gcse economics - international trade - european union and the single market

MEMBERSHIP

There are 15 existing members of the single market including the UK

FEATURES

- There is free trade between member countries therefore there are no tariffs or quotas placed on imports
- Each country places an identical trade barrier against imports from non- European Union countries. This is called a common external tariff
- Individuals and businesses are free to move between countries.
- Safety standards should be the same between each countries
- A movement towards similar business laws and rules in each member country

SOCIAL CHARTER

Minimum standards for workers in all 15 countries. These include

- Maximum hours to work in an hour
- Minimum pay
- Holiday rights
- Maternity / Paternity leave

BENEFITS OF THE SINGLE MARKET

Treats the area as one large trading block almost like an individual country instead of 15 separate countries

- Should encourage trade
- Should help create jobs
- Should improve standards of living
- Avoids protectionism / trade barriers between its members
- Ensures sound working conditions
- Has a market of 380 million customers for firms to sell to

ACTION

a. Why is free trade beneficial and why should it encourage trade?
b. Why is a common external tariff useful?
c. How does the EU encourage trade within its own borders?

 SMART THINKING

d How might a firm now benefit from economies of scale?