integration agreements around the world. Over 40 % of world trade occurs within regional integration agreements like the European Community and the NAFTA and new or expanded agreements continue to be negotiated. A regional integration agreement represents free trade to the extent that it results in trade creation by shifting of the production of some item from a less efficient member country to a more efficient member country...
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