What does the first level of integration most typically involve establishing?  Free trade agreements   Customs unions   Common market   Bilateral and multilateral agreements

The first level of integration typically involves establishing Free Trade Agreements.

Here's a step-by-step breakdown:

1. Free Trade Agreements (FTAs): This is the initial and most basic level of economic integration where member countries agree to gradually eliminate formal trade barriers, such as tariffs, quotas, and taxes, to promote free trade of goods and services among them. However, each member country still maintains its own independent trade policies with non-member countries.

2. Customs Unions: This is the next level of integration where, in addition to free trade among member countries, they also adopt a common external tariff (CET) against non-member countries. This means they have a unified trade policy against countries outside their union.

3. Common Market: This is a more advanced level of integration where, in addition to free trade and a common external tariff, there is also free movement of factors of production, like labor and capital, among member countries.

4. Bilateral and Multilateral Agreements: These are not levels of integration but types of agreements. Bilateral agreements are trade agreements between two countries, while multilateral agreements involve three or more countries. These agreements can occur at any level of integration.