Economics of the EU

Economics of the EU

1. Explain the competition and industrial structure effects of a potential exit of the UK from the European Union. Assume that the exit will result in the UK becoming a closed economy. Use BE-COMP diagram to illustrate your answer.
300 words; 20 marks; (Learning Outcome: Critically examine the theoretical principles of regional economic integration)

2. Introduce the simple migration framework and explain what size and direction of geographical mobility we would predict if Turkey joined the EU. Thereby, draw on existing regional income and employment disparities. Discuss the shortcomings of the simple model in adequately capturing EU migratory patterns.
500 words; 20 marks; (Learning Outcomes: Critically examine the theoretical principles of regional economic integration and apply these theoretical principles to analyse the development of the E)

3. Explain the origins and the current aims of the Common Agricultural Policy. Using a MS-MD model, show and explain how food subsidies in the EU may harm developing countries.
600 words; 30 marks; (Learning Outcomes: Critically examine the theoretical principles of regional economic integration and apply economic analysis to actual and proposed EU policies and evaluate them)

4. Outline how the common currency has facilitated the increase of trade imbalances in the Euro Area. Discuss how the increase in trade imbalances has contributed to the debt crisis in South European countries and how the introduction of Euro-bonds may address the problem.
600 words; 30 marks; (Learning Outcomes: Apply these theoretical principles to analyse the development of the EU and apply economic analysis to actual and proposed EU policies and evaluate them)

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