Introduction to Economic and Environmental Concerns in Europe

Introduction

In this module, we will examine the environmental and economic forces in modern Europe. We will explain how the location and availability of resources affect where people in Europe live, and how the unequal distribution of resources impacts trade in Europe. We will explain the presence, or absence of the factors of production in European countries, and how these factors of production influence the production, distribution, and consumption of goods and services. We will understand how the European countries are economically interrelated to provide for the needs of the European people through voluntary trade.

Europe: Questions to Consider

What are some environmental issues facing Europe today?
What are the different types of economic systems in Europe?
What are some of the benefits and barriers to voluntary trade in Europe?
What are the factors of economic growth in Europe?

Economic and Environmental Concerns - An Overview

Europe is a continent composed of many countries that have their own unique resources, economic systems, and problems.

Natural resources have an important role in a nation's economy. They fuel industry, and they are a source of income when exported to other countries. One reason that the United Kingdom and Germany have successful economies is because they have large amounts of natural resources. The United Kingdom has many valuable resources including coal, oil, and natural gas (fossil fuels). Germany has rivers, forests, and large deposits of coal and iron ore. Russia also has many natural resources, but they are located in remote areas that make it difficult and expensive to harvest them.

In order to protect these natural resources from foreign nations, sometimes countries establish trade barriers to restrict trade because they want to sell their goods to their own citizens. In addition, they do not want foreign competitors to sell their goods with lower prices. Almost every country has some restrictions on foreign imports. The European Union (EU) was established to set-up free trade among countries in Europe because of restricted trade before and during the Cold War.

Today, the EU is a powerful trade bloc, made up of one-fifth (20%) of the world's trade nations. Products produced in Europe can now move freely, without taxation, to other EU nations. This free trade leads to tremendous cost savings for European consumers and businesses.

The European Union took another big step in simplifying currency exchange when they established the Euro as the common currency for 17 out of 28 member nations. This common currency has made trade easier and less expensive within Europe. The Euro bills all look the same, but the coins have a standard Euro design on one side and symbols from individual countries on the other side.

Review

Review the vocabulary terms we'll be using throughout our studies of Europe.

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Think About This

Now that you are familiar with the terms related to the economic and environmental concerns in Europe, it is time to delve deeper into the economic systems and the environmental issues facing the European nations today.

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