The research is mainly planning to inquire the cause of European economic, its present situation and impact on the international trade. This research will seek the problem in terms of socioeconomic perspective rather than only through economic angles. The research will employ descriptive method of research with a little explanatory angle to understand the basic terms. The data collection for this research will do through literature review as secondary source. More data if needed to expand the research than it is taken from the business articles and economics blogs present over the internet. If this will be sufficient, then research will be carried otherwise fresh data (Primary data) are collected through the questionnaire and brain storming method.The data collected is analyzed through a quantitative method of correlation and regression to establish the relation between various terms and factors. It is also being cross checked through comparing with finding of other research earlier done in this field. The main focus will be answering the basic question of cause and effect. The hypothesis is satisfied through the finding, if not satisfied it will become null hypothesis. The expected outcomes of this research are to find the interrelation between the factors that cause the Economic crisis and its effects on international trade.We are aware that many potential problems may come from this research like the unavailability of secondary data, wrong implementation of correlation tools and faulty calculation of standard deviation of data. To avoid this problem we will take data from the journal of international reputes and books of international writers. All necessary precautions will be taken to protect the integrity of the research. All the efforts of the research will be executed according to the time scale of the proposal so that no wastage of time occurs and no overlapping of the task is done due to poor planning. The result obtained is analyzed according to various trusted mathematical tools like the model of regression and correlation methods.