Final answer:
True, a Common Market allows for free movement of goods, services, labor, and capital among members and requires a common external trade policy. It is more integrated than a free trade association and can be a precursor to an economic union.
Step-by-step explanation:
True. In a Common Market, there are indeed no internal barriers to trade, which means goods, services, labor, and financial capital can move freely between member countries. This economic agreement between countries not only allows for free trade in goods and services but also supports the free movement of labor and capital and requires a common external trade policy for its members. Such integration goes beyond a free trade association, as it necessitates more harmonization of laws and policies. A common market aims to optimize economic efficiency by allowing factors of production like labor and capital to move to where they can be most productive.
An example of a common market is the European Union, which allows the free flow of goods, services, labor, and capital among its member states, while maintaining a unified trade policy when dealing with non-member countries. By contrast, an economic union is an even more integrated form of a common market, as it includes the coordination of fiscal and monetary policies among member countries.