euro union ppt 07

							The EUROPEAN UNION
           INFORMATION NOTES.
Before we start, a few vocabulary
words to review.
Tariff: a tax on goods going into our
out of a country.


                                  Small booklet
   passport                       that provides
                                  documentation of
                                  a person when
                                  traveling between
Euro                              countries.


                    The common currency used
                    in 12 of the European Union
                    countries.
Gross Domestic    The amount of goods and
Product (gdp)     services produced within a
                  country in a year.




Currency exchange:
When you change your
money into the money of
the country you are
entering (dollars to
pesos in Mexico.)
  The first big steps to economic cooperation in
  Europe began in 1958 the European Economic
  Community was formed.

  Germany         Italy
                                      Netherlands




Belgium          Luxembourg
Expansion of the European Union has      France
continued for nearly 50 years.
Remember,
economically,
countries, like
people,
associate with
others like
themselves.

   All the
   countries in
   the EU are
   considered
   developed.
The goal of the
European Union is to
break down trade
barriers and eliminate
tariffs between member
countries.
People no longer
needed passports
to travel between
EU member
countries.
The original twelve
countries are in green.

  Three were
  added in 1995              1995
                                     1995


10 new
countries
were                                    2005
invited in
2005.
                                95
              Ten OF
  NEW MEMBERS AS new members join
                   the EU on May 1
  2004.            (swissinfo)
European countries alone have a much smaller
population than the USA. Look in the
demographic section of your text. The most
populous country in Europe is? The population
of the USA is?
No single European economy can approach that of
the USA.
But, add them together as the EU and we are nearly
the same.
In 1993 a common currency was proposed. The
Maastricht Treaty opened the way for the EURO, a
currency used in 12 countries of the European Union.
Using the Euro




 People no longer had to exchange German marks
 for Italian Lira, or French franks for Spanish
 pesos when traveling between countries.
Three countries chose not to adopt the Euro. They
were the Untied Kingdom (the “pound”, seen below),
Sweden and Denmark.
 Prior to the EU, when countries did business
 outside their country, tariffs, currency exchange,
 and border regulations sapped profits.

What would the economic equivalent be in the
USA?     If we had to stop at the borders
         when traveling between states and
         pay taxes on goods between states..
  As members of the EU, members can ship their
  goods to any member country without paying
  tariffs (taxes) or stopping at border crossings.
                        Prior to the EU, trade
                        between countries required
                        passing through border
                        crossings.




Goods now move
between EU member
countries without any
obstacles.
Another goal of the EU is to make countries so
economically dependent on one another, there
won’t be another European war between
member countries.
The combined gross domestic product of the EU
is roughly that of the USA. That makes the EU a
……………………… competitor
Countries such as the UK, France, Germany,
are much wealthier than countries like
Portugal, Spain, Greece.

One of the goals of the EU is to bring the
lower tier countries up to the upper level.
The second goal of the EU is to make member
countries more competitive in the global economy.




 They use a tax on economies to update
 infrastructure, industries, services and
 technologies in member countries, particularly
 the poorer members.


   The major competitors to the EU are the
   USA, Japan, and China.
Workers in the EU are paid high wages by world
standards. They receive generous benefits,
high salaries and long vacations. They also
receive socialized healthcare.


The EU is attempting to move lower income
manufacturing jobs to the new Eastern
European members in order to keep costs
down.


   The intent is to keep EU companies from
   relocating to China or Southeast Asia.
How will the European Union affect
YOU?????      Jobs, goods you
             can buy,
             international
             cooperation,
             environmental
             regulations,
             etc.. We are
             not alone!