Single European Market-definition, benefits, adv and common transport policy
...of trade barriers leads to a reduction in business costs as well as increasing competition and stimulating efficiency, benefiting consumers and encouraging the creation of jobs and wealth. Further benefits of the SEM also include, for example. • The Single Market is a wider market for UK goods comprising nearly 380 million consumers and making up 40% of world trade. Such a huge market gives consumers greater choice. • Opened up the European labour market through mutual recognition of skills and qualifications. • The greater competition and liberalisation the Single Market has helped bring about has led to lower prices. Take air fares for example: cheap airlines such as Easyjet would not have been possible without the Single Market. Also airlines can now fly where they want, without national restrictions. • The Single Market provides for better consumer protection, for example the Toy Directive means that all toys sold in the EU must be safe for children. • More efficient, deeper and broader security markets enabling savings to flow more efficiently to investment. • Lower transaction costs and improved market liquidity. • More diversified and innovative financial systems. • More opportunities to pool risk. In regards to the removal of trade barriers it has had a huge effect on the ease of which business can be conducted across Europe, with a common regulatory framework and certification standards applying to all EU members. Two of the key points are: • mutual recognition of standards – Easier and quicker by reducing export bureaucracy and establishing common product and safety standards, that the British manufacturers can sell their products all over Europe without expensive re-testing in every country. • Increase economic efficiency, by allowing consumers and producers to buy items from the lowest cost source. The common transport policy creates an international intra-Union transport market free of quantitative rest...