EUROPEAN ECONOMY

Mixed Market Economy

Second largest economy in European Union

Industry: banking, insurance, business service account

United Kingdom

Since1979: government has turned over many state-owned companies (British Steel, British Coal, British Airways) to private ownership

Natural Resources include: coal, oil, natural gas

London is center of trade

United Kingdom

Socialist Market Economy: market, state control, social welfare where help is given to the poor.

1990: West Germany and East Germany united, West Germany absorbed huge cost’s bringing East Germany’s command economy into its market system

Germany

Strongest economy in Europe

Competes with Italy to sell chemicals, machinery, and food

Investment in human capital and capital equipment led to its economic strength

Germany

Investment in capital equipment is a priority for German companies and government

Government created vocational schools and universities to train workforce

Natural Resources include: rivers, forests, large deposits of coal and iron ore

Germany

Mixed Market Economy

Struggled in transition from command under Soviet Union to a market economy

Government owned businesses are being sold to private ownership

Financial problems: huge cost to upgrade old manufacturing plants and industries to modern standards

Russia

Natural Resources are plentiful but due to their location they cannot be harvested

St. Petersburg is center for trade

Volga River used for shipping items and hydroelectric power

Russia

Russia and Ukraine have lower GDP’s than other European countries

Both countries are rebuilding their economies after suffering serious financial problems once they became independent in 1990s

In Ukraine: educational systems suffered because their was little money for schools and to pay teachers

Russia: years of low capital investment left manufacturing plants with old outdated material

Russia

Set up to establish free trade in Europe

Makes up 1/5 of the world’s trade

EU does not have tariffs among member nations, but does against countries outside of the EU

European Union

EU does enforce quotas within member countries to give everyone equal advantage

IF foreign countries don’t follow specific quota, human rights, or environmental restriction rules, an embargo will be put in place

European Union

Someone who uses their own talents to open their own business.

Europeans do not have as many entrepreneurs as the United States

Reasons include: high taxes, lots of regulations, and job security

EU is urging member countries to reduce taxes and regulations on small business and help set up training programs on how to run a business

Entrepreneurs