Final answer:
An economic union allows for the free flow of products and factors of production among member countries, requiring a common external trade policy and coordinated fiscal and monetary policy.
Step-by-step explanation:
An economic union is a type of regional integration that involves the free flow of products and factors of production among member countries. It also requires the adoption of a common external trade policy and the coordination of fiscal and monetary policy.
For example, the European Union (EU) is an economic union that evolved from a free trade association to a common market and then to a full economic union. The EU has implemented measures such as the elimination of barriers to the movement of goods, labor, and capital, and the introduction of a common currency, the euro, across member countries.
Overall, an economic union aims to promote economic cooperation and integration among member countries by facilitating trade, harmonizing policies, and fostering economic stability.