INTERNATIONAL BURCH UNIVERSITY

FACULTY OF ECONOMICS

EU INTEGRATION AND BOSNIAN ECONOMY

Duration: 60 minutes GRADE :......

FINAL EXAM QUESTIONS

I Answer the following questions (5 points each)

  1. How many different policy fields are there in acquis communautaire?

There are 35 chapters or policy fields.

  1. List the political criteria for EU membership
  2. Democracy
  3. Rule of law
  4. Human rights
  5. Respect for and protection of minorities
  1. Describe next chapters of the acquis
  1. Free movement of goods

Products must be traded freely from one part of the Union to another

  1. Company law

The company law acquis includes rules on the formation, registration, merger and division of companies.

  1. Energy

EU energy policy objectives include the improvement of competitiveness, security of energy supplies and the protection of the environment.

  1. What are the limits set by Stability and Growth Pact related to budget deficit and government debt?

Budget deficit less than 3% of GDP

Government debt less than 60% of GDP

  1. What are the benefits of being part of an EMU?
  • No inflation
  • Stable currency
  • Easy shopping
  • Financial integration
  • End of exchange rate fluctuations
  • Uniform interest rates
  1. List two arguments that could be used against BiH entering European Union:
  1. Lost of economic sovereignty
  1. Big competition
  1. Which do you think is the more important argument, and for what reasons?

Entering a market of more than 500 million people could be an opportunity. On the other side it is a large market with lot of competition, which we as a small country have to be prepared for with the standardized quality production. Because, unprepared companies will not be able to survive in that environment.

  1. Which are the problems of Serbia on its way to the EU?
  • Kosovo independence
  • War criminals
  • Corruption
  • Discrimination of minorities
  1. What are the main problems of Turkey on its way to the EU?
  • Cyprus
  • The size of a country
  • The location of a country
  • The religion
  • Kurds problem
  1. What is the European Financial Stability Facility?

EFSF is Eurozone-wide fund to remove the fear that weak Eurozone states wouldn’t be able to repay their debt.

II Choose the correct answer (3 points each)

  1. The Treaty of European Union states that...

a)Any European country may apply for membership if it respects the democratic values

b)Any country can apply if it respects the rights of minorities

c)Any European country can apply for membership if it respects the democratic vaules of the EU and is committed to promoting them.

d)All European countries should become members of EU

e)None of the above

  1. Croatia became an official candidate for EU membership in ______

a)2005

b)2004

c)2010

d)1994

e)None of the above

  1. Who is blocking the opening of EU accession talks with Macedonia
  1. Albania
  2. Greece
  3. Serbia
  4. Bulgaria
  5. All the above
  1. What is NOT a direct benefit of being part of an EMU

a)End of exchange rate fluctuations

b)Financial integration

c)Uniform interest rates

d)Labour mobility

e)All of the above

  1. Find the intruder
  1. Albania
  2. Serbia
  3. Turkey
  4. Montenegro
  5. Iceland

III Choose one topic and write an essay (200 words minimum) (35 points)

a)Implications of Croatia entering EU on BiH