Integration is a process whereby boundaries between nation-states become less discontinuous, thus leading to the formation of more comprehensive systems. Economic integration is a process of developing deep and stable relationships about the division of labor between national economies.
Economic integration is a means to obtain efficiency in resource use.
From the previous definitions we can extract the basic characteristics of economic integration Economic integration can be described as a process and a means by which a group of countries strive to increase their level of welfare. Integration involves the recognition that partnership between countries can achieve this goal in a more efficient way than by unilateral or independent pursuance of policy in each country. Integration requires at least some division of labor and freedom of movement for goods and services within the group. Higher types of integration arrangements also require free movement of factors of production within the integrated area, as well as certain restrictions on these movements between the integrated area and those outside it. The success and durability of integration requires at least some consultation, if not coordination, of competition, monetary, fiscal and regional development policies.