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European Markets
Advantages
Some of the advantages attributed to the establishment of the European Union include a single currency or monetary union, enhanced competition between organizations, and protection for member states from any form of external aggression. The European Union is estimated to have 500million consumers drawn from the 27 member countries (Pelkmans, & Correia 31). This provides one of the most lucrative international markets for organizations given that the European is largely made up of rich and developed nations. Economists argue that the large market has provided entities with avenues for competition, and in the process reducing the costs of business due to the presence of a large number of players in the market. The European single market that was a formed as a result of the establishment of the European Union has been termed as among the great benefits accrued by member countries. Enhanced movement of goods, interaction between customers and manufacturers are some economic benefits largely attributed to the establishment of the European Union.
Additionally, the single market has contributed to the reduction in unemployment levels in the region. This enhances consumer activity, which is essential for firms in the European region. Employment provides consumers with disposable incomes, which in turn drives consumer activity. It is associated with the enhanced mobility of labor due to the enactment of friendly foreign policies that enable movement of people and goods across the borders of member states. The Lisbon strategy has been associated with the creation of more than 6million employment opportunities for citizens in the European Union member states in a period of ten years. A single currency has benefits such as the enhancement of trade given that price changes and demand are noticeable.
A European single market provides enhanced terms of trade for entities drawn from the member states. In addition, it also enhances the movement of goods, labor and other resources that are essential for production of goods and services. This is essential for firms in the European region as enhanced movement of labor, finished goods and raw materials enables their reach to new consumers in the European region. The economic development of the member states has been attributed to the influence of the European Union in terms of trade with external markets. Additionally, security and foreign policies have been enhanced under the European Union resulting in a strong security approach for the entire European Union.
Disadvantages
Some of the disadvantages of the establishment of the European Union include the loss of sovereignty for the member states and meager influence that small or poor states may have in decisions made in the union (Tang 43). New and small states in the European Union are unable to compete with the rich and developed states given the differences in economic resources. Some countries such as the United Kingdom claim that the establishment of the European Union resulted in massive migration of illegal migrants who find it easy to move across the borders due to weak foreign and migration policies. This results in the decline for employment opportunities and decline of wage rates and salaries. According to the claim, this has resulted in massive competition for employment, social services such as healthcare sanitation, and increased incidences of crime.
The European Union
acts through the European court of justice to enforce its laws and regulations.
Laws and regulations that are enforced by the European court of justice
supersede laws of any state. This erodes the sovereignty of any one nation
towards application of its laws and regulations on national matters. Small
countries and less developed countries usually have to contend with low power
and influence over matters that are within the European Union. Issues such as
security and economic decisions are usually a preserve for the rich countries
given that it is assumed that they bear the greatest responsibility (Tang 46).
Work Cited:
Pelkmans, Jacques, and de B. A. Correia. Enforcement in the EU Single Market. Brussels: Centre for European Policy Studies, 2012. Print.
Tang, Helena. Winners and Losers in EU Integration: Policy Issues for Central and Eastern Europe. Washington, D.C: World Bank, 2000. Print.