INTERNAL MARKET Meaning and
Definition
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The internal market refers to an economic system within a region or country characterized by the free movement of goods, services, capital, and labor. Also known as a single market or domestic market, it represents a unified economic zone where barriers to trade and competition between member states are significantly reduced or eliminated. The concept of an internal market aims to create a level playing field and harmonize regulations, enabling businesses to operate and compete more efficiently and effectively.
In an internal market, countries or regions often establish common rules and standards that govern various aspects of economic activities, such as product safety, environmental regulations, taxation, and consumer protection. These regulations are designed to uphold a high level of economic integration and ensure fair competition among participants.
The core principles of an internal market involve the free movement of goods, which entails the elimination of customs duties, quotas, and technical barriers to trade. Additionally, it involves the free movement of services, allowing companies and professionals to provide their services across borders without significant restrictions. The free movement of capital ensures the flow of investments and the ability to access financial services in different parts of the internal market. Lastly, the free movement of labor permits individuals to work and reside in any member state without stringent immigration controls.
The internal market concept is often associated with regional economic integration initiatives, such as the European Union's single market or the North American Free Trade Agreement (NAFTA). However, it can also apply to domestic markets within a single country that exhibit similar principles of free trade and economic integration among its states or provinces.
Etymology of INTERNAL MARKET
The word "internal market" can be broken down into two separate parts: "internal" and "market".
The word "internal" comes from the Latin word "internus", meaning "within", "on the inside", or "inner". It entered the English language through the Old French word "internal", which has the same meaning.
The word "market" originated from the Latin word "mercatus", which referred to a marketplace or public place where trading took place. Over time, it evolved through Old English and Old High German to become the English word "market".
Therefore, the etymology of "internal market" essentially combines the Latin roots for "within" and "marketplace", signifying a market that operates within the boundaries of a specific country, region, or entity, rather than an external or international market.
