Recently EU leaders have put David Cameron, Prime minister of England, under scrutiny. David Cameron is obviously zealous about allowing England to pull away under the European Union’s internal financial crisis. The failure of the IMF to secure Greece’s bailout and the recessions in both Ireland and Spain give weight to Cameron’s decision to ‘depart’ from the EU’s constant debacles. If England actually leaves it could affect British imports and exports to EU members.
Economists argue that the EU’s financial system would have better solvency and liquidity if there were no union whatsoever. In part the EU has attempted to copy the U.S. as they have united independent nations under one continent for the greater benefit of all. The problem is that Europe’s cultural diversity among their nations is nothing like comparing any two U.S. states. In other words there is a much greater disparity between two countries like Germany and Portugal than there would be between two U.S. states such as Arizona and New Jersey.
Culture plays a fascist puzzle when it’s down to ‘real Euro pride’. Europe also does not have a standardized army, and it is uncertain as to whether or not countries like England and Spain would support a war started by a fellow EU member.
So the question is simple: Would it be better that the European Union not exist at all, and wouldn’t that be a financial improvement overall for European countries like Germany and France?
Catherine Haig.
“I don’t know as much about the EU as I should but what I gather from my British friends; they hate it. Pretty much their money – the Euro – has crumbled to nothing and there is much talk about disbanding the EU because of those problems and with the rotten economy that comes with it.
Melissa A. Ortega.
“The European Union is a good idea because it promotes free trade for many countries. This particular trade effort success is second only to the United States exporting. The EU is comprised of 27 other countries that uphold free trade. In 2007 The European Union became the world’s largest economy. “That year, the EU’sGross Domestic Product (GDP) was $14.4 trillion, while the U.S. economy only produced $13.86 trillion in goods and services. Together, the EU and U.S. generated more than 40% of the world’s economic output. This totaled $65.82 trillion in 2007”. (CIA World source Factbook, 2007). The EU has survived many economic disasters worldwide to include the Eurozone Debt Crisis and the Financial Crisis of 2008 i.e. The Lehman Brothers filed for bankruptcy.
Free trade can help poor people survive. Important imports and exports can feed families and allow the national economy in a growing country the ability to survive. Importing and exporting should be important to everyone. Business people should work to make full use of the global economy by trading goods and services in and out of friendly countries. Thanks to the EU The Euro is successfully competing with the American Dollar and is optimally considered global currency. Today’s business person should work to think in Euros and dollars in an effort to increasing free trading all around the world, this will work to create an economies of scale for more countries. Free trade can help stabilize the most economies in neighboring and peaceful countires; with regard to economic growth by improving results in the area of Gross Domestic Product
Exporting allows a business the opportunity to expand their business potential. However, there are many risks involved. “Risk relates to the instability in the political and economic environment that may impact the company’s business prospects. Generally speaking, the greater the risk factor, the less eager companies are to make major resource commitments to the country (or region) concerned” (Root, 2008, p. 294). A global approach to risk is the understanding that a business will take under advisement the cost of coordination across diverse business units as well as institutional and cultural barriers. A trader needs to monitor problem areas to watch for risks occurring, new risks emerging, or changes in the assessment of existing risks. If a company fails to mitigate risk catastrophe is imminent. Why a company fails to understand risk and study the global economy is wrong and a hit and miss attitude can lead to bankruptcy and financial failure such as the Lehman Brothers scandal here in the United States.”
