The EU

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How many consumers are their in the EU?
450 million
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How many consumers are their in the UK?
61 million
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How much of the worlds trade does the EU account for?
20%
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What are limitations of the EU on the economy?
More people taking from the economy, more demand for NHS, More school funding and pensions
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What are benefits of the EU on the economy?
More workers to earn money, More people to buy products in countries to put money into the economy, More money flowing, Jobs created, More taxes being paid, Multiplier effect
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What are the limitations of the EU to citizens and workers?
Less jobs in low skilled work, More crowded work places, Workers may be made redundant bcos domination of foreign multinationals
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What are benefits of the EU to citizens and workers?
More jobs available, More products to buy, More markets opened, prices would be reduced bcos no tarrifs, Should result in incomes rising and better living
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What are limitations of the EU to a business?
More competition(especially in cars), May lose profit and have to lay off workers and Small businesses may lose out because more foreign multinationals
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What are benefits of the EU to a business?
Get more workers/employees, More consumers, No trade tarrifs, expand to wider markets of 450 mil consumers, Lowered wage rate bcos increase in low skilled workers
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What have Greece been forced to do?
Cutting jobs in sector jobs (services), Cutting public sector pay, Increasing the retirement age, reducing pension payments
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What happened to Greece in their debt crisis?
They owe $300bn to foreign creditors, the EU will not allow currency to fall to help them, they're being forced to use deflationary fiscal policy.
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What is meant by the term free trade?
International trade left to it natural course without protectionism
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Why would a Japanese firm such as Toyota want to build a factory at Derby in the UK?
It cuts costs because they do not have restrictions to trade to other countries in the EU
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What did the Treaty of Rome do?
Got: Free movement of workers, Freedom to provide services, Free competitive policy
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What is the Single European Market?
A legal framework set up in 1993 that defined the Single Market as an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured
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Who are the biggest countries in the Single market?
Germany, France, Italy and the Britain
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Who are the UKs main trading partners?
Germany and France
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How can countries outside the EU access the Single Market?
Set up a manufacturing base in the UK to gain entry
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What did the Maastricht treaty create movement on?
Economic and Monetary Policy and Politcal union icluding common foreign and security policy
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What were the objectives of the Maastricht treaty?
Introduction of European Citizenship, creation of an area without internal frontiers, creation of single currency and got free borders
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What did the UK reject?
No single currency or free borders
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What was the monetary union?
Creation of single currency
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What did the monetary policy create?
One currency, One central bank and One single exchange rate
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Why was the Social Chapter drawn up?
Protecting workers rights
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What were the main points of the Social Chapter?
The right to: Join a trade union, take industrial action, minimum wage, maximum working week of 48hrs, minimum 4 weeks paid hol each year, equal treatment of men and women
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What were the main points of the Social Chapter?
The right to: Join a trade union, take industrial action, minimum wage, maximum working week of 48hrs, minimum 4 weeks paid hol each year, equal treatment of men and women
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What is the Common Agriculture Policy (CAP)?
All farmers get money from the EU and increase costs of food in supermarkets
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What are import levies?(CAP)
Prices added to specific goods imported into the EU, they are set to a level to raise the world market price to the EU target price
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Why is an intervention price set?(CAP)
If the internal market price falls below the intervention level, the EU will buy up goods to raise the price to the intervention level.
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Why is this bad for some countries?
Lesser developed countries rely on agriculture exports to developed countries for revenue. They have a comparative advantage in this area but external tariff prevents this
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What is the Regional Fund of the EU?
Where the EU put money in to a grant and then money is given to the poorer areas
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Why doesn't Britain receive money anymore?
Poor countries such as Poland have joined so they're getting more money
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What are reasons against the euro?
The UK don't have control over inflation and interest rates(Greece crisis), If Germany and France are booming and UK is in recession and the Central bank increase the interest rates it could be detrimental.
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What are reasons supporting the euro?
Toyota pledge only to expand if they join the euro, no exchange rates so no transaction, Attract more multi nationals,
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Card 2

Front

How many consumers are their in the UK?

Back

61 million

Card 3

Front

How much of the worlds trade does the EU account for?

Back

Preview of the front of card 3

Card 4

Front

What are limitations of the EU on the economy?

Back

Preview of the front of card 4

Card 5

Front

What are benefits of the EU on the economy?

Back

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