Single Market Flashcards
Example of Red Bull
Red bull original recipe was banned in France for 12 years after French authorities argued that taurine was harmful.
What is geo blocking?
European citizens normally face barriers when they use online services and tools
Online market in the EU
online market remains largely domestic with only 15% of citizen shop online from another EU country
Advantage of the Single Market
• Removing trade barrier
abolishing trade barrier and physical customs controls because access to the single market requires acceptance of all four freedoms
Positive impact of abolished trade barrier
increased opportunities in employment and educational opportunities across the continent, couple with greatly enhanced tourism, due to the free movement of people
What is the UK’s trading record with the EU?
at least 44% of Britain’s exports go to the EU
What is the effect of a common regulatory framework?
A common regulatory framework serves to prevent company from gaining a competitive advantage by working to looser regulations.
What is the common regulatory designed for?
reduce trade costs and open up more markets
Effects of the Single Market
• Increased competition
Increased competition due to the free market in goods, which has reduced costs but also led to loss of jobs, often in regions that already suffer high unemployment
Effects of the Single Market
• Increased opportunities
Increased opportunities in employment and educational opportunities across the continent, couple with greatly enhanced tourism, due to the free movement of people
Effects of the Single Market
• Increase in migration
A substantial increase in migration from poorer EU countries to wealthier ones, for example, from Eastern Europe to the UK following EU expansion in 2005
Effects of the Single Market
• Vulnerable to economic crisis
The single market, and in particular the Euro, could be seen as making the EU more vulnerable to the Global Economic crisis by binding it more closer together, leading to a ‘domino effect’ if one economy fails
Effects of the free movement of people
The free movement of people has greatly enhanced tourism and opened new employment and educational opportunities across the continent
Success of the Single Market
• Standardise protducts
The free market has standardise products and regulation making it easier for consumers to be protected and to access wider range of products
Success of the Single Market
• More accessible
The free movement of financial services has made those services more accessible to a greater proportion of the population and cheaper
Failures of the Single Market
• Migration
It has led to substantial migration from poorer EU countries to wealthier ones, leading to tensions
Failures of the Single Market
• Loss of jobs
By emphasising competition it has led to the loss of jobs from those who could not adapt quickly enough, often in regions that already suffer high unemployment
Failures of the Single Market
• National identity
Standardisation has been at expense of national identity and sovereignty, for example the compulsory use of the metric system
Failures of the Single Market
• Out of date
Regulation has not kept pace with developments leading to an ‘excess of capitalism’
What are financial passports?
These allow any company operating within the single market to trade across the EU without the need for separate licences.
What is the custom union?
all the countries involved have agreed to apply the same tariffs on goods coming from elsewhere in the world.
Example of being in the custom union
Goods can be shipped around the union without further tariffs being imposed.
Disadvantage of free movement of people
The UK pays more than £670m to EU countries for Britons’ healthcare abroad, while claiming less than £50m from the EU
Advantage of the single market
• talent
The single market has the advantage to fill jobs vacancies in many EU countries and gives employers a wider talent pool
Advantage of the single market
• University-educated migrant
Britain attracts the highest number of university-educated migrants of any country in the EU to work in the financial, technology and media industry.
Disadvantage of the single market
• Double standards
The EU has about 800 categories of regulated professions but only 7 have automatic recognition across the EU, such as doctors, meaning services are suffering from a double standards
Advantage of the single market
• Aviation
The single market allows any EU airline to operate from and between any countries of the EU
Impact of the single market on airfares
the Single market brought about the emergency of many airlines, which increased competition, pushing fares down.
How much have air fare fallen due to the single market
Airfares have fallen by about 40%
Fact of service sector export
Two-fifths of service sector exports go to the UK, whereas the Bric countries only account for less than 5% together.
