A. Nationalism is a term used to define two main activities, namely: caring about the nations` identity by the citizens of the particular country or the self - determination of them and the actions they take (Stanford Encyclopedia of Philosophy). The actions performed under such conditions are determined by common origins, cultural aspects, and ethnic reasons. A program in politics responsible for the creation and the operation of the entirely sovereign country represents the first form of nationalism - classical. Nationalism in a broad sense represents the whole conception of a nation. Moreover, there is a classification of nationalism depending from the ethnic group`s right to have its own state: particularistic (some ethnicity may have its state) and universalizing (every nation should have its state).
In economic aspect, nationalism is seen in protectionism - a state`s policy of protecting the home market from overseas influence. Therefore, the protectionists claim that their home producers should have a bigger market share than the foreign companies; their products are sold with bigger profits, though they cost less due to the trade barriers the government creates to support them. Such measures involve quoting (currently forbidden by the World Trade Organization), licensing for the import trade, tariff barriers.
Nowadays nationalism in both politics and trade is less aggressive than it used to be. In my opinion, nationalism has no future in the modern world due to the liberalization and globalization processes. The international law is being standardized, the trade barriers reduced or completely eliminated. Moreover, adequately the product of the home manufacturers may be of worse quality and more power or labor, or capital consuming and therefore, less competitive and profitable for the state itself. Taking into consideration Smith`s absolute advantages theory and Ricardo`s relative advantages theory, I make a conclusion, that the international trade is a positive phenomenon for any state involved.
B. The European Union is a political and economical formation of 27 European member states. It was established by the Maastricht Treaty in 1992. The European Union members use the standardized system of laws that were a ground for the single market creation. Moreover, it is a subject of international public law holding the right to participate in international relations and conclude agreements. However, it combines the attributes of an international organization with the supranational ones, though documentally is not considered none of them.
The main institutes of the European Union are the following: European Commission, European Parliament, Council of the EU, the EU Council, the European Court of Justice and the European Central Bank (European Union). The legislative branch of power of the EU is represented by the European Parliament, the European Commission, the Council of the EU. The judicial branch is concentrated in the hands of the European Court of Justice, the rest of the institutions belong to the executive branch of power.
The EU went through some stages during its development. First, it was the Union of Steel and Coal aimed to control the production and use of those in the member countries. As it took place right after the World War II (1951), obviously, the states were afraid of the following attacks, and, as known, steel and coal are used to produce ammo. In 1957 the Rome Treaty was signed. As a result, the European Economic Union was created. Its main objective was to create a single market with the free movement of the factors of production, namely: capital and labor, and of the goods and services. Before, the customs union appeared, supposing the member states to have the single customs tariff for the third countries and extermination of trade barriers inside the union itself. After the introduction of the common currency, the European Economic Union reached its new stage of integration - currency union. Nowadays it is the biggest exporter and importer of the goods and services, trading with the largest countries, such as the USA, India, China. The European Union is based on equality of the states participating and human rights. The equality is realized through the fair competition and mutual acceptance of qualifications (European Union)
Personally I consider the European Union a very powerful organization. With its antimonopoly policies, transnational corporations regulation, agriculture policy, energetic policy, infrastructure, countries` diversity it has everything needed to become the world leader in any sphere. Moreover, with the introduction of the euro currency (2002), it created the mechanism of influence on the world economy, as almost all countries keep it in reserve, same as US dollars. However, considering its human rights respect, I believe they will not speculate it for their own good forcing the others to obey their rules. I estimate it as a great success of the EU.