312 The European Union Flashcards
what are 5 impacts of Brexit?
trade barriers - custom checks, tariffs more complex.
investment - more risky causing slower economic growth.
labour market - less availability of workers as it’s harder to get work permit (labour shortages)
regulations - have to comply with UK and EU standards increasing costs and time.
disrupted supply chains.
what is the eurozone?
the group of EU countries that have adopted the euro as their official currency and share a common monetary policy controlled by european central bank.
benefits of eurozone/single market?
elimination of exchange rate costs.
price transparency - customers can easily compare prices, encouraging competition.
stronger economic integration - can further increase trade and investment opportunities with other eurozone countries due to stability of having shared currency.
limitations of eurozone?
loss of monetary policy control - ECB may not suit UK economy/
one size fits all currency issues - economic downturns (like 2008 financial crisis) impact eurozone countries differently showing risks of shared currency.
transition costs - UK businesses/consumers would have faced costs
4 key features of the EU?
free movement of goods
free movement of labour
free movement of capital
common regulations and standards
what is the free movement of goods?
no tariffs, quotas, protectionism or barriers to trade.
what is the free movement of labour?
any citizen can work in another without restriction.
what is the free movement of capital?
money can move freely between states.
what is common regulations/standards?
EU takes priority over individual country laws.
2 positive impacts of the free movement of goods?
market development.
customers have more choice.
2 positives of free movement of labour?
businesses have bigger labour pool.
skilled workers have more opportunities.
2 positives of free movement of capital?
bigger pool of investment.
customers get more competitive interest rates.
2 positives of common regulations and standards
less suspicious business activity
greater consumer protection.
what are some drawbacks of being in the EU?
increased competition.
stricter laws.
harder to trade with countries outside of the EU due to fixed tariffs.
different cultures within EU may have different tastes.
loss of domestic options.
what are some drawbacks for a business of the UK leaving the EU?
more complex exports due to legislations
limited market development opportunities
loss of free movement of labour limiting skilled workers a UK based firm could hire
don’t benefit from price transparency.
what are some benefits to a business of leaving the EU?
more control over fiscal policy.
more opportunities to secure trade deals with other countries
less competition.
may get more gov subsidies which aren’t allowed under EU regulations.
what is the aim of the EU placing tariffs on goods entering any member’s country?
favour EU produced goods and services to make them more price competitive so demand s higher and there is more jobs and improved living standards.
