The Development of the Single Market week 4

A collection of definitions and explanations related to the development and implications of the European Single Market.

Economic Integration

The process of harmonizing and combining economic activities among countries.

Single Market

An internal market allowing free movement of goods, services, labor, and capital.

Tariffs

Taxes on imported goods that provide a price advantage to local products.

Non-Tariff Barriers (NTBs)

Trade barriers not involving tariffs, such as quotas and import licenses.

Customs Union

An agreement between countries to eliminate tariffs among themselves and adopt common external tariffs.

Free Trade Area

A region where a group of countries has agreed to reduce or eliminate trade barriers.

Economic and Monetary Union (EMU)

A group of countries that have adopted a common currency and coordinated monetary policy.

Political Union

A comprehensive integration of policies and governance among member states.

Cecchini Report

A report predicting the potential benefits of completing the internal market in the EU.

Treaty of Rome (TFEU)

A foundational treaty that established the European Economic Community in 1957.

Single European Act

A reform of the Treaty of Rome aimed at completing the internal market by 1992.

Market Entry

The strategy or process of entering a new market for trading goods or services.

Trade Creation

An increase in trade due to the formation of a free trade agreement, enhancing overall trade flows.

Trade Diversion

A shift in trade from a more efficient exporter to a less efficient one due to tariffs or agreements.

Allocative Efficiency

A state of resource allocation where resources are distributed in a way that maximizes total benefit.

Productive Efficiency

A situation where goods are produced at the lowest possible cost.

Dynamic Efficiency

The ability of an economy to innovate and improve productivity over time.

Mutual Recognition

The principle that products lawfully sold in one EU member state can be sold in another without restrictions.

Qualified Majority Voting (QMV)

A voting system used in the EU Council where decisions are made with support from a majority of members.

European Economic Area (EEA)

A free trade area that extends the EU’s single market to non-EU countries.

Schengen Area

An area comprising countries that have abolished passport and other types of border control at their mutual borders.

Market Distorting Barriers

Barriers that create unfair advantages in the market, inhibiting fair competition.

Frictional Unemployment

Temporary unemployment during the transition between jobs or careers.

Structural Unemployment

Long-term unemployment caused by shifts in the economy or industry.

Consumer Prices

The prices that consumers pay for goods and services in the market.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Economic Growth

An increase in the production of goods and services in an economy over time.

Free Movement of Services

The ability for service providers to operate freely across EU member states.

Collaborative Agreements

Partnerships or arrangements made between businesses to work together.

Standardised Products

Products that meet a consistent standard across different markets.

Investment Climate

The overall economic environment that influences the level of investment in a country.

Technological Spread

The wide dissemination of technology and innovation across regions or sectors.

Labour Mobility

The ability of workers to move freely across borders for work opportunities.

Regional Policy

Policies designed to promote economic development in less developed areas.

Trade Costs

Expenses that arise when exchanging goods across borders.

Brexit

The United Kingdom's withdrawal from the European Union in 2020.

EFTA

The European Free Trade Association, which promotes free trade and economic integration between its members.

EU Customs Union

An agreement between EU countries allowing free trade among them and a common external tariff.

Tariff-Free Access

The ability to export goods without being subjected to tariffs.

Inflation Rate

The rate at which the general level of prices for goods and services rises.

Oligopoly Power

Market power held by a few large firms that dominate the market.

Economic Policy Co-ordination

The alignment of economic policies among different countries.

Market Restructuring

Changes in the structure of a market, often due to competition or regulation.

Empirical Economics

The application of statistical techniques to study economic phenomena.

Consumer Choice

The decision-making process of individuals when selecting among various options.

Efficient Allocation of Resources

Distributing resources in a manner that maximizes social welfare.

European Union

A political and economic union of member states primarily located in Europe.

Intergovernmental Conference

A conference of member states to discuss and agree upon EU treaties.

Employment Rate

The percentage of the working-age population that is employed.

Market Efficiency

A condition wherein market prices reflect all available information.

GDP Growth

The rate at which a country's gross domestic product increases.

Economic Integration Benefits

Positive outcomes resulting from combining economies through agreements or unions.