1. What are the sources of significant price differentials in teh EU automobile market?
             One of the core challenges of free trade, globalization and the establishment of intra-continental unions is the inherent difficulty in facing up the inherent incongruity of the aligning markets. The European Union has served as a prime example of this, matching a widely varied set of nations in a single economic pact. The result is that in many contexts, visible distinctions remain even economic policy is set with the collective in consideration.
             In a discussion on the legislation impacting the European auto industry in recent years, it is important to recognize that there are certain core causes for the continued disparity in auto pricing owing almost entirely to the distinctions amongst member states in terms of domestic production economies. (Kirman & Schueller, 69) In contexts where high costs of production, operation and retail have persisted, so too has the price differential impacting the consumer.
             2. In a pure single market would these prices differentials exist? By what process might price differentials be eradicated?
             It is difficult to resolve that a pure single market is a feasible ambition. Suggesting that it is, it remains a difficult task to determine whether or not such core price differentials can be altered or diminished. As current legislation emerging from EU sanctioned policy-making bodies has focused on heightened regulatory oversight for safety, emissions and fuel-efficiency standards in European cars, we can see that there are certain ways in which the union will seek to effect price equalization.
             However, current conditions suggest that the gap separating some of the most developed-and therefore already most standardized producer nations-and the least developed of nations is perhaps too wide to be eliminated thusly. Myriad characteristic differences have created a circumstance, for instance, where o...