EU

Question 1

4 types of alliance

Answer 1

Free trade area
Customs Union
Common market
Economic union

Question 2

3 benefits of EU enlargement

Answer 2

Export potential from cheaper M and new X demand
More FDI (EU more attractive market)
More diverse EU labour market

Question 3

3 disadvantages of EU enlargement

Answer 3

Extra budgetary cost on EU programmes
Pressures from inward labor migration on social services and downward pressure on WR
Capital outflows to newer members due to tax competition and lower unit labour costs

Question 4

3 benefits of EMU

Answer 4

Lower transaction costs for tourists and firms
Stable ER
Improves UK influence on decision making

Question 5

3 costs of EMU

Answer 5

No independent monetary policy (ECB raised IR 2011 during UK double-dip)
No lender of last result means more panic over government bonds
irreversible decision

Question 6

3 benefits of EU membership

Answer 6

UK pays the smallest amount as proportion of income while single market means +4-6% GDP
Free movement of FOP
GB highly dependent on exports (50%)

Question 7

3 costs of EU membership

Answer 7

EU red tape= higher costs
£18bn equivalent to £2,000 per person
Uncontrollable immigration risks depletion of public goods
No customs union tariff