In: Economics
Which characteristics of the European Union can best be described as supranational or federal?
2. Which characteristics of the European Union can best be
described as intergovernmental or confederal?
A supranational organization is an international group or union in which the power and influence of member states transcend national boundaries or interests to share in decision making and vote on issues concerning the collective body. The European Union and the World Trade Organization are both supranational entities. In the EU, each member votes on policies that will affect each member nation. The benefits of this construct are the synergies derived from social and economic policies and a stronger presence on the international stage.
For an organization to be supranational, it must operate in multiple countries. While applicable to multinational corporations, the term is more often used in the context of government entities because they often have regulatory responsibilities within their standard operations. These responsibilities can include the creation of international treaties and standards for international trade.
In addition to basic trade, supranational organizations may be involved in other activities designed to promote international standards. This can include activities related to food production, such as agriculture and fisheries, and those concerning the environment or energy production.
Supranational organizations may also be involved in education and forms of foreign aid or assistance to countries. Certain organizations are involved in areas with a significant political impact on the member nations, including arms, the acceptable treatment of prisoners of war, nuclear power, and other nuclear-development capabilities.
KEY TAKEAWAYS
A supranational organization allows member states to have greater power and influence beyond their respective national boundaries.
Examples include the EU, UNICEF, WTO, and the Summer and the Winter Olympics.
While the focus of most supranational organizations is to ease trade, the entity may also have political implications or requirements.
Supranational organizations may help design activities that promote international standards.