A fully integrated market area with complete freedom of internal trade, as in a customs union, and free labour and capital mobility. The European Union is an example of a common market. Full mobility of labour involves the right to reside and accept employment in all member countries, and mutual recognition of professional and technical qualifications, subject to satisfying local language requirements. Full capital mobility requires lack of exchange controls, and full rights of establishment for firms in all countries.
|Reference: Oxford Press Dictonary of Economics, 5th edt.|