Compare the distances North to South and East to West are they similar 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 ID: 620099
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Slide1
What are the differences between the countries on the following map?Slide2Slide3
Compare the distances North to South and East to West: are they similar ?Slide4
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?Slide5
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 InternetSlide6
American Dollar
1 USD
in USD
Argentine Peso
4.13769
0.241681
Australian Dollar 0.999799 1.0002 Brazilian Real 1.6698 0.598874 British Pound 0.645322 1.54961 Canadian Dollar 0.9947 1.00533 Chilean Peso 495.122 0.0020197 Chinese Yuan 6.58742 0.151805 Colombian Peso 1887.48 0.000529807 Croatian Kuna 5.60394 0.178446 Danish Krone 5.65813 0.176737 Euro 0.759255 1.31708 Hong Kong Dollar 7.77067 0.128689 Hungarian Forint 209.411 0.0047753 Iceland Krona 116.503 0.00858347 Indian Rupee 45.3786 0.0220368 Israeli New Shekel 3.5487 0.281793 Japanese Yen 83.2385 0.0120137 Libyan Dinar 1.9324 0.517491 Malaysian Ringgit 3.06817 0.325927 Mexican Peso 12.1974 0.0819847 New Zealand Dollar 1.3121 0.762137 Norwegian Kroner 5.90326 0.169398 Omani Rial 0.3845 2.60078 Pakistan Rupee 85.824 0.0116518 Qatari Rial 3.64 0.274725 Romanian Leu 3.24323 0.308335 Russian Ruble 30.6533 0.0326229 Saudi Riyal 3.75 0.266667 Singapore Dollar 1.29148 0.774305 South African Rand 6.72095 0.148788 South Korean Won 1127.78 0.000886698 Sri Lanka Rupee 110.83 0.00902283 Swedish Krona 6.76667 0.147783 Swiss Franc 0.964511 1.03679 Taiwan Dollar 29.1701 0.0342817 Thai Baht 30.2157 0.0330954 Trinidad/Tobago Dollar 6.38037 0.156731 Venezuelan Bolivar 4.29491 0.232834Slide7
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). Slide8
1951: European Coal and Steel Community
After WWII some countries in Europe wanted to move away from
nationalism
and come together insteadRobert 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 countriesSlide9
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 1973Slide10
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.Slide11
European Union
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
Total?
EU: 2007Slide12
EU Headquarters: Brussels, Belgium
Branch
Members
How chosen
Term
Powers
Commission
(Executive)
20 commissioners
(2 from each of 5 larger member nations; 1 from each of 10 smallermember nations)By unanimousagreement ofEuropean Parliament5 yearsCarries out treaties that created the EU.Has sole power to proposeand carry out legislation.Council ofMinisters(Legislature)Each member nation has one minister (votes weighted roughly in proportion to each nation’s size)By governments of individualmember nationsDetermined by governments of individual member nationsAccepts or rejects legislation proposed by Commission.European Parliament(Advisory)626 members(percentage per member nation based roughly on its populationBy voters in individual member nations5 yearsDebates proposed legislation; advises both Commission and Council. Can expel entire Commission with a 2/3rds vote. Can reject a draft budget.Court of Justice (Judicial)15 judges and9 advocates generalBy unanimousagreement ofmember nations6 yearsDecides whether actions of other branches and private groups with EU rules. Decisions are final and binding.Slide13
Looking at the problems we mentioned earlier in Europe, what were benefits of the EU?Slide14
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 – EUROSlide15
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.Slide16
1999: A new currency was introduced: 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.Slide17
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 EUROSlide18
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 Slide19
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
Today, the European union is dealing with the collapse of a handful of countries, and now finds itself trying to stabilize their system.