the economy at work
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GCSE ECONOMICS: UNIT 12. The Economy at Work. The Euro. European Union: Recap. Benefits Tariff-free trade Higher incomes from greater trade Free movement for citizens within EU Larger market for business and consumers (more choice). European Union: Recap. Costs of membership - PowerPoint PPT PresentationTRANSCRIPT
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SECTION 1MANAGING THE
ECONOMY
The Economy at Work
GCSE ECONOMICS: UNIT 12
The Euro
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SECTION 1MANAGING THE
ECONOMYEuropean Union: Recap
Benefits• Tariff-free trade• Higher incomes from greater trade• Free movement for citizens within EU• Larger market for business and
consumers (more choice)
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SECTION 1MANAGING THE
ECONOMYEuropean Union: Recap
Costs of membership• Richer states have to pay for the
development of poorer states • More EU competition• Payment for Common Agricultural Policy
(CAP)• Influx of people from new EU countries• More regulations from Europe on
business
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SECTION 1MANAGING THE
ECONOMY
The Single European Currency: Background
• The single European currency (the euro) was planned for many years before it was launched in 1999
• 12 countries of the EU joined the first wave, with the UK, Denmark and Sweden opting out
• By January 2009 there were 16 countries (the ‘eurozone’) using the euro as their currency
Mini-task: Find out which countries have adopted the euro as their national currency
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SECTION 1MANAGING THE
ECONOMY
Video: Reasons for adopting the euro currency
• Watch the video and make notes on the benefits for countries adopting the euro
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SECTION 1MANAGING THE
ECONOMY
The euro: it’s not all good news…
• Whilst there are benefits to a country of adopting the euro as their currency, a number of drawbacks exist
• Switching to the euro would involve huge financial costs e.g. training staff and the population on the new currency
• The country would lose the power to set Monetary Policy (money supply and interest rates) and use Exchange rates to meets its own government objectives
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SECTION 1MANAGING THE
ECONOMYShould the UK join the Euro…
• The UK government has promised that the general public will be given a vote on joining the euro but until then we remain out of the eurozone
• What specific arguments are there for and against The UK joining the euro?….let us see!
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SECTION 1MANAGING THE
ECONOMYOver to you…
1. Using the notes you have made and the resources you have available write a letter to David Cameron expressing your views on the benefits and drawbacks to the UK of joining the eurozone
2. Use the letter template in the Student Shared Area
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SECTION 1MANAGING THE
ECONOMYEU Enlargement…
• In your presentations before the new year you looked at the 5 countries awaiting accession to The European Union
• In pairs explain the effect EU Enlargement would have on the UK economy and the Governments main economic objectives
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SECTION 1MANAGING THE
ECONOMYIt’s time to reflect…
• Over the past few weeks of lessons we have looked in detail at Government Policies at home and in Europe– Fiscal Policy– Monetary Policy– Supply-side policies– Joining the EU & the eurozone
• Produce a mini-mind map illustrating the key points about each these government policies