POST COLD WAR WORLD
INTEGRATION OF EUROPE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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less money to spend in the economy
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countries becoming isolated
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lower standard of living
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higher standard of living
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Detailed explanation-1: -Benefits of EU trade to consumers 1. Decrease in prices for the same range of goods (direct); 2. Increase in the variety of products (direct); 3. Increase in the growth rate (indirect).
Detailed explanation-2: -Lower Global Prices For consumers, free trade creates a competitive environment where countries strive to provide the lowest possible prices for their resources. This in turn allows manufacturers to provide lower prices for finished goods, ultimately increasing the buying power for all consumers.
Detailed explanation-3: -with the EU The shorter the physical distance between countries, the lower the trade costs. Low trade costs lead to larger trade flows. Without the EU, the distance between countries would increase due to higher trade costs.
Detailed explanation-4: -Towards open and fair world-wide trade The European Union is one of the most outward-oriented economies in the world. It is also the world’s largest single market area. Free trade among its members was one of the EU’s founding principles, and it is committed to opening up world trade as well.