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European Union Week 3 Discussion

European Union Week 3 Discussion

Q Chapter 3 of our Suder textbook is about EU "Enlargement and the Theories of Integration." For this week's initial post, answer the chapter review questions on p. 93--to wit: 1. Which integration theories drive integration the most? 2. Which integration theory would be supported by a large US corporation operating in the European market? Why? 3. Should long-time Member States contribute to EU structural funds that help enlargement countries financially, and that may then help to lure jobs and industries away to countries with cheap labour and low tax rates? If no, why? 4. Discuss the future of Europe. Would business benefit more from deeper or from wider integration? 5. It was reported by major analysts that the 10 enlargement countries of 2004 are losing out to India on wage costs and skilled labour advantages, and to China for R&D investment location. Why then are Baltic countries still booming?

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The theory by which integration is driven in the Europe is Federalism. Germany has been mentioned to be the best federalist nation example. The agreements of the federal theory were the Treaty of Lisbon and the European Union Treaty. Big corporation of the United States functioning in the market of Europe would aid the theory of functionalism. The best step should be taken by the countries of Europe for its betterment. In case the overall best interest for the Unions is believed to be the contribution of the member-states for long-time towards the structural funds of the EU in order for enlargement nations to be aided financially, then this should be done. It is needed for the EU to consider whether the economic environment created by this strategy lures businesses and firms towards nation with low rates of tax and cheap labor leads to long-term best positive consequences for the economy of Europe, the contribution should be made to the fund (Kronsell, 2005).