Advantages and the Disadvantages Of EU

europa.eu (2012)

          

ADVANTAGES	DISAVATAGES
Transaction costs will be eliminated	Over estimation of Trade benefits
Price transparency	Inefficient Policies
Prevent war	Net Migration
Increased Trade and reduced costs to firms	Problems of Euro
library.thinkquest.org (2012)	economicshelp.org (2012)

 Breaking down of the Above words,
 ADVANTAGES
(1),TRANSACTION COSTS:
According to library.thinkquest.org Stated that Uk firms currently spend about £1.5 billion a year buying and selling foreign currencies to do business in the EU.With the EMU this is eliminated, so increasing profitability of EU firms. also You can go on holiday and not have to worry about getting your money changed, therefore avoiding high conversion charges.

(2),Price Transparency:
It is stated that the price difference is not that high compare to other non EU members so its advisable to take your home country money when going to any of the Eu countries. According to economic (2012) theory, prices should act as a mechanism to allocate resources in an optimal way, so as to improve economic efficiency. There is a far greater chance of this happening across an area where E.M.U exists.


(3),Prevent war:
There is going to be no atom of war Compare to non EU members because EU countries trade with eachother   there will be more need of happy trade that fighting.

(4),Increased Trade and reduced costs to firms:

According to library.thinkquest.org (2012) stated that

Proponents of the move argue that it brings considerable economic trade through the wiping out of exchange rate fluctuations, but as well as this it helps to lower costs to industry because companies will not have to buy foreign exchange for use within the EU. For them, EU represents the completion of the Single European Market. It is vital if Europe is to compete with the other large trading blocs of the Far East and North America.

DISAVATAGES

Over estimation:

 It is well know over estimation could be the other of the day due to somepeople want to gain or not sure of the money needed to complete a project. That could lead to over estimation.

Inefficient Policies:According to the economicshelp.org (2012)

A large percentage of EU spending goes on the Common Agricultural Policy. For many years this distorted agricultural markets by placing minimum prices on food. This lead to higher prices for consumers and encouraging over-supply. Reforms to CAP have reduced, but not eliminated this wastage.

Net Migration:

This is when free movement of labour that is to say going to other EU countries without visa required and that cause overcrowding in countries like the Uk instance. According to economicshelp.org(2012).

 Free Movement of Labour has caused problems of overcrowding in UK cities. The UK's population is set to rise to 70 million over next decade, partly due to immigration. This has pushed up house prices and led to congestion on roads.

Problems of Euro:
This use of Single Currency have not been good to the sight of most public with the opinion that could cause a lot of lost of relevant people in their society and printed in the note which they use. 


Reference
Economicshelp.org (2012) Disadvanteges of EU. Available at :
http://www.economicshelp.org/europe/disadvantages-eu.html
(Accessed: 01 Nov 2012).

 Library.thinkquest.org (2012) Adavantages and Disadvantages of European Union. Available at :
 http://library.thinkquest.org/19110/english/advantag/index.html 
(Accessed: 01 Nov 2012).