Intro to our……. “Essential Question(s)” What is the purpose of the European Union? What is the relationship of the member nations of the European Union? (what sort of govt. is it)

European Union *A Confederation * Meant to make the countries of Europe more competitive in the world economy *The official currency is the “Euro” (€) *The EU is considered a “Free Trade Zone” w/ no tariffs (a tax on imported goods) between member countries

(R40) The European Union

Europe Today Today, all of the nations of Western Europe and most of the nations of Eastern Europe have some sort of democratic government. The people of Europe are sharing power with their governments by electing their leaders in free elections.

The European Union Today, 27 nations in Europe are members of an organization called the European Union. This union was founded in 1957, and was formalized as the European Community by the Treaty of Rome Members Belgium, France, West Germany, Italy, Luxembourg, & the Netherlands

The European Union Since 1957, many more nations have joined. Post-1957 Member Nations 1973-Denmark, Republic of Ireland, United Kingdom 1981-Greece 1986-Portugal, Spain 1995-Austria, Finland, Sweden 2004-Cyprus, Czech Rep., Estonia, Latvia, Hungary, Lithuania, Malta, Poland, Slovakia, Slovenia 2007-Bulgaria, Romania Possible Candidates are Turkey, Croatia, Macedonia

The European Union The EU first started out as an economic cooperation group with the aim of boosting the economies of Western European nation’s. As time has gone on, the EU has evolved into more of a political union or alliance. The aim of the EU has shifted its quest from merely European prosperity to peace.

EU Economies Currency refers to the type of money used in a place or country. Our currency in the U.S. is the “Dollar” All currencies are not worth the same amount. For example, one dollar does not equal one drachma.

EU Economies Before the European Union, each nation in Europe had it’s own currency. Examples Austria – Schilling Netherlands – Gulden Finland – Mark Italy – Lira Greece – Drachma Slovenia - Tolar

EU Economies The European Union wanted to make trade easier among countries of Europe. It wanted to remove the hassle of having to deal with exchange rates of different currencies. The EU decided to create it’s own currency that would be used in all of the countries of Europe. This type of currency is called the “ EURO ”

Trade Among EU Nations To encourage trade between EU members, the member nations have done away with tariffs on goods traded with one another. A tariff is a duty, tax, or fee that must be paid on imported or exported goods, making them more expensive.

Trade Among EU Nations Another way that the EU has tried to improve trade is to open borders, making it easier for people and goods to move from country to country. The EU is also working to create an economic equality among member nations. To meet this goal the EU is giving poorer nations, like Romania & Poland, money to build businesses & industry.

EU Economies The goal of the EU is to make efforts to ensure the prosperity of all member nations. The EU hopes that increased trade an economic cooperation between member nations will make the standard of living in Europe the highest in the world. A person’s standard of living, or quality of life, is based on the availability of goods and services.

EU Economies What might indicate a high standard of living? People have access to: Enough Food Adequate Housing Good Transportation Good Communications Educational Opportunities Health Care ***Nations with higher standards of living typically have high literacy rates.

EU Environmental Objectives The EU holds high environmental standards & supports recycling and environmentally safe waste management policies. The new members from eastern Europe have some serious environmental issues to deal with. The EU is going to pay 75% of the cost of re-vamping Romania’s waste management program.

EU Social Objectives The EU has also established programs to train people to do a variety of jobs. These people are allowed to work not only in their own country, but in any EU member nation. The European Union has also developed a Court of Hunan Rights & Justice, which protects the rights of all citizens in all member nations.

EU Cultural Diversity The EU has a variety of member nations each with it’s own unique culture, or blend of cultures. Some member nations, like Sweden, have a homogeneous population with one dominating culture. Other member nations, Like Belgium, have a wide variety of cultural groups living within it’s borders.

EU City Life Europe has some of the oldest and most popular cities in the world. These cities have served centers of industry, learning, and the arts for centuries. Most of the major cities in Europe provide all that is required to ensure a high standard of living. The most populated city in Europe is London.

Berlin, Germany

Madrid, Spain

Rome, Italy

Paris, France

Warsaw, Poland

EU Country Life Many people live in the cities, but many also still live in rural areas. Small villages dot the continent. These are tourist attractions, but those who live their may have had generations of their family living in the same village. Some people still live in houses that have been in their family for hundreds of years.

Return to our……. “Essential Question(s)” What is the purpose of the European Union? What is the relationship of the member nations of the European Union? (what sort of govt. is it)

Today’s Standard SS6E6 The student will analyze the benefits of and barriers to voluntary trade in Europe. b. Explain why international trade requires a system for exchanging currencies between nations.

Intro to our……. “Essential Question(s)” Why does international trade require system of exchanging currency between nations?

Currency – Types of Money Currencies from different countries have different values Example: $1.00 = €0.73 so…. the Euro is more valuable than the Dollar. [€1.00 = $1.38]

How Exchange Rate Works Exchange Rate (E.R.) Compared to $1.00-USD If E.R. is < 1 …The other currency is MORE valuable If E.R. is > 1 …The other currency is LESS valuable TODAY: E.R. for the Euro is 1.00 (Equal Value to USD) So ….You exchange $20 for Euros b/c you think the exchange rate will decrease soon, but today Your $20 is still = to just €20 2 WEEKS LATER: E.R. for the Euro is.5 (More Valuable than USD b/c now it takes $2 to = €1) (More Valuable than USD b/c now it takes $2 to = €1) So …..You exchange your €20 back to USD. Since it now takes $2 to = €1, …..Your €20 now is equal to $40 Since it now takes $2 to = €1, …..Your €20 now is equal to $40 Start: $20 Finish: $40 You’ve Made $20 Profit!!!!!!

Return to our……. “Essential Question(s)” Why does international trade require system of exchanging currency between nations?