A common market is a customs union with common policies on product regulation, and freedom of movement of all the three factors of production (land, capital and labour) and of enterprise. International trade is exchange of Capital, Goods, and Services across International borders or Territories. The history of international trade chronicles notable events that have affected the Trade between various countries Fair trade is an organized Social movement and market-based approach to empowering developing country producers and promoting sustainability Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions For the protectionist Australian political party from the 1880s to 1909 see Protectionist Party Economic integration is a term used to describe how different aspects between economies are integrated A Preferential Trade Area is a Trading bloc which gives preferential access to certain products from the participating countries See also List of free trade agreements This is article is on free international trade A customs union is a Free trade area with a Common external tariff. An economic and monetary union is a Single market with a common currency A trade pact is a wide ranging Tax tariff and trade pact that often includes Investment guarantees A trade bloc is a large Free trade area formed by one or more Tax tariff and trade agreements Trade creation is an Economic term related to International economics in which Trade is created by the formation of a Customs union. Trade diversion is an Economic term related to International economics in which Trade is diverted from a more efficient exporter towards a less efficient A customs union is a Free trade area with a Common external tariff. Freedom of movement, mobility rights or the right to travel is a Human rights concept which is respected in the Constitutions of numerous In economic theory factors of production (or productive inputs) are the resources employed to produce goods and services Land in Economics comprises all naturally occurring resources whose supply is inherently fixed (i In Economics, capital or capital Goods or real capital refers to items of extensive value Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where The goal is that movement of capital, labour, goods, and services between the members is as easy as within them. This is the fourth stage of economic integration. Economic integration is a term used to describe how different aspects between economies are integrated

Sometimes a single market is differentiated as a more advanced form of common market. In comparison to common a single market envisions more efforts geared towards removing the physical (borders), technical (standards) and fiscal (taxes) barriers among the member states. These barriers obstruct the freedom of movement of the four factors of production. To remove these barriers the member states need political will and they have to formulate common economic policies.

List of single markets

• The European Union (EU) began life as the European Coal and Steel Community in 1951 (Treaty of Paris (1951)) and went on to become the European Economic Community (EEC) in 1957 (Treaty of Rome (1957)) (when it become known in Britain and Ireland as "the Common Market"). The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in The European Coal and Steel Community ( ECSC) was a six-nation International organisation serving to unify Western Europe during the Cold War and creating The Treaty of Paris, signed on 18 April, 1951 between France, West Germany, Italy and the three BeNeLux countries The European Community (EC is one of the Three pillars of the European Union (EU created under the Maastricht Treaty (1992 The abolition of internal tariff barriers was achieved in 1968. In subsequent years little was done to move from this basic customs union to a full single market. The Single European Act was signed in 1986 to establish a Single European Market by 1992, by removing the barriers to free movement of capital, labour, goods and services (at least in principle, if not always observed in practice). The Single European Act (SEA was the first major revision of the Treaty of Rome that formally established the single European market and the European Political Cooperation Further information on the European Union single market can be found here.
• European Economic Area (EEA) between the EC, Norway, Iceland and Liechtenstein
• The Caribbean Community single market (CARICOM)
• The Gulf Cooperation Council (GCC)^[1]

Proposed

• Economic Community of West African States (ECOWAS)
• Central African Common Market of the Economic Community of Central African States (ECCAS)
• Southern African Development Community (SADC), due in 2012
• ASEAN Economic Community (AEC), due in 2020
• African Economic Community (AEC), due in 2023
• Greater Arab Free Trade Area (GAFTA)
• North American Union (NAU)

Benefits of a single market

A single market has many benefits. The European Economic Area ( EEA) came into being on 1 January 1994 following an agreement between member states of European Free Trade Association (EFTAthe The European Community (EC is one of the Three pillars of the European Union (EU created under the Maastricht Treaty (1992 Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional Iceland, officially the Republic of Iceland ( ( Ísland or Lýðveldið Ísland ( The Principality of Liechtenstein (Fürstentum Liechtenstein) is a tiny doubly landlocked Alpine country in Western Europe, bordered by Switzerland The Caribbean Community ( CARICOM) is an organization of Caribbean nations and dependencies The Cooperation Council for the Arab States of the Gulf ( CCASG; مجلس التعاون لدول الخليج العربية also known as the Gulf Cooperation Council The Economic Community of West African States ( ECOWAS) is a regional group of fifteen West African countries founded on May 28 The Economic Community of Central African States ( ECCAS; French: Communauté Économique des États d'Afrique Centrale; Spanish: Comunidad The Southern African Development Community ( SADC) is an Inter-governmental organization. The Association of Southeast Asian Nations, commonly referred to as ASEAN, ˈɑːsiːɑːn AH-see-ahn in English (the Official language The African Economic Community (abbreviated AEC) is an organization of African Union states establishing grounds for mutual economic development among the majority The North American Union (NAU is a theoretical Continental union of Canada, Mexico and the United States similar in structure to the 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 very competitive environment, turning 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 expect profitability to be a result. 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. What is more, businesses in competition will innovate to create new products; another benefit for consumers.

Costs of a single market

Transition to a single market can have short term negative impact on some sectors of a national economy due to increased international competition. Enterprises that previously enjoyed national market protection and national 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. For the protectionist Australian political party from the 1880s to 1909 see Protectionist Party In Economics, a subsidy (also known as a subvention is a form of financial assistance paid to a business or economic sector Ultimately, if the enterprise fails to improve its organization and methods, it will fail. The consequence may be unemployment or migration.

See also

• Economic and monetary union
• Globalisation

References

1. ^ [1]. An economic and monetary union is a Single market with a common currency Globalization (or globalisation) in its literal sense is the process of transformation of local or regional phenomena into global ones GCC Common Market Formed.