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What are the differences between the countries on the following map?

What are the differences between the countries on the following map?. Differences???. Compare the distances North to South and East to West: are they similar . Imagine.

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What are the differences between the countries on the following map?

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  1. What are the differences between the countries on the following map?

  2. Differences???

  3. Compare the distances North to South and East to West: are they similar

  4. Imagine Imagine traveling from Chicago to New York City and having the language, currency, prices of goods, and basic laws change every time you went through a different state. What problems might result?

  5. Exchange rates Any time you exchange foreign money there is a commission charge assigned by banks or currency exchanges. Example: $100 US dollars to Canadian. Exchange rate is 1.07 Canadian for every US dollar, or .93 US dollars for every Canadian. Commission charge is $4.00 Canadian. How many Canadian dollars would you get, subtracting the commission charge? 1.07 * 100 = 107 – 4 = $103 How much in US $ was the commission charge? .93 * 4 = $3.72 US Do others – you can get exchange rates on Internet

  6. The European union So…. After centuries of competition and frequent wars, nations of Europe came together in a spirit of unity and cooperation and formed the European Union (EU).

  7. 1951: European Coal and Steel Community After WWII some countries in Europe wanted to move away from nationalism and come together instead Robert Shuman proposed France, West Germany, Belgium, Luxembourg, the Netherlands, and Italy agreed to pool coal and steel resources and abolish tariffs on all materials. Regulating coal and steel industry spurred economic growth for those countries

  8. 1957: European Community or the Common Market France, West Germany, Belgium, Luxembourg, the Netherlands, and Italy Established free trade and stimulated economic growth among member nations Allowed labor and capital to move freely across borders Britain, Demark, and Ireland joined in 1973

  9. European Union 1980’s and 1990’s: the group expanded and took on the name EU. After the collapse of Communism, Eastern European countries began to join 1999: A new currency was introduced: Euro 2002: Twelve European Union Member States used the euro cash. 2007: Euro introduced in Slovenia - the first new EU member to introduce the euro. 2008: Euro introduced in two other states - Cyprus and Malta.

  10. Identify member countries of the EU EU: 2007 4 giants: Germany, Italy, France, United Kingdom 5 neighbors of Germany: Belgium, Netherlands, Luxembourg, Denmark, Austria 6 outer countries: Ireland, Sweden, Finland, Greece, Spain, Portugal 10 Added Countries: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia 2 Newest Countries: Romania and Bulgaria

  11. EU Headquarters: Brussels, Belgium

  12. Looking at the problems we mentioned earlier in Europe, what were benefits of the EU?

  13. Benefits • Save on exchange costs (billions annually) • Worth of products (price of goods between countries without the exchange rate) • Creates new jobs • Creates more stability – more countries involved, so less fluctuation • Reduces economic differences among richer and poorer members • Easier to cross borders – no showing passports • Strengthens trade (no tariffs, export taxes, checking products at borders) • Common commercial policy • Speak with one voice • Same currency – EURO

  14. Requirements: Stability of institutions to guarantee democracy, the rule of law, human rights and respect for and protection of minorities. The existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union. The ability to take on the obligations of membership including adherence to the aims of political, economic, and monetary union.

  15. The Euro • 4 originally opted out of Euro – (United Kingdom, Sweden, Denmark, Greece) Why? • The rest began replacing money in 2002: 1. Sacrificed the element of sovereignty and gave power to Central Bank 2. Surrendered the right to devaluate (compete against other countries when in a recession) out of trouble 3. Surrendered the right to run budget deficits to counter mass unemployment 4. Only way out of monetary unit is to QUIT 5. To qualify, a country must have stable economy and little currency fluctuation.

  16. Why did a few EU countries resist adopting the EURO? 1. Hurt their economy – increase unemployment through layoffs 2. Cared about their currency – sense of pride 3. Expensive to change all currency to EURO

  17. European Union: definition The European Union: an organization that promotes cooperation among its members in the areas of economics and trade, social issues, foreign policy, security and defense, judicial matters, monetary policy, and establishes a single market in which economics of all EU member states are unified

  18. Compare and contrast US and EU • EU produces and trades more goods than the US • Trade barriers across national boundaries are disappearing – like US interstate barriers • Common currency plan – EURO

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