International Economics Essay

7656 words - 31 pages

International Economics International EconomicsEnlargement and Deepening of EUThe original six members established the European Community in 1957: West Germany, France, Italy, Netherlands, Belgium and Luxemburg. The main reason behind this unification was a specific response to a series of problems, which confronted a group of countries in Western Europe in the immediate aftermaths of 1945. Unification offered Western Europe a means of strengthening itself against both super powers united states and USSR. Stanley (p.30) argued that "the main motivation for European Community the argument of scale, or put more bluntly, the attraction of sizeism" In 1945 it was easy to relate ...view middle of the document...

"...Increased size of the internal market combined with the relatively higher growth of the CEECs (productivity gains over the medium term in the applicant countries will be higher than in the EC-15...)" (p.141) The extension of zone of peace, stability and prosperity in Europe will enhance the security of all its peoples and this is supposed to attract large volumes of portfolio investment. In the process of enlargement of the Union both group of countries joining, and the EU-15 are going to be faced with trade creation from a cheaper source and trade diversion from a cost producer. "the applicant countries trade mostly with existing members..." (p.142) so from this we can understand that the enlarged Europe is going to gain more through trade creation than loose by facing trade diversion. Andurton in 1995, suggested that "existing countries are afraid that their markets will be swamped by cheap imports from these countries...specially the agriculture and textile markets, where the EU has traditionally imposed high tariff barriers to protect domestic economies". It is not only the cheap imports they should be afraid of it is also the influx of cheap labour from CEECs which can create a disequilibria in the labour market. Another dynamic economic gain arises from enlarged Europe is increased competition between firms. An enlarged Europe will eliminate restrictions on trade between EU-15 and the new member countries. Domestic industries will therefore face greater competition than before from firms in other member countries. Competition is believed to encourage innovation, reduce costs of production and reduce prices. Anderton contradicts this point by saying "...competition is reduced in the long run. Competition will derive the least efficient firms out of business...over time, the oligopolistic nature of competition will be recreated" (p.561) Movement of labour and capital can also pose problems. According to Anderton "there is a fear that capital would move to newly joined cheap labour countries whilst workers would move in large numbers from these countries to existing member countries, attracted by much higher wages" After looking at several sources on advantages and disadvantages of enlargement, the threats to existing members are mirror images of the opportunities to applicant countries. Even Breuss (2000) said in his report "the enlargement debate in the EU and in the Central and Eastern European countries centres on different priorities, the earlier the the east, while the west takes cautious attitude towards enlargement". Some economists like Avery and Cameron argue the point that "The Economic gain to be reaped from enlargement will depend primarily on the conditions in which the Single Market is enlarged". According to Breuss time is an important factor in the process of enlargement, and his main argument is all in all earlier enlargement will bring the poor CEECs more rapidly to EU standards. Enlargement will involve an...

Find Another Essay On International Economics

Economics, Politics and (International) Political Economy: The Need For a Balanced Diet in An Era of Globalisation

6749 words - 27 pages interaction between economics and political science,( n3) is a rethink of this intellectual apartheid taking place?Over the last few years scholars of 'mainstream' political science--I cannot resist pointing out--have belatedly begun to recognise what contemporary students of international political economy had taken for granted for three decades: politics and economics are not separable analytical categories.( n4) And in pockets of the economics

A Very Promising Discipline: Economics at MSU

1255 words - 6 pages instance, every year, there are huge number students enroll economics classes. So, we need many faculties to teach them. Therefore, the international company need people with economics background, which help them to judge the best invest time and place. In addition, government also be a big boss for economics students. I do not know what the minimum wage is, but it is very stable jobs around world. Fig. 1: 10 Most popular jobs for economics majors

Foreign Politics and Economics: Annotated Bibliography

639 words - 3 pages Development Economics Research, May 2007. Kanbur, Ravi. “The Economics of International Aid (Paper prepared for the Handbook on “The Economics of Giving, Reciprocity and Altruism,” edited by Serge Christophe-Kolm and Jean Mercier-Ythier, North-Holland). New York: Cornell University, November, 2003. Myrdal, Gunnar and Hla, Myint. “International Inequality and Foreign Aid in Retrospect. Pioneers in development”. New York: Published for the World Bank

Economics of Information

1236 words - 5 pages . Mandeville, T. (1998). An information economics perspective on innovation. International Journal of Social Economics, 25 (2), 357-364. Retrieved March 11, 2011, from: http://www. Ponelis, S. R., & Britz, J. J. (2004). Teaching information economics to undergraduate information science students at the University of Pretoria. South African Journal of Information Management, 6 (4), Retrieved March 11, 2011, from: http://www. Sloman, J. (2003). Economics (5th ed.). England: Prentice Hall. Webster, F. (2002). Theories of the information society ( 2nd ed.). London: Routledge.

Statement of Interest

631 words - 3 pages undergraduate education (major in international economics) and a two-year graduate education (major in finance). During my undergraduate program, I passed courses on calculus, intermediate microeconomics, intermediate macroeconomics, statistics, and econometrics. Within my graduate program I passed applied statistics, business research methods, modeling and decision analysis, and managerial economics. My GPA in bachelor’s degree program was 4.62/5.00, and my

Importance Natural Resource Economics

1702 words - 7 pages Natural Resource Economics Economics in its broader sense deals in the distribution, production and consumption of goods and services in the most efficient way. It tries to explain how goods and services can be distributed or allocated to effectively meet the needs and demands of the market. Natural resource economics is slightly similar to this broader economic perspective, in that it seeks to efficiently allocate the earth’s ‘goods and

Book Review of Principles of Environmental and Resource Economics

972 words - 4 pages Book review Folmer H, Gabel HL: Principles of environmental and resource economics: A guide for students and decision-makers CAIS MAIN (Level 1) HC79 E5 P957 This book consists of 22 contributed chapters that provide an excellent introduction to important topics in the field of environmental and resource economics. The contributors consist of many leading scholars in the field. The book is explicitly targeted as a teaching tool for upper

Cornell Supplement

657 words - 3 pages soda, order a combo with a soda as the drink and an extra small frosty. The frosty has no surcharge in a combo, but is several cents cheaper than a soda as an individual item). I also actively serve as the treasurer for my district’s troupe of the International Thespian Society, where I practice financial business skills by budgeting and fundraising. The primary motivation behind my interest in economics as a major, however, is my dual credit

purpose of statement

923 words - 4 pages in life. Education has power to be able to influence in every single act of the individual, from how to interact with peers to how to make potential decision that can have direct effect in one's and in larger term to society's life. I want to be among the like minded people who shares true interest for economics, exchange and improve my existing perspective, and make a good contribution to this field through undertaking in depth research. I find Warwick University as the best choice for its dynamic and supportive economics community, remarkable Economists and international spirit.

Research Project on Business Economics Curriculum

2348 words - 9 pages because most schools nowadays have international students coming from diverse cultures across the globe (Brearley 1). This has consequently impacted on the business economics curriculum because teachers have become overly concerned about the inappropriateness of the national curriculum in providing both local and international students with a holistic educational learning experience which encompasses international experiences and global

Article Rebuttal

544 words - 2 pages have this power.In the last seven years of his presidency, five governments have fallen causing a high economic crisis, and a huge unemployment hole in the last few years until now.Here there are few articles proving what happened, and it is happening still in Italy during his Presidency:Unemployment Rate (Trading Economics, 2013).Italy Personal Income Tax Rate (Trading Economics, 2013).Italy Sales Tax Rate (Trading Economics, 2013).People know

Similar Essays

Economics International Trade Simulation Essay

1452 words - 6 pages with how the results can be applied to my workplace.History of International TradeAccording to Douglas A. Irwin, professor of economics at Dartmouth College, the theory of international trade and commercial policy is one of the oldest branches of economic thought. Irwin states that from the ancient Greeks to the present, government officials, intellectuals, and economists have pondered the determinants of trade between countries. These same groups

International Economics Of Renewable Energy Essay

2015 words - 8 pages International Economics of Renewable Energy Energy is a critical component for every economy and society around the world. Energy is divided into two groups, nonrenewable (coal, oil, natural gas, and nuclear) with a finite amount found around the globe and renewable (hydro, tidal, solar, wind, geothermal, and biomass) that are constantly being replenished so that they will never run out (Green Energy Choice, 2011). The international economic

International Trade Concepts Simulation, Economics 372, University Of Phoenix

1098 words - 4 pages free trade is generally better than imposing trade restrictions, sometimes restrictions are favored. Reasons for trade restrictions include protecting a developing domestic industry from competition from abroad or preventing dumping, as shown in the simulation. Overall, bilateral, or multilateral trade agreements reducing trade barriers among countries usually lead to increased benefits for all countries involved.ReferenceApplying International Trade Concepts Simulation. Retrieved April 6, 2008from URL, D. C. (2004). Economics (5th ed.). McGraw-Hill/Irwin: New York, NY

The Role Of International Trade Ib Economics Study Note

1351 words - 6 pages 4.4 THE ROLE OF INTERNATIONAL TRADE I. Trade problems facing many economically less developed countries: With reference to specific examples, explain how the following factors are barriers to development for economically less developed countries. 1. Over-specialisation on a narrow range of products · Developing countries, especially the lower income ones, tend to specialise in the production and export of only a few goods (usually primary goods