...a. Briefly, what advantages and disadvantages does a country experience upon joining a regional economic alliance as in the European Union? Regional Economic union: its economic agreement between countries to facilitate the movement of money (capital), products, worker and all services, this union should have the same monetary and social policies European Union: It’s economic, borders and political union between the Europe countries (twenty seven countries) that have the same policy in all the areas Advantages joining regional economic alliance: 1. Increased economic integration Economic integration: is unification the policies between regional or no regional countries by cancel some trading restriction between the union countries ,...
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...Expansion American Intercontinental University Table of Contents 3 - Executive Summary 5 – Abstract 6 – Introduction 6 - Foreign Company Acquisition 7 - Advantages of joining the EU 8 - Disadvantages 9 - Multinational Corporations 9 - Financial Institutions and Credit 10 - Final choice and rationale 10 – Conclusion 12 - References Executive Summary As international markets are expanding and new opportunities are opening up abroad for businesses to grow within the international landscape, it is imperative that prospective companies gather a full working knowledge of how multinational corporations function and ways in which joining the European Union can provide an advantage or disadvantage to further operations. This is especially true for businesses such as small chain restaurants within the service industry. The accessibility of the international market for small businesses is rather limited in that it is normally more beneficial to remain localized within their own country or region. However, research should always be conducted when determining the feasibility of expansion into the international marketplace. Joining the European Union holds a great deal of opportunities that would prove to be beneficial to a business should they join. One of the major benefits in obtaining acceptance into the union would be the ability to freely operate within a large number of countries that currently use the same type of financial policies and monetary practices. Foreign...
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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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...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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...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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...INTERNATIONAL TRADE THEORY Four Theories of International Trade are: Absolute Advantage Product Life-cycle Theory New Trade Theory Porter’s determinants of National Competitive Advantage MERCANTILIST THEORY States that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports. Aim is to maximize exports and minimize imports. Rest on the idea that if one country gained, then another must lose. MERCANTILIST THEORY Problems : This theory excludes the fact that in some cases it is good to import. By discouraging import the population will have to do without certain consumer items. ABSOLUTE ADVANTAGE This concept is generally attributed to Adam Smith . Refers to the ability of a country/firm to produce greater output of a good or service than other countries/firms using the same amount of resources. Smith argued that a country should specialize in producing those goods/services for which it has an absolute advantage. Countries would benefit/gain if they export only those good/services in which they have an absolute advantage and import those in which other countries have an absolute advantage. ABSOLUTE ADVANTAGE Example ABSOLUTE ADVANTAGE Example ABSOLUTE ADVANTAGE The potential problems with Absolute Advantage lies in the following question: If there is one country that does not have an absolute advantage in the...
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...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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...The Fifth Enlargement To begin the European Union is the economic union of European countries in order to facilitate freer trade and movement of capital, goods, services, and human labor across the continent of Europe. Currently, the European Union consists of 27 countries and works/governs itself to form a single working European market. The quote “The Fifth Enlargement of the EU is now complete” the ascension of the last two (Bulgaria and Romania) of the 12 total countries of the Fifth Wave of admittance into the European Union. Firstly enlargement of the European Union diffidently has its benefits. In theory the enlargement of the European Union opens up the Union to new and profitable markets in which they can buy, sell and trade more freely. We see therefore, the benefits to the enlargement of the European Union are very similar to some of the benefits of globalization in the whole. Like-wise concerns with the EU expansion can also be seen as concerns over globalization on the whole. For example the opening of emerging markets allows for product to be produced cheaper abroad then domestically. For the more prosperous EU members this could mean the outsourcing of domestic jobs to EU members with cheaper wages and input costs. Some of the more intrinsically unique concerns regarding the EU expansion come via the form of free travel within EU borders. In the terms of the travel an EU citizen is able to go from country to country freely as they please...
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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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...European Business Issues | | | | Analysing the Competitive Strengths and Weaknesses of Germany with the TOWS Matrix Analysing the Competitive Strengths and Weaknesses of Germany with the TOWS Matrix Author: Student Name: Student No: Tutor: Adrian Pryce * Contents 1. Introduction 2 2. Porter's Determinants of National Advantage 2 3. Gaining Competitive Advantage with the TOWS Matrix Conceptual Model 3 4. Germany's Internal Weaknesses 4 5. Germany's Internal Strengths, Social Factors 5 6. Germany's Internal Strengths, Political and Economic factors 6 7. Threats from European Union Countries, North America and Asia 7 8. Opportunities within the European Union, North America, and Asia 9 9. Government Policy and Business Strategy 10 10. Conclusion 12 11. References 13 1. Introduction All nations are attentive to compete efficiently in the international market. Competitiveness doesn't depend simply on the value of individual firms, but also on the socioeconomic system and the industries of a nation. The rapidly changeable situations of the free world markets transcribe that nations fully utilize their comparative advantages to become or remain thriving in the future (Farr, 1990). Economic and political leaders must estimate the opportunities and threats from the foreign environments so as to put up convenient domestic strategies that shore up the weaknesses of their nations and take advantages of...
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...private. Private companies may issue stock and have shareholders. Public Company: Public Company may be defined as, A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market. Government Company: Government Company may be defined by, it is a legal entity created by a government to start money-making activities on behalf of a proprietor government. Voluntary Organization: Voluntary organizations may be defined as, organizations are non-profit ambitious, self-directed and non-statutory, that are run by persons who accomplish not obtain salaried. Its main plan is to bring social advantage. Cooperative Organization: A cooperative organization is owned by and operated for the advantage of those persons using its services. Cooperative organization also known as user-owners. Charitable Organizations: A charitable organization is a type of non-profit organization (NPO). Sector’s of Business...
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...Turkey has long sought to join the European Union, and it appears that there is some hope for optimism. what would be the advantages to the EU for admitting Turkey to membership? What might be the EU's concerns? What would be the advantages and disadvantages for Turkey of becoming a member nation of the EU, both for Turkey and for the European Union? Negotiations for the accession of Turkey into the European Union began in 2005, but it could be years before Turkey is accepted. Issues that jeopardize the progress of negotiations include their poor relationship with the nations of Cyprus and Croatia, as well their domestic relationship with the Kurdish people and their unfavorable history of human rights issues. Despite these issues, one of the greatest advantages and hopes of the EU is that by bringing Turkey, a country whose vast majority is Muslim, into the EU it would help to improve Western and Islamic relationships. Turkey’s geographic positioning is also viewed as being a strategic location in that it could be a gateway to the Middle East and Asia for the EU, and could help the EU in many of their challenges of fighting terrorism, international crime, as well as monitoring climate change. (Pan, 2005) A concern and potential disadvantage to the EU, however, is that it would cause a wave of immigration of poor members from Turkey to the rest of the union nations. While being accepted into the EU would give Turkey the opportunity to benefit from growth and the...
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..."As exemplified by The European Union (EU), regional economic integration is replete with political, economic, and cultural danger. Discuss through the use of valid, real-life examples." It seems to be a constant discussion in writing of the issues of regional economic integration. For many years, globalization has brought us countless benefits to the world, and built up a greater reliance on other countries for goods and services. This comes up with a closer international cooperation to certify that regional integration is ever more comprehensive and contributes for the value of all. The term ‘Regional economic integration’, “refers to agreements between countries in a geographic region to reduce, and eventually remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other" (Hill, 2013). It is inspired by a desire to exploit the advantages from investment and free trade in order to reduce the tensions that can lead to international conflict. However, often the rhetoric does not match the reality. Economic integration, even provides some benefits for member, is facing a litany of political, economic, and cultural danger during the process of development. Thus, regional economic integration can be harmful for the member country owing to their disruptive influence. Here in this essay, we will mainly focus on evaluating the threats to regional economic integration and compare and contrast the positive impacts of economic...
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...Economic 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...
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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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