The European Union - Essay Example

The European Union was constituted on the 1st of November 1993, as due to the common agreement as a part of the Treaty of Maastricht. It was constituted by 27 member states located within Europe, with an intention to have a common economic and trade scenario while using the foundations of the European Economic Community which already existed. In simpler language, the Union turned to be an integration of different constituent economic setups resultantly turning out to be a great economic power.

The economic strength of the whole setup grew in multitudes making it a big competitor in the global market. As relevant in any social scenario, when the disintegrated resources of different European nations united under one single label, it turned out to be mighty force in terms of economy and politics. The primary impact that the European Union has had on the global economy is that it has turned out to be a huge bargainer. This should be read together with the fact that whole of the European Union has a population of 500 million.

This very fact makes it a huge consumer society. Contributing to the economic control this unified force can have, the consumer needs and the trade related issues of the whole European Union is controlled by a standardized and single window regulation system. This means that the every trade within the European Union will be controlled through a unified system of trade polices and laws. Considering these facts together, a unified demand of such a big population cannot be considered loosely by any business entity.

Thus the European Union will have a great bargaining capacity. On the other side as far as the production is concerned, the European Union produced 30% share of the nominal gross world product in the last year. Thus in terms of production also, the European Union becomes a vital force in the global market. This would highly influence the trade both bound inward and outward. The sourcing process so as to have the resources to maintain the high production level will distinguish the European Union as an important market.

The importance as a vital force in global production and consumption thus would leave the European Union with the luxury to have control over competition. The unified regulations can very well check the possibilities of monopolistic economies and trade developing within its jurisdiction. The global giants will have to amend their business strategies as liked by the Union. As the economic system encourages highly the free movement of manpower, goods, capital and services within the European Union, this would highly encourage resource decentralization.

This would mean that there would be free movement of investment. Thus, with no regard to the initial capacity of the traders, all will have equal opportunity to grow. This would expose all the corporate giants to have healthy competition with its counterparts both giant and small. In totality, the constitution of European Union has high command over the economy and its stabilized status. It can highly regulate the way the economy works and also all modes of trade that happen within its jurisdiction.

In such a controlled economy, there are high chances of competition. In turn this would limit the possibilities of developing monopolistic markets. With healthy management of the European Unions; single market economic system, a healthy economic environment can be very well maintained.