Course: European Business Environment

Professor: Dr. Sziebig Orsolya Johanna

& Dr. Tabajdi Gabriella

Name: Siekleng SAM

Username: U2XGQA

Homework 8: Based on the lectures and the EU in the World study, please answer the
following questions:

1. How were the single market and single currency agendas connected in the historical
evolution of the EU internal market?

 The establishment of the single market in EU is the solid foundation for introduce the single
currency agendas regarding to historical evolution of EU internal market.
 Step 1: Common market: the Treaty of Rome, which established the European Economic
Community (EEC) in 1957, had the objective of creating a common market among its
member states. The common market sought to encourage the free flow of capital, people,
goods, and services throughout the EU while doing away with trade restrictions like tariffs
and quotas. Deeper economic integration was made possible by this action.
 Step 2: Single market: was a crucial step in the EU's growth. By eliminating non-tariff trade
obstacles, promoting the free flow of capital, people, products, and services, and further
harmonizing laws, it strengthened the common market. ): In order to foster trade,
competition, and economic growth, the single market sought to establish a smooth and
barrier-free economic zone within the EU.
 Step 3: Economic and monetary union (EMU): With the introduction of the Euro and the
coordination of economic policy among member states, the EMU sought to increase
economic integration. The 1992 Maastricht Treaty established requirements for nations to
join the monetary union and set the groundwork for the EMU. The single currency, the Euro,
facilitates trade, eliminates exchange rate fluctuations, and promotes economic stability
within the EU.

2. What does the principle of mutual recognition mean in relation to the free movement of
goods in the EU internal market?

 It allows products that are lawfully marketed in one EU member state to be sold in other
member states without the need for additional testing or certification, as long as they meet the
essential requirements of the destination country in order to ensure market access for goods
that are not or some party subject to EU hamonisation legislation.
 3. How can European citizens benefit from the EU internal market? Please give at least 5
examples with short reasoning.

- Highly job opportunities: all European citizens can benefit from freely of movement which
they can work freely in other countries in EU member. That’ll be increase the rate of
employed, and reduce the poverty rate.
- Free movement of goods and services: eliminating trade barriers such as tariffs and non-
tariff barriers. Hence, European citizens can enjoy a wider range of products and services
from different member states. It is also increasing the competitive, better choice for
consumer, and bring the better quality of life.
- Freely travel and mobility: EU can travel freely without the need for visas or border controls.
They could be able to explore the difference culture, exchange program, or education, and
diverse landscapes which also bring benefit to tourism sector in the whole EU.
- Improved consumer protection: Common standards and regulations are set across member
states to guarantee the safety and quality of products and services, so they can have
confidence in the goods they purchase and the services they receive.
- Financial service: EU citizens allow to access the broader range of banking system and
financial product. It promotes financial stability and choice by facilitating international
banking transactions, investments, and financial services.

4. Please watch the following video: https://www.youtube.com/watch?v=xffvPWmoWsQ

Based on the video on the history of the Schengen Area, what are its benefits?

Summary of the video: This video talks about the historical and the fact of Schengen area. The
Schengen Area is an agreement among 27 European countries that allows for the free movement
of people within its borders. There are some benefits from this agreement such as
- free movement of people, goods, service and capital
- economic benefit to foster trade, investment, and tourism
- Simplified traveling, unify European continents
- Security cooperation
The Schengen Agreement was signed on June 14, 1985, by Belgium, Germany, France,
Luxembourg, and the Netherlands which aimed to gradually remove controls at internal borders
and introduce freedom of movement for nationals of the signatory countries, other EU member
states, and some non-EU countries. The Schengen Convention, signed on June 19, 1990, by the
same five countries, supplemented the agreement and established the arrangements and
safeguards for an area without internal border controls.
 Member: EU (23 countries) + non-EU 4 countries (Switzerland, Liechtenstein, Norway,
and Iceland)
 EU countries that not included in Schengen areas: Bulgaria, Cyprus, Ireland and
Romania.