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

The Common Agricultural Policy (CAP)

Extracts from this document...

Introduction

The Common Agricultural Policy (CAP) 1. a. EU producer prices, between 1979 and 1982 fluctuated steadily, where it peaked at a price index of 160 in 1979 and slumped to 145 in 1980. Since 1983, where it peaked at 155, the price index has been steadily decreasing and still was in 1991 where the price index reached 105. World prices have fluctuated over the 13-year period. In 1979, the index price was 100, and 3 years later, it peaked at 115. Since then, it has gradually decreasing and in 1987, it slumped to under 60. ...read more.

Middle

There was also a high intervention price. A minimum fixed price that farmers had to sell their products at. b. c. Some countries, outside the EC may have suffered from the CAP because agriculture may have been a part of their economy. With the CAP in place it drove out competition from outside and hence, a big part of economic growth is lost. The countries unemployment levels will raise as well because all farmers are know out of work. Some countries may have also benefited from the CAP, as they would not know have to pay tax on their agricultural production. ...read more.

Conclusion

In addition, an intervention price will be introduced, the intervention price is similar to that of the target price, but is a price which the CAP would be ready to come into the market and buy any surpluses in production by producers. If this intervention price was above the equilibrium price (the point where demand equals supply) then it will encourage an increase in European production. However, the target price is very high, which therefore, does not fulfil one of the objectives set out by the CAP. The objective states that consumer prices are maintained at a reasonable price, the target price set is no reasonable and therefore a large amount of consumers' income is spent on these goods and services. Created by Shan Visram Europe Module 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics 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 GCSE Economy & Economics essays

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    One last striking difference between the studies is the fact that Moerman (2003) states that the gain in the importance of industry asset allocation strategies are due to the integration process within the European Monetary Union, without giving further evidence for this claim.

  2. Supply side policy.

    The same effect can also be illustrated by an outward shift in an economy's production possibility frontier. Trade Union Reforms Some of the legal protections enjoyed by the trade unions have been taken away - including restrictions on their ability to take industrial action and enter into restrictive practices agreements with employers.

  1. This report will establish the opportunities and threats presented to Sony by the EU ...

    Due to this, Sony can easily promote products because the EU is like one country with many markets and accessibility is far greater within these countries. As EU largely exports many goods from their market so do USA and Japan but the EU have different specialities e.g.

  2. Tax Policy in Europe

    However, VATs previously paid on them won't be deducted. To elaborate, the medical service might not include VAT, but the equipment or materials purchased such as a knee brace would be charged a VAT. For SMEs, there is a 10% exemption on taxable profit for entrepreneurs satisfying a condition known as the time criterion, where a minimum of 1,225 hours are worked each year for the business.

  1. Retailing In India - A Government Policy Perspective

    The same retailing company also tops Fortune's list of top 500 Global companies. With annual sales at a whopping $220 billion, Wal-Mart symbolizes the immense potential inherent in the organized retailing industry. Retail, with worldwide sale of US$ 6.6 trillion, is the world's largest private industry.

  2. New banknotes and coins for Europe.

    Consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders. It was estimated that a traveller visiting all twelve member states of the (then) EC would lose 40% of the value of his money in transaction charges alone.

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