1. AdvantageDisadvantage 1 st Free Trade Area 2 nd Customs Union 3 rd Single Market 4 th Economic Union 5 th Monetary Union

2. 10 “An agreement between two or more countries to abolish tariffs and quotas on trade between them”. 2 “Two or more countries abolish tariffs on trade between them and place a common external tariff on trade with non members”. 12 “Removes non-tariff barriers to trade between countries and allows the free movement of labour and capital between countries”. 8 “Centralising macroeconomic policies particularly in terms of fiscal policy”. 6 “Countries share the same currency and have a common monetary policy”. 9 First stage of economic integration which begins to align the economies of countries. 15 Countries economies are bought closer together by restricting trade with non-members. Economic efficiency is increased through greater innovation and choice. 1 Price disparities between the member states narrow as common policies between key industries are agreed. 3 Countries adopt a common approach to fiscal policy by limiting their budget deficit and national debt to GDP ratios. 13 Exchange rate uncertainties are eliminated as well as currency transaction costs. Comparing prices between countries is straight forward. 14 Weakest form of economic integration which is restricted to a limited range of goods and services. 4 Trade diversion becomes apparent as export orders fall from countries outside the customs union whose own exports into the trading bloc have been restricted. 7 Structural and Regional unemployment can be created in certain countries and industry monopolies can begin to emerge. 11 Individual countries lose control over fiscal policy and their ability to increase spending to boost growth and implement their automatic stabilizers. 5 Interest rates are set by a single central bank and individual nations lose control over monetary policy. Countries can longer devalue their currency or set interest rates to suit their independent economic circumstances.

3. AdvantageDisadvantage 1 st Free Trade Area 10 “An agreement between two or more countries to abolish tariffs and quotas on trade between them”. 9 First stage of economic integration which begins to align the economies of countries. 14 Weakest form of economic integration which is restricted to a limited range of goods and services. 2 nd Customs Union 2 “Two or more countries abolish tariffs on trade between them and place a common external tariff on trade with non members”. 15 Countries economies are bought closer together by restricting trade with non-members. Economic efficiency is increased through greater innovation and choice. 4 Trade diversion becomes apparent as export orders fall from countries outside the customs union whose own exports into the trading bloc have been restricted. 3 rd Single Market 12 “Removes non-tariff barriers to trade between countries and allows the free movement of labour and capital between countries”. 1 Price disparities between the member states narrow as common policies between key industries are agreed. 7 Structural and Regional unemployment can be created in certain countries and industry monopolies can begin to emerge. 4 th Economic Union 8 “Centralising macroeconomic policies particularly in terms of fiscal policy”. 3 Countries adopt a common approach to fiscal policy by limiting their budget deficit and national debt to GDP ratios. 11 Individual countries lose control over fiscal policy and their ability to increase spending to boost growth and implement their automatic stabilizers. 5 th Monetary Union 6 “Countries share the same currency and have a common monetary policy”. 13 Exchange rate uncertainties are eliminated as well as currency transaction costs. Comparing prices between countries is straight forward. 5 Interest rates are set by a single central bank and individual nations lose control over monetary policy. Countries can longer devalue their currency or set interest rates to suit their independent economic circumstances.

4. Monetary Union Presentation: Research the Eurozone and present arguments why we should join and arguments why we shouldn’t. Sharing a common currency http://www.ec onomicsonline.co.uk/Global_ economics/M onetary_Unio n.html

5. The European Union (EU) is a collection of 27 European nations that cooperate together on economic and political issues. Define the term free trade means Since 1993, the EU has operated a single European market. This incorporates free trade between EU members but what else… State and explain four benefits of being a member of the EU State and explain three drawbacks of being a member of the EU Explain what the Eurozone is State four reason for joining the euro State three reasons against joining the euro Croatia joined the EU in 2013. Explain what effect the expansion has on existing EU member states