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A common market is a customs union
Customs union

A customs union is a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import Import quotas....
 with common policies on product regulation, and freedom of movement
Freedom of movement

Freedom of movement, mobility rights or the right to travel is a human rights concept which is respected in the constitutions of numerous states....
 of the factors of production
Factors of production

In economics, factors of production are the resources employed to produce Good and services. Here the rate of output is modeled as a production function of the rate of use of each input employed.They are generally land, labor, and capital; the three groups of resources that are used to make all goods and services....
 (capital
Capital (economics)

In economics, capital or capital goods or real capital refers to factors of production used to create goods or services that are not themselves significantly consumed in the production process....
 and labour) and of enterprise
Capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are private property and controlled rather than commonly, publicly, or state-owned and controlled....
. 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

Economic integration is a term used to describe how different aspects between economies are integrated. The basics of this theory were written by the Hungary Economist B?la Balassa in the 1960s....
.

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.






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A common market is a customs union
Customs union

A customs union is a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import Import quotas....
 with common policies on product regulation, and freedom of movement
Freedom of movement

Freedom of movement, mobility rights or the right to travel is a human rights concept which is respected in the constitutions of numerous states....
 of the factors of production
Factors of production

In economics, factors of production are the resources employed to produce Good and services. Here the rate of output is modeled as a production function of the rate of use of each input employed.They are generally land, labor, and capital; the three groups of resources that are used to make all goods and services....
 (capital
Capital (economics)

In economics, capital or capital goods or real capital refers to factors of production used to create goods or services that are not themselves significantly consumed in the production process....
 and labour) and of enterprise
Capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are private property and controlled rather than commonly, publicly, or state-owned and controlled....
. 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

Economic integration is a term used to describe how different aspects between economies are integrated. The basics of this theory were written by the Hungary Economist B?la Balassa in the 1960s....
.

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.

Benefits and costs

A single market has many benefits. 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, making 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.

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
Protectionism

Protectionism is the economic policy of restraining trade between nations, through methods such as tariffs on imported goods, restrictive import quota, and a variety of other restrictive government regulations designed to discourage imports, and prevent foreign take-over of local markets and companies....
 and national subsidy
Subsidy

In economics, a subsidy is a form of financial assistance paid to a business or economic sector. A subsidy can be used to support businesses that might otherwise fail, or to encourage activities that would otherwise not take place....
 (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. Ultimately, if the enterprise fails to improve its organization and methods, it will fail. The consequence may be unemployment or migration.

List of single markets

  • Andean Community (CAN) - 31 December 2005
  • Caribbean Community single market
    Caribbean Community

    The Caribbean Community , is an organization of 15 Caribbean nations and dependencies. CARICOM's main purposes are to promote economic integration and cooperation among its members, to ensure that the benefits of integration are equitably shared, and to coordinate foreign policy....
     (CARICOM)
  • Central American Common Market (CACM)
  • Economic and Monetary Community of Central Africa (CEMAC)
  • European Economic Area
    European Economic Area

    The European Economic Area came into being on 1 January 1994 following an agreement between member states of European Free Trade Association ,...
     (EEA) between the EC
    European Community

    The European Community is one of the three pillars of the European Union created under the Maastricht Treaty . It is based upon the principle of supranationalism and has its origins in the European Economic Community, the predecessor of the European Union....
    , Norway
    Norway

    Norway , officially the Kingdom of Norway, is a constitutional monarchy in Northern Europe that occupies the western portion of the Scandinavian Peninsula....
    , Iceland
    Iceland

    Iceland, officially the Republic of Iceland , is an island country located in the North Atlantic Ocean between mainland Europe and Greenland....
     and Liechtenstein
    Liechtenstein

    The Principality of Liechtenstein is a Landlocked country#Doubly landlocked country alpine country microstate in Western Europe, bordered by Switzerland to the west and by Austria to the east....
    • The European Union
      European Union

      The European Union is an economic and political union of 27 European Union member state, located primarily in Europe. It was established by the Treaty of Maastricht on 1 November 1993 upon the foundations of the pre-existing European Economic Community....
       (EU) began life as the European Coal and Steel Community
      European Coal and Steel Community

      The European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and creating the foundation for European democracy and the modern-day developments of the European Union....
       in 1951 (Treaty of Paris (1951)
      Treaty of Paris (1951)

      The Treaty of Paris, signed on 18 April, 1951 between France, West Germany, Italy and the three Benelux countries established the European Coal and Steel Community , which subsequently became part of the European Union....
      ) and went on to become the European Economic Community
      European Community

      The European Community is one of the three pillars of the European Union created under the Maastricht Treaty . It is based upon the principle of supranationalism and has its origins in the European Economic Community, the predecessor of the European Union....
       (EEC) in 1957 (Treaty of Rome (1957)) (when it became known in Britain and Ireland as "the Common Market"). 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
      Single European Act

      The Single European Act was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Single Market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy....
       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). Further information on the European Union single market can be found .
  • West African Economic and Monetary Union (WAEMU) - 10 January 1994


Proposed

  • Eurasian Economic Community
    Eurasian Economic Community

    The Eurasian Economic Community originated from the Commonwealth of Independent States customs union between Belarus, Russia and Kazakhstan on the 29 March 1996....
     (EAEC) - 1 January 2010
  • Southern African Development Community
    Southern African Development Community

    The Southern African Development Community is an inter-governmental organization headquartered in Gaborone, Botswana. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among 15 southern African states....
     (SADC) - 2012
  • Southern Common Market (Mercosur) - 2015
  • ASEAN Economic Community (AEC) - 2020
  • African Economic Community
    African Economic Community

    The African Economic Community is an organization of African Union states establishing grounds for mutual economic development among the majority of African states....
     (AEC) - 2023
  • Gulf Cooperation Council (GCC)
  • North American Union
    North American Union

    The North American Union is a theoretical Regionalism of Canada, Mexico, and the United States similar in structure to the European Union, sometimes including a common currency called the Amero....
     (NAU)
  • Economic Community of West African States
    Economic Community of West African States

    The Economic Community of West African States is a regional group of fifteen West African countries, founded on May 28, 1975 with the signing of the Treaty of Lagos....
     (ECOWAS)
  • Economic Community of Central African States
    Economic Community of Central African States

    The Economic Community of Central African States is an organisation for promotion of regional economic co-operation in Central Africa. It "aims to achieve collective autonomy, raise the standard of living of its populations and maintain economic stability through harmonious cooperation"....
     (ECCAS)
  • South Asia Free Trade Agreement (SAFTA)