The European Union Flashcards
What is the European Union
A political and economic union of 28 European countries
What is the single European market ?
Association of European countries trading with each other without restrictions or tariffs
What are the 6 impacts of the EU on businesses in Wales and UK ?
- Free of trade barriers
- Access to skilled workers
- Access to funding
- EU provides laws and rules to aid fairer competition across single market
- EU offers financial subsidies
- EU investment into the UK
What are 8 advantages of EU to businesses and stakeholders ?
- Free trade
- EU citizens can move freely across EU
- Able to form partnerships, joint ventures & undertake mergers
- Access to developing economies
- Able to rely on standard rules
- Benefit from subsidies and grants
- Production and distribution costs reduced
- Euro is common currency
What are 4 disadvantages of EU to businesses and stakeholders ?
- Rules add significant costs
- Still exchange rate fluctuations
- Policies distort market
- Large movement of labour from countries to UK
What is the European single currency ?
Official currency of the EU = euro
What is the eurozone ?
Economic region formed by those member countries of EU that have adopted the euro
What 3 things do eurozone countries have to maintain ?
- Stable prices
- Exchange rates
- Interest rates
What are 4 disadvantages to businesses and stakeholders of the euro ?
- Less control over interest rates
- Business cycle can differ
- External shocks affect all countries
- Difficult to make contingency plans
What are 5 advantages to businesses and stakeholders of the euro ?
- Euro = strong currency
- No costs and risks with currency fluctuations
- Access to cheaper goods and raw materials
- Interest rates stable
- Trade improvements between members
What are 6 advantages of UK businesses to being a member of EU ?
- Better export and import opportunities
- Travel costs lower
- EU funding help with social deprivation
- 10% increase in employment opportunities
- Allows comparison of goods using same currency
- Lower interest rates
What are 4 disadvantages of UK businesses to being a member of EU ?
1.Restrictions = EU rules
2. Barriers can stifle competition and cost efficiency
3. Cannot freely gain access to skilled workers
4. Membership fee each year to EU = taxation
What are 6 disadvantages of UK businesses not being a member of EU ?
- Tariffs
- Still have to abide by regulations
- Rules aimed at specifically stopping UK businesses trading with EU countries
- May not achieve same EOS
- Less access to skilled workers
- Farmers & fisherman won’t receive subsidies
What are 5 advantages of UK businesses not being a member of EU ?
- More long term sustainable benefits = not pay money to EU, funding diverted
- Control over immigration
- Free to make trade agreements with other countries
- Control over rules
- Manage own farming & fishing policies
