Economic Integration

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Purpose of Assignment

SWBATStudent will be able to…

Identify the different levels of economic integration.

Explain the various arguments surrounding economic integration.

Describe the organizations of the European Community.

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Need to Know Terms

Levels Economic

Integration Free Trade Customs Union Common Market Economic Union Political Union Arguments Surrounding European

Community Copyright © Texas Education Agency, 2012. All Rights Reserved. 4

InstructionDifferent Levels of Economic Integration

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ActivityLevels of Economic Integration

• Recreate the chart shown on slide 5 (and here). You can do this on paper or electronically.

• In addition to recreating the chart, also record the following information: • Where does the US fall

on the chart?• Where does Europe fall

on the chart?• If you are from another

country beside the US, where does your home country fall on the chart?

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InstructionArguments Surrounding Economic Integration

Argument 1 – The more integrated the economies become, the fewer trade barriers exist and the more economic and political coordination there is between the member states.

Argument 2 – By integrating the economies of more than one country, the short term benefits from tariffs and other trade barriers is diminished.

Argument 3 – At the same time, the more integrated the economies become the less power the governments of the member states would have to make adjustments that would benefit themselves.

Argument 4 – In periods of economic growth, being integrated can lead to greater long-term economic benefits.

Argument 5 – In periods of poor growth, being integrated can actually make things worse. Copyright © Texas Education Agency, 2012. All Rights Reserved. 7

Activity-Arguments Explained

Pick one of the arguments listed on the previous slide and give an example

(specific example) of this argument that is addressed in the news.

Example Argument 1 – The more integrated the economies become, the fewer trade barriers exist and the more economic and political coordination there is between the member states.

Article found talking about President Obama requesting China to lift restrictions on rare earth materials (17 elements) because China holds 97% of the world’s production.

http://idealab.talkingpointsmemo.com/2012/03/president-obama-calls-on-china-to-lift-rare-earth-trade-restrictions.php Copyright © Texas Education Agency, 2012. All Rights Reserved. 8

InstructionThe European Community

The EU is a unique economic and political partnership between 27 European countries that together cover much of the continent.

It was created in the aftermath of the Second World War. The first steps were to foster economic cooperation: the idea being that countries who trade with one another become economically interdependent and so more likely to avoid conflict.

Since then, the EU has developed into a huge single market with the euro as its common currency. What began as a purely economic union has evolved into an organization spanning all policy areas, from development aid to environment.

It has delivered half a century of peace, stability, and prosperity, helped raise living standards, and launched a single European currency. Thanks to the abolition of border controls between EU countries, people can travel freely throughout most of the continent. And it's also become much easier to live and work abroad in Europe.

One of its main goals is to promote human rights both internally and around the world. Human dignity, freedom, democracy, equality, the rule of law, and respect for human rights: these are the core values of the EU.

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Discussion Questions Do you think the European way of doing

integrated business is better than the way the US does integrated business (NAFTA)?

Why or why not? Why do you think the US is only in

agreement with three countries (US, Canada, and Mexico) while the European Community has twenty seven members of its group with six candidate countries?

Can you see benefits and drawbacks to both ways of doing business? What are they? Copyright © Texas Education Agency, 2012. All Rights Reserved. 10

Review Can you identify

the different levels of economic integration?

Can you explain the various arguments surrounding economic integration?

Can you describe the organizations of the European Community?

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ExtensionsLevels of Economic IntegrationFind and report (name of movie and synopsis) on a movie in which the main subject is dealing with free trade.

Economic Integration ArgumentsAggressive companies in some regions of the world commonly use payoffs to gain access to new markets. Some countries consider bribes to be tax-deductible business expenses. However, in the US companies face healthy fines and prison sentences when US laws are violated. Which of these do you agree with and why? Identify any drawbacks or benefits to whichever side you choose.

European CommunityFind out and report on 1) the exact countries that are currently in the European Union, 2) the exact countries that are candidates to be in the European Union, and 3) the European countries that are not in the European Union.

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