EU European Union

International Business

Prepared By Manu Melwin Joy

Assistant ProfessorIlahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

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Introduction

• The EU is a unique

economic and political

partnership between 28

European countries that

together cover much of

the continent.

Introduction

• The EU was created in the aftermath of the Second World War. The first steps were to foster economic cooperation: the idea being that countries who trade with one another become economically interdependent and so more likely to avoid conflict.

Introduction

• The result was the European Economic Community (EEC), created in 1958, and initially increasing economic cooperation between six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. Since then, a huge single market has been created and continues to develop towards its full potential.

EU Institutions

Functions• The overall function of the

European Union is to create and implement laws and regulations that integrate the member states of the EU. The countries of the EU are supposed to have uniform laws and policies concerning a variety of things (like immigration, labor, weights and measures -- all sorts of things). The function of the EU government is to decide how this integration should be done and to carry it out.

Functions

• For example, 16 members of the EU use the Euro as their Currency. One of the functions of a part of the EU government was to devise the currency -- to decide what it would be called, what it would look like, etc. Another part of the EU government tries to get countries using the Euro to enact fiscal policies that will keep the Euro stable. They try, in other words, to prevent fiascos like what happened in Greece this past year and they try to remedy them if they happen.