Task 2. Impact of European and Global Factors on the UK
According to the article written by Gavin Thomson and published by the Commons library Standard on 18 September 2013, EU membership influences the UK economy in a number of ways. The most important effects arise through the Single Market, the programme of economic integration through which the EU’s ‘four freedoms’ are guaranteed.
But the economic impact of the EU is felt in other areas of its policy, too. The EU has exclusive competence to negotiate trade and investment agreements with countries outside the Union; and it is a customs union with a common external tariff on imported goods. Membership thus profoundly affects the UK’s trade relations with non-EU members.
There are also fiscal consequences to membership as a result of the UK’s contributions to the EU budget. Consumer prices are affected through the Common Agricultural Policy and common external tariffs levied on imports. And the fact of EU membership may also influence decisions made by foreigners about whether to invest in the UK.
In order to complete this task, the student must:
identify the impact of EU membership on UK business activities
explain how EU policies affect businesses
identify the impact of global issues on UK business activities
explain how global developments affect businesses
This provides evidence for:
P5 Describe the impact of international factors on a selected business
· Your written work should be handed in by 3 February 2014
· Your result will be issued on 7 March 2014
· Assessment feedback will be provided on 14 March 2014