The European Union And The Trade Agreements Essay

843 WordsOct 3, 20164 Pages
The European Union is one of the most famous Economic blocs in our recent times. It is the culmination of efforts after the devastating Second World War. It currently includes 28 states with varied cultural and historical backgrounds and even different languages. It now has more than 30 separate international trade agreements with many countries such as Colombia and South Korea (Encyclopedia of Management). The EU and the trade agreements entered into by member countries are examples of economic integration and cooperation. The benefits of joining an economic or trading bloc and reducing trade barriers can be plenty and they encourage countries to join them, and can be gained by all of the countries who are part in the economic integration agreement. Economic integration would open foreign markets for local manufacturers and producers. This would increase their business opportunities and give them access to bigger demand, which in turn would encourage them to build their capacity and increase their efficiency. Once the producers gain access to foreign markets they will be able to produce with larger volumes to meet the demand and thus achieve economies of scale. This would decrease costs for those producers while maintaining a high level of production. Increased business opportunity would prompt businesses to hire more workers. This would drive down unemployment and stimulate demand for skilled workers. And if there is agreement about free movement of labor skilled
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