Intro to our……. Intro to our……. “Essential “Essential Question(s)”Question(s)”

What is the purpose of What is the purpose of the European Union? the European Union?

What is the relationship What is the relationship of the member nations of the member nations

of the European of the European Union? Union? (what sort of govt. is it)(what sort of govt. is it)

(R40)(R40)

The European UnionThe European Union

Europe TodayEurope Today

Today, all of the nations of Today, all of the nations of Western Europe and Western Europe and

most of the nations of most of the nations of Eastern Europe have Eastern Europe have

some sort of some sort of democraticdemocratic government.government.

The people of Europe are The people of Europe are sharing power with their sharing power with their governments by electing governments by electing

their leaders in free their leaders in free elections.elections.

The European UnionThe European UnionToday, 27 nations in Today, 27 nations in Europe are members of Europe are members of an organization called an organization called

The European UnionThe European Union..

This union was founded in This union was founded in 1957, and was 1957, and was

formalized as the formalized as the European Community European Community

by the Treaty of Rome.by the Treaty of Rome.1957 Members1957 Members

Belgium, France, West Belgium, France, West Germany,Germany,

Italy, Luxembourg, Italy, Luxembourg, & &

the Netherlandsthe Netherlands

The European UnionThe European UnionSince 1957, many more Since 1957, many more

nations have joined.nations have joined.

Post-1957 Member NationsPost-1957 Member Nations1973-Denmark, Republic of Ireland, 1973-Denmark, Republic of Ireland,

United KingdomUnited Kingdom1981-Greece1981-Greece

1986-Portugal, Spain1986-Portugal, Spain1995-Austria, Finland, Sweden1995-Austria, Finland, Sweden

2004-Cyprus, Czech Rep., Estonia, 2004-Cyprus, Czech Rep., Estonia, Latvia, Hungary, Lithuania, Malta, Latvia, Hungary, Lithuania, Malta,

Poland, Slovakia, SloveniaPoland, Slovakia, Slovenia2007-Bulgaria, Romania2007-Bulgaria, Romania

CandidatesCandidatesTurkey, Croatia, MacedoniaTurkey, Croatia, Macedonia

The European UnionThe European Union

The EU first started out as an The EU first started out as an economic cooperation group economic cooperation group

with the aim of with the aim of boosting boosting the economiesthe economies of Western of Western

European nations.European nations.

As time has gone on, the EU As time has gone on, the EU has evolved into more of a has evolved into more of a political alliance or union.political alliance or union.

The aim of the EU has The aim of the EU has shiftedshifted its quest from merely its quest from merely

EuropeanEuropean prosperity prosperity to to peacepeace..

EU EconomiesEU Economies

CurrencyCurrency refers to the type refers to the type of money used in a place of money used in a place

or country.or country.

Our currency in the U.S. is the Our currency in the U.S. is the “Dollar”“Dollar”

All currencies are not worth All currencies are not worth the same amount.the same amount.

For example, one dollar does For example, one dollar does not equal one drachma.not equal one drachma.

EU EconomiesEU Economies

Before the European Before the European Union, each nation in Union, each nation in Europe had it’s own Europe had it’s own

currency.currency.

ExamplesExamplesAustria – Austria – SchillingSchilling

Netherlands – Netherlands – GuldenGulden

Finland – Finland – MarkMark

Italy – Italy – LiraLira

Greece – Greece – DrachmaDrachma

Slovenia - Slovenia - TolarTolar

EU EconomiesEU EconomiesThe European Union wanted to The European Union wanted to

make trade easier among make trade easier among countries of Europe.countries of Europe.

It wanted to remove the hassle of It wanted to remove the hassle of having to deal with exchange having to deal with exchange rates of different currencies.rates of different currencies.

The EU decided to create it’s own The EU decided to create it’s own currency that would be used in currency that would be used in all of the countries of Europe.all of the countries of Europe.

This type of currency is called the This type of currency is called the

““EURO EURO ””

Trade Among EU NationsTrade Among EU Nations

To encourage trade To encourage trade between EU members, between EU members, the member nations the member nations have done away with have done away with

tariffs on goods traded tariffs on goods traded with one another.with one another.

A A tarifftariff is a duty, tax, or is a duty, tax, or fee that must be paid fee that must be paid

on imported or on imported or exported goods, making exported goods, making them more expensive.them more expensive.

Trade Among EU NationsTrade Among EU NationsAnother way that the EU has Another way that the EU has

tried to improve trade is to tried to improve trade is to open bordersopen borders, making it , making it

easier for people and goods easier for people and goods to move from country to to move from country to

country.country.

The EU is also working to The EU is also working to create an economic equality create an economic equality

among member nations.among member nations.

To meet this goal the EU is To meet this goal the EU is giving poorer nations, like giving poorer nations, like Romania & Poland, money Romania & Poland, money

to build businesses & to build businesses & industry.industry.

EU EconomiesEU EconomiesThe goal of the EU is to make The goal of the EU is to make efforts to ensure the prosperity efforts to ensure the prosperity

of all member nations.of all member nations.

The EU hopes that increased The EU hopes that increased trade an economic cooperation trade an economic cooperation between member nations will between member nations will make the standard of living in make the standard of living in

Europe the highest in the Europe the highest in the world.world.

A person’s A person’s standard of livingstandard of living, , or quality of life, is based on or quality of life, is based on the availability of goods and the availability of goods and

services.services.

EU EconomiesEU Economies

What might indicate a What might indicate a high standard of high standard of

living?living?People have access to:People have access to:

Enough FoodEnough FoodAdequate HousingAdequate Housing

Good TransportationGood TransportationGood CommunicationsGood Communications

Educational OpportunitiesEducational OpportunitiesHealth CareHealth Care

***Nations with higher standards ***Nations with higher standards of living typically have high of living typically have high

literacy rates.literacy rates.

EUEUEnvironmental ObjectivesEnvironmental Objectives

The EU holds high The EU holds high environmental standards & environmental standards &

supports recycling and supports recycling and environmentally safe waste environmentally safe waste

management policies.management policies.

The new members from eastern The new members from eastern Europe have some serious Europe have some serious

environmental issues to deal environmental issues to deal with.with.

The EU is going to pay 75% of The EU is going to pay 75% of the cost of re-vamping the cost of re-vamping

Romania’s waste Romania’s waste management program.management program.

EUEUSocial ObjectivesSocial Objectives

The EU has also established The EU has also established programs to train people to programs to train people to

do a variety of jobs.do a variety of jobs.

These people are allowed to These people are allowed to work not only in their own work not only in their own

country, but in any EU country, but in any EU member nation.member nation.

The European Union has also The European Union has also developed a developed a

Court of JusticeCourt of Justice, , which protects the rights of all which protects the rights of all

citizens in all member citizens in all member nations.nations.

EUEUCultural DiversityCultural Diversity

The EU has a variety of member The EU has a variety of member nations each with it’s own nations each with it’s own unique culture, or blend of unique culture, or blend of

cultures.cultures.

Some member nations, like Some member nations, like Sweden, have a Sweden, have a

homogeneous population homogeneous population with one dominating culture.with one dominating culture.

Other member nations, Like Other member nations, Like Belgium, have a wide variety Belgium, have a wide variety

of cultural groups living of cultural groups living within its borders.within its borders.

EUEUCity LifeCity Life

Europe has some of the oldest Europe has some of the oldest and most popular cities in the and most popular cities in the

world.world.

These cities have served These cities have served centers of industry, learning, centers of industry, learning,

and the arts for centuries.and the arts for centuries.

Most of the major cities in Most of the major cities in Europe provide all that is Europe provide all that is required to ensure a high required to ensure a high

standard of living.standard of living.

The most populated city in The most populated city in Europe is London.Europe is London.

Berlin, GermanyBerlin, Germany

Madrid, SpainMadrid, Spain

Rome, ItalyRome, Italy

Paris, FranceParis, France

Warsaw, PolandWarsaw, Poland

EUEUCountry LifeCountry Life

Many people live in the cities, Many people live in the cities, but many also still live in but many also still live in

rural areas.rural areas.

Small villages dot the Small villages dot the continent.continent.

These are tourist attractions, These are tourist attractions, but those who live there but those who live there

may have had generations may have had generations of their family living in the of their family living in the

same village.same village.

Some people still live in houses Some people still live in houses that have been in their that have been in their

family for hundreds of years.family for hundreds of years.

Intro to our……. Intro to our……. “Essential “Essential Question(s)”Question(s)”

Why does international Why does international trade require system trade require system

of exchanging of exchanging currency between currency between

nations?nations?

Currency – Types of MoneyCurrency – Types of MoneyCurrencies from Currencies from

different countries different countries have different have different

valuesvalues

Example:$1.00 = €0.73 so…. the Euro is more valuable than the Dollar. [€1.00 =

$1.38]

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Return to our……. Return to our……. “Essential “Essential Question(s)”Question(s)”

What is the purpose of What is the purpose of the European Union? the European Union?

What is the relationship What is the relationship of the member nations of the member nations

of the European of the European Union? Union? (what sort of govt. is it)(what sort of govt. is it)

European UnionEuropean Union*A Confederation*A Confederation**Meant to make the Meant to make the

countries of countries of Europe more Europe more competitive in the competitive in the world economyworld economy

*The official *The official currency is the currency is the “Euro” (€)“Euro” (€)

*The EU is *The EU is considered a considered a “Free Trade Zone” “Free Trade Zone” w/ no tariffs (a tax w/ no tariffs (a tax on imported on imported goods) between goods) between member countriesmember countries

EU ExplainedEU Explained

Today’s StandardToday’s Standard

SS6E6 The student will analyze the benefits of and barriers to SS6E6 The student will analyze the benefits of and barriers to voluntary trade in Europe. voluntary trade in Europe.

b. Explain why international trade requires a system for exchanging b. Explain why international trade requires a system for exchanging currencies between nations. currencies between nations.

How Exchange Rate WorksHow Exchange Rate WorksExchange Rate (E.R.) Compared to $1.00-USDExchange Rate (E.R.) Compared to $1.00-USDIf E.R. is If E.R. is < 1< 1 …The other currency is …The other currency is MORE valuableMORE valuable

If E.R. is If E.R. is > 1 > 1 …The other currency is …The other currency is LESS valuableLESS valuable

TODAY: TODAY: E.R. for the Euro is 1.00 (Equal Value to USD)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 So ….You exchange $20 for Euros b/c you think the exchange rate will decrease soon, but today your $20 is still = to just €20decrease soon, but today your $20 is still = to just €20

2 WEEKS LATER:2 WEEKS LATER: E.R. for the Euro is .5 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. So …..You exchange your €20 back to USD.

Since it now takes $2 to = €1, …..Your €20 now is equal to $40Since it now takes $2 to = €1, …..Your €20 now is equal to $40

Start: Start: $20$20

Finish: Finish: $40$40

You’ve Made $20 Profit!!!!!!You’ve Made $20 Profit!!!!!!

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Return to our……. Return to our……. “Essential “Essential Question(s)”Question(s)”

Why does international Why does international trade require system trade require system

of exchanging of exchanging currency between currency between

nations?nations?