European Business Essay Example | Topics and Well Written Essays - 1000 words

European Business - Essay Example also contains all the required components to get share from this huge market. It can also expand outside the EU. The major benefit of single market is reduction in border costs. They are similar to import tariffs, because they also raise the price of exports in the foreign market. A decrease in border costs has a great and positive effect on integrating regions as a tariff reduction. It helps in trade creation and trade diversion and changes in the terms of trade. It also affects the incentives to invest. Reduction in border costs produces a strong competition on the home market and a better competitive position on the foreign market. It also increase the cost of production for exports and their reduction simultaneously improves home country firms position on foreign markets and exposes them to more intense competition at home. These are some general benefits that can facilitate any business looking to expand in the EU market. But for doing specific planning it would be appropriate to undertake a general quantitative analysis of the social-economic functioning of the market, carry out a quantitative survey, undertake a qualitative analysis of the strengths and weaknesses of the market. These three steps will help in formulating strategy to specific areas of the business. For doing this analysis it is appropriate to have a detailed data on following aspects. Once the reliable data i... 6. Prices can be easily compared because of Euro. 7. Reduction in non tariff barriers 8. Adoption of the Common External Tariff 9. No threat of fluctuating exchange rates thanks to Euro. These are some general benefits that can facilitate any business looking to expand in the EU market. But for doing specific planning it would be appropriate to undertake a general quantitative analysis of the social-economic functioning of the market, carry out a quantitative survey, undertake a qualitative analysis of the strengths and weaknesses of the market. These three steps will help in formulating strategy to specific areas of the business. For doing this analysis it is appropriate to have a detailed data on following aspects. The socio-economic role of the market in the EU context. Balance and healthy competition between the market competitors. The market role in promoting local production. Possible internal and external partners in accomplishing this strategy. Once the reliable data is available about above said areas. It would be easy for planners to formulate strategy for the expansion of Company in EU single market and beyond. Besides the benefits of single market there may be some threats or hurdles that may cause problems. It is important to consider these threats before implementing the expansion strategy. These hurdles may be: Lack of knowledge about the demands of market Lack of coordination between the trading parties Cultural or traditional differences Purchasing power and price factor of different market within EU or outside EU After going through all these preliminaries reliable information can be gathered. This data will be greatly helpful in adopting a correct course of action. Once the planning and data collection phase is completed. It is time for taking