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A single market is a type of
trade bloc A trade bloc is a type of trade pact, intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade (tariffs and Non-tariff barriers to trade, others) are reduced or eliminated among the participating ...
in which most trade barriers have been removed (for
goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
) with some common policies on product regulation, and
freedom of movement Freedom of movement, mobility rights, or the right to travel is a human rights concept encompassing the right of individuals to travel from place to place within the territory of a country,Jérémiee Gilbert, ''Nomadic Peoples and Human Rights'' ...
of the
factors of production In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods a ...
(
capital Capital most commonly refers to: * Capital letter Letter case (or just case) is the distinction between the letters that are in larger uppercase or capitals (or more formally ''majuscule'') and smaller lowercase (or more formally ''minusc ...
and
labour Labour or labor may refer to: * Childbirth Childbirth, also known as labour or delivery, is the ending of pregnancy where one or more babies leaves the uterus by passing through the vagina or by Caesarean section. In 2015, there were about 13 ...
) and of
enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings Enterprise GP Holdings was a midstream energy holding company based in Houston, Texas Houston ( ) is ...

enterprise
and
services Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administrative service, a required part of the workload of Faculty (academic staff), university faculty * Civil service, the body of employees of a governm ...
. The goal is that the movement of capital, labour, goods, and services between the members is as easy as within them. The physical (borders), technical (standards) and fiscal (taxes) barriers among the member states are removed to the maximum extent possible. These barriers obstruct the freedom of movement of the four factors of production (goods, capital, services, workers). A common market is usually referred to as the first stage towards the creation of a single market. It usually is built upon a free trade area with no tariffs for goods and relatively free movement of capital and of services, but not so advanced in reduction of other trade barriers. A unified market is the last stage and ultimate goal of a single market. It requires the total free movement of goods, services (including financial services), capital and people without regard to national boundaries.


Integration phases

A common market allows for the free movement of capital and services but large amounts of trade barriers remain. It eliminates all quotas and
tariff A tariff is a imposed by a of a country or of a on or of goods. Besides being a source of for the government, import duties can also be a form of regulation of and policy that taxes foreign products to encourage or safeguard domestic indu ...
s duties on imported goods from trade in goods within it. However
non-tariff barriers to trade Non-tariff barriers to trade (NTBs; also called non-tariff measures, NTMs) are trade barrier Trade barriers are government-induced restrictions on international trade. Economists generally agree that trade barriers are detrimental and decrease o ...
remain, such as differences between the Member States' rules on product safety, packaging requirements and national administrative procedures. These prevent manufacturers from marketing the same goods in all member states. The objective of a common market is most often economic convergence and the creation of an integrated single market. It is sometimes considered as the first stage of a single market. The European Economic Community was the first large-scale example of a common market. A single market (sometimes called 'internal market') allows for people, goods, services and capital to move around a union as freely as they do within a single country – instead of being obstructed by national borders and barriers as they were in the past. Citizens can study, live, shop, work and retire in any member state. Consumers enjoy a vast array of products from all member states and businesses have unrestricted access to more consumers. A single market is commonly described as "frontier-free". However, several barriers remain such as differences in national tax systems, differences in parts of the services sector and different requirements for e-commerce. In addition separate national markets still exist for
financial services Financial services are the economic services provided by the finance Finance is the study of financial institutions, financial markets and how they operate within the financial system. It is concerned with the creation and management of mone ...
,
energy In , energy is the that must be to a or to perform on the body, or to it. Energy is a ; the law of states that energy can be in form, but not created or destroyed. The unit of measurement in the (SI) of energy is the , which is the ...

energy
and
transport Transport (commonly used in the U.K.), or transportation (used in the U.S.), is the Motion, movement of humans, animals and cargo, goods from one location to another. In other words, the action of transport is defined as a particular movement ...

transport
. Laws concerning the recognition of professional qualifications also may not be fully harmonized. The
Eurasian Economic Union The Eurasian Economic Union (EAEU)EAEU is the acronym is used in thorganisation’s website However, many media outlets use the acronym EEU. is an economic union of states located in Eastern Europe Eastern Europe is the region of the Europea ...

Eurasian Economic Union
, the
Gulf Cooperation Council The Cooperation Council for the Arab States of the Gulf ( ar, مجلس التعاون لدول الخليج العربية), originally (and still colloquially) known as the Gulf Cooperation Council (GCC, ), is a regional intergovernmental organ ...

Gulf Cooperation Council
, and the
European Union The European Union (EU) is a political and economic union of that are located primarily in . The union has a total area of and an estimated total population of about 447million. has been established through a standardised that apply in ...

European Union
are current examples of single markets, although the 's single market has been described as "malfunctioning" in 2014. The
European Union The European Union (EU) is a political and economic union of that are located primarily in . The union has a total area of and an estimated total population of about 447million. has been established through a standardised that apply in ...

European Union
is the only economic union whose objective is "completing the single market." A completed, unified market usually refers to the complete removal of barriers and integration of the remaining national markets. Complete economic integration can be seen within many countries, whether in a single
unitary state A unitary state is a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper i ...
with a single set of economic rules, or among the members of a strong national
federation A federation (also known as a federal state) is a political entity A polity is an identifiable political entity—any group of people who have a collective identity, who are organized by some form of Institutionalisation, institutionalized ...

federation
. For example, the sovereign states of the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country in . It consists of 50 , a , five major , 326 , and some . At , it is the world's . The United States shares significan ...

United States
do to some degree have different local economic regulations (e.g. licensing requirements for professionals, rules and pricing for utilities and insurance, consumer safety laws, environmental laws, minimum wage) and taxes, but are subordinate to the federal government on any matter of
interstate commerce The Commerce Clause describes an enumerated powerThe enumerated powers (also called expressed powers, explicit powers or delegated powers) of the United States Congress The United States Congress or U.S. Congress is the bicameral legisla ...
the national government chooses to assert itself. Movement of people and goods among the states is unrestricted and without tariffs.


Benefits and costs

A single market has many benefits: with full freedom of movement for all the factors of production between the member countries, the factors of production become more efficiently allocated, further increasing productivity. For both business within the market and consumers, a single market is a competitive environment, making the existence of monopolies more difficult. This means that inefficient companies will suffer a loss of market share and may have to close down. However, efficient firms can benefit from economies of scale, increased competitiveness and lower costs, as well as expecting profitability to increase as a result. This is true especially for companies selling goods and services easily distributed all around the countries of single market. Consumers are benefited by the single market in the sense that the competitive environment brings them cheaper products, more efficient providers of products and also increased choice of products and their quality. What is more, businesses in competition will innovate to create new products; another benefit for consumers. Single market play significant role in increasing prosperity of nations involved in this area. For example, single market helps European Union to achieve annual growth of GDP with 2.2% p.a. between 1992–2006, rise in employment and job creation. Transition to a single market can have a negative impact on some sectors of a national economy due to increased international competition. Enterprises that previously enjoyed national market protection and national
subsidy A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the term ...

subsidy
(and could therefore continue in business despite falling short of international performance benchmarks) may struggle to survive against their more efficient peers, even for its traditional markets. Ultimately, if the enterprise fails to improve its organization and methods, it will fail. The consequence may be unemployment or migration. National participation into single market opens political debates, about skills loss through worker migration from less developed countries, and wage suppression in countries to which they migrate.


List of common markets

Every
economic union An economic union is a type of trade bloc A trade bloc is a type of trade pact, intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade (tariffs and Non-tariff barriers to trade, others) are re ...
and
economic and monetary union An economic and monetary union (EMU) is a type of trade bloc A trade bloc is a type of trade pact, intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade (tariffs and Non-tariff barriers to tr ...
includes a common market. *
European Single Market The European Single Market, Internal Market or Common Market is a single market comprising the 27 member states A member state is a state that is a member of an international organization ''International Organization'' is a quarterly peer- ...

European Single Market
(
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union The European Union (EU) is a political and economic unio ...

European Economic Area
– Switzerland) *
Central American Common Market The Central American Integration System ( es, Sistema de la Integración Centroamericana, or SICA) has been the economic and political organization of Central American states since February 1, 1993. On December 13, 1991, the ODECA countries (Span ...
(CACM) *
Eurasian Economic Space The Eurasian Economic Space or Single Economic Space is a single market that provides for the free movement of persons, goods, services and capital within the Eurasian Economic Union. The Single Economic Space was established in 2012 with the goal ...
* Southern Common Market (Mercosur)


Proposed

* ASEAN Economic Community (AEC) - established, but common market integration target is 2025 *
East African Community The East African Community (EAC) is an intergovernmental organisation composed of six countries in the African Great Lakes region in eastern Africa: Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. Paul Kagame, the president of Rwanda, ...

East African Community
(EAC) *
African Economic Community The African Economic Community (AEC) is an organization of African Union states establishing grounds for mutual economic development among the majority of African states. The stated goals of the organization include the creation of free trade ar ...
(AEC) *
CARICOM Single Market and Economy The CARICOM Single Market and Economy, also known as the Caribbean Single Market and Economy (CSME), is an integrated development strategy envisioned at the 10th Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) ...
(CSME) - Originally envisioned to be complete by 2008, it has since been delayed and is now envisioned to have free movement of people between willing member states by 2021. *
Gulf Cooperation Council The Cooperation Council for the Arab States of the Gulf ( ar, مجلس التعاون لدول الخليج العربية), originally (and still colloquially) known as the Gulf Cooperation Council (GCC, ), is a regional intergovernmental organ ...

Gulf Cooperation Council
(GCC) - Not yet a common market, though integration is continuing * Latin American Integration Association (ALADI) *Commonwealth free trade, Commonwealth free trade area - proposed by politicians in Canada, New Zealand, and the United Kingdom but never implemented * Free Trade Area of the Americas - proposed trade bloc at the Summits of the Americas, Summit of the Americas intended to be implemented across the Western Hemisphere (excluding Cuba) by 2005


Unified market

A unified market is the Economics, economic term for a single Market (economics), market where Good (economics), goods, Service (economics), services,
capital Capital most commonly refers to: * Capital letter Letter case (or just case) is the distinction between the letters that are in larger uppercase or capitals (or more formally ''majuscule'') and smaller lowercase (or more formally ''minusc ...
and people can move freely without regard to national boundaries. These "four freedoms" are implemented by, among other things, removal of
tariff A tariff is a imposed by a of a country or of a on or of goods. Besides being a source of for the government, import duties can also be a form of regulation of and policy that taxes foreign products to encourage or safeguard domestic indu ...
s on the transfer of goods and services among the member nations, imposition of uniform product standards, revision of laws to permit "market-wide" financial services, and the restructuring of most government procurement practices, so as not to favour local businesses over other member states' businesses.


Footnotes


References


External links


Economic Integration: Overview
{{DEFAULTSORT:Single Market Economic integration vi:Hội nhập kinh tế#Thị trường chung