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One of the objectives of the European Union is to abolish restrictions on the free movement of
all factors of production, including labor, services, and capital. Considering the latest financial
crisis in Cyprus, would you suggest modifying the EU Charter to expel countries who don
Solution
EU licence should be modified to expel countries, not having a good financial condition in their
countries.
Reason: EU is created for doing business within countries which are alike, such as Switzerland,
France, Germany, etc. These are all financially stabled countries and they have no restriction to
flow their factors of productions. The countries which are not in this category should not get
enter into EU, simply because of their inability of adequate payment for procuring the factors of
productions from financially stabled countries.

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One of the objectives of the European Union is to abolish restrictio.pdf

  • 1. One of the objectives of the European Union is to abolish restrictions on the free movement of all factors of production, including labor, services, and capital. Considering the latest financial crisis in Cyprus, would you suggest modifying the EU Charter to expel countries who don Solution EU licence should be modified to expel countries, not having a good financial condition in their countries. Reason: EU is created for doing business within countries which are alike, such as Switzerland, France, Germany, etc. These are all financially stabled countries and they have no restriction to flow their factors of productions. The countries which are not in this category should not get enter into EU, simply because of their inability of adequate payment for procuring the factors of productions from financially stabled countries.