IntroductionDuring the 1990s, discussions of trade policy and economics generally centered on a single word: globalization. Another word that seems to play an important role in these discussions is regionalism – the idea that separate countries can come together as a single group to create a formidable force in global politics, economics and trade. . Regionalism was the European Union (EU). Although most people know Europe as separate countries - England, France, Germany, Italy, etc. - when it comes to trade and global politics, the most common usage is EU to refer to all member countries of Europe. . - According to the media, the EU has become a power in its own right. Its member countries have combined to create a formidable force, particularly in terms of global trade. Furthermore, as a federation, the EU is a major player on the global political stage. But does this mean that all is well in peace within the European Union? Does the fact that member states came together mean that everyone benefited from the EU concept? This article will attempt to answer these questions by describing the background and reason for the formation of the EU and explaining what the original intention was. We will then discuss the EU in terms of economics and trade (as these two topics are definitely linked); and we will discuss some theories behind the success or failure of the EU. We will then consider that the formation of the EU has in fact been beneficial to its member states, both separately and in their entirety. Background and history To better understand the theories and principles that drive the European Union, it would be... middle of paper ...... almost 16 percent -- which is also higher than exports from the United States (at 12.6 percent) or Japan (at 7.7 percent) (Létiche, 2002). this is, needless to say, the envy of many other nations. Works Cited Boas, Morten (2000). The trade-environment nexus and the potential of regional trade institutions. New Political Economy 5(3), 415-432.De Grauwe, P. (1997) The Economics of Monetary Integration, 3rd edition. Oxford and New York: Oxford University Press. Letiche, John M. (2002). Lessons from the Eurozone for the East Asian Economy. Journal of Asian Business 11(3), 275-301.Pattichis, Charalambos (2001). Trade, growth and monetary union. Journal of Post Keynesian Economics 24(1), 125-147.The Columbia Encyclopedia (2000). European Union. Sixth edition. Whitehead, Alan (1998). Spheres, levels and city-states. New Statesman 127 (4391), S18-S20.