EU

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• EU
• European Union

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CHAPTER 11 The Global EconomyTrading Blocs

• Trading Blocs
• Group of nations agree to reduce / remove trade
  barriers
• trade agreements outside WTO
• NAFTA (US, Canada, Mexico)
• EU (25 European nations)

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CHAPTER 11 The Global EconomyEuropean Union
(EU)

• 1958 Common Market
• later European Economic Community
• goal economic unification
• 1999 12 of 15 members adopted Euro
• Euro zone replaced local currencies 2002
• monetary policy European Central Bank

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CHAPTER 11 The Global EconomyEuropean Union
(EU)

• Original members
• France Finland
• Germany Spain
• Italy Portugal
• Belgium Austria
• Netherlands United Kingdom
• Luxembourg Denmark
• Ireland Sweden
• Greece

• New members (2004)
• Poland
• Hungary
• Czech Republic
• Slovakia
• Lithuania
• Latvia
• Estonia
• Slovenia
• Malta
• Cyprus

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CHAPTER 11 The Global EconomyTrading Blocs

• Policies
• Removed all tariffs quotas between members
• Common tariffs on imports from outside EU
• Liberalized movement of capital and labour
• Common policies
• Agriculture
• Transportation
• Business practices

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CHAPTER 11 The Global EconomyTrading Blocs

• Benefits
• Larger market (350m consumers)
• Lower costs
• Economies of scale
• Currency conversion, fluctuation