Competitiveness of the European Union in Light of Foreign Trade

The main aim of this study is to ana­lyse and present com­pet­it­ive­ness in order to eval­u­ate trends in the Mem­ber States of the EU. Com­pet­it­ive­ness is ex­plained at a cor­por­ate, na­tional and re­gional level. Two im­port­ant stat­ist­ical in­dic­at­ors are con­sidered for its cal­cu­la­tion: the Com­mod­ity terms of trade (C), also known as the net barter terms of trade (N), and the In­come terms of trade index (I), which com­mu­nic­ates the cor­rel­a­tion between changes in quant­ity and price. A stable eco­nomy re­quires sur­plus in the trade bal­ance and im­prove­ment in ex­change rate. The primary pur­pose of the goods ex­port in­dic­ator is to cap­ture the know­ledge cap­ital avail­able in a coun­try in order to provide char­ac­ter­ist­ics and map the struc­ture of trade for use as gauging tools. The three na­tions in which ex­port sur­plus to GDP is very high are the Neth­er­lands, Switzer­land, and Ire­land. Neg­at­ive trade bal­ances have been re­cog­nised in Ro­mania, France, and the United King­dom. As a res­ult of changes in prices and volumes, nom­inal trad­ing val­ues were seen to rise con­tinu­ously in 2018. Global com­mod­ity ex­ports glob­ally in­creased by 10 per cent, pre­dom­in­antly pro­pelled by 20 per cent in­crease in oil prices. Rapid growth and de­vel­op­ment in in­nov­a­tion trig­gers in­crease in GDP and ex­ports. Ad­di­tion­ally, it is ob­served that ex­port grows sig­ni­fic­antly faster in the Euro Area Mem­ber States than in non-EEA Mem­ber States.