Convenience

European Union
(or
EU
, as it is often called) can be traced to 1957 when Belgium,
France, Luxembourg, Germany, Italy, and the Netherlands signed the Treaty of Rome
to promote economic integration. Between 1973 and 1986, these countries were joined
by Denmark, Ireland, the United Kingdom, Greece, Spain, and Portugal, and the group
became known first as the European Committee and then as the European Union. Austria,
Finland, and Sweden joined the EU in 1995; 12 additional countries (mostly from the for-
merly communist-controlled Eastern European region) joined between 2004 and 2007,
bringing the EU’s membership to 27 countries. For years, these countries have followed a
basic plan that led to the systematic elimination of most trade barriers. The new market
system achieved significantly more potential when most of the EU members eliminated
their home currencies (such as French francs and Italian lira) beginning on January 1,
2002, and adopted a new common currency called the
euro
.
Greg
S
m
ith/C
orbis
Most countries impose controls on international trade. These U.S. Customs Inspectors in El Paso,
Texas, are verifying that proper tariffs were paid on merchandise being exported from Mexico into
the United States.
European Union (EU)
The first and most
important
international market
system
economic
community
A set of countries
that agree to
markedly reduce or
eliminate trade
barriers among
member nations (a
formalized market
system)
Chapter 2:
The Environments of Organizations and Managers
5 5
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Another important economic community encompasses the United States, Canada,
and Mexico. These countries have long been major trading partners with one another;
more than 80 percent of Mexico’s exports go to the United States, and more than 65 percent
of Mexico’s imports come from the United States. During the last several years, these
countries have negotiated a variety of agreements to make trade even easier. The most
important of these, the