Advantages of the UK Membership in the EU - Assignment Example

 European Business INTRODUCTION The United Kingdom’s business and legal policies have at times run against EU business and legal policies. Population size is related to the success or failure of a business. Area size can affect the sales of a company. The following paragraphs explain the intricacies of the UE economic conditions when mixed with UK economic conditions. BODY 1 “There is little persuasive evidence that membership of the EU has been beneficial to Britain over the past 30 years”. The statement “There is little persuasive evidence that membership of the EU has been beneficial to Britain over the past 30 years” is 100 percent false. The main purpose of formation of the European Union is to create a single market economy. In comparison, the each European Union member state which includes the United Kingdom is likened to each state which includes California. Also, the European Union is likened to the United States. The United Kingdom economy has increased as a result of the single European Dollar’ replacement of the different currencies of each state. Tony Blair took the lead in encouraging the ministers to accept a single European Union currency.(Grice, 1999). Major advantages of membership of the EU to the United Kingdom Economy. There are many advantages to joining the European Union, First, manufacturers and retailers will be able to increase their customer base. First, with the single European Union currency called the European Dollar, companies in the United Kingdom can now sell their products and services to other members of the European Union more easily. Since the single European dollar is used in more states in terms of land area than the United Kingdom sterling, the United Kingdom will be able to increase its sales by expanding its product lines and work into Germany, France, Netherlands and the like(Grice, 1999). Second, all European Member states are implementing strict privacy of communication laws unlike in the United States where data is generally freely given. EU privacy law translates to eliminating delicate employment questions like age, military service, religion and marital statues when applying for a new job(Robb, 2003). Disadvantages of membership of the EU to the UK economy. There are also disadvantages if the United Kingdom Joins the European Union. First, the customers inside the United Kingdom can now have wider choices of commodities to buy. The UK population can now buy products from Other European Union members states(Castle, 1999). Second, the cultural identities of each state will now be replaced by the European Union culture. The European Union has put up its own court of justice that issues legal opinions that are at times running opposite the normal cultures and traditions of each country. As a result, confusion has sipped into the peaceful lives of European Union citizens(Marqueritte, 2003) The UK economic activity affected directly by EU membership. There is a real conflict between the individual sentiments of each member of the European Union and the European Union as a whole. Competition between member states extends much wider to include monetary, fiscal and social dumping. In fact, the United Kingdom has been accused of trying to undermine the consensus agreed among the European Union member states. This conflict is because of the self-serving interest, and each member state’s economic nationalism(Dunning, 1997). The Institutions of the EU and discuss how they can benefit a UK organisation. The European Union institutions have benefited the United Kingdom organizations. Meaning, the European Commission, the Council of the European Union, the European Council, the European Central Bank, the European Court of Justice and the European Parliament have surely helped most UK citizens and residents in their working and living conditions. These institutions, according to the Europa website were influential in the abolition of passport requirements within the territories of its members states. 2 “Over recent years the EU has followed a process of enlargement, largely welcomed and supported by the UK government.” As many new countries have joined the EU, the UK has always welcomed the new members. UK looks at new members, especially low wage countries, as additional trading partners and also cheaper labor supply. What attraction the EU holds for applicant countries? There are two major attractions for EU applicant countries. First, possible job opportunities in any EU member state. Second, A bigger and richer EU territory to sell and buy goods(Heather, 2004). In short, business has now done a bigger playing field in terms of space and number of players. Identifying current potential new members and the factors that may impact on their membership application. The candidate members are Turkey, Croatia and Macedonia. Also, the potential candidate members are Bosnia and Herzegovina Serbia Montenegro(No author, 2006). The affects of continued enlargement on UK business generally, and, using an organisation of your choice. The continued enlargement of EU will be beneficial to the United Kingdom. The UK manufacturing organization with its output of clothes can hire labourers from low income EU countries. The UK Business organisations can sell their goods to more EU members. The specific impacts on that organisation. The specific impact on the manufacturing organisation will be increased sales. This is helped by the lower labour cost. Furthermore, more EU member states can buy the goods Finally, because of high quality of the materials used, the squatters. 3 A briefing to the Managing Director “Strategic Development of the EU Market”. (a)the potential of the EU markets for your organisation My briefing states that our organization will engage in the clothes business. The potential markets will be all EU members. In terms of land area and population, the company will generate huge profits. The potential in the EU market is very excellent because our clothes are made from the finest and expensive silk, cotton, leather and other popular materials and designs. (b) identification of the specific market opportunities that the organisation should enter The specific market opportunity of our clothing line business is to sell all our clothing product lines to all residents of the EU member states. The income potential is very realistic. c) Outline how you would go about entering and developing operations in these market Operations wise, I contact current clothing line stores and ask them to include our line on consignment basis as a start. When sales increases, the company will then rent an empty store space and set up its own shop. (d) produce an analysis of EU laws and Directives of significance to the organisation. EU laws are encourages new and current business to flourish, survive and increase in size. One such law is the EU chemical law. It prohibits the use of safer chemicals on the manufacture of clothes and cars(No author, 2006). 4 ISSUES IN THE EU - IMPLICATIONS FOR UK BUSINESS Based on for forecasted feasibility study, Our proposed merchandising of ready to wear clothes will be very successful. For one, we can hire low wage workers from the low income EU member states. Further, Income will increase by 10% annually since our market will be all the EU member states. Word of mouth and advertisements in the radio, television and the print media will rocket our sales in just two months operation. Key current issue within the EU. Its significance for UK business generally and specifically for the organisation chosen. Aside from the key issue above, the EU ministers are well bent to eradicate copyright and patent violations, especially on computer software, by endorsing the patent law. This will eliminate some scrupulous persons from imitating our clothing line brand and their using of substandard materials(No author, 2005). CONCLUSION: EU is composed of individual states in the European market Arena. When land area increases, the sales potential also increases. When population increases, then sales potential also increases. Based on the above data, doing business in the EU is a better alternative than doing business only in the UK. REFERENCES: Grice, G., Ministers are Told to take Pro-Euro Line, The Independent, London, Feb 12, 1999 Castle, S., Blair’s Pointless Euro – War, The Independent, London, Dec 5, 1999. Robb, D., Restricting Data Flow: The European Union’s Data Protection Directive Turns Employee Records into a “controlled substance” –HR Technology, HR Magazine, April, 2003 Marqueritte, J., Young Poles Face EU Membership: Poland’s Decision to Join the European Union has been a subject of hot debate in schools and universities- First Person, For a Change, Dec, 2003 Dunning, 1997, Governments, Globalization, and International Business, Oxford University Press, Oxford Europa.eu < http://ec.europa.eu/justice_home/fsj/freetravel/frontiers/fsj_freetravel_schengen_en.htm> Heather, K., EU Enlargement: Its effects on the market for labour, Teaching Business & Economics, 2004, No author, EU, Montenegro Complete negotiations on Pre-membership Deal to Bring Country Closer to Bloc, Associated Press, Dec, 2006. No author, Landmark EU Chemical Law Passed, BBC News, Dec 13, 2006 No author, EU Ministers endorse Patent Law, BBC News, March 7, 2005. Read More