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Economic Union – One Economy! 🎼

Definition: Common Market + Harmonized Economic Policies.

What does it mean?

  • Countries coordinate their Tax rates, Fiscal policy, and Welfare systems.
  • Goal: To prevent "distortion". (e.g., If France has 50% tax and Germany has 10%, everyone will move to Germany. Economic Union fixes this).

Example: European Union (EU).

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Economic Union involves harmonization of:

Traffic rules
Economic policies (Fiscal/Monetary)
Sports teams
None

💡 Final Wisdom: "It's like a marriage. You don't just share a house (Common Market), you also share a bank account and future plans (Economic Union)." 💍

Next up: Monetary Union - One Currency! 💶

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