The European Union

Question 1

Free trade area

Answer 1

Exists when no trade restrictions between members countries

Each member free to determine its own trade restrictions on trade with non member countries

Question 2

Customs union

Answer 2

Had free trade between its members and a common external tarrifs from non members

Question 3

Favours of UK EU membership

Answer 3

Tarrif free access to world’s largest economy , has attracted F.D.I from MNCs e.g Japanese car manufacturers, this was a key factor in Londons comparative advantage in financial services (macro analysis)

Uk exported £220 bn of good and services to EU each year 44% of annual total

Allowed uk workers to seek employment abroad fill skill shortages and vacancies

Question 4

Arguments against uk EU member ship

Answer 4

Protectionism increases prices

Promotes migration on basis of nationality rather than skill mean skilled non EU migrants cannot enter