Common Market
Definition
A group of countries that have eliminated tariffs and other trade barriers among themselves, allowing for the free movement of goods, services, capital and labor.
Analogy
Think of a common market like a big shopping mall. Each store (country) in the mall can freely sell their products to customers (other countries) without any extra charges or restrictions. This allows all stores to benefit from increased sales and customer traffic.
Related terms
Tariffs: Taxes imposed on imported goods and services. They raise the price of imported goods as a way to shield domestic producers from foreign competition.
Free Trade Area: A region where member countries have signed a free trade agreement, which eliminates tariffs and import quotas between them but allows each country to maintain its own trade policy with non-member nations.
European Economic Community (EEC): An economic union established in 1957 by six Western European countries, with the goal of providing a common market and customs union among its members.
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