- Economic growth (See NAFTA impacts)
- Promote peace
- Promote development (See EU roles)
- Regulatory bodies
Impacts
Globalisation
Economic
Globalisation
- (e.g. EU) it could be argued that the EU reduced globalisation as countries within the grouping are more likely to trade with each other than venture out of the grouping – decreasing integration with outside economies. However on the other hand it could e argued that its integration with EU neighbours within the grouping is an increase in globalisation, both in terms of economic integration and generalisation of services and language. English is widely taught as a second language and people are dropping their national identity for ‘EUROPEAN’ one (8% of Up). Although this could lead to a loss of culture. WTO
Economic
- EU Integration, CAP and development (See 'EU') [Scroll down]
- NAFTA North American free trade agreement is the largest free trade area in the world. It is made up of the economies of Mexico, the US and Canada.
- Estimates are that the grouping increases Us GDP by as much as 5% per year (as well as other members).In 1993 exports from the US to Canada and Mexico grew by $142 billion due to increased opportunities in trade.
- NAFTA policies provided the ability for forms to vote on governmental policies resulting in increased farm exports as high Mexican tariffs were eliminated. The percentage of US agricultural exports to Canada and Mexico has grown for 22% to 30% in 2007, and Mexico is the top export destination for apples, soybean, and corn sweeteners.
- NAFTA eliminated trade barriers in many service sectors important as it has a surplus of services. As well as reducing the reliance on foreign oil reducing costs by sourcing within the grouping.
- US FDI in Canada more than tripled to $348 and Mexican FDI grew by $219 million – reduced risk as foreign investors have the same rights as domestic investors.
Development
- World Bank
- International Monetary Fund
- United Nations
Power
- The EU holds a vast amount of power in the scale of global trade, however many nations with in the grouping are superior leading to an imbalance of power and the creating of #majority voting’ after the reform treaty – treaty of Lisbon was created in 2007. It also requires a ‘double majority’ whereby more powerful nations have to agree on a policy before it can be implemented.
- European central bank also gained official status as an EU institution suggesting the eventual switch to a central European bank leading to the loss of financial control (bail outs). However a referendum on whether the EU should have a European primeinister was rejected in 2007, therefore a decentralised government although possible will not take affect anytime soon. This would have repercussions as it would cause the loss of sovereign and culture.
- There are also disagreements within the EU as to teh control of power, the Euro is used in all but two nations (the Uk and Denmark) which to some extent could suggest a alternate motive or interest which are not for the sole befit o the EU- exemplified by the threat of the UK leaving the Euro zone earlier this year.
- WTO and IMF power over developing countries (Guyana example and Ethiopia), G8 – 8 of the most powerful nations.
- Polarisation EU (areas that are not in the grouping),IMF (Guyana, Ethiopia)
Environment
- EU (see below)
- EU
- UN
(developed for the European Economic Community and European steel and coal community in 1993)
Integration
The EU has helped to integrate the economies of other member nations by creation of a single market. This enables the economy to develop as it implies the free circulation of goods (no tariffs or quotas) and movement of people to fill labour shortages (such as in Germany in the 90’s). This has been aided by the introduction of the Euro in January 1999 which has eased the transition of new member states when they joined and eliminated the hassle of exchange rates. The Euro is also a political symbol of integration used in all but two of its member states, new members are also bound to implement it once their economy reaches the standard required. A common tariff on external trade means members are more likely to trade with each other than century outside the grouping.
Infrastructure
Infrastructure
The development of infrastructure has also aided integration as it links the main central ‘hub’ of the key members of the UK, France and Germany to it eastern EU neighbours in particular. The European Trans rail network covers 75000km and road network 78000km as well as projects such as the cross channel tunnel.
Development
Development
The grouping has helped the development of nations both within its grouping and outside. Trade is enhanced by the development the grouping brings to its new member states. Poland for example has benefited from a move toward equalising development through infrastructure. The EU has helped Poland conform to EU standards, it has benefited by moving towards a market-orientated economy as previously was a state controlled. The EU development fund EUDF also allocated aid to less developing countries in 2007 it donated 10 billion Euros of aid.
Agriculture
Agriculture
The EU has also worked towards ensuring for security in Europe through the development of the common agricultural policy (one of its original aims). It worked towards increase production whilst ensuring customers a reasonable prices as well as farmers a fair share. However this was taken too far with x=vast over production creating the so-called ‘grain mountains’ and ‘wine lakes’ although this is not set to change following the 07-08 surge in food prices.
Environment
Environment
The EU has also taken steps towards protecting the environment by reducing the harmful practices encouraged by CAP such as over cultivation and use of harsh chemical fertilisers. The is also an environment policy which addresses issues such as acid rain and, ozone thinning, pollution and water pollution.
Group aims were met in 2007 when all me ambers agreed to reduce their carbon emmisions 20% compared to 1990 – levels (criticism from respected scientists). There has also been success in forestry expansion which has inceased10% in the west and 15% in the east, absorbing 126 million tonnes of c02 –11% of that produced by human activities by the EU.
Group aims were met in 2007 when all me ambers agreed to reduce their carbon emmisions 20% compared to 1990 – levels (criticism from respected scientists). There has also been success in forestry expansion which has inceased10% in the west and 15% in the east, absorbing 126 million tonnes of c02 –11% of that produced by human activities by the EU.
Examples
- EU
- NAFTA
- ASEAN
- IMF
- WB
- G8
