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Introduction:

The industrial era had its starting point in Europe, and for centuries Europe kept its head position by the development of a capitalistic market economy, strongly supported by a dominant global position acquired through military force. Exploitation of human work force, like slaves from Africa, and natural resources, like gold and silver from South America, is a significant part of the story about the European industry and the capitalistic economy which has given Europe a high rate of development and living standard compared to the rest of the world. The transition from societies based on agriculture to being based on industry was not only depending on what happened in Europe itself. &nbsp;

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Time has changed, and Europe does not have this dominant and privileged position any more. It is still a rich and highly developed continent, but other regions in the world is keeping up more and more with Europe in industrial capacity and development. The BRICS countries, China, India, Brazil, South Africa, Russia and several others, e.g. several African nations, have growth rates beyond what European countries have, and Europe is facing strong competition on the world market. In present times Europe even suffers from a financial crisis, which affect countries in other continents much less. So this leaves Europe &ndash; where? &ndash; in relation to production and economy?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Due to its still higher rate of development the European countries have had a perspective of being competitive through being innovative and fully exploiting the possibilities in modern technologies, leaving the more labour demanding jobs to the Third World countries. This perspective has developed while European companies have outsourced more and more industrial processes to countries where labour force is much cheaper, and where there is less regulation. Now it is obvious that a modern technological development is happening also in the so called less developed part of the world. They even seem not to go through a long industrial period, like the one Europe had, before they enter the modern technology world. The developing countries have the labour demanding industries, but also more and more modern technological and innovative businesses. A good example is the soft ware industry in India, the hard ware industries in South Korea, Taiwan etc., and China providing the Europeans with a huge diversity of modern commodities, not only copy products.

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Many market-dominant and trans-national companies have their base in Europe with the administration and the sectors for design and innovation, but with big parts of the production and maybe profit placed in other parts of the world. This could change gradually in the coming years. Most countries, also in Europe, seem to develop towards having a business sector with both labour demanding industries as well as more technological advanced. The challenge for the individual countries is to find a production structure, the industrial sector, or the niche, in which the country has its potential, or can develop and thus adapt to a global market situation.

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Europe has still a very diverse and sophisticated industry to develop from, but European companies have hard times in competing on the world market. They claim that the costs in Europe, e.g. wages and taxes, are too high and environmental regulations are too demanding. Though they admit they benefit from a relative stable political environment, high level of education, high level of economic and technological development, good infrastructure etc. A country cannot make effective public services and sectors without taxing and regulations. The national governments can also make priorities in the investments to develop specific productions and be competitive, like the green industry in Denmark, and the car industry in Germany.

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It is obvious that Europe will meet stronger global competition in the years to come. It has to adapt to the new circumstances where other regions in the world grow faster than Europe, and maybe Europe now has to learn from others. On the other hand there is an expansion of the world market where the European industry with its relatively high educational and technological level should have possibilities. E.g. Europe has a potential to develop many of the green industries that are needed everywhere in the world to eliminate the use of fossil fuels, as well as products within the service sector which is quite developed in Europe. Europe is gradually loosing its former dominant position, but it has still potentials e.g. with its educational and organizational level.

Directive:

Read the introduction and the questions and make clear the overall aim of the task.

Read the files. Use them as sources to choose from. Use additional sources if you find it beneficial. The origin of additional sources must be noted for control.

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Product:

Write an essay on two pages with the topic: The European industrial development the next ten years, the products, capacities and position on the market. Have your arguments, examples and conclusions. Include the issues mentioned below.

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The issues to work with:

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1.&nbsp;&nbsp;&nbsp;&nbsp; How has the industrial pattern in Europe developed in relation to the given 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;natural resources? Give examples of the main productions. Include the agriculture 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;and the service sector.

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2.&nbsp;&nbsp;&nbsp;&nbsp; What are the big European trans-national companies within the different business 
&nbsp; &nbsp; &nbsp;&nbsp;&nbsp; sectors? Why have they developed especially within these sectors? What are their 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;positions on the world market?

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3.&nbsp;&nbsp;&nbsp;&nbsp; How is the European industry connected to the global industrial environment in 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;terms of development, impact, dominance one or the other way, capacities etc.? 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;Can Europe compete on the world market?

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4.&nbsp;&nbsp;&nbsp;&nbsp; There is a development of outsourcing industries and jobs from Europe to other 
&nbsp; &nbsp; &nbsp; &nbsp; countries? Is this development inevitable, good or bad? Is this development 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;permanent or temporary? Will this change the production pattern in Europe? 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;Examples.

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5.&nbsp;&nbsp;&nbsp;&nbsp; What is the current development in the European businesses in relation to find 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;new areas for industrial activities based on extensive use of innovation and 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;creativity? Give some examples of some successful initiatives and on the 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;difficulties to overcome.

&nbsp;

6.&nbsp;&nbsp;&nbsp;&nbsp; How do/will the global market situation influence the European labour market and 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;the workers in relation to time at work, salaries, security and other benefits? Will 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;this influence on what Europe will produce in the future? 
 
 

Read the files. There are many, but many small.

It is noted when the files are mainly for the data or to be read extensively, e.g. for inspiration

&nbsp;

For an overview:

<a href="http://en.wikipedia.org/wiki/Economy_of_Europe">http://en.wikipedia.org/wiki/Economy_of_Europe</a>

<a href="http://www.foodandwaterwatch.org/europe/agriculture/factory-farms/">http://www.foodandwaterwatch.org/europe/agriculture/factory-farms/</a>

<a href="http://en.wikipedia.org/wiki/Tertiary_sector_of_the_economy">http://en.wikipedia.org/wiki/Tertiary_sector_of_the_economy</a>

&nbsp;

Files:

F1.&nbsp;Agricultural output, price indices and income - Statistics Explained,&nbsp;from &nbsp; 
&nbsp; &nbsp; &nbsp; &nbsp;Eurostat&nbsp;Sept 2012 
 
F2.&nbsp;Agriculture and Biodiversity in the EU, from BirdLife International, UK, 2013 
 
F3. Agricultural products, Statistics explained, from Eurostat, Sep 2012 
 
F4. Agriculture and Rural Development, from European Commission,&nbsp;May 2012 
 
F5. EU fact -&nbsp;Common Agricultural Policy, from Civitas: EU facts, Jan 22, 2013 
 
F6.&nbsp;EU-industrial features,&nbsp;from Eurostat,&nbsp;statistics in Focus,&nbsp;37/2008 
 
F7.&nbsp;EU-industry-the future(extensive)&nbsp;from European&nbsp;Commission, Apr 26, 2010 
&nbsp; &nbsp; &nbsp; &nbsp; (read&nbsp;extensive) 
 
F8.&nbsp;EU-industrial-structure(mainly for data)&nbsp;from European Commission, 2011&nbsp;(mainly 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;for&nbsp;the data) 
 
F9. Europe-Model-of-Agriculture, from European Commission, Sep 26, 2006 
 
F10. Europe-multinatuinals( extensive) &nbsp;from Kelley School of Business, Indiana&nbsp;University, 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;2007 (read extensive) 
 
F11. EU-Services-Sector, from Eurostat, Statistics in focus, 78/2008 
 
F12. EU services Facts&amp;Figures,&nbsp;from Eurostat, Statistics in focus, 2008 
 
F13. Industrial Production falls across Europe, from Wall Street Journal, Nov 9, 2012 
 
F14. Industry and Construction Statistics - &nbsp;short term developments - Statistics explained, 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Sep 2012, <s>eurostat</s>,&nbsp;Most recent data: Further Eurostat information, Main tables and Database.&nbsp; 
 
F15. Structural Changes in the World Economy (for data) from &nbsp;UN - UNIDO, working paper 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;24/2008 
 
F16.&nbsp;The European Union is the worlds 2nd largest agricultural producer,&nbsp; 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;from momagri,&nbsp;Feb 2, 2013 
 
F17. The Service Sector - The Economy, &nbsp;United Kingdom - Europe, from&nbsp; 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;<a href="http://www.countriesquest.com/">www.countriesquest.com</a> 
 
F18. US Services sector grows as Europe slumps, from Reuters, edition US, Mar 5, 2012 
 
F19. Manufacturing statistics &ndash; NACE re. 2, statistic explain &nbsp;from eurostat, Apr 2012 
 
F20.&nbsp;Next Generation Manufacturing Europe  GDS International, &nbsp; 
&nbsp; &nbsp; &nbsp;&nbsp;from&nbsp;NG Manufacturing,&nbsp;June 2013, gdsinternational, 2013

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