What is the main objective of the European Union (EU) in terms of economic cooperation? a To impose trade barriers among member countries b To promote a common currency for all member countries c To create a single market and eliminate trade barriers among member countries d To discourage cross-border investments
The correct answer and explanation is:
The correct answer is c) To create a single market and eliminate trade barriers among member countries.
The European Union (EU) was primarily established to foster economic cooperation and integration among its member countries. The EU’s main economic objective is to create a single market, allowing for the free movement of goods, services, capital, and people. This is accomplished by eliminating trade barriers such as tariffs, customs controls, and non-tariff barriers, making it easier for businesses to operate across borders within the EU.
The single market is designed to ensure that all member states benefit from increased economic activity and efficiency, leading to greater competition, innovation, and economic growth. By removing barriers to trade, businesses can access a larger customer base without facing the added costs of different national regulations or tariffs. Additionally, workers can move freely between countries, allowing for a more dynamic and flexible labor market.
Furthermore, the creation of the single market promotes the idea of economic convergence, where member states are encouraged to align their policies and regulations to ensure fairness and consistency. This alignment creates a more predictable business environment and reduces the administrative burdens companies face when operating in multiple countries.
The EU also works towards policy coordination in areas such as agriculture, energy, and the environment, and some countries have adopted a common currency, the euro, to further strengthen economic ties. However, it is important to note that not all EU member states use the euro, but those that do benefit from the advantages of a shared currency, including lower transaction costs and price transparency.
Overall, the EU’s focus on a single market allows member countries to integrate their economies more effectively, making them more competitive on the global stage.