LAW

European Union as a Single Market

Introduction

Single markets are considered to be a specific type of trade bloc that comprise of a free trade area characterized by common policies on freedom of movement and product regulation. It has specific policies for the factors of production consisting of capital and labour as well as services and enterprise. The particular goal associated with single market is to ensure that the movement of movement of land, labor, capital and organization is as smooth as possible. The smooth flow of these factors of production can only be guaranteed with the implementation of appropriate policies regarding the single markets. Potent barriers in the case of single markets such as technical standards, physical borders and fiscal taxes need to be countered in an effective manner.

Discussion

These barriers pose a huge hindrance to the effective movement of the factors of production and thus the single markets strive all their efforts in removing these obstacles. The movement of factors of production is quite essential for the whole manufacturing processes and thus with a flawed movement of factors of production, business performance would be hampered to a great extent. The barriers constraining the movement of factors of production would place the businesses in a highly risky situation and thus organizations must be able to devise a policy framework for addressing these obstacles (Badinger, 2007, pp. 497-519).

Each single market is supposed to carry some distinct benefits. With the movement of factors of production allowed to be carried out in a free manner, the factors of production would be well equipped to perform more efficiently in augmenting the business success. With a free movement of factors of production, the assigned factors of production would be able to rise above the barriers and their allocation would be done in a judicious manner with the productivity in organizations rising to massive levels. The end goal for all organizations is to enhance their productivity and thus the factors of production play a prominent role in ensuring that the productivity rises. In the case of businesses both in consumers and market, single markets have been known to operate in a highly competitive environment. Thus, the existence of monopolies is quite minimal. In such a situation, inefficient companies are prone to suffer a declined level of market share and thus in some cases have to shut down (Dinan, 2006, p.54).

The Three Freedoms

Free Movement of Goods

The free movement of goods as already discussed above is one of the foremost freedoms of the EU single market. From January 1993, there has been a comprehensive elimination of the controls hampering free movement of goods. For instance the different by laws and custom s duties and taxes have been abolished in order to encourage the role of free movement of goods. Thus, the European Union is now considered as a single territory with the absence of internal frontiers. Such a position achieved by EU has only been possible with the elimination of the various controls pertaining ...