Explain the composition of the UK’s Balance of Payments arrangements, identifying the key elements in detail and indicate how this has a bearing on UK trade policy, explaining the impact of international trade to an open economy and discuss how the UK’s membership of the EU has affected the UK’s trade patterns, the competitive position of the UK, and the UK’s management of exchange rates.(Indicative word-count: 1200)Task 2. (LO 2)Explain and evaluate the economic rationale of the EU in relation to:• exchange rate stability,• the single currency,• free trade versus protectionism,• factor mobility.(Indicative word-count: 1200)Task 3. (LO 3)Describe the major institutions of the EU, showing how they operate and what their structure is, clearly indicating how their operations impact on the policy outcomes and funding arrangements for the EU.(Indicative word-count: 1200)Task 4. (LO 4)Produce an action plan for a specific UK company of your choice to develop trade within the EU. The plan should address the composition, size, infrastructure, and the impact of the Eurozone on the firm’s plans and should evaluate barriers to trade and the impact of regulations and directives faced together with access to EU funding streams.(Indicative word-count: 2200)