Hard or soft Brexit?
This lesson looks at a topical question, what is the decision recently made by the UK to sign a free trade agreement with the EU, a trade bloc they had previously been a full member of. So what are the benefits of a simple free trade area, compared to a closer union, such as a customs union / common market is preferable?
Outline the difference between a common market, customs union and a free trade area?
Start by watching the following short video and then answer the questions which follow:
1. Explain why the commentator on the video suggests that British Prime Minister, Teresa May, ordered a croissant with jam but now wants to eat a very hard boiled egg for breakfast?
2. Why does the commentator state that if 'many voters had known that the boiled egg, on the menu, would be served hard boiled', many would instead have ordered a Spanish omelette with Danish bacon for breakfast?
3. Briefly outline Britain's choices as it faces life outside of the European project?
4. What is meant by a soft Brexit? What versions of soft Brexit might be available to the UK?
5. Use your answers above to explain the difference between trade diversion and trade creation?