One of the most topical questions of 21st century is competitiveness of nations in global economy, defining life standards of inhabitants and commercial potentials of businesses. In the paper there are analysed the preconditions of competitiveness of a nation on an example of the European Union (EU). Authors have rounded out that the competitiveness of a nation embraces trade and foreign direct investments which ensure production scale necessary for increase in productivity, as well as available resources and the ability to effectively use them. In the world of mobile capital and free movement of working force, the countries with relative attractiveness, not with comparable advantages, are supposed to gain more from globalisation. Statistics show that the EU is one of the main players in the world economy. Its successful operation derives from ability to realize high quality goods at reasonable prices. However, the leader position is not permanent, and tendencies in market dynamics play crucial role in its maintenance. Authors are convinced, that rapid development of China, India and other regions brings to Europe not only serious challenges but also new opportunities. Authors consider that wide and strong internal market is a necessary precondition for Europe to benefit from globalisation process. Therewith, the EU should, first of all, raise its internal capacity, i.e. to enhance the quality of its resources, and, secondly, facilitate external cooperation initiatives, i.e. encourage common entrepreneurial ability of single European nation. Keywords: competitiveness, the European Union, global, internal market, external trade.