external influences - the European Union Flashcards
what is the European Union?
the economic and political union of most European states aimed at reducing trade barriers and harmonising economic policy
what are some of the things members have to do?
- pay membership fees
- follow regulations for members
- freedom of movement is allowed
what is the benefit of the single market?
free movement of goods, services and capital
what is free trade?
involves agreement between countries to trade with each other without erecting barriers to trade (tariffs and quotas)
what is a tariff?
a duty (tax) paid on imports
what is a quota?
a limit on the total quantity of a product that can be supplied to a market
what are the 3 arguments for the UK remaining out of the EU?
- encourages domestic trade (avoids paperwork and checks)
- don’t have to follow EU laws
- free to negotiate trade deals with other countries
what are the impacts of paper work and checks on UK importers?
- goods may not stay fresh
- costs rise
- delays in receiving products
what are the impacts of paper work and checks on UK exporters?
- 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)
what are the arguments for the UK rejoining the EU?
- 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