CFA Level I · CFA Level I Exam · International Trade
Compared with a customs union, a common market most likely also features:
A common market most likely adds free movement of labor and capital among members on top of a customs union. A common currency with a single central bank, or harmonized fiscal policy, belongs to deeper stages such as economic and monetary union.
- Aa common currency and a single central bank
- Bfree movement of labor and capital among membersCorrect
- Ccoordinated fiscal policy and common tax rates
Explanation
A common market builds on a customs union by allowing free movement of factors of production such as labor and capital. A common currency and central bank belong to an economic and monetary union, which is a further stage of integration.
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