A single market is a type of trade bloc which is composed of a free trade area (for goods) with common policies on product regulation, and freedom of movement of the factors of production (capital and labour) and of enterprise and services. 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.
A common market is a first stage towards a single market, and may be limited initially to a free trade area with relatively free movement of capital and of services, but not so advanced in reduction of the rest of the trade barriers.
The European Economic Community was the first example of a both common and single market, but it was an economic union since it had additionally a customs union.
Read more about Single Market: Benefits and Costs, List of Single Markets
Famous quotes containing the words single and/or market:
“Show me two villages, one embowered in trees and blazing with all the glories of October, the other a merely trivial and treeless waste, or with only a single tree or two for suicides, and I shall be sure that in the latter will be found the most starved and bigoted religionists and the most desperate drinkers.”
—Henry David Thoreau (1817–1862)
“The only reason to invest in the market is because you think you know something others don’t.”
—R. Foster Winans (b. 1948)