Difference between a customs union, single market and monetary union?

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musicangel
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I have read lots of articles but am still really confused by the difference between a customs union, single market and monetary union.
Any help would be really appreciated
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MadasserM
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(Original post by musicangel)
I have read lots of articles but am still really confused by the difference between a customs union, single market and monetary union.
Any help would be really appreciated
Customs union=Free trade in goods and services but a common external tarrif on goods coming from outside the bloc

Single market= Free trade in goods, services, free movement of labour and capital but there is still a common external tarrif

Monetary union= A group of countries that share the same country eg the eurozone
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nulli tertius
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(Original post by musicangel)
I have read lots of articles but am still really confused by the difference between a customs union, single market and monetary union.
Any help would be really appreciated
First of all politicians are currently distorting the meaning of these terms for political purposes. Accordingly, what a particular politician means by it may not be what the next politician means by it and neither may agree with any textbook definition.

A monetary union is where two or more countries with separate governments and economic policies share the same currency by agreement. Switzerland and Lichtenstein have a monetary union.

A customs union is where two or more countries have the same tariffs on imports and sometimes exports and there are no tariffs for goods moving between countries in the the union.

A single market is like a customs union but wider. Whilst a customs union only concerns tariffs, in a single market goods that meet one countries rules for being sold can be automatically sold in every other country in the market. In some cases the rules are made the same, but in others it is accepted that every country's rules are good enough even though they are different.
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Realitysreflexx
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Not even sure the politicians know lol
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musicangel
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(Original post by MadasserM)
Customs union=Free trade in goods and services but a common external tarrif on goods coming from outside the bloc

Single market= Free trade in goods, services, free movement of labour and capital but there is still a common external tarrif

Monetary union= A group of countries that share the same country eg the eurozone
(Original post by nulli tertius)
First of all politicians are currently distorting the meaning of these terms for political purposes. Accordingly, what a particular politician means by it may not be what the next politician means by it and neither may agree with any textbook definition.

A monetary union is where two or more countries with separate governments and economic policies share the same currency by agreement. Switzerland and Lichtenstein have a monetary union.

A customs union is where two or more countries have the same tariffs on imports and sometimes exports and there are no tariffs for goods moving between countries in the the union.

A single market is like a customs union but wider. Whilst a customs union only concerns tariffs, in a single market goods that meet one countries rules for being sold can be automatically sold in every other country in the market. In some cases the rules are made the same, but in others it is accepted that every country's rules are good enough even though they are different.
Thank you - so does that mean that in a monetary union, they also have the free movement of labour etc and that they try to have the same fiscal and monetary policy?
And is the only difference between a customs union and a single market is that the latter has the free movement of labour and capital?
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nulli tertius
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(Original post by musicangel)
Thank you - so does that mean that in a monetary union, they also have the free movement of labour etc and that they try to have the same fiscal and monetary policy?
Not necessarily as regards labour and fiscal policies (Lichtenstein and Swiss tax rates are very different).

And is the only difference between a customs union and a single market is that the latter has the free movement of labour and capital?[/QUOTE]

No. Free movement of labour is not necessary to a single market in goods and services. What is necessary is mutual recognition of regulatory standards.
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