1957 : EEC (Treaty of Rome ; 01/01/58) European Economy Comunity

- no custom taxes and quotas between member states

- common external tariffs
- based on freedom of movement of goods, people, capital, freedom of
establishment
- common agricultural policy
- 6 countries at the start : France, Germany, Italy, Belgium, Netherlands and
Luxembourg

Treaties in order :
- Treaty of Rome
- European Single Act
- Maastricht treaty
- Amsterdam treaty
- Nice treaty
- European Constitution
- Lisbon Treaty

• creation 1957 Amstredam Treaty

• major change with Maastricht 1992
• pivot but not Denmark
• creation of the European Union
• defense and security police
• Lisbon Treaty (all the institutions in Europe come from this
• Euro zone but not the UE => Montenegro and Kosovo
• most advanced in the process of getting in the EU => Albania etc.
• Norway and Switzerland have set up with the EU on their sides a lot of corporation
agreements customised

Enlargement from 6 (in 1957) to 27 : - 1973 : UK, Denmark, Ireland

- 1981 : Greece
- 1986 : Spain, Portugal
- 1995 : Sweden, Finland, Austria
- 2004 : Malta, Slovenia, Hungary, Latvia, Slovaquia,
Poland, Czech republic, Estonia, Lettonia, Cyprus
- 2007 : Romania, Bulgaria
- 2013 : Croatia
- 2020-21 : Brexit

Candidate countries:
• Alabania, the Republic of North Macedonia, Montenegro, Serbia and Turkey are candidate
countries
• Bosnia & Herzegovina and Kosovo have a clear prospect of joining the EU in the future but
have not yet been granted candidate country status
• institutions on the european calendar (parlement européen and commission européenne)
• conseil european = national calendar
• numberr of NPs
• commission = executive
• parliament = legislative
• Schengen is free circulation of people

example of norway video

1.1

• David Ricardo (1772-1823) goes further than Adam Smith, and adds the notion of
comparative advantages considering an economy open to other markets. He is referring to
opportunity costs.
• unit labor cost = (Compensation divided by output)
• absolute or cooperative advantage
• high in capital incentive what does it do ?

question abt productivity

- example of cluster (bangladesh)

what can be said about the bangladesh industry high workers salary etc?importing country or
not

• heckler sling out of fashion or no, what it promotes

• wine and aerospace in the east of france

What’s the interest to have quater and pakistan work together ?

• Botswana is in southern africa

• what makes the cluster of luxury watch so strong : quality workers, history
• WTO : World Trade organisation
• role :

Economies of scale : lower average costs due to investments in bigger production facilities
and capacities).
« External » economies of scale: (Lower) costs are generated by the size of the industry
in a given territory (citie, region, country,...).
« Internal » economies of scale : (Lower) costs are generated by the size of the
company itself.
Kelsen pyramid : what is it?

• →Gives priorities to laws, which is above another

Directive/regulation : what is the difference?

• →directive must be discussed at national parliaments at 2 yrs, regulation applied without

discussion. Both cannot go against the EU law

Institutions : who r the members of the diff institutions?

• →European Council, head of states

• →Commission : 27 commissioners (1/country, 1 for each competency)
• →Ministers in Council of EU
Which one respect EU calendars? Parliament & Commission, every 5 yrs

Among the institutions, which follow national calendars? European Council & The Council of the EU
(every time there is change on head of state / ministers)
Question abt Norway : what is the particularity of Norway?

• →Not in EU, in Schengen, has a lot of agreements with EU, not euro currency
Treaties : under which treaty are institutions regulated at the moment ? Lisbon Treaty

Chapters 1.1 - 1.3

What is the csq of economies of scale? Decrease price, possibility of clusters

Questions abt examples

Aerospace valley (SW France) : what industry is strong? Wine & Airplane

What makes a cluster strong? Geography, history, name (Bordeaux for ex), strong network of
competencies

Chapter 1.1

Ricardo for what is he known? Comparative advantages, belief in developing international commerce
(other possible answers no)

USC : what is the advantage of high USC? Not competitive, could be compensated by high
competitivity, sign of economic development

TDS
How does Pakistan benefit from trade with Qatar? Workers working in Qatar, access to gas

What was the potential danger for the watch industry in Switzerland? Quartz, workers in France
What is the purpose of the last general secretary meeting of WTO?

• →Developing trade in poor countries, making TWO Appellate Body work again
Botswana :

• -Country in North Africa? No

• -Strong in petrol? No
• -Emerging country with relatively good economic management? Yes
• -Strong in diamonds? Yes