Trade & Specialisation Effectd Of The EU CU

Question 1

When did EU CU start & complete?

Answer 1

1958 completed 1968

Question 2

What does CU theory predict?

Answer 2

1. Increased trade between member countries
2. Increased specialisation in production
3. A one-off increase in output & income as resources move to more efficient used

Question 3

What effect did CU have on trade of member countries?

Answer 3

Rapid trade growth in EC 1958-72

By value, trade growth was

+15% a year between member countries
+8.5% a year with non member countries

+8.5% a year compared with world growth