Economia

Páginas: 5 (1111 palabras) Publicado: 21 de junio de 2012
Using examples that you have studied explain how membership of a trading bloc can affect national sovereignty. (10 Marks)
Effects of being a membership of a trading bloc have produced controversy caused by the supposed loss of national sovereignty. A trading bloc is an arrangement among a group of nations to allow free trade between member countries to impose tariffs on other countries that maywish to trade with them; also trading blocs are done with the purpose of reducing regional barriers to trade. Sovereignty is the power of a state to do everything necessary to govern itself and being much more independent; this makes them able to do things such as making, executing, and applying laws; imposing and collecting taxes; making war and peace; and forming treaties or engaging in commercewith foreign nations.

As the level of economic integration caused by trading bloc increases the greater will be the loss of national sovereignty for the individual member such as a country. The country’s ability to set its own course to take decisions reduces as different policy making is done at the union level and not at a national level, therefore it stops being highly independent to beingdependent into a certain level.

A case study of a trading bloc is the European Union; this trading bloc consists about the union of 27 countries on the region of Europe with the purpose of having an agreement in which they enhance and have a political, economic and social cooperation. The European Union is a unique economic and political partnership in which the member countries sharesovereignty over an extensive range of policy areas. This trading bloc has power in decision making over every policy which each member does; this include financial policies such as interest rates, tariffs; or other type of laws.

During the loss of sovereignty different areas are damaged by the loss of control of them; trading policy is an example, the EU uses their power into the trade by preventingone member state from importing foreign goods at cheaper prices due to lower tariffs and then re-exporting the items to another member with higher tariffs. Member countries when having economical crisis, they can ask for help through the European Union; however, they become “slaves” of their power. A case study of the loss of sovereignty inside the European Union is Greece.

Greece issuffering from an economic crisis as the government decided to ask for loans which were made of high interest to the European Union and the IMF to increase its infrastructure and other areas, however, the country hasn’t manage to repay the debts which they own; this is taking the country to a bankrupt and into a high debt. However, the European Union is putting pressure into Greece; and making they have aloss of national sovereignty; the European Union can control Greece in showing power on taxation and spending policies. Greece is having problems with this as they are not independent on decisions the government will make, they need to follow what the European Union power decides.

Bibliography:
http://www.businessinsider.com/eu-revokes-greek-vote-2010-2 (Greece Case Study)

Using examplesthat you have studied explain how political parties and action groups are fighting against loss of national sovereignty. (15 marks)
The loss of sovereignty can be fight or reduce the risk of it by the reduction of interdependence between countries caused by globalization areas which permit trading blocs and other areas. However, there are also other ways in which even by being an interdependentthe reduction of possibilities of having a loss national sovereignty by regulating policies between countries so they don’t become dependent from one and another and be more independent.
There are theories used by certain groups in a country to stop the loss of national sovereignty. One of this is called Nationalism; this is the term in which in consists that a nation has the right to be and...
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