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Business
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| Number of pages / Number of words: |
8 / 2008 |
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This is known as Preferential Trading.
Agricultural Goods
Prior to the European Union’s formation there was a diverse range of prices and costs between EU states concerning the agricultural market. “The average variation from EC mean price without indirect taxes in 1985 was 15% consumer goods and 12 % capital goods,†(pg 113 – The European Union) which shows the big difference between European prices...
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This is effectively a set of rules governing the movement of products. Agricultural goods that are produced throughout the European Union are set with a minimum selling price. This amount ensures that the goods will not be sold below this specific price. It is known as a floor price. This value per unit of the goods in question will always be higher than that of the equilibrium price, and as a result surplus goods will be produced...
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