All UK businesses are affected by what happens in the international economy. True or false?
TRUE!
100
By how many countries is the European Union formed? (using the book as reference)
27
100
Directives (laws) tend to be general while regulations are NOT specific. True or false?
FALSE!
100
Name two disadvantages for UK when they refused to adopt the euro currency.
- UK businesses have to pay banks commissions everytime they want to change pounds into euros or viceversa.
- The value of the pound fluctuates against the euro
- Separate currencies make prices less transparent.
100
What is a Trading Bloc?
A group f countries which have signed and agreement to reduce or eliminate tariffs, quotas and other protectionist barriers between themselves.
200
What is a tariff?
A tariff is a tax on imports, also known as a custom duty.
200
In what year was the European Union founded?
1958.
200
Name two advantages to the U.K. businesses for joining the E.U. customs union?
- Free access in other E.U. markets.
- Increased accessibility to good Factors of Production in the E.U.
- Larger Market.
- Competition can increase efficiency.?
200
What currency did most of the EU countries adopted as their currency in 2002?
Euro.
200
What is Customs Union?
A union of countries which estabished free trade amongst themselves and put up a common tariff to imports from outside of the union.
300
What is a quota?
A quota is a limit on the physical number of goods that can be imported over a period of time. Ex. A quota might be 1 million passenger cars over a year. Quotas are set to limit the volume of imports.
300
Which are the 6 founder countries of the EU?
France, Italy, Germany, Belgium, The Netherlands and Luxembourg.
300
The ____________ is formed by ministers of each country; it approves or rejects proposals made by The European Commission.
Council of Ministers
300
BONUS!
+3 points!
300
What is EUROZONE?
A group of countries which have adopted the single european currency; the euro.
400
How is it called when there are no protectionist barriers in trade?
Free Trade.
400
The 1986 Single European Act consisted in creating a SINGLE EUROPEAN MARKET. True or false?
TRUE!
400
The __________ proposes policies and legislations ?to the European Council of Ministers, and it is responsible for implementing them when they are accepted.
European Commission
400
Name the disadvantage that the single currency might bring to UK if they decide to join.
It would mean that the Bank of England would no longer be able to set a separate main interest rate for UK.
400
What is Protectionism?
Government policies aimed at limiting the import of products into a country.
500
The extent to ?which businesses ?export and ?import is affected? by...?
Protectionist Barriers put up by government.
500
UK wanted to form part of the European Union since it was first established?
FALSE!
500
The _________ is the final court of law within the E.U. It may act against decisions made in local or national courts, and bases its decisions on E.U. laws.
European Court of Justice
500
BONUS!
You can answer two questions in a row.
500
What is Free Trade?
The import and export of goods and services with no barriers to trade such as tariffs or quotas.