The colonial hangover still reigns over many developing nations, and though it may not seem apparent, the ‘Europeanization’ of global markets proliferates through the Brussels Effect and EU’s unilateral wielding of influence across the legal domain of the international markets.
What is this elusive Brussel’s effect?
Brussel’s effect is the realm of the impact that the EU has over the global market by the shaping and the forming of the trading and business laws and rules. According to Anu Bradford’s book, “Brussels Effect: How the European Union Rules the World,” the European Union sets the global rules across a range of areas, such as food, chemicals, competition, and the protection of privacy. EU regulations have a tangible impact on the everyday lives of citizens around the world.
Few Americans are aware that EU regulations determine the makeup they apply in the morning,’ the cereal they eat for breakfast,’ the software they use on their computer,’ and the privacy settings they adjust on their Facebook page.’ And that’s just before 8:30 AM. The EU also sets the rules governing the interoffice phone directory they use to call a coworker. EU regulations dictate what kind of air conditioners Americans use to cool their homes9 and why their children no longer find soft plastic toys in their McDonald’s Happy Meals.
The far-reaching impact of Brussels Effect and EU
the Brussels effect has enabled the EU to monopolize the business laws through ‘unilateral regulatory globalization.’ As the UK has the world’s largest internal market, and trading with the EU requires modification of rules of foreign companies. With stringent rules in place, the companies are offered either to bend the rules in accordance with the EU’s policies or completely exempt business ties with the EU.
Left with no choice, the traders’ acquiesce to the regulatory demands to have a hold of inelastic markets more than the elastic one. While the EU regulates only its internal market, multinational corporations often have an incentive to standardize their products globally and adhere to a single rule. This converts the EU rule into a global rule-the de facto Brussels Effect.
It is not a chalk and pen rule that was formulated to benefit any strata, but it was a by-product that slowly expanded under the butterfly effect to maintain its domestic policies rather than implicating ‘regulatory imperialism.’ EU continues to hegemony the global rules, advertently.