external influences - the European Union

Question 1

what is the European Union?

Answer 1

the economic and political union of most European states aimed at reducing trade barriers and harmonising economic policy

Question 2

what are some of the things members have to do?

Answer 2

• pay membership fees
• follow regulations for members
• freedom of movement is allowed

Question 3

what is the benefit of the single market?

Answer 3

free movement of goods, services and capital

Question 4

what is free trade?

Answer 4

involves agreement between countries to trade with each other without erecting barriers to trade (tariffs and quotas)

Question 5

what is a tariff?

Answer 5

a duty (tax) paid on imports

Question 6

what is a quota?

Answer 6

a limit on the total quantity of a product that can be supplied to a market

Question 7

what are the 3 arguments for the UK remaining out of the EU?

Answer 7

• encourages domestic trade (avoids paperwork and checks)
• don’t have to follow EU laws
• free to negotiate trade deals with other countries

Question 8

what are the impacts of paper work and checks on UK importers?

Answer 8

• goods may not stay fresh
• costs rise
• delays in receiving products

Question 9

what are the impacts of paper work and checks on UK exporters?

Answer 9

• costs are higher (paperwork)
• demand lower due to delays and increased prices
• may need to implement strategies to cope (cut down on products or relocating to EU)

Question 10

what are the arguments for the UK rejoining the EU?

Answer 10

• no tariffs on imports/services
• less delays on imports –> no border checks
• increased demand for export of services –> no tariffs
• less time preparing exports of physical goods –> no paperwork
• more candidates for jobs to fix worker shortages