Co
COMMUNICATION AND
RESEARCH THEORY 2.3
All theory made into practice questions so it’s easy to
learn. If you can answer all questions you are
guaranteed a pass. Personal grade: 7.6
By timo
[E-mailadres]
,Economics 2
Name 3 reasons a country could take protectionist measures.
1. Unfair competition: due to (poor) regulations competitors are able to produce cheaper.
2. Noneconomic reasons/independence: to ensure the country’s production of essential products is
on par. E.g. when war breaks out.
3. Infant industries: when an industry is still very young in a country it needs some time to develop
and become able to compete with international competitors.
Name 5 protectionist measures.
1. Tariffs: tariffs on imported goods in order to make them more expensive, making the national
products more attractive.
2. Import quota: setting a limit for the import of certain goods into the country. At a limit of 0 this is
called an embargo.
3. Export subsidies: governmental subsidies in order to assist the national company in its competition
abroad.
4. Voluntary export restraints: a country can limit its own export voluntarily in order to keep another
country from setting even harsher protectionist measures.
5. Product regulations: specific requirements set on products within the country. This way you can
give your national company’s an advantage, as the international ones must alter their products
according to the regulations.
Name and give characteristics of the 5 stages of economic integration
1. Free trade: abolishing trade restrictions and regulations between the countries of the agreement.
Everybody keeps their own rules towards other countries.
2. Customs union: abolishing of trade restrictions and regulations between the countries of the
agreement, however, all take up the same rules against other countries.
3. Common market: same as above, but also free movement of labor and capital. Labor meaning they
will acknowledge diploma’s and harmonize rules. Capital meaning they will abolish international
transaction fees.
4. Economic Union: all of the above, but also a coordination of fiscal and economic policies.
5. Economic Monetary Union: all of the above but also the same currency.
What is the WTO?
World Trade Organisation. It deals with rules of global trade and the complaints regarding that
subject.
, Name 4 advantages of a common currency
1. Transparancy (e.g. less confusion for tourists)
2. No more exchange rate risk (e.g. you make a deal, then a few months later when the deal is about
to close the exchange rates change, and your deal becomes far less profitable.)
3. No more transaction fee (the transaction fee when exchanging currency)
4. The common currency takes in a more significant role in the global economy.
Name 3 ways a common currency can be kept stable
1. Convergence rules
2. Stability and growth pact
3. Independence of the European Central Bank
Name 3 disadvantages of a common currency
1. less sovereignty per country. (you are part of a bigger system)
2. Loss of exchange rate as a government tool.
3. limited democracy: Who controls the ECB?
Name and describe the 7 points that are used to ensure the EU presents itself as an internal market
1. Schengen agreement: abolishing border custom controls.
2. Free movement of labour: harmonization of rules and acknowledgement of diploma’s.
3. Free movement of capital: no more international transaction fees
4. Tax policies: no harmonization of taxes, but also no harmful use of taxes.
5. competition policies
6. preventing state aid
7. having the same laws on intellectual policy
Politics 1
What are the four I’s?
1. Ideas
2. Interests
COMMUNICATION AND
RESEARCH THEORY 2.3
All theory made into practice questions so it’s easy to
learn. If you can answer all questions you are
guaranteed a pass. Personal grade: 7.6
By timo
[E-mailadres]
,Economics 2
Name 3 reasons a country could take protectionist measures.
1. Unfair competition: due to (poor) regulations competitors are able to produce cheaper.
2. Noneconomic reasons/independence: to ensure the country’s production of essential products is
on par. E.g. when war breaks out.
3. Infant industries: when an industry is still very young in a country it needs some time to develop
and become able to compete with international competitors.
Name 5 protectionist measures.
1. Tariffs: tariffs on imported goods in order to make them more expensive, making the national
products more attractive.
2. Import quota: setting a limit for the import of certain goods into the country. At a limit of 0 this is
called an embargo.
3. Export subsidies: governmental subsidies in order to assist the national company in its competition
abroad.
4. Voluntary export restraints: a country can limit its own export voluntarily in order to keep another
country from setting even harsher protectionist measures.
5. Product regulations: specific requirements set on products within the country. This way you can
give your national company’s an advantage, as the international ones must alter their products
according to the regulations.
Name and give characteristics of the 5 stages of economic integration
1. Free trade: abolishing trade restrictions and regulations between the countries of the agreement.
Everybody keeps their own rules towards other countries.
2. Customs union: abolishing of trade restrictions and regulations between the countries of the
agreement, however, all take up the same rules against other countries.
3. Common market: same as above, but also free movement of labor and capital. Labor meaning they
will acknowledge diploma’s and harmonize rules. Capital meaning they will abolish international
transaction fees.
4. Economic Union: all of the above, but also a coordination of fiscal and economic policies.
5. Economic Monetary Union: all of the above but also the same currency.
What is the WTO?
World Trade Organisation. It deals with rules of global trade and the complaints regarding that
subject.
, Name 4 advantages of a common currency
1. Transparancy (e.g. less confusion for tourists)
2. No more exchange rate risk (e.g. you make a deal, then a few months later when the deal is about
to close the exchange rates change, and your deal becomes far less profitable.)
3. No more transaction fee (the transaction fee when exchanging currency)
4. The common currency takes in a more significant role in the global economy.
Name 3 ways a common currency can be kept stable
1. Convergence rules
2. Stability and growth pact
3. Independence of the European Central Bank
Name 3 disadvantages of a common currency
1. less sovereignty per country. (you are part of a bigger system)
2. Loss of exchange rate as a government tool.
3. limited democracy: Who controls the ECB?
Name and describe the 7 points that are used to ensure the EU presents itself as an internal market
1. Schengen agreement: abolishing border custom controls.
2. Free movement of labour: harmonization of rules and acknowledgement of diploma’s.
3. Free movement of capital: no more international transaction fees
4. Tax policies: no harmonization of taxes, but also no harmful use of taxes.
5. competition policies
6. preventing state aid
7. having the same laws on intellectual policy
Politics 1
What are the four I’s?
1. Ideas
2. Interests
