Which of the following is correct regarding Common Market CM ........

Economic Affairs Foreign Trade - Trends and Policy

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Which of the following is correct regarding Common Market (CM)?

A market where movement of factors of production is relatively free amongst member countries.

A market where movement of factors of production is restricted amongst member countries.

A market where member countries coordinate macro-economic and exchange rate policies.

The free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members.

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Explanation:

A common market is a Group formed by countries within a geographical area to promote duty free trade and free movement of labor and capital among its members. European community (as a legal entity within the framework of European Union) is the best known example. Common markets impose common external tariff (CET) on imports from non-member countries.

There is free movement of capital and labor among the member countries.
Note: Factors of production are the inputs needed for creating a good or service, and the factors of production include land, labor, entrepreneurship, and capital.

Hence option 1st is correct.

By: Abhipedia

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Vishal bajaj

this is wrong explanation common external tarrif barrier for non members is in customs union not in common market in common market factor of production can move freely like in EU