EU impact on global trade
EU impact on global trade
The trade policy of the European Union has of late been recognized as an integral component of the direction to be taken by the international trade. The policy has a broad approach to reforms that need to be undertaken in the economy so as to enhance its competitiveness. A vibrant economy for the EU implies that the entire Europe will have a superior economy in the global arena. The EU through its commission therefore, needs to open more markets abroad and create more trade opportunities which will guarantee the European based companies of continued growth in the new markets (Sheehan, 2008).
The changes that are currently being witnessed in international economy are due to international relations and global economy. World economic integration is gathering momentum every year and the impact of EU cannot be ruled out. This economic integration is being driven by increased trade among various countries, reduction in the costs of transportation, and the vibrant communication and information technology.
All these are responsible for creating more and more opportunities for development and growth on a scale that is largely unprecedented. However, the growth is also exerting a lot of pressure on the natural resources in the entire world and creating more competition among the European Union industries and workers (Sheehan, 2008). The European Union strategies for playing a leading role in the international trade and promoting international security contradict each other in most cases.
On one hand the European Union enhances issues of global security like the development of the Iranian nuclear project or being involved in the Middle East peace keeping, while on the other hand the union encourages the industries in Europe to manufacture and export products of high technology which are likely to be used for military and civil purposes. The EU undermines the efforts of successful control systems for exportation because it includes countries that have no relevant experience in exportation. As a result the risk of exporting various goods that are controlled is increased.
But all in all EU plays a leading role as far as the international trade is concerned. Most of its member countries are developed and thus they are able to pool their resources together to enjoy economies of scale. They also have a big population which forms a major market for the goods and services produced in the region as well as importing and exporting goods and services from other nations and thus participating significantly in the global trade (Sheehan, 2008). Conclusion The European Union community forms a very large trading block since it is comprised of relatively wealthy nations.
Its influence on global trade will increase especially when its expansion program is well facilitated to include other nations such as Croatia, Macedonia and Turkey all of which are likely to contribute significantly to the welfare of the entire European Union. The strength of the union is a result of it administrative structures which are well coordinated. However, there is need for the EU to fasten its accession process to enable the willing and qualifying countries to be able to join the union within a relatively short time as opposed to the current scenario where such countries are taking a long period of time.
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University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 8 January 2017
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