European Economic Power: Trade, Industry, and Resources
European Economic Spaces
The countries of Europe have had a role in the organization and conformation of the world economy, and they continue to have one. The European Union rivals the United States and Japan in the top positions of global economic power. Europe receives a large part of the trade and investments that are made on the planet. Like the United States, it utilizes trade and investments and develops new economic activities.
The countries of the European Union play a starring role in the global trading economy.
A Developed Economy
Most of the European countries are rich or very developed. This is due to their productive activities, which are characterized by: high levels of productivity; intense industrial and service activity; and a complex network of transport and communications. The majority of employees work in tertiary activities, while only a minority work in primary activities, as is typical in the most developed and rich countries.
Agricultural Activities
Agricultural production employs few people and achieves high production volumes. Agricultural products are destined for both internal and external markets. In general, high yields are obtained thanks to the application of new technologies and agricultural knowledge.
Four spaces stand out:
- Extensive Livestock Farming: This coincides with the less favorable dry areas (Mediterranean coast).
- Intensive Livestock Farming: This is developed on the northern side of Europe and also in mountainous areas in the center. It predominantly involves cattle, sheep, and swine for the supply of meat and milk. Livestock farming based on stabling (corrals and stables) and prepared feed (special feed rations) is also very frequent.
Forestry Activity
This activity has given rise to important industrial developments, both for wood processing and for the manufacture of paper. Sweden, Finland, and part of Norway are among the world’s largest exporters.
Fishing Activity
In Europe, there is a long tradition of fishing and fish consumption. The countries with the largest catch volumes are: Russia, Norway, Iceland, Denmark, Spain, and the United Kingdom. They have developed a modern industrial-type fishing fleet.
Mining Resources
The existence of rich iron and coal deposits in the center of Europe and the British Isles has been fundamental to the initial development of industry. Many of these deposits are no longer productive, so the ore or basic products (iron or steel) must be imported. Europe is deficient in fossil fuels, such as oil and gas, and must import large quantities. There are large oil deposits in the North Sea that are exploited using underwater mining techniques.
Industrial Activities
European industries are among the most important and developed in the world, whether by the variety of products obtained, the economic complexity, or the monetary value of production.
European Industrial Space
It is very influenced by history. The industrial areas were located near coal or iron deposits, although mining has lost importance. These areas have been transformed and still have great industrial development. Economic globalization is playing a major role in the industrial transformations of Europe. European industry is increasingly focused on the production of highly complex technological goods with high added value. Exchange in the global economy ensures its sale throughout the planet. At the same time, simpler industrial products are imported from other places.
Main Industrial Areas
- The Rotterdam-Milan Axis: This is the main European industrial center. Its high degree of development is based on the existence of numerous energy resources and excellent communications. It is an area mainly devoted to heavy industry, machinery, chemicals, and food production.
- The British Region: Mechanical, electrical, chemical, transport, and food equipment industries stand out.
- Eastern Europe: This area is undergoing a very important process of industrial reconversion due to the opening to the West, modernizing its facilities to make them more efficient and enhance productivity.
- Germany: After being totally destroyed after World War II, this country experienced spectacular economic growth from the 1950s to the present. Its economy is one of the most prosperous, and it is the third world power after the USA and Japan. Industry is the base of its economic power. Most industries are located in the Ruhr and Saar basins, which form the most important industrial axis in Europe. The reunification of Germany, after the fall of the communist bloc, has given new momentum to German industry.