• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

International Economics

Extracts from this document...

Introduction

International Economics Assessment 2 Europe Samantha Cochrane In joining the European Union, the United Kingdom has been affected in many different ways. We have had the advantages and the disadvantages, the benefits and the costs. Advantages to the EU cover many fields; there is greater specialisation and economies of scale, for example the more efficient a firm is in producing their product then the bigger the scale of production leading to higher capital for them and also leading to lower costs. There would be more competition involved as the removal of trade barriers leads to more countries being involved leading to greater ideas and more innovation. Trade between member states becomes quicker and cheaper as the EU is a customs union - a single market. No tax tariffs will be imposed due to this and so this is another benefit of being part of the EU. This leads to cheaper prices for the consumers of all the imported products. Consumers will also benefit from food heath and safety standards as all goods that are produced in the European Union must now carry, "Best Before" dates, price indicators and a list of ingredients, colourings and additives that they contain. ...read more.

Middle

It is common knowledge that the pound is stronger than the euro, this comes from the UK outperforming other competitive countries and substantially becoming more competitive. Interest rates were also higher in the UK and so more money flowed into the UK economy. However the government were able to use certain polices to get into this possible economic situation and the Bank of England was able to adjust interest rates in order to control inflation. Nevertheless if the UK chooses to join the Euro then both exchange rate policy and many other polices and interest rates will be in control of the European Bank and I feel that this could lead to certain problems arising. For example, there are many different countries in the EU and each country has its own economy, thus, there are many different economies within the EU. At any time one economy may be booming whilst another may not e.g. Germany may be in a boom while France is in a recession, however within France there may be areas if boom and areas of recession, for example Paris may be in a boom while St Etienne may be in a recession leading to rich and poor regions. ...read more.

Conclusion

As lower inflation rates are common within the EU the Bank of England may decrease the interest rates on short term loans in order to generate investment which in turn would make it cheaper for firms to take out loans. This way firms would benefit financially if they were planning to take out loans to increase their firms and homeowners would benefit from cheaper mortgages. Multi national companies may be more willing to invest in building firms in the UK as before they have been wary due to the fact that the value of services and goods they provide may decrease due to the fluctuation rates between the pound and the euro, if the UK was part of the euro then these problems would vanish and therefore the UK may benefit from more jobs and more business. The removal of the two currency's may encourage more investment as the investors would no longer have the traditional worry about moving their money into a currency other than their own as the currency would be exactly the same. Overall there would be a more efficient and streamlined business across the euro zones. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level European Union section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level European Union essays

  1. A clear explanation of key underpinning economic theories relevant to the EU.

    *Dolomitic Latin, spoken in Spain *Friulian Dcao-Romance includes, *Romanian Baltic, several languages spoken in this category. North Germanic *Icelandic *Faroese *Norwegian *Swedish, spoken in Sweden *Danish, spoken in Denmark and some areas of Netherlands West Germanic includes, *English, spoken in England, Ireland, and various EU states as most common language

  2. The Euro.

    These conversion rates will be calculated on 31 December 1998 and irrevocably fixed by a European Commission Regulation which will come into effect on 1 January 1999. The conversion rates must be expressed to six significant figures (which should not be confused with decimal places).

  1. The EU automotive industry currently faces a number of issues. It lags behind the ...

    This was due to the government controlling resources and the lack of foreign investment. There is therefore a large willing labour pool that are flexible in terms of working hours, which companies are able to exploit. Most employees are willing to work 40-42 hours per week and there are quite often a lot fewer holidays available.

  2. The question of whether Britain should gravitate toward adopting the euro is indeed an ...

    367 June 14-20, 2003 p. 13). It will make it easier to travel and do business across Europe, but it also throws up broader questions of convenience and expense to Britain. As was the case in Germany: "Shopkeepers carry the biggest burden in that they will in effect find themselves converted into the unofficial moneychangers of Britain.

  1. The Euro

    France, Germany, Italy, Belgium, Netherlands and Luxembourg signed it. The process of establishing the Euro got its real start in 1989 when Jacques Delors, president of the European Commission published the Delors Report. This important report outlined a Three-Stage Transition Plan that would create a single European currency. CHANGEOVER PLANNING As outlined in the Delors Report, the transition to

  2. Can the euro challenge the dollar as the world's international currency?

    one of the official objectives of what is then called the European Economic Community. 1970 Prime Minister of Luxembourg, Pierre Werner, presents plan to achieve EMU within 10 years. Plan is largely abandoned in the economic disruption which followed the quadrupling of oil prices by OPEC in 1973-74.

  1. Should Britain join the Euro? A report into the pro's and cons.

    disadvantages to the UK of joining the Euro, therefore it is important to assess whether the benefits of such a project outweigh the foreseeable risks. The argument for a single currency "The single currency is merely the next logical step in the development of a truly single market which will

  2. European Single Currency.

    a French person in France cannot buy a Vodafone mobile phone, because it would not operate in his country) Primary Research For primary research I did things such as: * I emailed many letters to people including the 'UK office of the European Commission' (see letter on appendix)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work