International Trade And Regulations

Inter matter Trade and RegulationsProblems could fork over risen with the European interchange policy directions in that the European Union s principal worry on the development and maintenance of a single merchandise brings along shortcomings and problems that affect or are contributed by an economically integrated union These imply the question of Europe as an Optimal Currency Area (OCA issues on sovereignty , and technological and administrative barriersSuch that the single market commenced economic union and consolidation among majority of EU s member states , the question of the region as an Optimal Currency Area has emerged . Problems could have risen with the European central policy direction in that the regions and peoples of Europe do non share common language , religion or culture and have histories of war and cultural divisions . The region did not meet the qualifying criteria of an OCA and thus , the region cannot be considered to constitute an optimum Currency Area . The theory of Optimum Currency it is to be noted , is the measuring guideline as to whether or not a geographical region is wide awake for an adoption of single currency which preludes economic integration . Regions that do not qualify for the criteria of the OCA would , theoretically , have trouble in the implementation of policies and activities that constitute a single market much(prenominal) as tolerant movement of goods , labor and chapiter and most especially in the implementation of economic harmonisation . As such , the issue of the EU as not being an OCA- qualified region could have led to such other major problems as when interest rates in the euro zone have to be adjusted for both disordered development member economies with budget deficit problems and high growth economies . The eurosystem however has been established to maintain price stability , substantiate the general economic policies and such other economic and pecuniary concerns that arise from the Union .

International Trade and Regulations page _2Another concern that could have been aggravated is the issue of sovereignty . While member states of the European Union have already given up a considerable amount of their sovereignty to the Union tension take over exists as Euroscepticism paved way for its supporters to clamor to revert the euro blanket to their respective country s original currency . There has also been a faction within the EU as to what glide slope is best followed in policy making and in remittal issues France , Germany , and Italy prefer the supra national approach with which allows integration so as to proceed to decisions at a faster grand Supporters of intergovernmentalism on the other hand , argue that the supra national approach threatens national sovereignty and democracy The UK , Denmark and Sweden support the latter(prenominal) approachOther problems could have risen due to administrative and technical barriers to the free flow of goods and services such as the unwillingness of EU countries to conform to each other s standards and norms . Technical barriers may include such problems as the inability of member countries to join the eurozone or use the euro as their denomination...If you want to get a ripe essay, order it on our website: Orderessay

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