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European Union - Term Paper Example

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1. International business law falls under the ambit of public international law. Basically, “public international aw governs the relations between states. It comprises a body of rules and principles which seek to regulate relations between states,” (Dugard, 1994, p.2)…
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European Union
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Download file to see previous pages This paper will also outline various aspects that shape business among EU member states such as the law as well as other constraints that may exist. Having realised the destructive effects and killings caused by WW2, Europe is split into East and West. “West European nations create the Council of Europe in 1949. It is a first step towards cooperation between them, but six countries want to go further” European Union, 2013). Essentially, the main reason of cooperation among the European countries was to promote peace and economic activity among member states. The member states agreed that they will run their heavy industries involving coal and iron under common management and that the member states of the organization would not turn against each other. Initially, the Council of Europe was comprised of six founding countries namely: Germany, France, Italy, the Netherlands, Belgium and Luxembourg. After realising the success of the Coal Treaty, the member states expanded cooperation to include other sectors of the economy. Ideally, the aim was to create a situation where people, goods as well as services could freely move across borders. As time moved, more countries joined the EU and more laws and policies were formulated to strengthen the ties among the member states. The single market was established in the early 2000s and it sought to establish four freedoms: the free movement of goods, services, people and money (EU, 2013). In 2004 the 25 EU countries sign a Treaty establishing a European Constitution. According to the EU website, this decision was meant to democratise the decision-making and management in an EU. A single currency, the Euro is then introduced and meant for commercial and financial transactions only among the member states. This liberalised trade among all member states such that they no longer face any trade barriers when they want to engage in trade with other member states. The main advantaged of free trade is that the member states can immensely benefit since they would not be subject to harsh operational conditions such as high tariffs when trade is taking place between non-member states. The EU has also been designed in such a way that it attracts investment in different member countries. There are high chances of economic growth and development when investment tales place in different countries. Jobs are created and more revenue will be generated from such programs. The EU also plays a pivotal role in assisting developing countries so that they can also develop their economies. This bloc also promotes trade with the developing countries where it also benefits from the raw materials that are not found in this area. The EU has created equality among all member states where it can be observed that they can engage in fair trade. Fair trade practices among the member states are intended to stimulate economic growth as well as to improve the welfare of the citizens in the member states. In as far as the rules that guide the operations of the EU are concerned, it can be seen that an agreement is reached before they are adopted as laws. The EU also set trade practices and standards among all members and these ought to be followed by all nations involved. 2. The EU ...Download file to see next pagesRead More
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