GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a common tax system and monetary union
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prohibition of restrictions on factor movements
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a common tariff levied in imports from non-members
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elimination of trade restrictions among member countries
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Detailed explanation-1: -The correct answer is b. a common tax system and monetary union. While a monetary union can be a form of common market, it only becomes one if the members decide to use the same currency.
Detailed explanation-2: -The European community is an example of a common market organized for countries or members of the European Union. Common markets are established to create free trade areas among its members, in this market exchange of capital, goods and services can be done with less barriers to trade.
Detailed explanation-3: -A Common Market is an agreement between two or more countries removing all trade barriers between themselves, establishing common tariff and non-tariff barriers for importers, and also allowing for the free movement of labour, capital and services between themselves.