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EUROPEAN UNION MEMBERSHIP - Coggle Diagram
EUROPEAN UNION MEMBERSHIP
Advantages
Low prices for goods
the single market has not tariffs when goods are sold between EU member countries
firms benefit from economies of scale as there is a domestic market of 500 million potential customers
Freedom of movement for citizens
No conflict between member states as a result of the strict guidelines
Development of deprived areas (European Structural Funds Scheme)
Louder voices
There are common standards for products an workers
Stats
27 countries
9.78% of world population
Contributes 15.39% to world GDP
Government is called Council of the EU
24 languages
Eurozone has 19 countries
Continuous expansion
Advantages
Existing members
Increased economies of scale and price competition (higher efficiency and lower prices)
Migration from new member states to old member states will increase AS (help economic growth)
Migrants tend to be employed at a lower hourly rate then domestic workers (reduce production costs and increase productive capacity)
Migration also bring skilled workers to an existing member
There is a larger EU budget
New members
Benefit from increased economies of scale and price competition (higher efficiency and lower price )
People will gain freedom to live and work wherever they choose in other member states
Countries can now trade freely with EU countries
Disadvanatges
Existing members
Migration might lead to overcrowding in cities and it is likely there will be an increase in demand for services, housing and benefits
Migrants might contribute to domestic unemployment
If new member states are poorer, there may be an increased inequality as people migrate to existing members
Increased competition from new members may drive domestic firms out of business
Expansion is going to come from counties with a relatively low GDP, who are likely to receive more in payments than they contribute (will receive subsidies from existing members)
New members
Have to comply with EU laws (might conflict with what the government thinks is best for their country)
May be increased costs for firms and government (in order to comply with regulations on product safety)
Migration to existing members might lead to a domestic shortage of labour
There is a risk of unemployment, particularly structural unemployment, if firms can not compete with existing members
Disadvantages
Costly to be a member (between £300 - £873 per person per year)
Not all policies are efficient
Common Agriculture Policy which has resulted in oversupply and higher prices for goods
Overcrowding in cities
Discrimination against political members due to Europe borders largely being undefined
Takes powers from government
Serves the interests of the EU as a whole, not an individual country