...Advantages of the European Union Jim Stewart MGT/448 Clark McCarrrell September 18, 2013 Advantages of the European Union The European Union or EU is a unique economic and political partnership between 28 European countries that together cover much of the European continent. The EU was borne from the aftermath of World War II. The goal was to encourage economic cooperation between countries. It was presumed that countries that were trading partners were less likely to attack each other. This was known as the European Economic Community or ECC and was created in 1958. ("Europa.eu", 2013) The ECC became the EU in 1993, when what had previously been a purely economic partnership, melded into a political partnership spawning policy, development, and environmental concerns. The EU is based on the rule of law: everything is founded on treaties, voluntarily and democratically agreed by all member countries. These agreements are binding. ("Europa.eu", 2013) There are any benefits derived from being a member of the European Union. These benefits run the gamut of economic, political, social and environmental. There are many economic advantages of being a member of the European Union. Member states cab move goods and capital from place to place inside the EU. Entrepreneurs are free to offer their services anywhere inside the EU. This is made possible because the EU operates under a unified set of economic laws...
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...What is integration? European Integration is the process of industrial, political, legal, economic, social and cultural integration of states in Europe. European Integration has primarily come about through the European Union and the Council of Europe. Economic integration is abolition of various restrains of trade between nations. Economic integration occurs through the reduction of all obstacles to trade and to the free flow of capital and labor across countries, so when a group of countries abolishes all restrictions to trade and the free flow of capital and labor among themselves, they participate in what is called a common or single market. European economic integration begun in 1951 when trade restrictions on coal and steel were dropped between Belgium, Germany, France, Italy, Luxembourg and the Netherlands. The advantages of becoming a member of a single market are: greater specializations and more efficient use of economic resources, cheaper products (through imports and increased competition) and easier access to foreign markets in which the home producer can sell. There are also disadvantages like bankruptcy of businesses that are not competitive in the world market; an example is the decline of the textile industry in North Carolina once trade restrictions were lifted with Mexico and a number of Asian countries. Another disadvantage is increased migration of workers from poor to rich countries as they search for relatively high paying jobs, although increased...
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...Denmark originally applied to join the European Economic Community on August 10, 1961. They strategically applied for membership one day after the United Kingdom had applied. French president Charles de Gaulle had vetoed the British application to join the European Economic Community. After the United Kingdom’s rejection, Denmark had declined the membership because they did not want to join the EEC without the United Kingdom’s admittance. Years later, the United Kingdom once again applied for membership to join the European Community. They joined on January 1, 1973. When Denmark had seen that the United Kingdom had joined the EC, they decided to apply for membership and became a member at the same time as the United Kingdom (Europa, 2013.) There are many reasons for a country to join the European Union. Each country has certain interests that they will benefit from by joining. Denmark is one of the most competitive economies in the world. I will now talk about why Denmark had joined the European Union, what issues the country faces and show why Denmark has such a competitive economy. Denmark had joined the European Union in 1973. There was a vote by the Danish population and 63.3% were in favor of EU admittance. The population saw the benefits of joining the EU and believed that this would help the country. From the start Denmark strategically joined because the United Kingdom had confirmed that they would join the EU. The reason for this was because Denmark...
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...of Student Couse Name of Tutor Date of Submission Table of Contents Introduction 4 Abstract 4 Advantages 5 a) Single Large Market 5 b) Excellent Infrastructure 6 c) Technology 6 d) Skilled and Trained Manpower 6 e) Regional Political Stability 6 f) Business Friendly Environment 7 Disadvantages 7 a) Sovereign Debt Crisis 7 b) The Use of a Single Currency 7 c) Germany Dominance 8 d) Alternative Option 8 Advantages of Acquiring a Foreign Business 8 a) High Growth of GDP 8 b) Available Large Markets 9 c) Favorable Government Policies 9 Disadvantages of Acquiring a Foreign Business 9 i. Different Business Environment 9 ii. Ineffective Regulatory Environment 9 iii. Unbalanced Economies 10 Reasons to Invest In a Foreign Market 10 i. Economic conditions 10 ii. Expectations on Exchange Rate 10 iii. International Diversification 10 Reasons to Provide Credit in Foreign Markets 10 i. High Interest Rates 11 ii. Expectations on Interest Rates 11 iii. International Diversification 11 Conclusion 11 References 12 Introduction The acquisition of business enterprise in a foreign country is part of global diversification. For instance, A US firm can seek to acquire another firm in Europe in which the business environment surrounding the foreign firm corresponds to the environment in the local US firm. The European market in the 28 different countries is diversified and incorporated with opportunities, regulations and transparent...
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...The two or three aforementioned companies that have a hold in the French market would be Coca-Cola, Nestle SA, PepsiCo, Inc., and Suntory Group. Coca-Cola is the only one that has a corner in the energy drink market with several already in production, while the others do not distribute an energy drink to speak of in France. France’s beverage market can be “difficult for a new entrant to compete with the brand strength and reach of existing players.” [ (MarketlLine Industry Profile Carbonated Soft Drinks in France, 2012) ] Keeping that in mind, most of the energy drink products that Coca-Cola produces contain the questionable substances, taurine and glucuronolactone, that Zip-6 does not. This could provide Zip-6 with a significant advantage over such a large multinational corporation and also provide Zip-6 with a wonderful entrance into...
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...This paper discusses the path of Croatia to the European Union. It explains all the different challenges Croatia faced in order to be able to comply with the EU standards and obligations. There is the Fundamental Rights chapter that presents the arguments that showing the great effort that Croatia has put in adopting new frameworks in all areas of the chapter. After, there are the benefits and risks that Croatia could face after EU accession. Some concerns about the economic crisis are mentioned from the public opinion and other EU members’ point of view. Finally there is a conclusion explaining what Croatia could benefit from or be deprived of by joining the EU, followed by a last explanation if there are still challenges in the political criteria. The path to the European Union The war in Croatia cost them loss of a whole decade in the path to European Union. In particular the war was detrimental for the economy. Was Croatia lagging behind to meet EU standards back then? Was there enough stability or any limitations toward accession to EU? The first step towards EU was on 29th October 2001 when Croatia signed the Stabilisation and Association Agreement in Luxembourg, becoming a potential candidate for joining the EU. All candidates which aim in joining the EU have to adopt the EU’s legal patrimony known as acquis which contains 31 chapters. The process of integration is monitored by the Council of Ministers and the European Parliament [1]. As for Croatia, it had not only...
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...European Identity The European Community, now known as the European Union, was created in the 1950’s after the world wars. After World War II europe wrose us and decided to come together to prevent anything like that from ever happening again. Belgium, France, Germany, Italy, Luxembourg and the Netherlands came together and established the European Coal and Steel Community to control these resources in order to control the countries’ production of weapons. This made sure that no country produced weapons to start another World War. The European Community was formed to keep Germany under control and make sure another Nazi Party never formed ever again. The European Union was supposed to make peace between these countries and slowly grow over time. The goal was to make the these countries codependent of each other economically, so that it would prevent them from going to war with each other. If the countries depend on each other to keep their individual economies alive they would not be tempted to start a war. However, an identity for all these joined countries is the most idea idea to keep them united and at peace. “The European Commision introduced the concept of European identity already at the Copenhagen summit in 1973” (Pawel Karolewski). The goal was the from a European vision of the United States by making requirements that need to be met to join the Union, like like democracy and human rights laws, and also bringing the people together with programmes that have government...
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...against Articles EU Regional Integration Advantages The development of our world economy displays its escalating integrity and is based on international specialization and also co-production, and not the mention the consolidation of economic relations among states and business entities. Integration is a judicial law of the progress of international economic relationship. European Union is the foremost commercial power in our world today. The EU has attained the national unity in the economic and social policy: not a member of the EU can’t secure the prices of agricultural products or to enter in commercial agreements with third world countries or relations, state aid to companies individually have to be held in beneath the Brussels treaty. Countries have to meet the terms with general rules, environmental safety and consumer protection as well. The reaction of the leading countries: the influential’s talked about their success of monetary union. The key advantages of regional integration is having newer, cheaper, faster and more diversified, goods, resources, services, facilities, ideas and knowledge as well as higher living standards available. The powerful forces of international economic integration are the companies. They are interested in achieving an optimal level of activity, including throughout co-operation with distant companies in regions lacking customs and other limitations. Companies are able to and can take advantage of integration in this fashion: expansion...
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...Discussion of the European Union’s competition policies Since the turn of the century, Europe’s economic prosperity has rested upon the European Union’s competition policies and regulation of abusive market structures and anti-competitive behaviour. The last fifty years have illustrated that open markets foster innovation and efficiency, while delivering Europeans higher quality products and services at lower prices. This will ultimately lead to Europe’s economic growth, despite the possible infiltration of foreign low cost, low skill producing firms. Suggesting Europe’s future shift towards a knowledge based economy with a focus upon the development and sharing of new technologies (Bannerman, 2002). The following paper will examine the EU’s role and approach towards competition policy with a focus on the economic implications. Abusive market structures and anti-competitive behaviour have been battled by the EU to preserve competition, fearing that cartels will exploit their pricing power to damage consumers. The magnitude of the damage is directly correlated to the elasticity of demand, where a strongly inelastic customer would suffer due to the unavailability of substitutes. Furthermore, anti-competitive market structures create barriers to entry through the ownership of resources, economies of scale, and predatory pricing that stunt future innovation and efficiency. To ensure this competitive environment, the EU utilizes...
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...THE EUROPEAN UNION CURRENCY: THE EURO ACCOUTING I The euro, in application of the Maastricht Treaty, entered circulation on January 1 2002. It is the official currency of 16 of the 27 member states of the European Union (EU). That union is made of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, The Netherlands, Portugal, Slovakia, Slovenia and Spain. The euro has become the second largest reserve currency and the second most traded currency after the U.S dollar (wikipedia). The creation of a single currency born out of a political concern turned out to be a good and strong monetary decision. According to the European Commission (website) the euro has provided many advantages and benefits over the previous situations where each member state had its own currency. Not only are fluctuations risks and exchange cost eliminated and the single market strengthened, but the euro also means a closer cooperation among member. Others assets are more choices and stable prices for consumers and citizen, a greater security and more opportunity for business and markets, an improved economic stability and growth, more integrated financial markets and a tangible sign of an European identity, a stronger presence for the E.U in the global economy making the euro a rival for the dollar. With all those benefits the euro is not without its critics. They were those who feared a lost of national identity because they had to relinquished their...
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...POLICY PAPER: EUROPEAN STANDARIZATION POLICY Kristiana Elvis Boyadzhieva 20118703 Kristiana.boyadzhieva@gmail.com MBA 546: European Union Matthias C. Suthe Policy Paper 1, February 2014 Each student will select one aspect of EU policy and discuss how it affects different industries, companies, and countries. The paper will involve both providing a general summary of the policy area as well as advising on specific policy changes that might be undertaken and/or are currently under discussion in that area. The paper should present and reflect on the positions of the EU, Member States, Corporate interests, and Citizen Interests. There is probably no area in Europe, which is not be heavily affected by the EU standardization policy. Whether on the European, national, corporate or citizen level – the omnipresence and importance of the EU standardization policy is undisputed and is comparable maybe just with the influence of the EURO. Therefore it is not suprising that EU nations, as well as industries and companies are trying to take an influence on the standardization process, to assure and strengthen their competitiveness and future. European standardization is certainly not only of European significance, but also plays an extremely important role in the global competitive position of the EU and Europe. In the next paragraphs we will provide an overview about the main principles of the European Standadization policy, its goals and benefits, the institutions involved...
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...2013 ‘The courts direct effect decisions transformed the whole nature of the European Union from International organization to something like a federal union.’ (Shapiro) Discuss… The Phrase international organisation can be commonly defined as entities established by formal political agreements between their members that have the status of international treaties; their existence is recognised by law in their member countries; they are not treated as resident institutional units of the countries in which they are located. This definition is what the vast majority of people would class the European union as; an international organisation. ‘International organisations’, those that include the UN (united nations), tend to leave their decision making processes to the executives and those who are higher up in the organisation, which can leave the public, the legislation the organisation is designed to protect, feeling disillusioned from the organisation and not feel as if they get a say. This is something that the EU attempted to prevent and made some progress with the Lisbon treaty, ‘representing the culmination of decades of Treaty reform, to create a closer relationship between the institutions and public’. In contrast, a federal union is a political entity that is characterised by a union of partially self-governing states or regions united by a central government. An example of a federal union is the United states of America. As it has so many states within its country each...
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...many companies that conduct within their nation’s boundaries will find it difficult to survive. Currently worldwide competition is influencing virtually every business in Canada, United States and other industrialized nations. One way to cope with this is to expand beyond a country’s own frontiers. Poland, Hungary and Romania are three countries that are very competitive in the skilled manual labour. This makes them a very attractive location for large corporations to outsource low, medium and sometimes even high levels of production. Multi-national firms can take advantage of cheap labour, high level of technical competence, and excellent infrastructure in these three nations. The Central Eastern European countries are part of the expanding Europe and the countries that fall within this area have opened up many opportunities for multi-national Firms. Many of these countries have recently joined the European Union and NATO have made formidable alliance and agreements that boost their investment opportunity value. History: Poland is a large country with a long and distinguished history. (Europe Global Studies, pg. 48) Poland's history as a state begins near the middle of the 10th century. By the mid-16th century, the Polish-Lithuanian Commonwealth ruled a vast tract of land in central and Eastern Europe. During the 18th century, internal disorders weakened the nation, and in a series of agreements between 1772 and 1795, Russia, Prussia, and Austria partitioned Poland among...
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...Business, Diplomacy and Politics: American and European Region. Febryan Rivaldo Cliff Pelleng IR Diplomacy 2 016201400060 1. Economic Integration a. Definition Based on some reliable source, Economic integration is an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Well basically in my own perspective, Economic Integration is a process of agreement in which two or even more parties, in this case country states, agreed to reduce or remove a trade barriers for the advantages of both parties. Economic Integration is often has a specific motives that drive, the driven parties to create one. Like for an example the Regionalism...
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...Unilateral Adoption of a currency is. It’s when a country uses the currency of another country or another monetary union without the country’s or monetary union’s official acceptance which is the case of Montenegro, more specifically “unilateral euroization” without meeting the Maastricht criteria and without getting the European Union’s approval. In 2002 when the Euro was launched as the official currency for the countries in the European Monetary Union (EMU), Montenegro started using the euro as well without any approvals. The European Central Bank and the European Union strictly forbid the unilateral use of the Euro with very few exceptions like Vatican which is religious governing state in the Italian territory. They have some basic arguments why other countries should not use the Euro. The main argument is that it would undermine the principal of equal treatment, as any physically speaking “European” country has to be a member of the European Union and then apply to be in the European Monetary Union which has the five Maastricht requirements which ensures that the specific country has stable economy, low inflation, long term low interest rates, low Government Debt, Low Government Deficit and has to peg its exchange rate to Euro for 2 years. And when Montenegro does not follow all the requirements it is not fare to all the other Central-Eastern European Countries like Hungary which still cannot meet the requirements or the Baltic countries which have pegged their currencies...
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