Benefits of EU Membership for Eastern European countries
1. Political Stability and greater integration amongst European states
2. Increased Trade.
This will lead to advantages such as lower prices for consumers and more exports for industries with a comparative advantage.
3. Increased competition
4. Increased Inward Investment.
This will be because of greater stability in the economy, lower trade costs and greater harmonization. The benefits of this include a positive regional multiplier and greater technical assistance
5. Social Policy's and subsidies. New countries will benefit from Regional, Social and CAP.
6. These gains may be increased by the multiplier effect
7. The extent of the gains may depend upon the existing infrastructure of the economy. For example if transport links are inefficient and under developed then the gains from trade will be lower. The infrastructure of the economy will also affect the success of attracting inward investment
8. The large disparities between the East and West may require subsidies to even out the imbalance, this would make integration more successful
9. Recent economic developments have been encouraging, with many economies growing at a fast rate in the East, but with low rates of inflation
10. Some progress toward greater harmonization has been made, Tariffs on manufacturers have been cut. However because of CAP there are still high tariffs on imports from eastern europe
Essays and Revision Notes on European Union
- European Union
- Expansion of EU
- Common Agricultural Policy
- Advantages of EU membership
- Disadvantages of EU membership
- Benefits of EURO membership
- Costs of EURO Membership
- Transition to a Market Economy
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Other notes on Europe available at Tutor 2U
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