Lecture notes
Introduction to the Single Market
- Institution
- University Of Sussex (UoS)
Lecture notes of 3 pages for the course The Single Market of the European Union at UoS (.)
[Show more]
Content preview
Introduction to the Single MarketFree Trade
Overall higher productivity as a result of specialisation – comparative advantage.
David Ricardo (1772-1823).
Britain – good at producing clothes.
Portugal – good at producing wine.
Britain should focus on clothes, Portugal should focus on wine – focus on
what they do best.
With free trade, no restriction so they would all be better off.
Britain can buy the wine from Portugal in exchange for selling clothes
to them.
Problems:
Conditions of perfect competition do not exist in any market.
Ease of purchasing internally.
Hard to know which is ‘best’.
Responsiveness to national concerns – neglect of externalities.
Protect their own products and producers.
Neglect of environmental consequences by transportation.
Stages of Economic Integration
Free Trade Area (FTA) – removal of customs duties and trade quotas between
Member States but autonomy to regulate trade with non-Member States.
Customs Union (CU) – FTA + common external policy in respect of non-Member
States.
Internal Market – CU + free movement of persons, services, and capital.
Monetary Union – Internal Market in which a single common currency operates, the
euro.
Economic Union – MU + single monetary and fiscal policy controlled by a central
authority.
Political Union – EU + central authority sets not only monetary and fiscal policies but
is also responsible to a central parliament with the sovereignty of a nation’s
government.
Full Union (FU) – complete unification of the economies involved and a common
policy on matters such as social security and income tax.
The Single Market – Basic Aims
Optimal allocation of resources for the EU as a whole through the free movement of
production factors (labour and capital) and products.
Avoid local crisis.
Can move people to those opportunities.
Balancing the market.
Ease competition.
Minimises state control.
Increased efficiency.
Eliminate discrimination.
Lasting and sustainable peace.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller melindahogman. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
68175 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now