the EU Flashcards
The EU
What is the European Union
This is a politcal and economic grouping. In where the countries have given up their sovereignty in exchange for political, business, economic and monetary membership of the worlds largest free trade area
The EU
What is the single market
This is a type of trade bloc which in the addition of removal of trade barriers will have some other common policies such as product regulation. Was created to help make the lives of European citizens and businesses easier
The EU
Main features of the single market
- No barriers to trade
- No tariffs
- Free transfer of resources
- Consistent standards
- Common external tariff
The EU
Benefits of the single market for businesses
- Increased levels of demand
- Lower costs
- Freeing of capital markets
- Greater employer access
- Growing wealth in poorer parts
The EU
Benefits of single market for consumers and workers
- Increased wealth as trade and competition increases
- Increased consumer choice
- Greater employment oppurtunities
The EU
Why are there still barriers to trade in the single market
- Protection of industries
- Problems with harmonisation of standrads
- Cost implications
The EU
Drawbacks of the single market for businesses
- Increased competition
- Cultural and language barriers
- Inflexibilty
- Potential trade imbalances
The EU
Drawbacks of the single market for consumers and workers
- Price varience across countries
- Quality differences
- Cross border shopping challenges
- Job insecurity
- Explotation of migrant workers
- Social and cultural tensions
Single Currency and the Eurozone
What is the Economic and Monetary Union (EMU)
This is an extension of the EU as a customs union and single European market with the aim to expand and intergrate monetary and fiscal policies
Single Currency and the Eurozone
Single Currency and the Eurozone
What are the three core elements of the EMU
- Single currency- The Euro
- An independent central bank - The ECB
- The stbaility and growth pact
Single Currency and the Eurozone
Arguements for joining the Eurozone
- Lower transcation costs- No need to exchange money when dealing with EU countries
- Certainty around exchange rate fluctuations
- Price transparency - Being able to compare prices will be easier for consumer
- Trade creation-EU businesses would be more likely to trade wit UK businesses
- Competiton- Help reduce prices and promte efficency
- Trade diversion- Other businesses would be less likely to trade with UK due to transaction costs and exchange rate fluctuations
Single Currency and the Eurozone
Defintion of the Eurozone
This is a collective group of countries in the EU that use the Euro as their sole currrency
Arguements for and against Brexit
Agruements for Brexit
- Britain avoids exporter trariffs and red tape
- They pay less per year for operating in the single market
- There would be better regulation within Britain
Arguements for and against Brexit
Arguements against Brexit
- Britain will negotitate a new EU relationship without being bound by EU law and also secure deals with other countries
- Can stop sending £350M per year to brussels. Half of England schools budget
- Return control over areas like employment law and health and safety
Arguements for and against Brexi
Positive impacts of not being in the EU
- The goverment would not need to pay for EU membership which could mean that the saved tax is spent increasing investment in domestic market
- Exiting the EU can lead to increased control imports. As protectionist policies may be put in place this could increase demand for UK goods within the UK
- Stricter border controls imposed and immigration may be reduced. This could limit pressure on public services such as the NHS
- The UK could agree to trade deals with other countries
Arguements for and against Brexit
Negative impacts of leaving the EU
- UK exporters would still need to comply with EU regulations in order to export goods to ther EU trading bloc
- Quotas in imported EU products may lead to a reduction in choice for consumers
- Tarrifs could lead to increased prices for conusmers.
