Chapter 8: European Integration
TRUE/FALSE
1. Official rules, such a receipts needed to obtain reimbursement of expenses, are the same in Munich
and Warsaw.
2. Poland is a member of the Schengen area.
3. A monetary union is a group of countries sharing the same currency.
4. A customs union is a group of countries not charging customs on goods traded between them.
5. An economic union is does not involve coordination of national economic policies.
6. All members of the European Council are also members of the European Union.
7. The Schuman plan outlined the path for European integration in the 1950s.
8. The European Convention for Human Rights is a major achievement of the EU.
9. The Treaties of Rome are generally considered the foundation of what later became the EU.
10. The Treaty of Paris established the criteria for countries joining the euro.
11. The European constitutions came into effect in 2004.
12. The Bologna declaration aims to facilitate student mobility in Europe.
13. In 2011, the EU has 27 member countries.
14. The common agricultural policy was established to facilitate the growth of the agricultural sector and
to secure availability of food for all citizens in member countries.
15. The common agricultural policy is still the biggest item in the EU budget.
16. In 1957 The Treaties of Rome established European Economic Community.
17. Denmark and the UK have negotiated an opt-out from the eurozone.
18. Romania and Bulgaria are not yet member countries of the EU.
19. The European Economic Area is identical to the area of the European Union.
20. Turkey and Croatia are candidate countries of the EU.
21. The Single European Act of 1986 established to goal to implement the European common market by
1992.
22. The Maastricht Treaty established the European common market in 1992.
23. The Comecon is a predecessor organization of the EU.
24. Liberalization of markets was a major objective of the economic transition in Central and Eastern
Europe in the 1990s.
25. Countries of Central and Eastern Europe used a wide variety of means to nationalize their industries in
the 1990s.
26. Opening to international trade was an important early element of economic reforms in Central and
Eastern Europe.
27. All transition economies in Central and Eastern Europe are now members of the European Union.
28. When companies from two European countries merge, the competition authorities from those two
countries have to approve the merger.
29. The free movement of people, goods, services and transportation are also know as the ‘four freedoms’
of the ‘single market’.
30. Mutual recognition is the basic principle that goods certified as legal in any one country of the EU may
also be exported to any other country of the EU.
31. The ‘harmonized sector’ encompasses all those industries where the EU has established product
standards that apply across the EU.
32. Mutual recognition governs trade in the non-harmonized sector.
33. Subsidiarity means that the EU regulates everything unless it is explicitly delegated to the member
states.
34. The Erasmus Programme supports students studying in other countries within the EU.
35. The Schengen agreement established common university degrees for students across the European
Union.
MULTIPLE CHOICE
1. Which statement about businesspersons travelling within the EU is not correct?
a.
They need to remember where at the airport they parked their car.
b.
They can use online check-in to avoid queues at the airport check-in desk.
c.
Their passport will be checked on arrival, even when travelling from one Schengen
country to another.
d.
They need to pick the wallet with the correct currency because not all European countries
use the euro.
2. The citizens of which country rejected twice a referendum to join the European Union?
a.
Norway
c.
Switzerland
b.
UK
d.
Ireland
3. Which is not an example of a political union?
a.
USA
c.
EU
b.
Soviet Union
d.
Australia
4. A customs union is not characterized by:
a.
A common tariff being charged for trade within the union
b.
A common tariff being charged on trade entering the union from the outside
c.
No tariffs being charged on trade within the union
d.
Less economic coordination than in an economic union
5. Which of the following is not a predecessor organization of the EU?
a.
European Economic Communities (EEC)
b.
European Coal and Steel Communities (ECSC)
c.
Council of Europe
d.
European Atomic Energy Community (Euratom)
6. Which statement on the European Convention on Human Rights is not correct?
a.
It was signed in November 1950.
b.
It established the European Court of Human rights.
c.
It establishes the legal framework for labour directives.
d.
It was established by the Council of Europe.
7. The Copenhagen criteria agreed by the EU in 1993 established criteria that new members would have
to fulfill, including:
a.
Adoption of the acqui communitaire
c.
A good record on human rights
b.
Stable democracy
d.
All of these answers
8. Which two countries signed the Schengen agreement but do not participate in passport free travel?
a.
Spain and Portugal
c.
Ireland and the UK
b.
Bulgaria and Romania
d.
Algeria and Tunesia
9. Which of these countries was a founding member of the EU in 1957?
a.
Italy
c.
Spain
b.
Denmark
d.
Austria
10. Which countries joined the EU in 2004?
a.
Ten countries, including Cyprus and Malta
b.
Italy, Spain and Portugal
c.
Austria, Finland, Sweden and Switzerland
d.
Turkey, Cyprus and Malta
11. The process of changing from a central plan to a market economy is commonly known as:
a.
Economic transition
c.
Stabilization
b.
Nationalization
d.
Marketization
12. How were state-owned enterprises in the transition economies privatized in the 1990s?
a.
They were sold to foreign investors in return for debt forgiveness.
b.
Each country used a different approach, often mixing different methods.
c.
They were given away to the citizens for free.
d.
They were auctioned off to the highest domestic bidder.
13. What does the principle of mutual recognition in the EU mean?
a.
In the non-harmonized sector, countries accept each other’s national regulations.
b.
In the harmonized sector, countries accept each other’s national regulations.
c.
Subsidiarity applies to the non-harmonized sector.
d.
Subsidiarity applies to the harmonized sector.
14. Why is harmonization of rules and regulation in the EU single market often very controversial?
a.
Consumer groups lobby for stricter environmental standards that businesses do not
appreciate.
b.
National politicians lobby to protect companies in their country, even if they have low
standards.
c.
Consumers object changes to the ways in has always been in their country.
d.
All of these statements are correct.
e.
None of these statements are correct.
15. Which statement about the single market in goods and services is not correct?
a.
The implementation of the single market for services has been much slower than the
implementation of the single market for goods.
b.
The implementation of the single market for services is still hindered by complex
regulatory regimes for industries such as banking, air-transport or telecommunications.
c.
The EU does not aim to create a single market for goods and services.
d.
A single market for goods and services has been adopted at different rates across the
Eurozone.
16. The EU is supporting students studying at a university in another EU country through which
programme?
a.
Marie-Curie Studentships
c.
Erasmus Programme
b.
Jean-Monet Scholarships
d.
Grundvig Programme
17. Which statement about the Bologna Process is not correct?
a.
The Bologna Process triggered the introduction of Bachelor and Masters degrees in many
European countries.
b.
The Bologna Process is an EU wide education initiative.
c.
The Bologna Process applied to non-EU member countries.
d.
The Bologna Process aims to attract more students from outside the EU.
18. What is a Schengen visa?
a.
A credit card available to citizens of the EU
b.
A visa issued by Schengen area countries to citizens of non-EU member countries
c.
A visa issued to Schengen area citizens wishing to travel to another EU country
d.
A visa issued to EU citizens by countries outside the EU
19. Which country is not a member state of the EU but is a member of the European Economic Area?
a.
Norway
c.
Finland
b.
Denmark
d.
Ireland
20. In the eurozone, monetary policy is the responsibility of the:
a.
European Commission
b.
European Central Bank in Frankfurt
c.
Bank of International Settlements in Basle
d.
Deutsche Bundesbank in Frankfurt
21. Which of these countries is a member the Eurozone’s economic and monetary union?
a.
Denmark
c.
Finland
b.
Norway
d.
Sweden
22. Which one of these is not one of the 17 eurozone country members?
a.
UK
b.
Ireland
c.
Slovakia
d.
None of these countries is in the eurozone.
23. The EU competition policy is concerned with:
a.
Cartels operating in more than one country of the EU
b.
Subsidies offered by national governments competing to attract foreign investors
c.
Mergers and acquisitions of large companies within the European Union
d.
All of these activities
e.
None of these activities
24. The European Parliament is based in:
a.
Amsterdam
c.
Den Haag
b.
Strasbourg
d.
Luxemburg
25. The European Court of Justice is based in:
a.
Den Haag
c.
Strasbourg
b.
Luxemburg
d.
Brussels
26. A term frequently heard in the corridors of power in Brussels is “Directorate General.”
a.
This is the deputy to the general secretary of NATE.
b.
This is the nickname of a powerful industry groupings lobbying inside the European
Commission.
c.
The 25 departments of the European Commission, each headed by a European
Commissioner roughly corresponding to ministries in national governments.
d.
This is personal assistant of the President of the European Commission.
27. How is the President of the European Commission elected?
a.
Indirectly by national parliaments
b.
Directly by the citizens using a form of proportional representation system
c.
Directly by the citizens using a form of first-past-the-post system
d.
Indirectly by national governments
28. How is the European Parliament elected?
a.
Directly by the citizens using a form of first-past-the-post system
b.
Directly by the citizens using a form of proportional representation system
c.
Indirectly by national governments
d.
Indirectly by national parliaments
29. What isthe role of President of the European Council?
a.
Head of European Economic Commission
b.
Head of the EU’s Executive
c.
Responsible to the European Court of Justice
d.
Responsible for the European Parliament
30. Which is not a responsibility of the European Parliament?
a.
To elect the president of the European Commission
b.
To scrutinize the work of the European Commission
c.
To approve the budget of the European Commission
d.
To approve new laws of the EU
31. The UK has been a member of the EEC/EU since:
a.
Its foundation in 1957
b.
The single market came into effect in 1993
c.
1973
d.
1998
32. If Turkey was to join the European Union, then:
a.
Turkey would be the second most populous country of the EU
b.
Turkey would be the second largest country by GDP
c.
Turkey would gain a seat in the United Nations Security Council
d.
Turkey would be the poorest country of the EU
33. Which statement on EU law making processes is correct?
a.
EU law supplements national law.
b.
Only companies trading across borders will be affected by EU law.
c.
EU law making initiatives will eventually be implemented in national law.
d.
National parliaments influence the EU law making process through the European
Commission.
34. Many large companies have representative offices in Brussels:
a.
To engage with industry associations also having their offices in Brussels
b.
To lobby policy makers to protect their interests
c.
To learn about new laws that might come into effect in the near future
d.
All of these objectives are correct.
e.
None of these objectives are correct.
ESSAY
1. What were the main obstacles that politicians still have to overcome when meeting the 4 guiding
principles of the European Union; the free movement of goods, services, capital and labour.
2. What were the main challenges faced by the transition economies in Central and Eastern Europe after
the collapse of the Central Plan system in 1990?
3. Why is it more difficult to implement a single market for services, compared to a single market for
goods?
4. What are the advantages and disadvantages of joining the euro?
5. How can citizens of the EU influence EU policies?
6. Why is the UK government often at odds with the majority of European governments over the future
direction of the EU?
7. How can companies benefit from the accelerated integration of the EU?
8. Should the EU extend its current membership and extend further members in Eastern Europe or the
Mediterranean area?