The European Union and the single Market Flashcards
What is the EU
A POLITICAL AND ECONOMIC GROUP OF COUNTRIES (28)
What have the member countries given up and why
Given up part of their sovereignty in exchange for political business economic and monetary membership of the worlds largest free trade are
What does loss of sovereignty mean
EU sets laws and regulations that control part of the business activity, economic policies and trade
What is the aim of the single market in Europe and when was it set up
Set up in 1 January 1993
Aims to make the whole of Europe the home market of all business operating within the EU
Why is this single market not yet complete
1 there are plans to create an internal market for energy and a single digital market
2 there. Is protection of industries for political and economic reasons
3 there are problems with the harmonisation of standards - problems bringing together the different standards across Europe
4 cost implications of meeting the standards
What are the main features of a single market
1 no barriers to trade between membe states -so no quotas on imports and exports
2 no tariffs on goods traded in the single market
3 free transfer of resources from one country to another including labour
4 consistent standards from one country to another
5 common external tariff on imports to EU
What are the advantages of a single market for business
1 increase levels of demand results from access to larger market place
2 lower costs through increased economies of scale
3 free capital markets - business can access the best finance and capital raising deal in Europe
4 greater employer access to labour markets
5 growing wealth in poorer parts of the single market could drive future demand
6 single market legislation has deregulate markets increasing opportunities for competitive businesses to enter these markets
What are the advantages for consumers and workers of the single market
1 increased wealth and trade and competition- lower prices mean higher income and increased economic activity
2 increased consumer choice
3 greater employment opportunities
4 EU competition law has increased choice and forced down prices
What are the impacts of membership on the UK
1 Most Asian countries have based product facilities in UK in order to gain free access to rest of EU
2 London was the leading financial centres in Europe
3 large subsidies for certain crops led to the growth in agro industry
4 deregulation of airline industry led to expansion of low cost airline
5 UK exports to EU increased
6 smaller UK businesses lost out to European competitors
What is the European monetary union EMU
The establishment of fixed exchange rates between member countries and the introduction of a single monetary policy
It is known as the euro began jan 1st 1999
What were countries who adopted the euro known as
Eurozone
The uk did not join the eurozone what disadvantages did this create
1 every time a UK business changed a £ into a euro it had to pay commission to a bank - competitors did not have this additional cost
2 when exchange rates fluctuated there is always an element of risk for a business
What was the main reason for UK keeping the £
So the bank of inland could continue to set interest rates for UK economy so they could control economic growth and inflation
What id the impact of UK businesses not being a member of Eu
1 single market offers opportunities it reduces costs and makes it simpler to export but increasing regulations are pushing up costs
2 growth of cross border trade and removal of customs has created opportunities for logistic companies to expand
3
What were the arguements for IN
1 Britain avoids export tariffs and red tape
2 Britain can obtain better trade terms
3 most eu regulations are combined in 1 standard reducing red tape and benefiting businesses
4 leave doesn’t means reduce immigration
5 at international summits. Britain is represented twice by foreign secretary and EU representative
