Europe and the European Union Chapter 9 Intra EU trade among countries that are members of the EU Extra EU EU trade with countries that are not members of the EU o Reminder EU 15 is the original 15 countries Western Europe EU 15 and EU 2004 the new countries Eastern Europe are often treated separately in the textbook Import and exports depend on o Level of domestic consumption o Availability of materials for domestic production o Level of economic and or industrial development o EU 2004 Eastern Europe more likely to be affected by end of MFA United Kingdom England Wales Scotland Ireland member of the EU but does not use the euro Industrial Revolution began in 1700s o Evolution of textile industry Fly shuttle loom Advances in spinning equipment Caused social structure to change from rural and agricultural to urban and industrial o By mid 1800 s England had colonies in the Americas India and Africa o By early 1900 s England was responsible for 60 of world trade in cotton o Greatly weakened by World Wars I and II Germany o Divided into two states after World War II West German western Europe East Germany eastern Europe allied with Communist Soviet Union o Reunified in 1990 but still has economic o High labor and production costs o German textile manufacturers concentrating on high tech fabrics Health care environmental protection road building Italy prime minster stepped down o A dictatorship until WWII now democratic o Prime minister recently resigned o High wages competes with low wage countries by focusing on high end niche market o Major exporter of upscale fashion forward apparel and shoes Armani Versace Valentino Prada Diesel U S is a major customer France o After WWII reconciliation with Germany has contributed to economic unification of Europe o Bulk of fashion exports are pr t porter ready to wear sold under name of famous designers Dior Pierre Cardin Chanel Courreges de Givenchy Hermes Yves St Laurent o Associated with haute couture o Paris principal import marketing and distribution center o Avenue des Champs Elys es 1 18 miles most expensive retail space in Europe 2124 per square foot per year fell to 1 134 in 2010 London s Oxford Street and New Bond Street second 810 per square foot per year Spain o Slower to embrace the industrial revolution o Wages and GDP lower than most Western Europen countries Hence producer of textiles and apparel Effected by expiration of MFA quota system o Zara vertical integration fashion leader Limited production runs fast turnaround Eastern Europe Poland Russia o Most productive of new countries added to the EU in 2004 o Mostly produce for foreign firms for export o Provides apparel consumer market for other nations half of apparel sales are imported goods o Extremely large but poor in natural resources Covers both Europe and Asia but considered to be European major population centers are in western Russia o Not yet member of EU or WTO o Cotton and wool are important agricultural products o Manufacturing base is not modern o Retailing has undergone shift from street markets to retail Other countries investing in Retail o Russian fashion designers emerging Russian Fashion Week Moscow Romania o Joined EU in 2007 Had some textile and apparel manufacturing under communist rule Currently moving towards privatization of business Textiles and apparel account for over of total exports for country compare with 4 1 for EU Produces women s suits for TJMaxx Expected to gain more market share in near future EU members have to decide if labels should read Made in Europe or keep individual countries Many countries have branded themselves o China cheap mass produced o Italy quality luxury fashion o France fine wine and food fashion o Germany cars and technology o Chapter10 The Americas and the Caribbean Basin Fun fact America is a great landmass that is longer from north to south than any other land area on the globe Old world perspectives European influences are reflected throughout regions as a result of Southern Europe settled mostly Central and South America why they speak Spanish and Portuguese colonization Includes North 3 countries Central 7 and South America 13 and the West Indies 13 countries Often called the New World Europe is the Old World Northern Europe settled mostly North American why we speak English Unifying the Americas 1776 Revolutionary War 13 North American colonies gained independence from Great Britain Mid 1800s Mexico ceded Texas to United States 1910 Pan American Union created 1940s two World Wars and Great Depression reorganized the world map 1948 Ninth Pan American Conference created Organization of American States OAS o Defend democracy protect human rights strengthened security against terrorism foster free trade Free Trade Area of Americas FTAA combat illegal drugs and fight corruption o Has four official languages English Spanish Portuguese French OAS similar to the EU by Desire free trade among members Different by No common currency and OAS is spread over two continents 1994 NAFTA 1994 MERCOSUR Southern Common Market o Argentina Brazil Paraguay Uruguay Boliva and Chile Free internal trade Common external tariff 2001 FTAA Free Trade Area of Americas o Make all of the Americas a free trade area o Still under negotiation Has conflicts with already existing trade agreements North America regards it as an extension of NAFTA South America regards it as an extension of MERCOSUR Cultural differences can make it difficult for North and South America to communicate or work together Canada is largest in geographic size but low population level 32 5 million US has largest population 9 632 million Most of West Indian islands around Caribbean Sea are smallest of the American nations Haiti has lowest life expectancy 51 8 yrs and lowest literacy rate 52 9 percent Haiti is still recovering from devastating earthquakes Uruguay and Argentina literacy rate 98 97 1 USA GDP 10 980 0 billion EU 15 10 123 6 billion Third largest are Canada and Mexico Second largest GDP Brazil w 12 6 of US GDP o Canada has longest life expectancy 80 years USA Costa Rica and Chile are second Note Canada and USA only two developed countries in the Americas o Even though Canada has a low GDP the GDP per capita is high Both Canada and USA have negative trade balances in both textiles and apparel U S apparel brands sold around the world but not made in the U S very few if any jeans made in the U S Most Central and South American countries are low in internet usage