This PPT contains Common Marketing for International Business which also covers LEVELS OF ECONOMIC INTEGRATION, Advantages of Common Market and Disadvantages of Common Market

1. Sundar B. N.
Assistant Professor

2. LEVELS OF ECONOMIC INTEGRATION
• Free Trade Area
• Customs Union
• Common Market
• Economic union
• Political Union
• Like a customs union, the theoretically
ideal common market has no barriers to
and a common external trade policy.
• Factors of production also are allowed to
move freely between member-countries.
• Thus labor and capital are free to move, as
there are no restrictions on immigration,
emigration, or cross-border flows of capital
between member-countries.
• Hence, a much closer union is envisaged in
a common market than in a customs
union.
• The EU is currently a common market,
although its goal is full economic union.

3. Common Market

4. Common Market

5. Examples of Common Market

6. Advantages of Common Market
 Free movement of people, goods, services and capital
 Efficiency in Production – Economies of Scale
 Cheaper and variety of Products available for consumer
 Greater competitive Environment
 Less Market Distortion – Tariffs are removed
 The primary advantage to workers is that they no longer
need a visa or work permit to work in another member
country of a common market.

7. Disadvantages of Common
Market
Less competitive countries may suffer
Trade Diversion
Loss of domestic political and Economic
Sovereignty
Diminishing Social Policies (Tobacco, Alcohol)