3.5: The European Union Flashcards
3.5.1: The EU (10 cards)
What is a Common Market in the context of the EU? and Define a Free Trade Area and how it differs from a Customs Union.
A Common Market allows free trade, free movement of people and capital, and applies a common external tariff to non-member countries.
A Free Trade Area allows free trade among members, but members set their own tariffs for non-members. A Customs Union includes a common external tariff.
What is the EU Single Market? and Name two key aims of the EU Single Market.
One territory without internal trade barriers, promoting free movement of goods and services among members. This is to encourage trade and competition; improve efficiency and cut prices.
What are the four main features of the Single Market?
No trade barriers, no tariffs, free movement of goods/labour/capital, common external tariff.
How does the Single Market help businesses reduce costs? and What benefit does labour mobility bring to EU members?
Through economies of scale due to increased demand across a wider market and Businesses can recruit from a larger, diverse talent pool across the EU.
Why was the UK considered a net contributor to the EU? and How might the Single Market lead to monopoly concerns?
It paid more into the EU budget than it received back, a key argument for Brexit. and Large firms can dominate the market and exploit consumers.
What are EU Regulations and how are they enforced? and Why must EU Regulations be carefully drafted?
Binding legislation enacted across all member states, overriding national laws on the same topic and they are powerful and immediate laws that impact all member nations equally.
What changed in 1993 regarding capital movement in the EU? and What institution manages the Euro and EU monetary policy?
Restrictions on currency exchange and foreign investments were lifted, enabling smoother intra-EU trade and The European Central Bank (ECB).
What is the purpose of common standards in the EU? and How do European Standards (EN) benefit international trade?
To ensure quality, safety, and compatibility of products/services across member states and they reduce costs, improve safety, and ensure product compatibility across countries and they reduce costs, improve safety, and ensure product compatibility across countries.
Name one economic drawback of EU membership for UK firms.
Higher competition from low-cost countries and increased regulation costs.
What limitation still exists in the Single Market?
Some trade barriers and immobility of labour/resources remain.
