1. REGIONAL GROUPING & EUROPEAN UNION GROUP MEMBERS: MADHAV NEUPANE LAXMI SADAULA PRAYASH NEUPANE

2. CONCEPT OF REGIONAL GROUPING/INTEGRATION A block or geographic region/area that have things in common coming together for a common purpose. A number of groups,societies or countries within an area joining together to cooperate and operate under one system or as one group. Regional integration is a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. Regional Integration as an association of states based upon location in a given geographical area, for the safeguarding or promotion of the participants, an association whose terms are fixed by a treaty or other arrangements.

3. OBJECTIVES OF REGIONAL GROUPING/INTEGRATION Strengthening of trade integration in the region Enabling environment for private sector development Economic growth Development of strong public sector institutions and good governance Reduction of social exclusion and the development of an inclusive civil society Contribution to peace and security in the region Building of environment programmes at the regional level Strengthening of the region interaction with other regions of the world

4. REASONS FOR REGIONAL GROUPING Geographic proximity Consumer tastes & preferences Distribution channels Common history & interest Common economic & trade opportunities & problem

5. TYPES OF REGIONAL GROUPING Free trade area: Free trade among members. E.g. NAFTA, EFTA etc. Customer union: Common external tariff and trade policy. E.g. Mercosur. Common market: Free movement of labor, capital & technology. E.g. Caribbean Community, central American common market etc. Economic union: Harmonization of all economic policies. E.g. European Union Political union: Single economic political identity. E.g. UK, Soviet Union (1922– 1991), Serbia and Montenegro (2003– 2006) etc. ( EU is pursuing this level also)Soviet UnionSerbia and Montenegro

6. EUROPEAN UNION

7. CONCEPT & HISTORY OF EUROPEAN UNION The EU began in the 1950’s. It was called the European Economic Community. Six countries (Germany, France, Italy, Luxembourg, the Netherlands and Belgium) were the founding members. In 1992 a treaty formed the European Union as we know it today Operating presently as a single market with 28 countries, the EU is a major world trading power. EU is a supranational entity of 28 European nations dedicated to European economic and political integration.

8. OBJECTIVES OF EUROPEAN UNION To establish customs duties between member states. To establish an external common tariff. To establish a European investment bank. To create a European social fund. To develop closer relations between member states. To introduce common policy for agriculture & transportation.

9. GOALS OF EUROPEAN UNION Economic and social progress. Help people earn enough money and get treated fairly. Speak for the European Union internationally By working as a group the EU hopes that Europe will be listened to more by other countries. European citizenship Anyone from a member country is a citizen of the EU. Because you are a citizen of the EU, you have rights. Make Europe an area of freedom, security and justice. Help Europeans to live in safety, without the fear of war. Make and keep EU laws Making laws protect peoples’ rights in the EU countries.

10. PURPOSE OF THE EUROPEAN UNION For its members to work together for advantages that would be out of their reach if each were working alone Believe that when countries work together they are a more powerful force in the world because they involve: More money More people More land area This helps make small countries more competitive in the world market…

11. COMPARISON OF ECONOMY OF EU, US & CHINA EUUSChina Land Area (Approx.)1,500,000 sq. mi3,700,000 sq. mi Population (Approx.)507.4 million 316.1 million1350 million GDP (Nominal, 2013)US $17.512 trillionUS $16.768 trillionUS $9.469 trillion Per Capita (2013)US $34,300US $53,001US $6,959 % in wrold’s economy23.4%22.45%12.7%

12. BENEFITS TO MEMBERS COUNTRIES Members may use a common currency ( euro ) that makes trade easier. EU works to improve trade, education, farming, & industry among its members. No tariffs (taxes) among member countries – free trade zone. Citizens of one country can move freely to another country. Citizens can live and work in any other EU nation. Citizens can vote in local elections even if they aren’t citizens of the country. Gives smaller economies the ability to negotiate with much bigger economies like US & China on an equal footing. Reduce risk of war.

13. EURO The euro is the currency of MOST EU countries. Member countries can choose to give up their own currency and exchange them for euros. French francs and German marks have been replaced by the euro. Common currency makes trade between the countries much easier and less expensive. 10 countries in the EU do not use the euro. United Kingdom has decided to continue to use the British pound.

14. ANY QUERIES ????????????????