Economic and Social Groupings Essay
Discuss the extent to which you agree with this statement (40)
It is beneficial to us when assessing said statement to begin by considering the main reasons for the formation of social and economic groupings. First and foremost considering the 4 main types of alliances. Between Free Trade Areas and Customs Unions it is fair to say that the main goal is to restrict imports from non-member countries, in turn allowing the economies of the member countries to flourish and provide for themselves, amongst themselves, in terms of trade. Common Markets on the other hand keep import tariffs in place, instead allowing the free movement of labour and …show more content…
However the unique characteristic of the European Union is that it comes with membership fee and agreement. The member countries vouch to bail out fellow economies in times of crisis, as well as all together agreeing on common laws and policies. This can serve wonders for countries such as Greece, and possibly Italy in the near future. But as devil's advocate, can be a great inconvenience for countries such as the UK and Germany. The most recent bail out having been awarded to Greece in the total amount of €240bn, all together over 3 negotiations, most recently renegotiated in this 1st quarter of 2015. This can be a 'set-back'; to say the least, for the members of the EU with stable economies, as money which could otherwise be used to better the levels of development of such countries is now being used to fund the survival of the Greek economy for a 3rd time.
Other disadvantages of the EU, this time to its residents, is that it removes the ability of a person