GENERAL KNOWLEDGE

Detailed explanation-1: -If the economies are highly competitive, they will want to adopt better and more efficient ways of production. This will lead to a lower cost of production which will result in lower prices. Lower prices mean an increase in welfare and, thus, trade creation.

Detailed explanation-2: -The EU is an attractive market to do business with We are the world’s largest single market, with transparent rules and regulations. We have a secure legal investment framework that is among the most open in the world. We are the most open market to developing countries in the world.

Detailed explanation-3: -The main goal of the EU’s trade policy is to increase trading opportunities for European companies by removing trade barriers such as tariffs and quotas and by guaranteeing fair competition. It is essential for the European economy as it affects growth and employment.

Detailed explanation-4: -The Treaty of Rome It set up the European Economic Community (EEC), bringing together Belgium, Germany, France, Italy, Luxembourg and the Netherlands to work together towards integration and economic growth through trade, establishing a common market based on the free movement of goods, people, services, and capital.