Question

by 1993, nations in the european union(EU) had eliminated all barriers to the flow of goods, services, labor, and capital across their borders. Even such things as consumer protection laws and the types of plugs required to plug in appliances have been standardized to ensure that there will be no barriers to trade. how do you think this elimination of trade barriers affected EU output?

Answer 1

The European Union is a geographical and economic union which includes the majority of countries in Europe. As part of the European Union, countries gain economic advantages, such as labor mobility and free trade.

By the elimination of the trade barriers the European Union (EU) helped the increase in the trade between regions. The fact that the goods, service, labor and capital were available across borders means that there was a better flow and availability of these resources. Being the main factors in production, this lead to an increase in the produced output and a better market for saleswas created. This led to an outward shift in the production possibility curve as explained by Rycroft,for the EU.What further helped this cause was the standardization of the consumer protection laws, the types of plugs for plug in appliances, etc. which led to a smooth flow of activities and the good produced in one region were made easy to be used in another. This overshadowed any deficits in supply in any of the regions and this elimination of trade barriers by the European Union was a welcome economic change. It positively affected the output as well as has a good reaction in the markets.

Busunesses were able to achieve economies of scale.The single market improved the European Union's gross domestic product (GDP). Millions of jobs were created, increasing employment rates. The increased output of the European Union made it an attractive trading partner to countries that were not part of it. Consequently, more goods and services were exported, which contributed to the GDP's .