EI - The European Union, Emerging Markets And The Global Context (External Influences)

Question 1

What is the European Union?

Answer 1

Is a group of 28 countries that aim collectively to improve the standard of living to their citizens.

Question 2

Define Free Trade?

Answer 2

Trade without tarries or quotas being imposed when products are traded.

Question 3

Define the Single Market?

Answer 3

A market in which there is a single (common) set of laws and regulations relating to the movement of products, people and money: all businesses in the single market have to abide by these.

Question 4

What is a Quota?

Answer 4

When a country restricts the amount of imports it allows in.

Question 5

What is a Tariff?

Answer 5

Put a tax on goods entering the country from abroad, this makes imports more expensive and domestic goods cheaper

Question 6

What are the Problems with Tariffs and Quotas ?

Answer 6

• Other countries will retaliate - which can cause a quota and tariff trade war that is damaging o businesses, these trade barriers could mean that businesses in all countries that trade abroad end up selling less).9

Question 7

What are the aims of the Single Market?

Answer 7

• Remove Trade Barriers between member states
• Labour Market Barriers removed
• Restrictions on moving money around within the EU have been abolished.
• Harmonisation (adopting a similar set) of specifications, safety standards and testing requirements for products

Question 8

Aims of the Single Market - Harmonisation is Specifications, safety standards and testing requirements.

Answer 8

• Countries has different safety standards which resulted in the duplication of jobs
• Expensive for businesses to comply with other countries specifications, some businesses didn’t even bother to trade abroad
• SINGLE SET OF RULES MAKES TRADE EASIER AND HAS OPENED UP LARGER MARKETS.

Question 9

Aims of the Single Market - Removal of Labour Market Barriers

Answer 9

Previously people might of needed a qualification gained in a specific country to be allowed to work there.
Now people with the appropriate qualifications have the right to work in any EU country, not just the one in which they are trained in.

Question 10

Aims of the Single Market - Restrictions on moving money around within the EU being removed.

Answer 10

• Encourages investment in profitable opportunities

- promotes Competition

Question 11

What do all the Aims of Single Market encourage? And what does this mean?

Answer 11

Free Trade - Free trade rings competition, which is good because it brings down prices, drives up quality and improves customer service.

Question 12

Circle of benefits of free trade.

Answer 12

• Lowering of Trade Barriers Encourages Competition
• Business Seek Cost reduction measures so they can lower prices
• Lower Prices mean more consumer spending
• Businesses develop new products and technologies, to tap into consumer spending
• Technology brings larger-scale production and lower costs

Question 13

Criticisms of EU laws and regulations.

Answer 13

• Huge burden to Businesses

- Distract Businesses by taking up a large amount of time to ensure compliance

Question 14

What are the implications of trading in the EU for a UK business?

Answer 14

• Costs of concerting exchange rates
• Selling in other countries can increase a UK Businesses stability
• Businesses operating in other countries can gain economies of scale.
• Labour Competition UK firms must fight to be efficient
• Businesses have to comply with common standards

Question 15

How have businesses benefited from the expansion of the EU?

Answer 15

• Larger market for those who export
• Opportunity to expand manufacturing into other countries
• Availability of Labour from migrants moving.