The pros and cons of the single market in the EU
The union of the squares of the common (or unique) is the largest and most significant
step that you can do to a country's economy to its integration with its neighbors,the single
market can be defined as a formal agreement between sovereign nations in order to enable
members to have a free access to the markets of the other.
Open access refers to the movement without the restriction of the goods and services
offered, as well as the free circulation of labour and of capital, real and intellectual
property,the following are examples of the single market, including the 12-nation in the
Caribbean, which form the CARICOM, and the 10 members of the ASEAN Economic
Community , established in 1967 (the Association of southeast Asian Nations, South-East )
ACE, now called "the AEC in 2015," covers the 6 major countries of the original -
Indonesia, Thailand, Philippines, Malaysia, Singapore, and Vietnam, along with Cambodia,
Laos, Myanmar, and Cambodia.
Even though there are two single market in the same way, the common denominator is
the desire to create a market where people can trade freely with each other, with open access
and no prices on the domestic markets,this means that, in theory, to obtain the benefits of free
trade, such as lower prices, higher quality products, increased competition, and the mobility of
factors.
The development of the single market and the expansion of the Markets of the single,
usually progress slowly, often involving only a handful of countries, and then to the
extension, as its neighboring countries to see the benefits of membership, and the costs of the
neaderarii.
The formation and expansion of the single market involves the usual negotiations are
very complex, the degree of complexity in terms of the number of members and the level of
their development. The economies of less developed countries they may have a smaller range
of goods and services, as well as to the markets of the capital and credit to under-developed,
in comparison with, for example, the single european market. In Europe, the single market for
goods has been completed to a large extent by 1992, while in the single market for services
that do not yet exist.
For the common market to be a success, it is recognised that there has to be, also, a
significant level of harmonisation of the policies of economic and comply with the rules of the
common standards of the products, the power of the state monopoly and other forms of
anticoncurențiale.De also, there may be a common policy, which is affecting key industries,
such as the eu's common agricultural policy (CAP) and common fisheries policy (CFP).
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, The benefits of membership of the single market
The union of a single market that allows our members to get the benefits of free trade
among themselves, including the following:
1. The creation of the trade, where to trade, there would be an incentive, as a result of
the free access to the markets.
2. The exploitation of economies of scale for the businesses as the market is
expanding.
3. The cost of production is lower due to economies of scale.
4. The lower prices as a result of lower costs and increased competition.
5. Standards of production, which reduce the failure of the media, allowing consumers
to take a more rational choices.
6. The transfer of technology, as a result of the increase in investment flows between
the members.
7. The transfer of the single market.
8. The high mobility of the labour force to enable the convergence of costs, wages,
and unemployment is set to be distributed more evenly among the members.
9. The increased mobility of capital, which will increase the supply relative to each
country, and allows businesses to grow and innovate.
10. Flows of remittances to the country increased between the resident workers in the
country, and the families who remain in the country.
11. Co-operation in projects of mutual benefit, as well as research in the field of clean
energy.
12. Allows the products have in common that the members may not be able to provide
for ourselves, such as the consortium of Airbus of Europe.
The disadvantages of membership of the single market
1. Divertirea of the trade can be the result of some type of membership of the single
market, whereas the non-members, the more effective they are backed up in the local markets.
2. Pay for it, because the strength of the migrant labor can reduce the salaries of the
local area.
3. The increase of the negative externalities associated with the free movement of
people, including the pressure on the infrastructure, and insufficient provision of merit goods
such as health care and education.
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, 4. The rules of the trade, I can encourage some of the others, and that some of the
industries and sectors than others.
5. Too much red tape can inhibit the ability of the members of the innovation.
6. Members can become oriented to the interior, and the industries of their own do not
respond to changes in the global economy.
7. Missed opportunities to exploit the relations with non-members, through a
transaction of a free trade area between members and non-members (of which, at least in the
european single market, is not allowed).
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