C3 EU Flashcards
(11 cards)
1
Q
Define the EU
A
European Union - formed in 1993
Single European market
2
Q
Outline what the EU offers to members
A
- Free trade for goods, services, labour, etc
- Common external tariff on outside imports
- Common policies on industrial social affairs
- A single European currency
3
Q
Outline the features of a main single market
A
- No trade barriers
- No tariffs
- Free resource transfer
4
Q
Outline the pros of the single market for businesses
A
- Increased demand level
- Lower cost
- Deregulated markets
5
Q
Outline the pros of the single market for consumers & workers
A
- Increased wealth from higher trade
- Increased consumer choice
- Greater employment opportunities
6
Q
Cons of the EU expansion to UK businesses
A
- Higher competition
- UK’s agriculture industry at risk of cheap imports
- Jobs may be lost
7
Q
Outline 3 arguments for UK in Brexit
A
- Britain avoids exporter tariffs & red tape - 45% of British exports go to EU
- Countries outside of EU have higher immigration rates
- Britain can be represented twice at international summits
8
Q
Outline 3 arguments against the UK in Brexit
A
- Leaving -> better control in health & safety + employment law = better 4 businesses
- Can secure deals with important countries (e.g China, USA, etc)
- Stronger influence in free trade - can retake seats on international institutions out of EU
9
Q
Define the Eurozone
A
Countries in the EU that adopt the Euro as their currency
10
Q
Outline 3 implications for UK businesses not being in the Eurozone
A
- Harder for trade with EU as currency is exchanged + exchange rates fluctuate
- EU businesses may deal with UK businesses less due to exchange rates
- UK interest rates set by Bank of England not by European Central Bank they reflect UK’s economy not EU
11
Q
Outline 3 implications for UK businesses being in the Eurozone
A
- No need to exchange money
- Estimated cost of £36bn to change from £ to €
- More competition as price transparency in the EU
