Common Market (Trade) - Explained
What is an International Common Market?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is a Common Market?
A common market, also known as a trade block, is a market that allows trade and exchange of labor or services between specific countries. It is the result of a regional or intergovernmental agreement that permits agreeing countries to trade with one another with little or no barriers to trade.
Common external tariffs (CET)s can be imposed on non-members of the market who want to import into the market.
The European community is an example of a common market organized for countries or members of the European Union. Common markets are established to create free trade areas among its members, in this market exchange of capital, goods and services can be done with less barriers to trade.
Related Topics
- Trade Balance: Surplus and Deficit
- Mercantilism
- J Curve
- National Trade Data Bank
- Capital Account (Economics)
- Merchandise Trade Balance
- Current Account
- Income Payments
- Unilateral Transfer
- Is it better to have a trade surplus or a trade deficit?
- Export of Goods and Services and Percentage of GDP
- Heckscher-Ohlin Model
- Linder Hypothesis
- The Balance of Trade as a Balance of Payments
- National Savings and Investment Identity
- Circular Flow of Money
- Financial Capital
- Supply and Demand Sides for Financial Capital?
- Flow of Capital
- Domestic Saving and Investment Determine the Trade Balance
- National Savings Identity and Trade Deficits
- How the Business Cycle Affects Trade Balances
- Trade Balance or Trade Surplus
- Level of Trade
- Comparative Advantage
- Absolute Advantage
- Specialization and Gain from Trade
- Absolute Advantage in All Goods
- Production Possibilities Frontier and Comparative Advantage
- Comparative Advantage and Mutually Beneficial Trade
- Gain from Trade
- Opportunity Costs and International Trade
- Intra-Industry Trade
- Splitting Up the Value Chain
- How Economies of Scale Lead to Trading Advantages
- Protectionism
- Closed Economy
- Tariffs
- Double Column Tariff
- Import Quotas
- Double Column Tariff
- Infant Industry Theory
- National Interest Argument
- Race to the Bottom
- Anti-Dumping Laws
- Dumping
- Trade War
- Race to the Bottom
- Non-Tariff Barriers
- Effects of Trade Barriers
- Who Is Benefited and Who is Harmed by Protectionism?
- Infant Industry Theory for Restricting Imports
- What is the Anti-Dumping Argument for Restricting Imports?
- What is the Environmental Protection Argument for Restricting Imports?
- Race to the Bottom
- Unsafe Consumer Products Argument for Restricting Imports?
- National Interest Argument for Restricting Imports
- What is the WTO?
- What is the GATT?
- What are Free Trade Agreements?
- North American Free Trade Agreement
- Central European Free Trade Agreement
- General Agreement on Free Tariff and Trade (GATT)
- Common Market
- Common Market for Eastern and Southern Africa
- Central American Common Market
- Caribbean Community and Common Market
- What are Economic Unions?
- WTO
- International Monetary Fund
- World Economic Forum
- Inter-American Development Bank
- Davos World Economic Forum
- Chamber of Commerce
- Jackson Hole Economic Symposium