NEWS

Increase in exports, jobs, opportunities for SMEs. Discover the key facts about the benefits of globalization for the European Union.

Globalization means benefits, opportunities, and also challenges. The objective of the EU is to make globalization work, take advantage of the opportunities it offers and reduce its negative effects.

Increase in trade for European companies

The European trade regime and the numerous trade agreements negotiated by the EU make it a good region to do business. It is the main trading partner of 80 countries.

As a result, the EU is one of the main players in international trade, in addition to the United States and China, and EU exports account for more than 15% of world exports. More than 80% of European exporters are small and medium-sized enterprises (SMEs).

EU exports of trade and services increased around 1.16 trillion euros in 2000 to 2.9 trillion euros in 2018. In 2017, exports to South Korea increased by more than 12%, to Colombia by more than 10 %, and EU exports to Canada increased by 7%.

Job opportunities

Globalization also provides job opportunities. In 2017, more than 36 million jobs (1 in 7) in the Union were supported by EU exports. Every billion in EU exports serves to support an average of about 13,000 jobs within the Union.

Exports from Spain to countries outside the EU supported 1.8 million jobs in Spain. This means that 1 in 10 jobs in Spain depends on EU exports. In Spain, the majority of people working in positions related to export are highly qualified workers, up to 40%.

Advantages for the consumer

The great benefits of globalization and commerce for the consumer come from imports. Trade agreements mean that importers pay less rights. Along with increased competition, this means lower prices for products (clothing, smart phones, televisions, software, automobiles, etc.) and services.

Consumers can also benefit from a greater variety of products and services.

The lowest prices have meant savings of about 24,000 million euros per year for consumers, while the greater variety of products and services linked to globalization is accounted for at around 600 euros per year in profits.

In addition, the level of wealth and comfort are increasing, while improving the standard of living.

Benefits of intra-community trade

Within the EU, the single market aims to eliminate barriers to trade between the countries of the Union.

The European single market is the largest economic space without barriers in the world. It includes more than 500 million citizens with a gross domestic product of approximately 13 billion euros.

It is estimated that the single market has created 2.8 million jobs.