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European Business Environment Quiz 2 1. How has the European Union contributed to the maintenance of peace in post-war Europe? Ans. The EU began as a small organization to promote economic cooperation. Its emphasis was breaking down trade barriers. It has made significant progress in its first two decades. The continued enhancement of economic ties binding members has increased the political unity of the EU members over time. By maintaining stable currency exchange rates, reducing public and overall government debt and controlling long-term interest rates, among other actions, EU has contributed significantly to the maintenance of peace. 2. List two arguments that could be use in favour of the European Union. Which do your think is the more important argument, and for what reasons? Ans. The two arguments in the favour of EU are: a) Export Stability to the neighbouring countries b) Strength in Numbers Out of the two, the second argument is more important. We live in a world of emerging superpowers. A bigger EU will be better placed to make its voice and its values respected. Turkey with its huge population and Ukraine as an industrial powerhouse have the potential to provide great boost to the union. 3. List two arguments against the European Union. Which do you think is the most convincing and why? Ans. The two arguments against the EU are: a) Institutional Overload b) Further enlargement is asking for trouble Out of these, the institutional overload is more convincing argument. With 28 members, EU is at the brink of institutional gridlock. Any more would make efficient decision making impossible for the union. Further, all the potential candidates would place a huge strain on EU budgets, which the richer members of the union cannot afford to balance. 4. What do you think was the strongest argument in favour of the Lisbon treaty (2007) and why? Ans. The strongest argument in favour of the Lisbon Treaty is that it will legitimize EU policy. Increased number of referendums will give policies the stamp of popular approval. Voters would feel more attached to Europe of given a chance to shape them. 5. What do you think was strongest argument against the Lisbon Treaty and why? Ans. The strongest argument against the treaty is that it is anti-democratic. The European Union has 502 million citizens. Just 109,964 Irish votes prevented them getting a better functioning, more democratically accountable EU. That was the winning margin for the “no” vote in the

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European Business Environment Quiz 2

1. How has the European Union contributed to the maintenance of peace in post-war Europe?

Ans. The EU began as a small organization to promote economic cooperation. Its emphasis was breaking down trade barriers. It has made significant progress in its first two decades. The continued enhancement of economic ties binding members has increased the political unity of the EU members over time. By maintaining stable currency exchange rates, reducing public and overall government debt and controlling long-term interest rates, among other actions, EU has contributed significantly to the maintenance of peace.

2. List two arguments that could be use in favour of the European Union. Which do your think is the more important argument, and for what reasons?

Ans. The two arguments in the favour of EU are:

a) Export Stability to the neighbouring countries b) Strength in Numbers

Out of the two, the second argument is more important. We live in a world of emerging superpowers. A bigger EU will be better placed to make its voice and its values respected. Turkey with its huge population and Ukraine as an industrial powerhouse have the potential to provide great boost to the union.

3. List two arguments against the European Union. Which do you think is the most convincing and why?

Ans. The two arguments against the EU are:

a) Institutional Overload b) Further enlargement is asking for trouble

Out of these, the institutional overload is more convincing argument. With 28 members, EU is at the brink of institutional gridlock. Any more would make efficient decision making impossible for the union. Further, all the potential candidates would place a huge strain on EU budgets, which the richer members of the union cannot afford to balance.

4. What do you think was the strongest argument in favour of the Lisbon treaty (2007) and why?

Ans. The strongest argument in favour of the Lisbon Treaty is that it will legitimize EU policy. Increased number of referendums will give policies the stamp of popular approval. Voters would feel more attached to Europe of given a chance to shape them.

5. What do you think was strongest argument against the Lisbon Treaty and why?

Ans. The strongest argument against the treaty is that it is anti-democratic. The European Union has 502 million citizens. Just 109,964 Irish votes prevented them getting a better functioning, more democratically accountable EU. That was the winning margin for the “no” vote in the

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Lisbon Treaty referendum. National referendums on EU questions are fundamentally undemocratic by allowing tiny minorities to dictate to the majority.

6. What is the aim of the EU’s single market? What four economic freedoms did the Treaty of Rome set out for the single market?

Ans. The main aim of the EU single market is to make war in Europe impossible by developing both a common system of law and making member states’ economies completely independent.

The four economic freedoms the Treaty of Rome set out were:

a. Free movement of goods b. Free movement of capital c. Free movement of services d. Free movement of people

7. Outline one advantage of the Single Market and one disadvantage and explain.

Ans. One of the main advantages of the Single Market is the availability of more opportunities to live, work and study abroad. More than 15 million EU citizens have moved to other EU countries to work or to enjoy their retirement, benefiting from the transferability of social benefit, while 1.5 million young people have completed part of their studies in another Member State with the help of the Erasmus programme.

One of the main disadvantages of the single market is the presence of inefficient policies. A large percentage of EU spending goes on the Common Agricultural Policy. For many years this distorted agricultural markets by placing minimum prices on food. This lead to higher prices for consumers and encouraging over-supply. Reforms to CAP have reduced, but not eliminated this wastage.

8. Each Member States takes it in turn to hold the Presidency of the Council of the European Union. How long does each Presidency last?

Ans. Each Presidency lasts for about six months.

9. List three functions of the European Commission

Ans. The three main functions of the European Commission are:

a. To propose legislation which is then adopted by the co-legislators, the European Parliament and the Council of Ministers.

b. To enforce European law (where necessary with the help of the Court of Justice of the EU).

c. To manage and implement EU policies and the budget.

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10. Which do you think is the most powerful EU Institution? (Give evidence for your answer)

Ans. The most powerful EU institution is the European Commission, which draws up treaties, laws and policies. It has the right to impose its decision on the member states of the European Union.

A perfect example of its power is its recent impact on Britain when it passed the rule that old refrigerators cannot simply be dumped by the shops because of its impact on the environment. They had to be properly disposed of. Britain did not have the facilities to do so. It had to take onboard this ruling and simply store old refrigerators while facilities were built for their proper disposal.