The Impact of Globalisation on the European Economy Essay

The Impact of Globalisation on the European Economy - Essay Example Introduction European countries tend to view globalization as a threat rather than an opportunity. Globalization imposes subtle threat to jobs, social welfare, and way of life of Europeans. Opportunities are available for Europeans who are able to penetrate new markets with less expensive inputs. The debate on globalization continues unabated within popular and scholarly fraternity. This issue is of importance because has co-occurred with regional integration. Many European states, regions, and cities have to cope with globalization challenges. According to Jacoby and Meunier, managed globalization has played major role in key European Union (EU) policies for around one decade. There has been widespread discourse concerning managed globalization by European policy-makers and politicians. Nevertheless, this does not necessarily imply that the key stakeholders are really making efforts to ensure its implementation. There is possibility that globalization with adjectives constitute empt y rhetoric. Managed globalization could imply paradigm shifts. Through increase in interdependence between global economies in production, trade and financial markets, globalization has become an important phenomenon to the economies of most of the European countries. Despite the interruption in capital flows and global trade because of the financial crisis that rocked various economies in 2008, most European countries have continued to reap the benefits of globalization. Globalization has not only led to an increase in export competition but has also stimulated world demand and increased economic activities in the European economies. The main sectors of economy that have been significantly shaped by the advent of globalization have been market prices, the labor market and productivity. Discussion Globalization and Europeanization have occurred in tandem. These have underlain shifts in results of interest ranging from changes in institutional and policies, growth opportunities, inco me distribution, and employment opportunities. Nevertheless, Europeanization tends to prevail over globalization. Globalization has cause precipitous increase in European spending, especially in political economies of Scandinavian countries. Some European states, except Finland, tend to exhibit deglobalization patterns, with greater proximate trading agreements increasingly dominating cross-border swap. Intra-European divergence is underlain by diverse responses towards relatively terms of neo-liberalization (Jacoby & Meunier n.d.). Globalization has affected labour and capital markets, relations between central and local governments, and competition for elective posts. Both globalization and Europeanization are closely related to deregulation and negative integration of European market. Europeanization process tends to have relation with globalization, which tend to expedite or slow down globalization effects. Europeanization process may operate autonomously from globalization. The cumulative effect of Europeanization and globalization aggravates globalization effects. European level politics tend to slow down globalization process, with minus globalization results (Jacoby & Meunier n.d.). There has also been variation in density of trade unions and alternative levels at which bargain of wages are established. European states tend to employ policies that impede