A common market is one where :
there is a customs union along with free intra - union movement of factors of production.
Regional economic integration proceeds in stages: preferential trade area, free trade area, customs union, common market, economic union and full political union.
A free trade area removes tariffs among members; a customs union adds a common external tariff against non-members.
A common market goes one step further than a customs union by also allowing free movement of factors of production — labour and capital — among member countries.
A uniform tariff on all goods or a mere rationalisation of barriers describes weaker forms of integration, and an economic union is a higher stage that adds harmonised economic policies, so these do not define a common market.
Hence, the answer is there is a customs union along with free intra - union movement of factors of production..
Similar Questions
The Maastricht Treaty of February, 1992 renamed the European Community (EC) as :
From the following, identify the trading blocks in the world and choose the correct code :
(a) European Union
(b) North American Free Trade Agreements
(c) South Asian Association of Regional Co-operation
(d) Central American Common Market
(e) Central African Customs Union
Codes :
Match the items of List – I with List – II :
List – I (International Economic Groups) List – II (Year of Establishment) a. European Union (EU) i. 1973 b. European Free Trade Association (EFTA) ii. 1992 c. Caribbean Community (CARICOM) iii. 1985 d. South Asian Association for Regional Cooperation (SAARC) iv. 1960 Codes :
a b c d
Which of the following is not a form of economic integration in the context of intra-regional trade ?
Match the items of List - I with the items of List - II and select the correct answer with the codes given below :
List - I List - II (a) SAARC (i) Philippines (b) ASEAN (ii) Canada (c) EU (iii) Afghanistan (d) NAFTA (iv) Hungary Codes :
(a) (b) (c) (d)
Important Questions from Regional Economic Integration
- SAFTA (South Asian Free Trade Agreement) categorises member nations as Non-Least Developed Contracting States (NLDCS) and Least Developed Contracting States (LDCS). Identify the NLDSC states from the following
A. Bangladesh
B. Pakistan
C. Bhutan
D. India
E. Sri Lanka
Choose the correct answer from the options given below: - Common market achieves uniformity in monetary policy and fiscal policy among the member countries in __________.
- Identify the correct statement.
- Match List-I with List-II relating to benefits and cost of economic integration and identify the code representing correct matching.Codes :
List – I List – II a. Trade creation i. Movement of production and resources in opposite directions. b. Trade diversion ii. Become active when a member country does not augment export but simply shifts its imports from low cost source to high cost source. c. Trade deflection iii. Shifting the locus of production from high cost to low cost centre within the union. d. Polarisation forces iv. Goods produced in a third country entering a free trade area through a member country having lower tariff. - What is the situation referred to as, amongst the following, when intra-region trade is duty free but there is variation in tariff structure for import from a third country ?
