International Trade: Single European Market

Purpose: This chapter aims to identify the interaction of various aspects of international trade and the impact on economic integration and economic development in the European Union (EU). Foreign trade is essential for the economy of every country, especially for small, open economies, such as several EU member states. International trade characterises economic trends; it is one of the indicators of the balance of payments and reflects the macroeconomic stability in the country. Need for study:Economic development analysis involves assessing the external balance of each country or the union of countries, such as the EU, with a focus on the analysis of international trade balance and trends, crucial for the stability of each economy and the operation of the single market and economic integration. Research methodology:Statistical analysis of foreign trade data and the determination of mutual statistical relationships. It evaluates the trade balances of the EU member states, turnover, and international trade within the EU (intra-EU trade). Findings:The EU’s economic integration is based on single-market principles, ensuring free international trade and a significant impact on future economic growth. Economic openness of each member state, characterised by foreign trade turnover to gross domestic product (GDP), is essential for compliance with optimal currency zone criteria. The EU’s enlargement opened the single market to Central and Eastern European countries, creating conditions for economic transformation and common future development. However, the study confirms significant differences in international trade between new member states. Practical implications:Ensuring the development of export capacity and justify the need for export support.