Regional grouping involves countries within a geographic area joining together for mutual benefit. The European Union began in the 1950s with six founding members and has since grown to include 28 member states. Key objectives of the EU include establishing a single market, customs union, and common policies around issues like agriculture, transportation, and social and economic goals. Members benefit from free trade and movement of goods, services, capital and people across borders, as well as increased economic and political influence on the global stage.

1. REGIONAL GROUPING &
EUROPEAN UNION
GROUP MEMBERS:
MADHAV NEUPANE
LAXMI SADAULA
PRAYASH NEUPANE

2. CONCEPT OF REGIONAL GROUPING/INTEGRATION
• A block or geographic region/area that have things in common coming together for a common purpose.
• A number of groups ,societies or countries within an area joining together to cooperate and operate
under one system or as one group.
• Regional integration is a process in which states enter into a regional agreement in order to enhance
regional cooperation through regional institutions and rules.
• Regional Integration as an association of states based upon location in a given geographical area, for the
safeguarding or promotion of the participants, an association whose terms are fixed by a treaty or other
arrangements.

3. OBJECTIVES OF REGIONAL GROUPING/INTEGRATION
• Strengthening of trade integration in the region
• Enabling environment for private sector development
• Economic growth
• Development of strong public sector institutions and good governance
• Reduction of social exclusion and the development of an inclusive civil society
• Contribution to peace and security in the region
• Building of environment programmes at the regional level
• Strengthening of the region interaction with other regions of the world

4. REASONS FOR REGIONAL GROUPING
• Geographic proximity
• Consumer tastes & preferences
• Distribution channels
• Common history & interest
• Common economic & trade opportunities & problem

5. TYPES OF REGIONAL GROUPING
• Free trade area: Free trade among
members. E.g. NAFTA, EFTA etc.
• Customer union: Common external tariff
and trade policy. E.g. Mercosur.
• Common market: Free movement of
labor, capital & technology. E.g.
Caribbean Community, central American
common market etc.
• Economic union: Harmonization of all
economic policies. E.g. European Union
• Political union: Single economic political
identity. E.g. UK, Soviet Union (1922–
1991), Serbia and Montenegro (2003–
2006) etc. ( EU is pursuing this level
also)

6. EUROPEAN UNION

7. CONCEPT & HISTORY OF EUROPEAN UNION
• The EU began in the 1950’s. It was called the European Economic Community. • Six countries (Germany,
France, Italy, Luxembourg, the Netherlands and Belgium) were the founding members.
• In 1992 a treaty formed the European Union as we know it today
• Operating presently as a single market with 28 countries, the EU is a major world trading power.
• EU is a supranational entity of 28 European nations dedicated to European economic and political
integration.

8. OBJECTIVES OF EUROPEAN UNION
• To establish customs duties between member states.
• To establish an external common tariff.
• To establish a European investment bank.
• To create a European social fund.
• To develop closer relations between member states.
• To introduce common policy for agriculture & transportation.

9. GOALS OF EUROPEAN UNION
• Economic and social progress. Help people earn enough money and get treated fairly.
• Speak for the European Union internationally By working as a group the EU hopes that Europe will be
listened to more by other countries.
• European citizenship Anyone from a member country is a citizen of the EU. Because you are a citizen of
the EU, you have rights.
• Make Europe an area of freedom, security and justice. Help Europeans to live in safety, without the fear
of war.
• Make and keep EU laws Making laws protect peoples’ rights in the EU countries.

10. PURPOSE OF THE EUROPEAN UNION
• For its members to work together for advantages that would be out of their reach if each were working
alone
• Believe that when countries work together they are a more powerful force in the world because they
involve:
• More money
• More people
• More land area
• This helps make small countries more competitive in the world market…

11. COMPARISON OF ECONOMY OF EU, US & CHINA
EU US China
Land Area (Approx.) 1,500,000 sq. mi 3,700,000 sq. mi 3,700,000 sq. mi
Population (Approx.) 507.4 million 316.1 million 1350 million
GDP (Nominal, 2013) US $17.512 trillion US $16.768 trillion US $9.469 trillion
Per Capita (2013) US $34,300 US $53,001 US $6,959
% in wrold’s economy 23.4% 22.45% 12.7%

12. BENEFITS TO MEMBERS COUNTRIES
• Members may use a common currency ( euro ) that makes trade easier.
• EU works to improve trade, education, farming, & industry among its members.
• No tariffs (taxes) among member countries – free trade zone.
• Citizens of one country can move freely to another country.
• Citizens can live and work in any other EU nation.
• Citizens can vote in local elections even if they aren’t citizens of the country.
• Gives smaller economies the ability to negotiate with much bigger economies like US & China on an
equal footing.
• Reduce risk of war.

13. EURO
• The euro is the currency of MOST EU countries.
• Member countries can choose to give up their own
currency and exchange them for euros.
• French francs and German marks have been replaced by
the euro.
• Common currency makes trade between the countries
much easier and less expensive.
• 10 countries in the EU do not use the euro.
• United Kingdom has decided to continue to use the
British pound.

14. ANY QUERIES ????????????????