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GROUP 4 OBINNA AMIRA EBENEZER

Amira Z

Created on November 28, 2024

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GROUP 4

COMPETITIVENESS IN THE EU

76

74

75

73

What is the situation in the capital markets in the EU? What is the main objective of the Capital Markets Union initiative and how does the EU plan to achieve it?

72

What type of financial actors are dominating the capital flows in the EU? Why is this a problem?

71

What does the term ‘intra-EU FDI’ refer to? And ‘extra-EU FDI’? What are the efficiency gains deriving from cross-border investments?

Please introduce intra-EU labour mobility trends over time, and in relation to the US.

How has extra- and intra-EU trade evolved since 2002? What has the crisis caused and what special change in the trends has it brought about?

In what ways is the Single Market itself a competitive advantage? What are the consequences of market integration?

chapter 2.4 : EU Single market

OBINNA
EBENEZER
AMIRA

Index

71

In what ways is the Single Market itself a competitive advantage? What are the consequences of market integration?

benefits consumers with better choices and lower prices

Access to a vast internal market, reducing transaction costs and improving efficiency

A competitive advantage refers to a set of unique attributes or capabilities that allow an organization, region, or economic entity to perform better than its rivals, creating value that is difficult to replicate

COmpetitive advantage

Expanded Trade Opportunities

Encouragement of Competition and Innovation

Economies of Scale

Elimination of Internal Barriers

attracting more external investors

strengthens the EU's position in global markets

motivating them to innovate and improve the quality of their product

strengthening their global competitiveness

Reducing production costs

Free movement of goods, services, capital and people

71

In what ways is the Single Market itself a competitive advantage? What are the consequences of market integration?

Integration deepens economic interdependence among member states. Economic events in one country increasingly affect others, highlighting the importance of coordinated economic policies at the European level..

Market integration promotes convergence among the economies of EU member states. While disparities still exist, integration progressively reduces economic differences between regions, particularly by enabling better allocation of resources.

Increased Interdependence

Economic and Social convergence

By fostering business growth and opening up a larger market for enterprises. Enhanced trade and investment generate new employment opportunities. The Single Market has contributed to the creation of approximately 2.5 million additional jobs, leading to improved welfare, greater prosperity, and a more competitive Europe.

Job Creation

Stronger economic growth by removing internal barriers and facilitating cross-border trade. This enables businesses to operate on a larger scale. According to the European Commission, the Single Market has boosted intra-EU trade by approximately 15% annually over the past decade.

Economic growth and Increased trade

- Trade with non-EU countries has also grown, though at a slower pace compared to intra-EU trade. - However, extra-EU trade has faced external challenges, including heightened competition from emerging economies and non-EU markets.

Extra-EU Trade

Intra-EU Trade

- sustained growth driven by the removal of internal trade barriers and improvements in transport and logistics infrastructure - The integration of the Single Market has facilitated exchanges between member states, thereby increasing the volume of goods and services traded within the EU.

72

How has extra- and intra-EU trade evolved since 2002? What has the crisis caused and what special change in the trends has it brought about?

Info

The intra-Eu labour mobility trend shows the rate at which EU nationals work in another member state other than their own country of origin

2014 : About 2,1% of EU citizens were working in another member state

2004 : About 1,6% of EU citizens were working in another member state

73

Please introduce intra-EU labour mobility trends over time, and in relation to the US.

Ireland 4%

Labour flow in the EU has also been significantly uneven, the variations across Member States are high

Luxembourg 22%

The intra-Eu labour mobility trend shows the rate at which EU nationals work in another member state other than their own country of origin

73

Please introduce intra-EU labour mobility trends over time, and in relation to the US.

73

Please introduce intra-EU labour mobility trends over time, and in relation to the US.

+ movement of labour from one US state to another
1/10 of the US labour flow
Financial institutions
Large banks

IMPACT ON RETURN VOLATILITY

IMPACT ON COMPETITION

IMPACT ON DIVERSIFICATION

OBSTACLE TO THE FREE MOVEMENT OF CAPITAL

74

What type of financial actors are dominating the capital flows in the EU? Why is this a problem?

75

What does the term ‘intra-EU FDI’ refer to? And ‘extra-EU FDI’? What are the efficiency gains deriving from cross-border investments?

Extra-EU FDI

Intra-EU FDI

Efficiency gains refer to working with lower costs with the goal of making greater profit. Efficiency gains are realized through risk diversification. However, many barriers between cross-border investors and companies still remain.

75

What does the term ‘intra-EU FDI’ refer to? And ‘extra-EU FDI’? What are the efficiency gains deriving from cross-border investments?

offer greater portfolio diversification.

reduced volatility of market returns

European companies become more competitive
Extra-EU FDI
Financial integration should increase Intra-EU FDI

76

What is the situation in the capital markets in the EU? What is the main objective of the Capital Markets Union initiative and how does the EU plan to achieve it?

The Capital Markets Union represents an important step towards building an EU single market for capital from the bottom up, identifying barriers and knocking them down one by one, creating a sense of momentum and helping to spark growing confidence in investing in Europe's future.