EU Membership

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  • Created by: maisiegul
  • Created on: 18-04-16 21:08

EU Membership

Advantages

  • Free Trade- Within the EU, there are no tariffs between countries this encourages more international trade
  • Free Movement of Labour- Workers can move to where wages are highest
  • Larger Markets- Due to encouraged international trade, they create a good trade relationship and this increased production for a larger market
  • Higher Incomes- Larger markets means there are more productivity and consumers to sell to therefore increasing incomes

Disadvantages

  • Common Agricultural Policy- EU farmers are guaranteed a fixed price. UK is quite efficient so they lose out
  • EU Product Standards- UK has to pay a lot of money to meet EU regulation
  • Influx of People- Due to relaxed borders, there could be an influx of people which could lead to the strain on public services
  • Loss of Businesses- Businesses move abroad if operating costs are lower

Evaluation

I think the advantages of EU membership out weights the disadvantages because a trade relationship is very important for the UK in order to achieve the government objective of balance of payments. It is also very important for economic growth as higher productive means higher incomes which leads to increased government revenue.

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