Expansion of EU :: Economics Trade Indian IT Companies Essays

Expansion of EUThe EU Expansion of May 2004On May 1, 2004, new members were added to EU. The true round of expansion brings 10 new EU kids on the block Slovenia, Hungary, Slovakia, Czech Republic, Poland, Lithuania, Latvia, Estonia, Cyprus, and Malta. There are more to follow in the EU outlook list. Many of these countries are of varying economic strengths and per capita incomes. The average Gross National Product of the newer countries is significantly different from the first 12 member nations of the EU.Indian IT industryIndia has a well-trained work force and the largest pool of English speaking workers anywhere outside native English speaking countries. India produces more engineers and MBAs than any European country. The amend work force and the currency exchange rates are the prime factors that make India a very attractive location for software development. Indias quality workforce is among the least paid in the world, yet the workers can afford a good standard of living, d ue to relatively low cost of living in India. Due to these factors, India has emerged as leading software exporter in the world. USA and Europe are the biggest markets for the Indian software companies. The IT exports were worth $12.5 billion in the fiscal family 2003-2004. Trade between India and EuropeBefore the formation of the EU, USA was the single largest trading partner for India. Many European countries like UK, Germany and France were the other major partners. afterwards the EU came into being, it has replaced USA as Indias leading trade partner. The major industries involved in India-EU trade are steel, cement, Computer Software, etc. India has had much great business relations with the western European countries as compared to the eastern European countries.Bilateral trade between India and UK grew by over 20% during 2003. The UK is the second largest investor to India. India was the eighth largest investor in the UK in 2003. The UK attracts over 60% of Indias investme nt in Europe. India is the UKs 17th largest export market. India and Germany have strong bi-lateral trade relations. Last year, Germanys trade volume with India number some 5 billion ($5.6 billion). Indias IT sector has very strong business relations with Germany. The Changing Scenario?The basic principles on which EU functions involve removal of trade barriers among member countries and facilitation of free movement of people within the EU. Does this also involve restrictive trade practices and exclusion of workers from non-EU countries?