Introduction According to “Its-our-Europe” website in recent years, the expansion of the European Union has become a much debated topic. Much of the discussion was centred on the potential for new business opportunities that may arise in the new EU member states. Doing business in Europe becomes a daily reality for many companies, not only for large corporations but also for small and medium sized businesses. European business environment opens borders for the EU to increase trade, lower prices for consumers and for the expansion of technical and allocative efficiency between local and international companies. Companies are trying to adopt better methods of production to keep costs down in order to remain competitive. Therefore an incentive to produce efficiently arises. This will help standards of the product to increase and consumers will have a good quality product to consume. Free movement of people, goods, services and capital and the creation of the single currency and the establishment of the European Central Bank to create more opportunities for European businesses. But, of course, there is a downside to this. The EU is currently facing serious challenges in its role as the economic crisis, climate change and energy supply, demographic changes and migration. Single market opportunities and challenges Creation of a single market in the EU raise benefits for companies such as Nagel Logistics as a freight company may increase the number of consumers at the international level and the price level will not increase, but may become lower in the EU non-tariff barrier. The reason of non-tariff barriers is simple: It is the engine of growth and source of new, small and medium enterprises to grow. The opportunities are huge due to ... ... middle of paper ... ...sed trade is likely to boost world growth to everybody’s advantage. It brings consumers a wider range of products to choose from. Competition between imports and local products lowers prices and raises quality. The EU believes that single market can bring economic benefits to all, including the developing countries The company mentioned in this is essay which is Nagel logistics have great opportunities of the single market of EU as company have wider opportunity to import and export goods and services from any provider to any consumer in the EU without having to accept contractual conditions different from those that apply in UK. The evidence provided in this essay shows that EU single market still have to make a lot of progress to reach successful outcomes but EU members works very hard to create safe environment for businesses to operate. Trade.ec.europa.eu, 2014)
The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea
Economic integration is the joining of economic policies between different states/regions. This eliminates tariff and non-tariff barriers to the flow of goods, services and factors of production between the regions. Economic integration has varying levels referred to as trading blocs; these are a form economic integration. A trading bloc is a group of nations that have been made a bilateral or multilateral agreement. There are four types of trading blocs. The least advanced level is the Free Trade Area. The features of this level is that reduced tariff barriers between signatories, which at times are abandoned altogether and there is free movement of labour and capital and the non-member countries have an independent set of tariffs against member countries. The second level of economic integration is the Customs Union. This is a Free Trade Agreement plus a common external tariff. Member countries agree to reduce tariff barriers among themselves and they have in common, this is referred to as tax harmonisation. The Common Market is the third level of trade blocs. This has features of the Customs Union plus free movement of capital and labour and some policy harmonisation such as similar trade policies to prevent certain member countries having an unfair advantage. The European Union is an example of a Common Market and is an economic and political partnership that involves 28 European countries. It allows goods and people to be moved around and has its own currency, the euro, which is used by nineteen of the member countries (The UK excluded). It also has its own parliament and sets rules in a wide range of areas such as transport,...
The European Union today is a political and economic entity that controls in a single market located mostly in Europe exploiting Euro as a single currency uniting the vast majority of its members. The market that all European Union members share provides free trade of goods and services as well as a common external tariff. One might argue that the European Union would not perceptible its current influence had it not been for the introduction of the Euro. Speaking of the benefits of the Euro, one can name the elimination of exchange rate problems, creation of a single financial market, providing price stability, low interest rates as well as being a political symbol of unity and commitment to the Union. Today, Euro is the second reserve currency in the entire world - a fact that clearly speaks for itself of its value in the global market.
Zemanek, H. 2010. Competitiveness within the euro area: the problem that still needs to be solved.Economic Affairs, 30 (3), pp. 42--47.
Problems with the Maastricht Treaty and its Goal to Unify Europe My position is in opposition to the unification of Europe as proposed under the Maastricht Treaty, as beneficial to Europe. We will prove beyond a reasonable doubt about the uselessness of the treaty. The main principle of the Maastricht Treaty is European Unity. Unity is a nice warm hearted word.
...: Reassessing Legitimacy in the European Union. Journal of Common Market Studies, 40 (4), pp. 603-24.
As the economic integration of Europe continues, it is likely that increasing international competition will affect firms in European industries. As other countries expand and have more trade worldwide, the more the European economy will be affected. The economy will tend to buy from outside of Europe due to taste and lower prices. There would be more firms to choose from decreasing Economies of scale are significant because motor vehicle manufacturing is an industry based on growth. Since the automotive industry being discussed is in Italy, it is based primarily around one company, Fiat. The majority of sales of automobiles in Italy are acquired by Fiat. The automotive industry constitutes a substantial part in the European economy because this industry makes up 10 percent of total manufacturing output.
Following the post-World War II carnage and violence, a new Europe arose from the ashes. This new Europe was decimated from the intermittent fighting between the Allied and Axis powers during the second great war and the nations of Europe sought to devise a plan that to avoid further war-time conflicts within the region. The European Coal and Steel Committee was the first advent of assembling nations together in political and economic interest. The ECSC was formed in 1950 with the signing of the Treaty of Paris whose signatories included West Germany , Italy, Luxembourg, Belgium, France and The Netherlands.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Conclusion: The purpose of trade blocs is well-defined: they are made to increase the wealth and standard of living for the citizens of the member nations and to make sure goods and services are available in a hassle free manner. NAFTA and EU both are one of the most powerful alliances in the world, but NAFTA will never be able to compete with the EU, main reason being lack in antiquity, location and developed countries.
Senior, Nello Susan. "Chapters:4,15." The European Union: Economics, Policies and History. London: McGraw-Hill, 2009. Print.
“From time to time it is worth reminding ourselves why twenty-seven European nation states have come together voluntarily to form the partnership that is the European Union.” 1
The enlargement of the European Union (EU) in 2004 and 2007 has been termed as the largest single expansion of the EU with a total of 12 new member states – bringing the number of members to 27 – and more than 77 million citizens joining the Commission (Murphy 2006, Neueder 2003, Ross 2011). A majority of the new member states in this enlargement are from the eastern part of the continent and were countries that had just emerged from communist economies (EC 2009, Ross 2011), although overall, the enlargement also saw new member states from very different economic, social and political compared to that of the old member states (EC 2009, Ross 2011). This enlargement was also a historical significance in European history, for it saw the reunification of Europe since the Cold War in a world of increasing globalization (EC 2009, Mulle et al. 2013, Ross 2011). For that, overall, this enlargement is considered by many to have been a great success for the EU and its citizens but it is not without its problems and challenges (EC 2009, Mulle et al. 2013, Ross 2011). This essay will thus examine the impact of the 2004/2007 enlargements from two perspectives: firstly, the impact of the enlargements on the EU as a whole, and thereafter, how the enlargements have affected the new member states that were acceded during the 2004/2007 periods. Included in the essay will be the extent of their integration into the EU and how being a part of the Commission has contributed to their development as nation states. Following that, this essay will then evaluate the overall success of the enlargement process and whether the EU or the new member states have both benefited from the accessions or whether the enlargement has only proven advantageous to one th...
AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.
In order for international trade to work well, governments must allow the world market to determine how goods are sold, manufactured and traded for all to economically prosper. While all nations may have the capability to produce any goods or services needed by their population, it is not possible for all nations to have a comparative advantage for producing a good due to natural resources of the country or other available resources needed to produce a good or service. The example of trading among states comprising the United States is an example of how free trade works best without the interve...