the European Union

Question 1

what is the EU and what does it allow

Answer 1

group of 27 countries, which have become politically, economically and socially integrated

here there is free movement of goods, services, individuals and capital

all EU countries have common external tariffs and quotas with nonmember countries

Question 2

benefits of an EU membership

Answer 2

larger export market available with no tariffs or quotas, can lead to economies of scale

easier to import raw materials without tariffs or quotas

easier to gain workers from other EU countries

easier access to sources of capital from other EU members

Question 3

drawbacks of EU membership

Answer 3

social issues arising due to the freedom of foreign nationals to move to other EU countries

countries do not have complete political freedom and must follow rules laid down by the EU commission

countries must contribute taxation revenue to the EU budget which will then be redistributed across Europe

Question 4

benefits of EU expansion

Answer 4

the EU started off as 6 countries and grew

larger free trade area means firms access bigger markets and exploit economies of scale

more workers avaialble to fill positions in other countries

more soources of capital available to firms for investment

Question 5

drawbacks of EU expansion

Answer 5

migration between countries being imbalanced, with many individuals leaving poorer countries for ricker ones, creating social issues

the more countries within the EU, the harder it is to make agreements on EU rules, and the more bureaucracy there is in implimenting the rules