...European Union and Turkey Introduction to European Union In this globalization era, the world seems to be borderless, especially in Europe. This further confirmed by the formation of the European Union, which serves as a binding substance between the countries contained in the European continent. European Union is a political and economic based union, established in 1993 after the ratification of Maastricht Treaty. The international organizations are working together to create economic and political stability among member states. During its development, the European Union may not run smoothly. The emergence of the economic problems that rocked the euro zone, then Spain and Cyprus emerged as a "burden" in these economic problems. Another emerging issue is productivity, border policy, and the exchange rate that makes this organization stability unsteady. Another issue that emerged is the exclusivity of the organization. Another issues arising from the exclusivity of membership expansion problem. Preceded by the six founding countries, EU has 28 members now, as Croatia joined on 1st July 2013. The membership number is certain to grow rapidly with the number of countries that volunteered to become a member. Regardless of all the problems it faces today, the EU is still believed to be an organization that brings positive impact to its members. States' desire to be able to join the candidate can not be separated from the success tale of the European Union, particularly in the fields...
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...A Study of the Benefits and Costs which Might Result for UK-based Firms Should the UK Adopt the Euro Name: Louise Tibagalika Module: The Global Business Environment Tutor: Phil Johnson Submission Date: 10th February 2014 Academic Integrity Statement: I have read and understood the Academic Integrity guidelines for Kaplan Open Learning and the University Of Essex, and declare that this assignment conforms to all of the rules and regulations contained therein. Please note: the guidelines can be found in the Student Handbook (see section 6.4). Introduction The euro is the single currency established in 1999, currently shared by 18 countries of the European Union’s Member States (Ec.europa.eu, 2014). Due to the number of advantages such as the stimulation of trade and disadvantages such as economic instability, the decision for the UK to adopt the euro is a big economic and political debate at present which will affect businesses and the public in many ways. The following report will look at the advantages and disadvantages for businesses and answer the question as to whether the UK government should proceed with the decision. Objectives * Assess the benefits of the UK adopting the EURO * Assess the drawbacks associated with the UK adopting the EURO * How businesses can utilise these benefits and survive in the international market * Look at the political, economic, social and environmental factors * Provide workplace and personal experience...
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...1. Introduction To understand into the trend of European currency change nowadays, the origins of the Euro (€) had been studied. From the background of Euro, initial idea for the creation of Euro can be trace back to 1979 when European Union (EU) set up European monetary system (EMS). Due to the successful of EMS, the European Union decided to form the Economy and Monetary Union (EMU) to create Euro in December 1991.The main advantages and disadvantages of a single currency for the countries and the zone had been analysis with the macroeconomics knowledge that has learnt from this course. The advantages mainly help to eliminate the floating exchange rate, transaction cost and price transparency, whereas the disadvantages include loss of sovereignty, cost of Euro and budget position. Thus, the significant influences of Euro dollar from birth to now, it can be known that Euro currency is defined under flexible exchange rate system. With flexible exchange rate, the currency can be effort between the capital movements, tax and subsidize international trade and therefore the currency from overseas will influenced the demand. 2. Analysis 1. History of Euro In January of 1999, single currency, Euro has been introduced by members of European Union. It has been approved by Maastricht Treaty and used by its members currently who called as Eurozone. Those members consists of 16 members which are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg...
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...travel to another country), or for engaging in speculation or trading in the foreign exchange market” (exchange rate, para.1). The purpose of this paper is to examine the exchange rate mechanism (Euro Currency Markets), explain how this mechanism is used in global financing operations, and to describe its significance in managing risks. The euro’s evolution began in 1946 when England’s Prime Minister Winston Churchill and other European leaders anticipated Europe to simulate the United States. This brought about the making of the 15- nation European Union that formed the euro. A&E (2013), states “On March 25, 1957, France, West Germany, Italy, the Netherlands, Belgium, and Luxembourg sign a treaty in Rome establishing the European Economic Community (EEC), also known as the Common Market. The EEC, which came into operation in January 1958, was a major step in Europe's movement toward economic and political union” (common Market founded, para. 1). The European Monetary Unit (EMU) was formed in 1991. Also in 1991, the treaty formed the European Central Bank, and one currency, the euro. If the member countries wanted to join in the EU, they had to have a low inflation and interest rates close to the EU average, a debt ratio of less than sixty percent of GDP, and have a budget deficit of less than three percent of their Gross Domestic Product (GDP). The next year the Schengen Treaty...
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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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...integration is where two countries cooperate in reducing tariffs. (Samii, 2011) Regional integration is where a group of countries are located in the same geographic area and agree to cooperate such as the European Union (EU). (Samii, 2011) And, global integration is where countries across the world agree to cooperate in trade agreements such as World Trade Organization. (Samii, 2011) Countries enter into these agreements seeking to reduce cost on both their imports and exports. In turn, countries will most likely see an increase in foreign direct investments resulting from trade blocs. (Curley, 2014) Trade blocs are created bringing countries closer together by eliminating tariffs. And as a result, demand changes based on the lower cost because now bulk productions are allowed. Consequently, the increased competition promotes greater efficiency within firms. (Curley, 2014) With some Trade blocs free trade is allowed within each country’s markets thereby encouraging each country to specialize in certain markets. (Economic Online, Unknown) In addition, jobs may be created because of the increased trade between members. (Economic Online, Unknown) And a final benefit is that firms inside the bloc are protected from cheaper imports from outside the blocs, such as the European Union show industry is protected from cheaper imports from China and Vietnam. (Economic Online, Unknown) On January 1, 1994, United States (US), Canada and Mexico entered into the North American Free...
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...Romania’s Post Communism Accounting Practices and The Effects of Adapting IFRS for SMEs Abstract Romania, located in southeastern European, was heavily influenced by the Russian Soviet Union as a socialist republic between 1947 and 1989. With becoming a capitalist country in 1989, its accounting practices began its transformation. The purpose of this paper is to analyze Romania accounting practices post its revolution. The paper discusses three major accounting practice conversions made in Romania post communism. Included in this paper are comparisons of previous practices and the implications presented within each practice; along with the pros and cons and many challenges that are associated with the adaptation of International Financial Reporting Standards (IFRS) for small and medium-sized entities (SMEs). Romania’s Post Communism Accounting Practices and The Effects of Adapting IFRS Romania is country located in southeastern Europe and is the ninth largest country of the European Union. Between 1947 and 1989, Romania was controlled by the Russian Soviet Union and enforced by communism. Today, reported in its 2011 Census, Romania’s currently has a population of 21,390,000 people and a gross domestic product (GDP) of $179,793,512,340. Though now considered as an upper-middle income country by the World Bank, Romania has faced many transitions from communism to capitalism over the course of the past three...
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...Finland and Nokia Executive Summary Finland had transformed itself from a sleepy economy to a highly competitive one with maximum contribution from the telecommunications sector. Focused efforts in R&D and education helped Finland achieve this position with Nokia being a major player. While Finland maintained its ranking as a leading competitive nation in 2001, it was facing challenges. The overall growth rates were declining and the telecommunications cluster was experiencing a severe downturn. Nokia’s revenue and profits were falling and considering the fact that Nokia and the telecommunication sector played a large role in Finland’s economy, there were concerns about the level of exposure to a single cluster and company. Also, Finland was facing shortages of experienced engineers and scientists. Universities were offering programs tailored for foreign students in order to attract people to Finland. However, unemployment was increasing among the young and less skilled. Nokia was facing a challenge in evolution of standards and innovation. New standards were being developed in mobile internet services as well as software and hardware for phones and infrastructure. Smart mobile phones with multimedia messaging, internet connections and downloads from websites were being around the corner. We feel that Nokia has the options of outsourcing production to India and China to achieve reduced costs, higher production and improved benefits. They should consider development...
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...IWhat is International Marketing? Marketing a product or service across national boundaries in order to satisfy the needs of customers and the objectives of the organization. Different Terms: Multidomestic marketing: adapting product and marketing programs to each foreign market independently. Global marketing: marketing activities in multiple country markets are coordinated and integrated. Foreign marketing: loosely refers to marketing a product in a market outside the home market. International Marketing Environments Global Economic Environment Cultural Environment International Marketing Global Competitive Environment Political/Regulatory Environment Systems Global Systems Global Financial Systems International Monetary Systems and Foreign Exchange Market Global/regional Trading Systems (WTO, EU, NAFTA, ASEAN,...) Importance of International Marketing • • • • World trade has risen from $2 trillion to $18 trillion in last three decades. International trade grows twice as fast as domestic trade. Global marketing is a “must” for firms to achieve sustained growth. Marketing success will be defined on a global scale. Domestic and International Trade Growth Percentage of Growth 12% 10% 8% 6% 4% 2% 0% Year International Trade Domestic Trade Financial Statistics Yearbook Source: International 2011, International Monetary Fund, Washington D. C. Uniqueness...
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...Chapter Three The World Marketplace: Business without Borders Review Questions 1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity? China, India and Brazil are some of the largest growing global businesses. These comes from many different factors; GDP growth and population are two major causes. China has the largest populations in the world along with the fastest growing GDP percentages. Brazil’s population is not as large but does has a high GDP percentage, and also a high Dollar Pre Capital GDP. 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? When their country of origin has naturally cheap raw materials or if their currency has been undervalued, they are naturally cheaper than their competitors from other countries. This gives them better margins and they thrive. 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? The money being spent to buy things from other countries is much larger than the amount of money where other countries are buying from the U.S. The deficit means we are buying more than we sell. To make up for the difference people and governments from other countries buy U.S. investments assets. 4. Explain the meaning of “strong”...
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...Scottish independence- pros and cons from the economical point of view Essay Recently the Scottish referendum and especially the economic consequences of Scottish independence became one of the most interesting and controversial world topics. The most common view is that Scotland needs the rest of the UK and the economic and social factors of independence would be too great to deal with. Many people think that going independent is an extremely large economic gamble and will lead to many unwanted consequences - lack of national resources, economic crisis because of investors’ uncertainty, higher tax and interest rates, currency problems, change in the economic and political relationships with European union and other countries. In its unity with the UK, Scotland is part of a very powerful, rich and influential state. This confers all kinds of useful economic benefits, including low interest rates, a seat at the UN Security Council, leadership in NATO and other multinational organizations. So becoming independent would significantly decrease Scotland's global presence and influence. The choice of currency will also lead to wide ranging economic implications. An independent Scotland would, in theory, have three main currency options: its own currency, using the Euro and continuing to use the pound. The European Union has ruled out Scotland joining the euro (or even the EU). So if an independent Scotland did not join a currency area with the rest of the UK, its main option would...
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...Alternative Courses of Action 1. Concentrate on the Americas 2. Diversify Production 3. Expand to Europe More Aggressively 4. Diversify Product Line 1.Concentrate on the Americas Based on our analysis of Chiquita Banana’s financial struggles we have a number of possible solutions for improving the company. Chiquita Bananas had no way of predicting that the European Union would favour its former colonies over Chiquita’s locations in Latin America. After the European Union put quotas and tariffs on Chiquita’s products, Chiquita should have re-evaluated whether or not to continue to export to Europe. Although they would lose a significant amount of business if they stopped exporting to Europe, the reason they were in debt in the first place was because Europe restricted import of their products and this was a problem since Europe was Chiquita’s main market. If the company had concentrated within the Americas then they would not have been forced into so much debt. 2. Diversify Production In order to limit the amount they were affected by natural disasters, the company could have grown bananas in other parts of the world. This would be better for the company because if natural disasters did strike in an area where they grow their products then it would not be such a financial blow as they would have more sources to receive...
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...that is founded in trust and understanding. We forge alliances only because of the things we get from it. But globalization has formed some semblance of unity among all us and the concerns of other nation that back then were opted to be resolved on their own are now an issue with other countries as well and all unite to propel themselves to a solution. Globalization is often used for its financial connotations. The influence it has however is not contained solely to the economy. Other international aspects such as social relations, political discourse and psychological manifestations are also a part of globalization. We have constantly heard the globalization pros and cons and the debate of these globalization pros and cons continue up until now. Here is a bit of a crash course of the pros and the cons of globalization. Pros of globalization are that more accessible market for anyone all over the world regardless of color, race, and social class. “Steady supply of cash to developing countries and even the well established ones. There is an increase in the production capabilities of companies and because of this they now have more freedom to customize their services and products fitted to the needs of the consumers. Political merging will be frequent and a more peaceful and orderly world order will be set”(Weidenbaum, 2005). Information and communication will be strengthened not just between two countries but also from all countries around the...
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...1. -Do you think Greece should leave (or be kicked out) of the Eurozone? From the Greece point of view, it should stay in the Eurozone. Firstly, if it left the Eurozone and adopt the drachma, the country’s economy would suffer from weak currency, high inflation rate and high interest rate. This situation might continue for several years. The Greeks’ living standard then would become much worse than now. Secondly, Greece cannot benefit a lot from the weak currency. The current dominant industry in Greece is the tourism. Greece doesn’t have many natural and labor resources, and doesn’t have high-tech industries or large scale of manufactures or services industries which are strong enough to drive the economy. So, the weak currency cannot benefit the export. It might benefit the tourism, but the prosperity of the tourism is not strong enough to drag Greece from the deep debt mud. Finally, if the Greece exit Eurozone because of the veto of fiscal austerity, then the Greece government might continue the high welfare and high tax social security system. Although the fiscal austerity imposed by creditors of the Eurozone is a little over strict, the fiscal austerity is somehow right on the track. The high welfare system is a very heavy burden for the economy which not only cause a lot of government debt but also demotivate labor force. We can see the effect of the fiscal austerity during 2011~2014, the GDP increased from -8% to -0.2%, which means that the economy is becoming better. ...
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...The cultural challenges that Europe is facing now Subject: Cultural challenges coming from European integration and globalization processes current in European Union. Introduction In the post war period Europe started to go through many processes of integration. With the time passage this processes started to have a bigger geographical range as well as they started to be present in more dimensions of social, economic and political life. On the top of that strong globalization processes are taking place all over the world, which also has its strong reflection in shape of Europe. Economy, culture and educational become one of the main issues for Europe in globalization and integration processes. The creation and expansion of European Union a form which never was present in any other place in the history is a significant and irreversible creation. European Integration – does it really concern also the way in which we perceive or will perceive our culture? Some scholars started to use term of Europeanization as the less inclusive and less biased than European Integration itself. Will next generations and new European perceive themselves as European? We can multiply such a questions. This short essay will attempt to answer the main question stated in the title in prism of cross-cultural aspects. What is national culture? In a scientific sense it means a certain class of objects, phenomena and processes, or definite ways of behavior. However, in the philosophical sense the...
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