Вы находитесь на странице: 1из 5

Economics Homework assignment Choose one trading bloc to research.

Make an annotated time line to show the steps involved in its establishment and evolution.

The European union is one of the largest and most powerful trading blocs in the world. A trading bloc is a group of countries that join together to form an agreement to increase trade amongst them by reducing barriers. There are 6 stages to have a complete economic integration. The members of the European union are as follows Austria: Belgium: Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom. Timeline displays the steps involved in the evolution and establishment of the trading bloc European Union May 9, 1950 Robert Schuman proposed combining Europes coal and steel industries and this was the first step towards economic integration. Economic integration was a direction aimed to avoid nationalism and to increase and improve relations in Europe after world war. April 18, 1951 - The European coal and steel community (ECSC) treaty was signed in Paris. The countries involved were Belgium, France, Italy, Luxemburg and Western Germany and Netherlands. March 25th, 1957 - The 6 countries mentioned above signed

a treaty in Rome which involved the creation of the European economic community (EEC) hence resulting in the formation of custom union and also the European atomic energy community (Euratom) was established that included the integration of the production of nuclear energy. The treaty was officially in action by 1958. April 8, 1965 - A merger treaty was signed in Brussels which actually came into work n 1st July 1967, the three communities combined into one known as the European Community. 1973: Looking at the success of the European Community Denmark, United Kingdom and Ireland decided to join making a total of 9 members. Norway also tried to join however Norwegian voters opposed it. A setback in the European union was caused during this period due to the Arab-Iserali war, which led to energy crisis and economic problems in Europe. 1981 Greece joined. 1986 Spain and Portugal joined. 1990 Eastern Germany joined the EU. This is due to the unification of Germany as a whole after the Berlin walls were broken down reuniting east and western Germany. 1979 European monetary systems was used: which is where countries link their currencies to one another to prevent large fluctuations. June 29, 1985 - The single European act was signed as a revision of treaty of Rome so establishing a single market where barriers between members are removed as much as possible. The factors of production are distributed more efficiently and there is more competition so consumers benefit however due to not having any protection or any subsidy, firms struggle to survive. So the trading bloc has officially reached the common market stage of economic integration. A common market is a custom union with product regulation and free movement of the factors of production (labor, capital, goods and services) 1993 - Copenhagen criteria composed which was a set of rules to be eligible to join in the European Union and also single market is finally achieved. 7th February 1991: Economic and monetary union is imposed with the signing of the Maastricht treaty, which is to adopt euro as a currency to have a fixed inflation rate, government finance, exchange rate and long-term interest rates. This is where European union came into being. We see the European union has reached Economic and monetary union, which is a common market with a common currency. (Note: In reality Euro came into being by 1st January 2002) 1995, January 1 Austria, Finland and Sweden join the

European Union. 2 October 1997 - Amsterdam treaty was signed which was based on expanding common foreign and security policy, and making a representative to take overall responsibility of EU foreign affairs. June 1, 1998 European central bank established in Frankfort Germany. 2004 Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Mata, Poland and Slovenia and Slovakia joined.

Pick one country in the bloc and evaluate how it has been affected by membership of the zone. Ireland has gained a lot from joining the European union. It was in a poor economic condition however after joining the EU there was a large amount of employment and a lot other benefits received. Ireland is a country that is dependent on exports so being part of the EU reduces barriers between the EU and Ireland hence making the trade of goods and services much easier between the two hence increasing employment. It is estimated that 700,000 jobs have been created after the EU membership and the trade has increased 90 fold. Ireland is very vulnerable to financial crisis however being part of a such a large trading bloc is an advantage as EU guarantees help in recovery if ever undergoing any such problems. The market in general in Ireland has become more efficient due to the increased competition as now from the old traditional agricultural methods the agriculture sector has turned in to more high tech industry. EU provides Ireland with funds, which are used to improve infrastructure such as roads, hence improving the efficiency in production and a better environment for the Irish. It is estimated about 17 billion Euros were given after joining the EU. It is now more attractive for foreign countries to invest in Ireland hence creating more jobs and the foreign direct investment proves this by increasing from 16 million euros to 30 billion euros. Before the Economic and Monetary Union Irelands Currency was linked to Britains currency. However high inflation in UK affected price stability so it was beneficial for Ireland to adopt the Euro. Another major advantage is that joining the EU has improved the relations between the two hence making it easier for students of Ireland to study in Europe. Production methods are more efficient due to the EU roles imposed such as pollution control hence making Ireland more Eco-friendly. A disadvantage to the Irish in joining the EU is mainly the effect of it on the fishing industry as this means the Irish water have to also be open for fishing by other countries hence reducing the Irish fish production and resulting in a loss of jobs for the Irish who are involved in the fish industry.

Bibliography BBC NEWS | Business | A Guide to World Trade Blocs." BBC News - Home. Web. 11 Oct. 2011. <http://news.bbc.co.uk/2/hi/business/4510792.stm>. "EUROPA - Decision-making in the European Union." EUROPA EU Website | Choose Your Language | Choisir Une Langue | Whlen Sie Eine Sprache. Web. 11 Oct. 2011. <http://europa.eu/about-eu/basic-information/decision-making/index_en.htm>. "European Union (EU) Formation: What Is the EU and How Was It Formed? | Suite101.com." Anthony Tilke | Suite101.com. Web. 11 Oct. 2011. <http://anthonytilke.suite101.com/european-union-eu-formation-a171095>. "European Union Timeline." Crawford's World. Web. 11 Oct. 2011. <http://crawfordsworld.com/rob/apcg/EU/Unit4EUTimeline.htm>. "The European Union's Formation, Benefits and Detriments (unfinished) - EU's Formaiton, Benefits, and Detriments by Stephanie The Amazing." Europe. Web. 11 Oct. 2011. <http://www.goodreads.com/story/show/229769-the-european-union-s-formationbenefits-and-detriments-unfinished>. "Impact of EU Membership on Ireland." EUROPA - European Commission - Homepage. Web. 11 Oct. 2011. <http://ec.europa.eu/ireland/ireland_in_the_eu/impact_of_membership_on_ireland/in

dex1_en.htm>. "Was the Formation of the European Union a Good Idea? - by Travis Casey Helium." Helium - Where Knowledge Rules. Web. 11 Oct. 2011. <http://www.helium.com/items/125340-was-the-formation-of-the-european-union-agood-idea>.

Вам также может понравиться