Week 17 Flashcards
1
Q
European Union definition
A
an economic and political union of 28 countries within the geographical boundaries of Europe
2
Q
what are the 4 main objectives of the European union
A
- establish European citizenship
- ensure freedom, justice and security
- promote economic and social progress
- Assert Europe’s role in the world
3
Q
3 benefits of EU membership
A
> Trade creation i.e exploiting comparative advantage
–> exploit economies of scale, much lower AVC
—-> enhance competition
4
Q
4 Negatives of EU membership
A
- membership cost (£7.6 billion)
- inefficient policies
- Migration (pressure on housing)
- countries lose a lot more control over their own policies
5
Q
Evaluation for negatives of EU membership
A
- Cost of EU is negligibly small
- Job opportunities
- coordinated policy action, better for all countries to act together than separate
6
Q
3 reasons why the UK should leave the EU
A
- reduction in costs (annual memebership fee)
- Reclaim border controls (stricter policy on migration)
- Lack of democracy (Don’t have strong powers for change)
7
Q
4 reasons the UK should not leave the EU
A
- loss of jobs (migration works both ways)
- Reduction in trade power (exploit less the pathways that comparative advantage was used)
- increase in crime rates
- lose significance on the world stage
8
Q
why does the UK not adopt the single currency
A
- loss of national monetary policy
- loss of economic sovereignty (very constrained when trying to use other policies like fiscal)
- its messy, complicated, complex and unclear exit path
9
Q
World Trade Organisation definition (WTO)
A
the only global international organisation dealing with the rules of trade between nations
10
Q
What 6 things does theWorld Trade Organisation (WTO) do
A
- administer trade agreements
- facilitate negotiations
- handle disputes
- monitor activity
- technical support
- collaborate with other organisations
