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European Economic Community (EEC)

Definition

The EEC, established in 1957 by the Treaty of Rome, was a regional organization aimed at bringing about economic integration among its member states. It later evolved into the European Union.

Analogy

Think of EEC as a group project in school where everyone contributes and works together towards achieving common goals - in this case, economic growth and stability.

Related terms

Treaty of Rome (1957): This treaty established the EEC; it’s like setting rules for how your group project will work.

Common Market: This refers to a group of countries that have eliminated trade barriers between them. In our analogy, it would be like if all members in your group project agreed not to compete against each other but instead share resources and ideas freely.

Customs Union: A customs union is an agreement under which two or more countries agree not to impose taxes on imported goods from each other, and every country imposes a common external tariff on imports from non-member countries. Imagine if you and your friends decided not only to share notes with each other but also agreed on what kind of snacks everyone should bring for study sessions!