GMS 693 Lecture Notes - Lecture 4: Government Debt, Eurozone, History Of Europe
DepartmentGlobal Management Studies
Course CodeGMS 693
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1. Identify the major issues impacting today's European business climate
2. Fully understand the historical integration of the European Union and its context within
3. Apply the knowledge learned in the various functional areas of global business studies on a
holistic basis to a European setting
Import/Exports for a Modern Europe
- Including the intra-EU trade, EU accounts for about one-half of all global trade.
oAround 60% of trade conducted by EU member states is intra-regional.
oGermany is the most important trading partner for the vast majority of European
- EU’s largest trading partner is the US
o20% of the EU’s total good exports
- Leading export markets for EU goods
oU.S(17%), China(8.9%), Switz(7.9%), Russia(7.1%), Turkey(4.7%)
- Leading sources of EU imports
oChina(17.3%), Russia(11.8%), U.S(10.9%), Norway(5.5%), Switz(5.4%)
- EU GDP is appx $17.5T USD and expected to contract at an annualized rate of -0.03%
oThis forecast has changed several mes over the 12 months
Exempli?es the fragility of the EU economy
Sovereign debt issues and sluggish demand are pu@ng pressure on European
- Principle exports
oManufacturing, high precision tech machinery, and transport equipment
US, Switz, China
- Principle imports
oEnergy, raw materials, machinery, and transport equipment
China, US, Russia.
oChina has a parcularly large impact on Europe import.
EU Polical Environment
- Dominant current issue in the EU today
oHigh level of sovereign debt and its impact on the Euro currency and growth in demand.
oGovernment that need money look to the ECB(European central bank) and others for a
The lenders insist on austerity measures be put in place by the debtor naons in
order to provide assurance that the loan will be paid back.
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