Question

An important part of the Brexit debate relates to whether the UK try to retain its...

An important part of the Brexit debate relates to whether the UK try to retain its membership of an EU customs area. What are the benefits and costs of being a member of a customs area, and in what ways does a free trade area differ from a customs union?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Advantages of being a member of a customs area:

  • It reduces problems associated with shipments of goods.
  • it reduces costs of shipments.

Costs:

  • Cost of storage in custom area may rise due to huge demand for areas,

Free trade simply seeks to eliminate tariffs among the member countries but it does not maintain common tariffs against non member countries. Custom union is next step in free trade area. Here tariffs are eliminated and common tariffs and duties are imposed against non member countries.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 1 A benefit of being part of a customs union (relative to not being in...
QUESTION 1 A benefit of being part of a customs union (relative to not being in the customs union) is, a. being in a customs union makes it more likely that firms can achieve economies of scale b. a customs union tends to have more bargaining power in trade agreements than a country has by itself c. both A and B d. neither A nor B QUESTION 2 A key difference between a customs union and a free trade area...
6) When a country does not meet the requirements of the SGP, it is declared in...
6) When a country does not meet the requirements of the SGP, it is declared in excessive deficit by the Council. What is the sanction imposed Select one: a. Fine of 0.2 per cent of the delinquent’s GDP. Resources are frozen until the procedure is lifted b. Fine of 0.5 per cent of the delinquent’s GDP, and an additional 0.2 per cent of GDP for further non-compliance c. Fine of 0.5 per cent of the delinquent’s GDP. Resources are frozen...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including Nissan, Honda, Volkswagen, and Mazda, vehicle production doubled between 2009 and 2014 to an estimated 3.2 million vehicles. This investment surge has transformed Mexico into the eighth-largest automaker in the world, and it’s not over yet. In 2014 and 2015, Toyota, Mercedes-Benz, Hyundai-Kia, BMW, and Volkswagen all outlined plans to build new state-of-the-art factories in Mexico. Audi is also constructing a $1.3 billion factory...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including Nissan, Honda, Volkswagen, and Mazda, vehicle production doubled between 2009 and 2014 to an estimated 3.2 million vehicles. This investment surge has transformed Mexico into the eighth-largest automaker in the world, and it’s not over yet. In 2014 and 2015, Toyota, Mercedes-Benz, Hyundai-Kia, BMW, and Volkswagen all outlined plans to build new state-of-the-art factories in Mexico. Audi is also constructing a $1.3 billion factory...
INTELLECTUAL PROPERTY  Industrial property forms part of the broader concept of "intellectual property."  The...
INTELLECTUAL PROPERTY  Industrial property forms part of the broader concept of "intellectual property."  The objects of intellectual property are the creations of the human mind, the human intellect hence the expression "intellectual" property.  In a somewhat simplified way, one can state that intellectual property relates to pieces of information which can be incorporated in tangible objects at the same time in an unlimited number of copies at different locations anywhere in the world.  The property is...
QUESTION 1 Which of the following factors would most likely lead a firm to adapt its...
QUESTION 1 Which of the following factors would most likely lead a firm to adapt its products for international markets? Exporting as the sole method of international marketing Similar levels of personal income Diverse consumer preference Economies of scale in production 2 points    QUESTION 2 Why would a firm research the marketing infrastructure of a foreign market prior to entry? To determine whether its prices will be competitive. Primarily to understand the role of the media including TV, print,...
3. Fewer than 1% of all US firms trade outside of the country, and about 60%...
3. Fewer than 1% of all US firms trade outside of the country, and about 60% of those that do so, only trade with one other country. What are some potential reasons for this (all of the following are true, except one): a. Lack of knowledge, data, and experience. b. Most companies in the US are small and medium sized. c. The size of the US consumer market is large, thus companies may be happy to operated domestically only. d....
Team 5 answer the questions What are 4 key things you learned about the topic from...
Team 5 answer the questions What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Incentive Systems             In this paper, we will focus primarily on financial rewards that companies use to attract, retain and motivate the brightest and most talented candidates in the labor market. By providing a reward system that...
Perfect Pizzeria of Southville, Illinois, is a franchise of a large chain which is headquartered in...
Perfect Pizzeria of Southville, Illinois, is a franchise of a large chain which is headquartered in Phoenix, Arizona. Although the business is prospering, it has employee and managerial problems. Each operation has one manager, an assistant manager, and from two to five night managers. The managers of each pizzeria work under an area supervisor. There are no systematic criteria for being a manager or becoming a manager-trainee. The franchise has no formalized training period for the manager. No college education...
Pick 4 questions to answer that you feel confident that you picked the correct answer Regarding...
Pick 4 questions to answer that you feel confident that you picked the correct answer Regarding setting the budget for integrated marketing communications options: - all-you-can-afford approaches involve setting objectives and then specifying tasks needed to achieve them. - incremental technique tries to set budgets based on other firms’ decisions. - competitive budgeting establishes the same budget year after year. - percentage-of-sales methods tend to ignore the promotion-causes-sales relationship. Many advertisements work primarily through recognition which means - that the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT