Thomas L. Friedman Defines Globalization in His Book

This may be the level of integration that is scheduled to arrive inside the EEC in 1992 (The Economist, 1990, 7 July). The fifth level of integration is political union. Political union describes the integration with the states from the United States. Political union can also be the ultimate goal on the EEC (The Economist, 1990, 28 April).

Each successive level of regional integration involves a higher degree of unified and common action. At the lowest level, the free#trade area, tariffs are eliminated on a trade in between the member countries. At the following level, the customs union, well-known external tariffs are utilized to all trade between the member nations and non member countries. The third level, the well-known market, moves 1 step further along, and permits the free flow of the factors of production among member countries. At the fourth level, economic union, monetary and fiscal harmonization between member nations is added towards common market system. The final level, political union, involves the creation of the single government over all member countries, and the loss of national identity for your individual member states in the union.

Haldane (1991, p. 80) stated how the EMS has "contributed actively on the technique of inflation convergence in between ERM countries." Giavazzi and Giovannini (1988) observed how the functioning on the EMS had resulted in lower rates of inflation between the member countries. Klitgaard (1988, pp. 12, 16) mentioned that the "early 1980s tested the willingness on the program to penalize high inflation countries," and how the EMS "seems to acquire had adequate manage to penalize" this sort of countries. Collins (1988, p. 133), even though recognizing that an impressive reduction and convergence of inflation rates between EMS members" occurred, cautions that "coincidence alone isn't more than enough to see causality."

The generally widely held conclusion is how the EMS has contributed positively to exchange rate stability, cost stability, payment balances control, and economic growth between its member countries (Haldane, 1991).

 

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