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EUP – Internal market

EUP IM exam prep

EUP IM exam prep

Kartei Details

Karten 33
Sprache English
Kategorie BWL
Stufe Universität
Erstellt / Aktualisiert 15.01.2015 / 16.01.2015
Lizenzierung Keine Angabe
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Objective of a Single Market

(Internal market = Single market = common market)

Reduce and eliminate trade barriers

  • Trade Barriers: tariffs & non-tariff barriers
  • NTB : regulations, technical differences, fiscal barriers, quotas
  • Ongoing process

White paper

on completing the internal market

  • Puts forward proposals for further integration
  • Identified 300 measures to remove barriers

‘Cecchini report’

provided support

  • Calculating the economic benefits on the integration
  • Examining the benefits and costs of creating a single market in Europe
  • Weaker firms fail --> Lower costs à Lower prices
  • Estimated costs of not reducing internal barriers

Advantages & Disadvantages of a single market


  • Bigger markets --> companies can specialize
  • Economies of scale --> lower costs & prices
  • Improved efficiency
  • More attention paid to what buyers want
  • Promote innovation


  • Monopolies may be formed.
  • Loss of sovereignty
  • Some industries disappear (national industries which not support the pressure of the competitiveness): Ex: National Airlines


Economic Integration

2 Ways..

  1. Negative integration: Eliminating regulations / barriers
  2. Positive integration: Harmonisation of regulations & policies

Objective of Economic Integration

reduction of barriers to trade between economies

What is a Preferential trading system?

a trading bloc that gives preferential access to certain products from the participating countries

Stages of European Integration

Free trade area/association (FTA)

Customs Union (CU)

Common Market (CM)

Economic Union (EcU)

Total Economic Union (TEcU) (Political Union)