Global Expansion: EU Harmonization for Business Growth - Essay Sample

Introduction

The European Union is a distinct partnership, where member states are in harmony with a variety of political and economic issues and have some extent of sovereignty in particular policy areas (Dur, Bernhagen & Marshall, 2015). With business boundaries expanding every day, it has become essential for companies to seek expansion outside their homeland. Companies can take advantage of global distribution through international development, a capability that can aid in the expansion of market share (Dur, Bernhagen & Marshall, 2015). This essay focuses on looking into ways in which companies gain international development and argues that acquiring a company within the European Union is better than outside the European Union. Also, the essay addresses the pros and cons of running a company inside and outside of the European Union by looking into the impacts of the EU culture and technology, Brexit, laws, and regulations.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

I Would Seek to Acquire a Company Within the European Union

Yes, I would seek to acquire a company within the European market due to the European single market, which is the largest international market in the globe. The European Single Market has ensured that there is an excellent competition in various services, an aspect that is essential in all businesses and consumers. It has led to the removal of trade barriers and reduction of business costs (Dur et al., 2015). Also, the European single market has ensured greater efficiency in business and elimination of cartels and monopolies, which are anti-competitive practices. By establishing a company within the European Union, t will be easier to trade with other countries due to the reduction of paperwork, since the European Union has ensured specific reforms and measures for trade. Trade done within the European Union has better technology and safety standards that are provided through harmonizing rules. In the European Union, traders use a single currency, and member states are allowed to move freely between countries.

By acquiring a company within the European Union, there will be the assurance of business success; this is because the European Union has implemented various measures that assist medium and small enterprises in Europe, and these enterprises are intended to assist in setting up and continuing success on small and medium enterprises. To aid the European single market, the EU has ensured the introduction of measures that harmonize company laws across Europe, which has helped in ensuring that there is more accessible funding, there is a much clear and valid legislation, and there is protection for shareholders, employees, and creditors (Dur et al., 2015). Also, the EU has ensured a reduction in the administrative burden on businesses.

Advantages of Acquiring a Company Within the European Union Cultural

The EU aims to preserve the shared cultural heritage of supporting and promoting the creative industries in Europe and is dedicated to an accessible and vibrant culture that is accessible to everyone (Gorg, 2000)... The cultural policies in the Eu include; external and regional development relations, social policy, and research.

The European Union has many small nations that join together for a particular purpose, hence exerting a lot of influence on global and local economics (Olsen & McCormick, 2018). Due to large economic blocks, there is the creation of better export and import opportunities, free trade chances, and better pricing on goods.

The EU aids arts and creative industries to create growth and jobs through Creative Europe (Gorg, 2000). It also promotes policy collaboration on cultures with international organizations.

Technology

The EU has new Information Communication Technology standardizations policies that allow Europe to respond to the changing societal, market, and system requirements (Gorg, 2000). Standardization and Intellectual Property Rights have ensured that the EU encourages innovation and facilitate technological dissemination.

It is easier to travel within borders with the nations in the EU working together and due to improved technology (Olsen & McCormick, 2018). There area customs entry points, fewer checkpoints, and all the verification stops needed when moving from one nation to the next, allowing free travel within the continent for anyone that applies for the appropriate identification.

Laws

Based on the benefits of being a member of the EU, members have grown to a modern nation, with specific criteria for membership, including having the particular rule of law, following a market economy, and making commitments to human rights (Olsen & McCormick, 2018). Based on these, there is the prevention of discrimination and provision of due processes across the countries, and encouragement of socioeconomic growth.

Regulations

Through NATO, European nations have a form of mutual security, through belonging to the United Nations (Olsen & McCormick, 2018). The EU offers protection at the third level that allows for local intelligence facilities to have accessibility to advanced information sharing military resources, which keep the masses safer.

Brexit

Inside the European Union, a Brexit will be advantageous in terms of accessing more staff, for instance, it will be easier for the EU to recruit highly qualified engineers to form non-EU nations (Dhingra & Sampson, 2016).

Disadvantages of Acquiring a Company Within the European Union

Technology

The company might not be able to keep up with technology used by the European Union, especially online trading, since the European Union advocates for the use of private information that may lead to thefts and insecurities.

Laws

Due to fewer border restrictions within member states, there are more opportunities for notorious deals, including; terrorism and attacks. For instance, in 2015, at least 130 individuals were killed in the Paris attack (Olsen & McCormick, 2018). Open borders create a lot of trouble.

Brexit

There could be burdens related to cross border costs, with British businesses exporting to the EU subjected to new tariffs and companies that do not export suffering if enterprises on the continent are subject to new import taxes; which will discourage them from investing in the UK (Dhingra & Sampson, 2016).

The current Brexit votes that entail the United Kingdom leaving the EU is a shred of evidence that by creating an overseeing government, the division is not healed (Dhingra & Sampson, 2016). The EU continues to prove that from an economic position, it can offer significant benefits. However, still, there is a sense of nationalism that provides a foundation of what was established in 1993 (Olsen & McCormick, 2018). Brexit continues to prove that the presence of harmony is for outward appearance only.

Regulations

With the current political structure in Europe, currency support is needed for political stability. In 2017, Italy faced a banking crisis that involved billions of doubtful loans (Olsen & McCormick, 2018). Greece also experienced a banking crisis towards a currency that was insolvent for Europe's current structure, an aspect that might also affect Italy. There is a significant decline in exports in Germany and a lack of security, making it harder for trade choices to be made.

There is a lack of transparency in elections done in the European Commission. The European Commission has the power to gain a lot of influence, but a typical member can hardly reject whoever represents them or to the quality of representation. Every nation is needed to adhere to the EU laws and to remain in the union, making member nations to have difficulties having individual control.

Culture

Operating business within the European Union is costly, as member states have to provide billions of money in support of the EU every year. In addition to other commitments like contributing to NATO.

Advantages of Acquiring a Company Outside of the European Union Technology

An enterprise that exports products from non-EU countries obtain a better quality of imported products, value chain, and networks that have reliable partners, better technology, and intellectual properties, creating a better competitive advantage. By having an enterprise outside of the EU, there is cost-effectiveness in terms of other costs other than labor costs, location of the enterprise, transportation infrastructure, and logistics.

Culture

There are various forms of business operations outside the European Union, including; exportation of individual products, subcontracting to partners and service development, and co-operative product. Also, an enterprise can engage in; subsidiaries and importation of products and services (Olsen & McCormick, 2018). There are various competitive advantages in these business operations, including; a company can use an excellent international image again on their enterprise, a business can understand the needs of their clients in specific international segments, and an enterprise can acquire better technology than that of its competitors. Also, a company obtains and hires competent and motivated staff, and is flexible in terms of adaptation to new opportunities in business. A company outside the EU is creative and innovative in the development of products and has lower labor costs than its competitors in the EU.

Brexit

Through Brexit, there are potential opportunities in more vibrant markets (Dhingra & Sampson, 2016). For instance, Brexit could liberate the United Kingdom authority to signing fresh deals with various markets outside of the European Union

Laws

The company might not have to adhere to the stringent rules by the European Union, including the strict limits on how much customers can borrow to increase their financial market bets through utilizing contracts for different products (Olsen & McCormick, 2018). One significant concern is that of investor protection concerning products, given that they are involved, have excessive leverage, and lack transparency.

Regulations

The company will not be affected by data privacy rules which the EU is planning to implement on traders in the United States. The EU plans to utilize personal information and to play in policing on major organizations and companies, online (Olsen & McCormick, 2018). The US, despite ceding regulatory powers to the EU, has not taken any similar approach to the management of privacy and regulation. A company that makes their personal information easily identifiable is vulnerable to thieves and hackers.

Disadvantages of Acquiring a Company Outside the European Union

Technology

A company misses out on filling the gaps in emerging markets like Eastern Europe, which can be filled with products and services in the United States. By conducting business within the EU, an American enterprise can offer the best e-commerce services.

A company misses out on the technology in Europe that gets more exciting. For instance, the Global Innovation Index indicates at least eight of the world's top ten most innovative economies in Europe, and a company in America can easily tap into Europe's opportunities.

Brexit

Brexit has had impacts on the economy through slowing it down and making some businesses move its headquarters to the EU (Dhingra & Sampson, 2016). The company might experience disadvantages on jobs, trades, and growth, with trade and travel being complicated under a no-deal Brexit.

Laws

If tariff barriers are raised inside the European Union, jobs, businesses, and trade done outside the European Union might be easily threatened (Olsen & McCormick, 2018).

Regulations

The company will be unable to enjoy the bilateral trade relations that the United States and the European Union have, and their...