Internal Market Theory

Question 1

Internal market definition article

Answer 1

Art 2(6) TFEU 
An area without internal frontiers

Question 2

What is the internal market based on (2)

Answer 2

Principles of free trade

Allows countries to specialise and gain benefits under theory or comparative advantage

Question 3

Theory of comparative advantage (2)

Answer 3

States specialise in things they produce bests

More resources produced overall

Question 4

Benefits of free trade (3)

Answer 4

Business benefits of specialisation
Competition
Political benefits

Question 5

Political and social demands may lead to… (2)

Answer 5

Protectionism

State seeks to protect national goods / labour instead of importing

Question 6

State seeks to protect national goods/ labour instead of importing by…(3)

Answer 6

Support national industry
Promote social/ environmental aims
Political concerns/ national pride

Question 7

In order to ensure a free trade are… (2)

Answer 7

Positive action is needed to remove protective barriers

EU does this through harmonisation