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Excerpt Economic integration can be defined as a long-term process in which several stages improve the level of integration. The first step is a free trade area in which internal visible trade restrictions customs duties, quotas between partner counties are removed.
Adding a common external tariff for non-member countries to the elimination of internal trade obstacles creates ensuing a Customs Union.
The next level of integration, the single market for commodities, is achieved by removing visible and invisible trade barriers. Therefore all restrictions on trade between member-countries are abolished and a common external tariff is imposed on external countries.
Following to this level free factor mobility of production and of financial assets generate a common market. Next steps to economic integration are the Monetary and lastly the Economic Union by having a common currency and policy. Theme of this essay is critical arguments of disestablish trade barriers towards the European Union EU and its underlying economic theories in respective to the Single Market Programme SMPits aims and if they are achieved in terms of labour and social policies.
Therefore it is necessary to have a focus on the removal of non-tariff barriers NTBs exemplary for goods and labour. However what are the reasons for economic integration? The answers are given by the theories of Customs Union CU.
Economic integration is based on welfare effects caused by specialisation and trade. There are short-term static trade creation, trade diversion effects of integration and long running dynamic effects economies of scale, terms of trade that amplify or weaken the static effects. It is assumed that there are a small CU, perfect competition, a partial equilibrium, perfectly elastic world supply and decreasing returns to scale in all countries.
Furthermore, there is a gain in macroeconomic efficiency through a saving in production costs on the one hand and on the other hand through available resources country of more expensive production costs. In the long run and under imperfect competition assumptions see belowdemand in the cheaper producing country increases and furthermore scale economies may exploit which means advantages in production costs and greater trade creation gains.
Especially European countries are relative small in size and therefore they trade intensively with both, European countries and the rest of the world. For that reason it made sense removing all national barriers to become one equal competitor to the USA and Japan.
Also consumers gain in welfare through trade creation, namely a higher relative income, by a reduced price at the expense of real income to the community, in other words the tariff revenue.
A reduced price may leads to increased domestic consumption, the so-called trade expansion that provides a multiplier effect on economy and may generate more investment and furthermore production and economic growth. These will depend on the relative efficiency of domestic, partner, and world suppliers and on the domestic elasticity of demand for the product.
Under the assumptions of imperfect competition increasing returns to scale, product differentiation, segmented markets, elasticities of substitution CU leads to exploit economies of scale and more competition will lead to reduced profit margins, increasing intra-EC shares and lower costs, hence better allocation and welfare is gained.
Competition reduces costs by removing X-inefficiencies within companies, prices will fall, output decreases while intra-EC trade falls as well as extra-EC export increases and imports fall.BMGT Quantitative Methods in Business.
Is an introduction of selected operations research techniques useful in the analysis of managerial problem situations, the design of new and improved systems, and the implementation of results in order to achieve desired system performance.
Motivation: Master Thesis. Memory 4. demand side of FM on a yearly basis in different European countries such as Austria, Germany, Bulgaria, Romania, Turkey and the Netherlands. The study is conducted among the Top companies in Spain (ranking is sales driven) from different types of Steps to be followed when developing a .
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Economics of Globalisation and European Integration - Master thesis.
Authors: Daring Digital Marketer Title: Market Research Analyst at . This thesis concludes my second master’s degree.
My degree in European Public Affairs at the Maastricht University inspired me to further pursue EU studies. The master’s thesis at the University of Oslo provides an excellent opportunity to do a thorough study in the political science field.
This allowed me to combine my interest for the EU integration . Guidelines for Exams, Written Papers and the Master Thesis within the Master Programme South East European Law and European Integration (LL.M.).