Tutorial 6

Question 1

Chapter 8

customs union

Answer 1

A free trade area with common external tariffs for imports to the union

Question 2

Chapter 8

common market

Answer 2

An area with free movement of goods, services, capital and people.

Question 3

Chapter 8

economic union

Answer 3

Countries coordinating their economic policies beyond the removal of tariffs and quotas.

Question 4

Chapter 8

political union

Answer 4

Countries integrating major aspects of their political and economic affairs.

Question 5

Chapter 8

Treaty of London

Answer 5

• September 1949
• Creation of the council of europe
• Independent of the EU

Question 6

Chapter 8

European convention of human rights

Answer 6

• November 1950
• Codifying individual human rights; creation of European Court of Human Rights
• Ratified and in force 1953, independent of the EU

Question 7

Chapter 8

Treaty of Paris

Answer 7

• April 1951
• European coal and steel community ECSC
• In force 1952, now defunct

Question 8

Chapter 8

Treaties of Rome

Answer 8

• March 1957
• Creation of the European Economic Community (EEC) and Euroatom
• In effect from January 1958, with a completion target date set to December 1969

Question 9

Chapter 8

First direct elections to the European Parliament

Answer 9

• June 1979
• Monitoring of EEC bureaucracy and its budget; co-decisions regarding European legislation
• Elected every fifth year directly by the citizens of the EEC

Question 10

Chapter 8

Schengen Convention

Answer 10

• June 1958
• Abolition of border controls
• Implemented 1995

Question 11

Chapter 8

Single European Act

Answer 11

• February 1989
• Creation of the European common market
• Common market effective January 1, 1993

Question 12

Chapter 8

Maastricht Treaty

Answer 12

• February 1992
• Creation of the monetary union; extension of political cooperation, EEC becomes European Union (EU

Question 13

Chapter 8

Copenhagen Criteria

Answer 13

• June 1993
• Conditions that new members have to fulfil to join the EU

Question 14

Chapter 8

Amsterdam Treaty

Answer 14

• Ocotober 1997
• Further streamlining of decision- making processes; tidying up gaps in Maastricht Treaty
• In force 1999

Question 15

Chapter 8

Bologna declaration

Answer 15

• June 1999
• Creation of a single European higher educational area

Question 16

Chapter 8

Nice treaty

Answer 16

• February 2001
• Further streamlining of decision- making processes; realignment of voting power
• In force 2003

Question 17

Chapter 8

Constitution

Answer 17

• October 2004
• Integrating the treaties; creating new structures and policy areas

Question 18

Chapter 8

Lisbon treaty

Answer 18

• December 2007
• Integration of agreements; simplification of institutions
• In force December 2008

Question 19

Chapter 8

European stability mechanism

Answer 19

• December 2011
• Organization providing support for countries in financial difficulties
• September 2012

Question 20

Chapter 8

Comecon

Answer 20

The pre-1990 trading bloc of socialist countries.

Question 21

Chapter 8

economic transition

Answer 21

The process of changing from a central plan to a market economy.

Question 22

Chapter 8

four freedoms of the EU single market

Answer 22

Freedom of movement
of people, goods, services and capital

Question 23

Chapter 8

mutual recognition

Answer 23

The principle that products recognized as legal in one country may be sold throughout the EU.

Question 24

Chapter 8

subsidiarity

Answer 24

The EU takes action only if it is more effective than actions taken at lower levels.

Question 25

# Chapter 8 harmonized sector

Answer 25

Sectors of industry for which the EU has created common rules

Question 26

# Chapter 8 state aid

Answer 26

Financial support from government to firms through, e.g. subsidies or tax rebates.

Question 27

# Chapter 8 subsidy competition

Answer 27

Competition between governments trying to attract investors by offering subsidies.

Question 28

# Chapter 8 lobbying

Answer 28

Making your views known to decision-makers with the aim of influencing political processes.

Question 29

# Chapter 9 multilateral organizations

Answer 29

Organizations set up by several collaborating countries.

Question 30

# Chapter 9 General Agreement on Tarrifs and Trade(GATT)

Answer 30

A multilateral agreement governing the international trade of goods (merchandise).

Question 31

# Chapter 9 General Trade on Trade in Services

Answer 31

A WTO agreement governing the international trade of services.

Question 32

# Chapter 9 non-discrimination principle

Answer 32

A principle that a country cannot discriminate among its trading partners (also known as most favoured nation principle).

Question 33

# Chapter 9 compulsory licensing

Answer 33

Licences issued by a national government in an emergency without agreement of the licence owner.

Question 34

# Chapter 9 WTO dispute settelment agreement

Answer 34

A procedure of the WTO to resolve conflicts between governments over trade-related matters.

Question 35

# Chapter 9 free trade agreements(FTAs)

Answer 35

A group of countries that remove trade barriers among themselves.

Question 36

# Chapter 9 deep trade agreements

Answer 36

An FTA that covers more than removal of tariffs, quotas and export promotion.

Question 37

# Chapter 9 regional FTAs

Answer 37

A free trade agreement between countries in the same region of the world.

Question 38

# Chapter 9 Generalized System of Prefrences

Answer 38

A system of tariff reductions facilitating less and least developed country’s access to EU markets.

Question 39

# Chapter 9 International Investement Agreements(IIAs)

Answer 39

Agreements between states to protect foreign direct investment between countries.

Question 40

# Chapter 9 investor-state dispute settelment(ISDS)

Answer 40

Legal processes using tribunals that are outside the national and supranational court systems.

Question 41

# Chapter 9 trade diversion

Answer 41

A change in trade pattern away from comparative advantages due to trade barriers.

Question 42

# Chapter 9 development aid

Answer 42

A gift from generous donors wishing to help developing countries.

Question 43

# Chapter 9 Kyoto Protocol

Answer 43

An agreement committing developed countries to limiting their greenhouse gas emissions.

Question 44

# Chapter 9 Paris Agreement

Answer 44

An agreement in which countries make major commitments towards climate change goals.

Question 45

# Chapter 9 Basel Commitee

Answer 45

A group of central bankers establishing standards for banking supervision.

Question 46

# Chapter 9 risk ratings agencies

Answer 46

Agencies that assign ratings to assets such as bonds that indicate the level of riskiness of the asset.

Question 47

# Chapter 9 black swan events

Answer 47

Rare events that occur only once in a generation.