Assessing the Nature, Causes and

Impact of EU as the biggest Single

market with 500 million affluent
customers.
Presented By-
Vinit Rahul
MBA-IB
16423BIB044
 What is EU?
The European Union (EU) is
a political and economic union of 28 member
states that are located primarily in Europe
Area = 4,475,757 km2 (1,728,099 sq mi).
Population = 510 Million.
The EU traces its origins from the European Coal
and Steel Community (ECSC) and the European
Economic Community (EEC), established,
respectively, by the 1951 Treaty of Paris and
1957 Treaty of Rome.
 The original members known as European Economic
Community were the inner six: Belgium, France, Italy,
Luxembourg, The Netherlands and West Germany.
The European Union accumulated a higher portion of GDP as
a form of foreign aid than any other economic union. Covering
7.3% of the world population, the EU in 2016 generated a
nominal gross domestic product (GDP) of 16.477 trillion US
dollars, constituting approximately 22.2% of global nominal
GDP and 16.9% when measured in terms of purchasing power
parity.
Structural Evolution Of EU
 European Single Market
The European Single Market, Internal Market or Common
Market is a single market which seeks to guarantee the free
movement of goods, capital, services, and labor the "four
freedoms" within the European Union (EU).The market
encompasses the EU's 28 member states.
The market is intended to be conducive to increased competition,
increased specialization, larger economies of scale, allowing goods
and factors of production to move to the area where they are most
valued, thus improving the efficiency of the allocation of resources.
The average applied tariff for goods imported into the EU is very
low. More than 70% of imports enter the EU at zero or reduced
tariffs.
The EUs services markets are highly open and we have arguably the
most open investment regime in the world
 Cause Of Single Market
One of the original core objectives of
the European Economic Community (EEC) was
the development of a common market
offering free movement of goods, service,
people and capital (see below). Free
movement of goods was established in
principle through the customs union between
its then-six member states.
 European Single Market allows:
1. Free Movements of goods.
2. Free Movements of Capital.
3. Freedom to establish and provide services.
4. Free movement of Labors:
Free movement of worker.
Free movement of citizens.
 Impacts of EU on International Trade
The EU is in prime position when it comes to
global trade. The openness of trade regime has
meant that the EU is the biggest player on the
global trading scene and remains a good region
to do business with.
The EU has achieved a strong position by
acting together with one voice on the global
stage, rather than with 28 separate trade
strategies.
 Every day, Europe exports hundred of millions
of Euros worth of goods and imports hundreds
of millions more.
Europe is the world's largest exporter of
manufactured goods and services, and is itself
the biggest export market for around 80
countries.
Together, the European Union's 28 members
account for 16% of world imports and exports.
 The EU is the largest economy in the world. Although growth
is projected to be slow, the EU remains the largest economy in
the world with a GDP per head of 25 000 for its 500 million
consumers.
The EU is the world's largest trading block. The EU is the
worlds largest trader of manufactured goods and services.
The EU ranks first in both inbound and outbound international
investments
The EU is the top trading partner for 80 countries. By
comparison the US is the top trading partner for a little over 20
countries.
The EU is the most open to developing countries. Fuels
excluded, the EU imports more from developing countries than
the USA, Canada, Japan and China put together
Thank You