IB 3341 Midterm: four european economic zones

• School: St. John's University
• Department: IB - INTERNATIONAL BUSINESS
• Course: IB 3341
• Professor: Nicolo Tartaglia

Document Summary

~within europe there are four different economic zones with different business models and economic specialization. First model is blue banana and goes from london, uk to milano, italy. France, germany, belgium, luxemburg, switzerland, and c-n italy (excluding rome). Traditionally rich countries, their per capita income being around ,000. Typically export led, indicating that all counties within this zone have an export surplus. Big, heavy welfare systems and have high tax rates for both businesses and people. These countries rely heavily on free trade ideology. Second model is baltic banana from glasgow to helsinki plus scandinavia and the three. Economies typically based on it, science, higher education and finance. Typically have the highest per capita ranging around ,000. Government within these economies may be big but they cooperate and don t prevent growth. Countries involved in this zone are eastern union countries, those who are new to the european union. Quick transition from communist countries in the 1990s.