The success of the European Union can be attributed to various sectors of the economy growth. Since the formation of this union, the countries have grown in all dimensions to become the wealthiest unions accounting to about a third of the whole world’s economy. The region is also known to have half of the top ten wealthiest countries. Much of this success that is achieved can be attributed to one thing; the fact that there has been existence of free trade zone.
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Having it ensures that there are more growth of the union as its members get to be involved in the trading activities. Though the free trading activities exist only to the union members, there are other countries that enjoy lower tariffs, especially the poor ones.
The economy of the European Union has been greatly being affected by the free trading zone. Presence of the free trade zone has attracted both foreign and domestic investments and in turn leads to a higher production of services in the region. It is notable that the fact there are no tariffs needed in the member states, it has attracted investors from both the countries that are member states of the region as well as investors from other parts of the world.
The market has also been included in the national economic system. It is due to this inclusion that the region is one of the wealthiest regions in the world as the market has grown tremendously through the years. The level of industrialization in the southern regions that were not industrialized has also come up.
The industrial growth can be attributed to the fact that there has been availability of a common market. The harmonization of the tax and custom resources has also led to increased economic activities in the region. The resultant of this is the growth of economy of economies of the countries in the region.
Financially, the free trades organization has increased the monetary output of the whole union as well as the organization of the member states.
The GDP for both the union has increased greatly and it is notable to be the region that has become a financial powerhouse as it enjoys a bigger scale of monetary supremacy due to financial transactions. The financial success can be related to the fact that there is a bigger market that involves investors from different parts of the world.
To improve further on the success of the finances achieved in the region due to trading, the union adopted the Euro, which is a commonly used currency in Europe and other parts of the world. The success of the Euro is undeniable as it is one of the strongest currencies in the world in terms of the value.
The trading activities in the region include both internal and external trading. The trading activities have notably grown so much after the inception of the union and this can be attributed to the fact that there is free trade that exists in the region.
Some countries of the world, for example India, have benefited due to trading activities since they usually get cheap generic drugs produced in the region. As a way of promoting trading activities, the union has a policy where they charge duty free on imports to the developing countries in the region.
The same is extended to the poorest countries in the world through by allowing their exports duty free. It is also notable that much of the trading activities of the European Union are done with major economic powers like the United States and China. There is also notable less disputes, which are in existence in the region.