Year 11 – GCSE Business The European Union

Starter: How many EU countries are there? Name as many as you can

Learning Objectives The objectives of today's session – All students will know what the European Union is and why it was created Most students will explain how the European Union benefits UK businesses but also creates problems for them Most students will explain why the Euro was introduced Some students will evaluate the arguments for & against the UK adopting the Euro All students will improve their exam technique

What is the European Union? The European Union is a collection of countries in Europe. They aim to co-operate together on trade, social affairs and certain laws.

Why was the European Union created? Removal of import controls Create a larger home market so taking benefit of Economies of Scale Harmonise – technical & Safety standards Put tariffs on Products from outside the EU

Benefits to Businesses of the EU An enlarged market As Europe is bigger than the UK Businesses can sell its product & services to a larger market & benefit from Economies of Scale Common standards Common standards of safety, quality and labelling so it is easy to sell your products in other European countries The Single Market Free movement of goods & workers between European Countries Grants & Subsidies The EU give grants to Businesses in poorer areas of Europe. This has helped UK farming & areas where industries have died out.

Problems the EU makes for Businesses An enlarged market Easier for other European countries to trade in the UK so more competition at home The Social Charter European laws to protect workers – costly for UK businesses Environmental standards Regulations on water quality, recycling & pollution this has created costs for businesses Common Agricultural Policy (CAP) Guarantees minimum price for crops but penalises those that over produce

The Single European Currency A recent feature of the European Union is the Single European Currency, the Euro. In January 1999 11 of the EU countries chose to have the Euro as their currency. Why have a single currency? Do you think the UK should get rid of the £ and use the Euro?

Advantages of the Euro for UK Businesses COST SAVINGS MOST TRADE IS WITHIN EUROPE STABLE EXCHANGE RATES

Disadvantages of the Euro for UK Businesses ADDS TO COSTS LOSS OF THE POUND A FINAL DECISION

Exam Practice Questions

Extension task: Imagine that you are the owner of a small UK business… If there was a referendum tomorrow on the UK’s EU membership, would you vote in or out? Justify your answer.