The Impact on Businesses throughout the World if the European Union Were to Partially Disintegrate - Coursework Example

?Discuss the Impact on Businesses throughout the World If the European Union Were To Partially Disintegrate Table of Contents Introduction 3 A Reporton the European Union 3 Future Prospects of the European Union 5 Implications of the Partial Disintegration 6 Activities Relating to Exports and Imports 7 Foreign Direct Investment (FDIs) 7 Enterprise Development 7 Increased Focus on Competiveness 8 The Service Sector 8 Small and Medium Enterprises (SMEs) 9 Conclusion 9 References 10 Introduction A business is defined as an association or enterprising unit that is engaged in professional, industrial or commercial activities. A business operates for a profit entity which mainly comprises of publicly operated corporations, or even non-profit associations that are engaged in dissimilar types of business activities which may comprise of agricultural cooperative (Maisto, 2011). In relation to the aspect of business, this essay will comprise of variable amount of information pertaining to the broad impact that will be created throughout the world if the European Union were to partially disintegrate with the member states such as Greece, Spain and the UK over the coming years. Thus, the main themes of the study will primarily focus upon this broad factor. Additionally, the main parameter that will be addressed in this particular essay will broadly reflect upon the possible amount of impacts that can prove to provide certain advantages or disadvantages in the near future to global business. A Report on the European Union For centuries, Britain has been able to develop itself in an economic manner by way of being an outward looking and an open country. In today’s scenario, the economy holds a high level of worldwide integration. Great Britain is considered to collect annual revenue of US$386,463 million which puts the country in a very dominant position (Cable News Network, 2013). The UK is considered to be the world's fifth major exporter of services and goods and the country is able to attract considerable amount of foreign direct investment as compared to any other European nation. Besides, it has been studied that the European Union (EU) is one of the largest exporters, investor and importers in the world. It has also been realized that there are lots of broad prospects of exports in the years to come. The member states of the EU strongly believe in the concept of absorption of capital and its proper utilization in order to maximize return on investment (Guardian News and Media Limited, 2013). This aspect can only be made possible when a nation becomes fully engaged in different types of business activities. The EU member states are very well versed with the business concepts and are able to perform the broad functions of the business at large. The EU member states are also very much divergent in performing the broad business activities with other foreign countries. The countries in this broad region seem to inculcate its broad business activities in the most operational sectors such as agriculture, media and audio-visual, automotive industry, business related services, biotechnology, communication and chemicals to name a few. In addition, the EU comprises of various other broad businesses that result in increased amount of business activities (European Small Business Portal, n.d.). The EU has been able to achieve all round sustainability in the overall context of business along with development to a very large extent. For the purpose of fulfilment of the business objectives, it has also been able to provide various business opportunities to numerous countries. Greece, Spain and the UK are some of the few countries which have been benefitted by integrating their economy with other EU member states. These countries have been benefitted as they were provided with ample amount of opportunities to expand as an ideal nation in terms of business. Large volume of exports along with imports has been able to provide classified measures in order to develop itself as a strong business destination. In addition, the EU has been able to develop outmost amount of competitiveness in the world market. This aspect actually helped the EU in creating an ideal image and made itself as one of the most booming business locations in the world (Preece, 1998; Davies, 1996). Also, the European Free Trade Association (EFTA) has been able to deliver a great helping hand encouragement of free trade along with economic integration for overall business benefits (EFTA, 2013). Future Prospects of the European Union As already mentioned in the above sections, the EU has been able to create distinctive level of competitive advantage in relation to business. As an ideal business grounds, most of the member states such as the Great Britain has been able to create its strong presence in the global business arena. This aspect was made possible by way of providing various business solutions to the world. The EU mainly utilized the concepts of FDIs along with increased amount of imports and the exports of different segments of services and products in and around the region. All these activities allowed great amount of business growth and proper channelization of activities which were directly or indirectly related to business. An in-depth analysis provided in citing a clear cut picture of the specific future business prospects in the particular region. It has been determined that the EU member states wanted to expand their broad business activities by way of increasing its business with new foreign countries. This way it could fetch large amount of business results which would provide great aid to the member states in the creation of even a more diverse business ground. In addition, it has also been analysed long term planning pertaining to the development of EU’s climate and energy policy are being made. These measures are going to be adopted for the purpose of making level of competition even more competitive in terms of industrial growth and business development while addressing the broad challenges associated with security and climate (BUSINESSEUROP, 2013; Allister, 1982). Thus, after analysis of all these broad aspects, it can be assumed that the EU will be able to create all round diversity in terms of business growth and sustainability. However, for the fulfilment of this particular aspect, valuable contribution from other countries will also be required at all levels. If the European Union is not able to fully integrate with the member states such as Greece, Spain and the UK then certain hurdles in relation to the fulfilment of the business objectives will come into play. Implications of the Partial Disintegration In relation to the concerned topic, it can be very well ascertained that if the European Union were to partly disintegrate with the member states such as Greece, Spain and the UK, then there are large amount of negative impacts that the entire world will have to face in the coming years. This statement can be provided with the maximum amount of weightage as with such withdrawal, the global economy will have to face with huge amount of economic challenges. It can be stated that the effects of the withdrawal on the other EU member states will be even more challenging. This particular impact may also lead to giving rise to situation in which the global economy may face variable amount of problems associated with the disintegration of the business activities at large. In addition, these types of situations may possibly give rise to situations pertaining to the factors associated with demotion of business activities to a great extent. All these aspects combined may very well prove to create activities pertaining to downsizing of all the broad activities related to business that can create broad implications on the worldwide market. The implications of partial disintegration of the EU have been discussed below: Activities Relating to Exports and Imports Most of the world’s business depends upon the factors associated with importing and exporting of products and services. If the EU disintegrates with the above mentioned member states then it will probably lead to variable amount of drastic situations. As it will partially put an end to the scale of business activities and it will negatively impact all those countries which are associated with exports and import with these countries. Furthermore, the EU provisions governing import and export of goods and services will be no more valid and the each country disintegrated from the EU will have its own legislation (Chary, 1992). Foreign Direct Investment (FDIs) Scenarios pertaining to partial disintegration of the EU may also give rise to greater economic implication on the flow of investment. The aspects of FDIs may also face demotion that will eventually lead to non-fulfilment of the business requirements and will present all those negative implications for business growth. Separation from the EU will possibly lead to major consequences in the form of diminishing flow of investment to and from the countries disintegrating from the EU and its effects will likely to create negative reflection and alteration of the worldwide market (Liebscher, 2007). Enterprise Development This aspect may also lead to discontinuation of the enterprise building. These instances will also lead to non-fulfilment of the business objectives at large. Fulfilment of the business activities holds the primary importance for the purpose of achieving sustainability and prosperity in a nation. If this aspect is not determined then it will possibly not lead to favourable amount of outcome. Therefore, these aspects are needed to delivered due consideration for the purpose of attaining the broad business objectives (Mohring, 2005). Increased Focus on Competiveness The partial disintegration may also lead to non-fulfilment of one of the primary factors of business growth i.e. competitiveness. The disintegration may possibly restrict the EU to innovate in terms of products and this will hamper the overall pricing strategy of the products and services across the world. If the countries such as Greece among other withdraw from the EU membership then it will lessen the scopes relating of other countries of the world engaged in the trade with Greece. Thus, all these factors are needed to delivered due importance otherwise the EU may end up deteriorating its overall economic performance that will definitely give birth to further implications in the later years (Walther, 2005). The Service Sector Furthermore, the partial disintegration will probably give rise to lessening of the broad factors associated with the service sector. As it is known that service sector is one of the most booming sectors in the overall context of a world. Also, this particular sector has been able to create a landmark across the different regions of the world. Therefore, the partial disintegration may limit the ability of the EU to further enhance the scope of this sector. At the same time, if disintegration takes place then it is certain that many opportunities pertaining to creation of broadening of the service sector will get minimized and this will lead to huge amount of future implications not only in the European continent but globally (Kaelble, 1990). Small and Medium Enterprises (SMEs) The EU member states is said to constitute a total of 23 million small and medium-sized enterprises (SMEs) of the entire European economy. It has also been studied that most of the 99% of enterprises in the European economy are located in the EU member states. These aspects put the region in a very dominant position in the overall world market. It is a fact that over the years the EU has been able to support its business activities by way of making collaborations and business ties ups with other nations. However, if disintegration takes place then it will directly impact the entire European economy and so the other nations of the world (Academia, 2013). Conclusion From the overall analysis, it has been observed that the EU is one of the best performers of business on a global scale. It has been able to serve multiple business purposes by way of segregating and channelizing the business domain and by performing numerous business activities. It has also been learned that the business in the EU is being performed by way of serving through different business segments. . The purpose of this paper was to determine the impact on businesses throughout the world if the European Union were to partially disintegrate. Correspondingly, the analysis of the impact revealed that the partial disintegration will have radical impact on the global business environment. However, it has been ascertained that the entire European economy including other EU member states will have to face with significant economic challenges and misbalances. Likewise, it has been observed that different countries across world having close integration with the European economy will also have to face with certain challenges. References Academia, 2013. Introduction. Background of the study. [Online] Available at: http://www.academia.edu/3301887/Factors_influencing_performance_of_micro_and_small_enterprises_a_case_of_Kisumu_City_Bus_Park-Kenya [Accessed November 07, 2013]. Allister, I. M., 1982. Regional Development and the European Community: A Canadian Perspective. IRPP. BUSINESSEUROP, 2013. Themes. A competitive EU energy and climate policy. [Online] Available at: http://www.businesseurope.eu/Content/Default.asp? 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