...Economics of the European Union ECN309X Essay term 1 To what extent did the 1992 Single Market programme create a single market across the EU? Linde Cloosterman 10418300 14th December 2012 In January 1992 The European Single Market was formed. The prospects were compromising. Hooley et al. (2012) explain that the programme would provide the free flow of products and services, people and capital between the member states of the European Union. Another point was the intention to improve economic performance by lowering costs of trading across national borders within the European Union. But also to boost economies of scale of operation to achieve more competitiveness against the US internal market. However, the developments within the Single Market were not always positive. An example that illustrates this are diverse economies in the euro-zone operating at different speeds, facing different levels of public sector debt but without the freedom to set separate exchange or interest rates (Hooley et al., 2012). The economic crisis within the euro-zone had negative effects on the Single market as well. Therefore it can be questioned: to what extent did the 1992 Single Market programme create a single market across the European Union? Due to the prolonged economic recession by the beginning of 1980 it was clear that the competitive position of the European Community was decreasing. Outcomes with stagnating negative effects within the European economy, rising unemployment...
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...single market 7.2 Single Market: introduction The term the "internal market" is used to describe trade within the EU, intra-Community trade, as opposed to trade outside the EU (the "external market"). The internal market is, de facto, used synonymously with the "Single Market" and sometimes synonymously with the "Common Market". But the latter has wider connotations and has sometimes been used synonymously with the European Economic Community. The Treaty of Rome (1957) set out the "four freedoms" that should characterise the internal market. They were: • The free movement of goods. • The freedom to provide services. • The free movement of persons (including the freedom of establishment, the right to practise a trade or profession). • The free movement of capital. Even though the Treaty of Rome provided for the removal of all tariffs and quotas on goods inside the Community, many non-tariff barriers remained into the 1970s and 1980s. In the 1970s, one of the most important developments prior to the Single Market Programme was the ECJ's judgement in the "Cassis de Dijon" case (1979). It specified a new basis for the freedom of movement of goods, known as "mutual recognition". This principle essentially meant that goods in free and legal circulation in one member state cannot be excluded from others. The principle also applied to, for example, services and professional qualifications. In the early 1980s, there was a heavy backlog of draft Directives and Regulations...
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...vulnerabilities? Government officials envision the EU as a single market, an area without internal frontiers in which the free movement of goods, person, services, and capital is assured. This is a tall order in the current European Market as huge benefits are plentiful for some and lacking for others. The countries that are members of the EU house an regulatory environment with which local and multinational firms operate. What is the cost of the current situation for the European Union? The EU is one of the world’s biggest investors in promoting economic and social growth to the European markets. The European Union considers Foreign Direct Investment (FDI) as one of the key solutions to promoting development, economic and social growth to the European Markets. It is within the scope of framework that the EU follows a pro-development approach of long-term investments that will generate stable employment and growth for the European marketplace. The European banking industry has been slow in converting into a modern means of investment opportunities and lacks standardization of banking rules and regulations such as Germany. The German banking system slows the economy by poor management decisions regulated by adverse government policies and a unwillingness to modernize the way it promotes business within its borders. Having a standardized banking system in Europe would promote growth and strengthen the market and the image of Germany. This could be accomplished by...
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...Integration and the Impact of the Single European Market Regional Economic Integration is an agreement between countries to reduce or remove trade barriers so that counties within the agreement will benefit by joining the integration. Without this Regional Economic Integration it was difficult for countries to trade because exporting goods from one country to another always had tariffs and nontariff barriers, making it harder for countries to ultimately benefit from trade between one another. This can be done by forming a Free Trade Area, Custom Union, Common Market, Economic Union, or Political union. A Free Trade Area is where counties in the group try and remove tariffs and quotas on the goods and services being traded between the countries. By choosing Free Trade Areas they are allowed to trade freely among member but have an independent policy for non-members. The European Free Trade Association is an example of a free trade area. A Custom Union is similar to free trade areas but members must conduct and pursue common external tariff. Custom unions help increase efficiency by bring the countries involved closer. The European Union is an example of a custom union. A common market is basically custom unions that along with increase efficiency, allow for free factor mobility across members. It makes it easy for capital and labor to be traded between members of the common market. An economic union is a union just like a common market but wants to use one common monetary...
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...CARICOM SINGLE MARKET and ECONOMY (CSME) In 1989, the CARICOM Heads of Government, agreed to advance beyond the Common Market towards a more comprehensive economic integration, via the Grand Anse Declaration, signed in Grenada. This led to the creation of the CARICOM Single Market and Economy (CSME) which is a single economic space to facilitate the free movement of goods, services, capital and technology, as well as the establishment of commercial enterprises. To give effect to the Heads decision, the Treaty of Chaguaramas was revised through a series of protocols, that is, legal instruments setting out the new rules. In 2001, these protocols were integrated into the Revised Treaty of Chaguaramas. The main objectives of the CSME are: full use of labour (full employment) full exploitation of the other factors of production (natural resources and capital) competitive production leading to greater variety and quantity products and services for exports. The CSME is intended to benefit the people of the Region by providing more and better opportunities to produce and sell the region’s goods and services and to attract investment. It is expected that these objectives will in turn provide improved standards of living, greater employment, and sustained economic development. The CSME comprises two main components: A Single Market represented by five main goals, namely, the free movement of labour/people, goods, services, capital and the right of establishment. Status:...
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...INTEGRATION EFFORTS IN THE CARIBBEAN ESSAY Sir Arthur Lewis in 1965 wrote ‘these islands did not start on the federal road in a fit of idleness. They start because it was clear that a federation is the only possible solution to their problem.” To understand what Sir Arthur Lewis meant regional integration must be defined. According to Carbough (2004), regional integration is a process of eliminating restrictions on international trade, payments and factors of mobility. Full regional integration is the economic, social, legal, political, business and environmental factors into one common regional space. There are six levels of integration which are the trade association, free trade area, customs union, common market, economic and political union. Over the past decade regional integration movements have been undergoing tremendous pressure as they attempt to sustain viability. Hippolyte- Manigot (1979) stated “Since the mid 1970s, so serious have some of these difficulties been that practitioners and analyst of regional integration have indicated their doubts about the viability of regional integration.” The first effort for integration took place in 1958. This was known as the West Indies Federation. The federation faced several problems but what really led to the demise of the federation was fell apart in January 1962 was the withdrawal of Jamaica. This withdrawal was to lead to a movement within Jamaican for national independence from Britain. The withdrawal of Jamaica then...
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...states, regions, or countries ("trade bloc," 2014). The concept of regional economic integration takes the trade bloc concept and centers it into different regions on the globe. Regional economic integration is an agreement to reduce regional trade barriers, remove tariffs and non-tariff barriers that will hinder the flow of free trade of goods, services, and factors of production among countries in a geographic region (Hill, 2009). There are many regional trade blocs in place today that have achieved harmonious and non-harmonious integration. Following is a closer look at some of the advantages and disadvantage one trade bloc that is situated in the Caribbean region named, Caribbean Community (CARICOM) and its expansion into CARICOM Single Market and Economy (CSME). Caribbean Community (CARICOM) The Caribbean Community (CARICOM) was established in July 1973 as an expansion of the former Caribbean Free Trade Association (CARIFTA) that had been in place for seven years prior ("Caribbean community (caricom)," 2014). The CARICOM trading bloc profile states that it goes beyond the normal boundaries of free-trade to encompass programs that will sustain economic development within the region ("Caribbean community (caricom)," 2014). States located outside the CARICOM region also see benefits from the trading bloc in the way of a unified trade, economic, and foreign policies ("Caribbean community (caricom)," 2014). There are 15 members' states in the CARICOM trading bloc: Antigua...
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...between its members, in order to coordinate foreign policy and in order to ensure that the benefits of integration are equally shared. Its aim was to take part in the international trade scene . In 1989, 13 of the 15 members of the CARICOM decided to change the strategy and to become a single market economy (CSME) so as to better and deeper integrate the members , to widen the membership and to expand the economic mass of the Caribbean community, and to progressively insert the region in the global trading and economic system. Almost 40 years after the creation of the CARICOM, we could ask ourselves about the efficiency of this trade bloc, about its successes and failures. It seems that the CARICOM managed to reach some of its objectives but that its expansion was blocked by several important negative factors. Let’s try to understand what happened. As we said, , the creation of the CARICOM and the CSME planned to integrate the different members in order to gain efficiency and benefits. As we discussed in class, there are huge advantages in creating a trade bloc, as it allows to reduce costs, to reach economies of scale, to diversify economies and to enlarge markets. In the precise case of CARICOM, the objectives were numerous and were supposed to solve local problems. For example,...
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...Caribbean countries are relatively close to each other, hence, travel by air or sea from one country to another can be done in a relatively short space of time. * Caribbean countries share a common history - Most of the Caribbean people are descendants of people who had been subjected to slavery and indentureship. This makes it possible for the Caribbean people to embrace each other. * Common Cultural Heritage - The Caribbean people share a common culture in terms of language, dress, music, cuisine and general lifestyle. All these features make the integration process smoother. * Small population - The Caribbean countries are at a disadvantage when competing against international markets because of their small size. Thus, coming together makes it easier to influence international markets. * The Limited...
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...records. With the overall updates that our team has posed have more automation will assist Riordan to increase their production and accuracy. We can implement an application that can be used by all of the centers in order to maintain the inventory across the board so the managers are able to see what is in high demand in specific locations. Having an overall view of the inventory will be beneficial to the entire company. If the marketing department has he ability to see the inventory usage then they will know where they need to market certain products better. We need to develop a way for them to be able to have visibility to all application, servers and networks that are available. This will give Riordan a technical advantage in the business world. Microsoft, Intel and HP all have different programs that will allow Riordan to monitor their applications, servers and networks from a single location. By creating, a Data Center Riordian will have a single...
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...outlets. Compare the tools and techniques for a successful e-commerce presence. This assignment tests your analytical and critical thinking skills and your ability to synthesize concepts around topics. The paper should be in APA format, 2-3 pages (not including reference page), with at least two references. Electronic Marketplaces: An electronic marketplace is a virtual online market where organizations register as buyers or sellers to conduct business-to-business e-commerce over the internet. * Markets play a central role in the economy facilitating the exchange of information, goods, services and payments. * Markets create economic value for buyers, sellers, market intermediaries and society at large Functions of Electronic Market:- 1. Matching buyers and sellers. 2. Facilitating the exchange of information, goods, services, and payments associated with market transactions. 3. Providing an institutional infrastructure, such as a legal and regulatory framework, that enables the efficient functioning of the market. Types of Electronic Markets:- * Electronic storefront: A single or company Web site where products and services are sold. * Mechanisms necessary for conducting the sale: * electronic catalogs * search engine * e-auction facilities * payment gateway * shipment court * customer services * E-mall (online mall): An online shopping center where many stores are located * some are merely directories * Some...
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...different markets? ColgatePalmolive met this challenge in Asia with an ambitious overhaul of its regional supply chain and information systems. 70 Outlook 2000, Number 1 W hen it comes to toothpaste in China, Colgate is the market leader, according to a recent AC Nielsen Media International survey on China’s emerging consumer society. But in the shampoo category, a Colgate-Palmolive rival tops the list. Driving sales through brand-building and smart marketing is as necessary for fast-moving consumer products companies in China and the rest of Asia as it is in the mature markets of North America and Europe. But in Asia, with its fickle tastes, falling prices and unpredictable competitors, the pressure to keep ahead of the pack—and make a proper return—is relentless. The trick is to control tightly what can be controlled. The one area a consumer products company can be firmly in charge of is its own internal business processes. Eliminating waste and wringing out costs can have a dramatic effect, especially with the likes of shampoo, toothpaste and soap, where volumes are large but margins are tight. In the past two years ColgatePalmolive has rolled out an ambitious program to do just that in the Asia Pacific region. The company’s entire supply chain was reengineered and new back-office systems were put in place with stunning speed—all the more remarkable considering that the undertaking involved 57 sites across 11 different markets, including...
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...marketing strategy be simultaneously standardized and adapted to export markets. Moreover, it reveals that this strategy is more appropriate than the contingency approach, considering the case of a firm with very little expression in the global marketplace. A single case-study based on the export venture of Renova Black toilet paper was developed. In addition to the analysis of secondary data, interviews were conducted with 3 Renova managers, 3 trade customers and 10 consumers. Findings suggest that an international marketing strategy simultaneously standardized and adapted to new export markets forms a good fit with the existence of limited resources, light structure and centralized decision making possible due to firms’ reduced size. This study presents important insights for managers of small players in the global marketplace attempting to boost the internationalization process. It also broadens our understanding on the standardization versus adaptation debate using a fresh perspective. Keywords: International Marketing Strategy, Exports, Standardization, Adaptation. 1. Introduction The concept of Blue Ocean Strategy (Kim and Mauborgne, 2005) refers to value innovation as the solution for creating new market space through the simultaneous pursuit of differentiation and low cost strategies. However, a Blue Ocean Strategy implies assuming high risks as the size of the new market demand cannot be predicted (Lages, 2012). In order to mitigate this risk...
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...What is the Market INTRODUCTION: We will talk about the market in general way, so we will define the meaning of the market and its structure. The term market refers to the group of consumers or organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product. The market definition begins with the total population and progressively narrows. So now we will describe the following terms: 1. Market definition. 2. Structure of the market. 3. Perfect competition 4. Imperfect competition. MARKET DEFINITION: When we go to define the term o market we can say that it is the convergence of views between the seller and buyer, and divided the market into three big markets: the commercial market, market default and markets in the world economy, which is itself subdivided into markets other, and in terms of destination and economic concept, I mean any groups of people bound together by nothing specific commodity and any place characterized by the swap on a commercial scale. The market divides into different categories according to the purposes for which they performed , in terms of continuity may be permanent as a market securities, or temporary as markets villages and exhibitions , and in terms of breadth may be local as markets cities, or universal as a market of sugar, and in terms of the types of goods traded divided markets divisions of various for...
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...HAIER, TAKING A CHINESE COMPANY GLOBAL 1. SUMMARY Haier (“the Company”) was China’s biggest white-goods producer and supplier in 1990s. In 1984, there was nearly 300 local producers in China market, most of which were producing poor quality goods. However, customers were willing to pay more for higher-quality products and reliable service. This need created an advantage for differentiation. In Chinese market, demand was high. Haier being able to read customer need properly, focused on Product Quality, After-Sale Services and Brand Building. While there was oversupply in the market, with product differentiation Haier was able to raise its prices. Their target was to be a first-class brand. In early 1990s, while the demand was exceeding the supply, they decided to set up a large scale production. In 1991, they focused on Diversification on product range. They acquired an AC and a Freezer company, which were performing poor and turned around these companies into profitability quite soon with the right restructuring and strategy. There was a government pressure on Haier to take over poor performing firms ( i.e. in 1993, acquisition of Red Star). In 1992 the Company needed additional capital to invest in land and construction, but did not get subsidied due to government restrictions.As an alternative solution the Company undertook an IPO and went public with its 43.7% refrigerators division on Shangai Stock ExChange in 1993. In 1997, the Company added TV and telecommunication...
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