1. Year 11 – GCSE Business The European Union

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

3. 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

4. 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.

5. 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

6. 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.

7. 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

8. The Single European Currency
A recent feature of the European Union is the Single European Currency, the Euro.
In January 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?

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

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

11. Exam Practice Questions

12. 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.