Consistent with the predictions of international trade theory and particularly with the theory of comparative advantage (see Chapter 6), agreements designed to promote free trade within regions are believed to produce gains from trade for all member countries. These agreements define regional economic integration. Regional economic integration (REI) refers to agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production among them. In the past twenty years, regional trade blocs that promote regional economic integrations have proliferated significantly. Roll over each trade agreement for examples. Then drag and drop the trade agreement into the correct level of integration. Andoan Community MERCOSUR...most EU EFTA Economic union Common market Customs union Free trade area