COMMON MARKET Meaning and
Definition
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A common market is a type of economic integration wherein member countries agree to eliminate internal trade barriers such as tariffs, quotas, and import/export restrictions, while also allowing the free movement of goods, services, capital, and sometimes labor across their borders. It represents a higher degree of economic integration compared to a free trade area.
In a common market, member nations typically adopt a unified external trade policy, enforcing common import duties and trade regulations towards non-member countries. This ensures a unified approach to international trade, reinforcing the economic cooperation among member states. It is often accompanied by a common set of regulations and standards to facilitate the harmonization of economic policies.
The primary objective of a common market is to promote the efficient allocation of resources, maximize economic welfare, and foster economic growth. It does so by expanding market opportunities for member countries, stimulating competition, attracting foreign investment, and enhancing overall productivity.
Additionally, a common market allows for the free movement of factors of production, such as capital and sometimes labor. This enables individuals and businesses to invest, establish operations, and seek employment across member states without significant restrictions. It aims to promote a more integrated and cohesive regional economy while improving the overall competitiveness of industries within the common market.
Notable examples of common markets include the European Single Market (European Union) and the Southern Common Market (Mercosur) in South America.
Common Misspellings for COMMON MARKET
- xommon market
- vommon market
- fommon market
- dommon market
- cimmon market
- ckmmon market
- clmmon market
- cpmmon market
- c0mmon market
- c9mmon market
- conmon market
- cokmon market
- cojmon market
- comnon market
- comkon market
- comjon market
- commin market
- commkn market
- commln market
Etymology of COMMON MARKET
The word "common market" originates from the Latin word "comunis", meaning "common" or "shared", and "mercatus", meaning "market". The term emerged in the mid-20th century to describe a regional economic integration whereby a group of countries agrees to eliminate tariffs and other trade barriers while maintaining a common external trade policy. The concept was initially proposed by proponents of European integration in the 1950s, and it eventually led to the establishment of the European Economic Community (EEC) in 1957, which aimed to create a common market among its member nations. Since then, the term "common market" has been used globally to describe similar economic arrangements among countries.
Similar spelling words for COMMON MARKET
- Common Nardoo,
- common wart,
- common morel,
- common ragweed,
- common era,
- common reed,
- common marigold,
- communicate,
- common myrtle,
- common year,
- Common Murre,
- common horsetail,
- common room,
- common rush.
