Lecture 4 Flashcards
1
Q
Gains of UK joining the EU in 1973
A
1) mainly trade creation within the EU
2) some external trade creation because the external tariff was cut
3) increased competition -> efficiency
2
Q
Industrial specialization
A
each country specialized in a different industry so that there are some job losses in one industry and new jobs created in other
3
Q
intra-industry trade IIT
A
country simultaneously imports and exports products of the same industry
4
Q
how did CU effect industries
A
industries became more similar
