Four Fundamental Freedoms Of The Eu Economics Essay

Four Fundamental vindicatedoms Of The Eu stintings EssayThe establishment of a star grocery is a key stage in the integration process of the European Community. The terms of the Single market place is the common market, which is the aim of the Treaty establishing the European Economic Community (1957). It should be graspd finished eliminating the barriers for the trade among the countries (duties and quotes) establishment of Customs nub removing the barriers to the free locomotement of sounds, usefulnesss, capital and persons sustaining of a system guaranteeing the conditions for free challenger and applying a common trade policy (in their relations with third countries) really good . The process of creation of a common market harmonize to the contract is defined for the head of 12 years, planned as a sequence of 3 stages, which consist of 4 years all(prenominal) root word ?.The Single Market is based on the four fundamental freedoms of the EU equalless battlefront of cheeseparings it requires establishment of Customs Union, including removing the duties among the EU states, adoption of a common customs tariff in their relations with third countries and removing duodecimal breakrictions between instalment States (quotes). In the beginning the duties argon fixed (it is banned to increase them) and it is planned to remove them step by step by 1970. The decrease by the end of first stage should be 25%, by the end of the second stage 50%. During the transition plosive speech sound the quantitative restrictions should be removed. Source ?Special attention is given to the unpolished products due to their high school sensitivity. The Treaty provides that the regulations of the common market are in addition valid for these products. However, a common agri heathen policy is applied for the festering of the sector. goodThe Free Movement of PersonsAfter the end of the transition period the Treaty provides the EU citizens to down the obliga tion to accept job proposals, to move freely on the territory of the EU and in this connection to mollify and live on the territory of a nonher Member State in consecrate to work in conformity with the theme legislation. The residential right is of crucial importance and it is related to the opportunity of EU citizens to found and manipulate own enterprises in other Member States downstairs the conditions of the local citizens. yesA common transport policy is applied in order to achieve the free front end of persons and goods. This will guarantee common regulations and administrative procedures that will perform easier the transport connections between the Member States.The Free Movement of workDuring the transition period the Member States should remove the obstacles for offering services in the industrial or trade sector, craft industry, as comfortably as the free professions. More precisely, by the end of first stage the actual obstacles should be identified and a plan for removing restrictions should be accepted. For each service category this plan should define concrete steps for liberalization. Sources?The Free Movement of CapitalIt is related to the removal of all obstacles to payments and transfers of capital by residents of a Member State during the transitional period. yesHowever, the achievement of the aims of the Single Market is genuinely difficult. Despite the removal of tariff restrictions on trade (duties and quotas), the experience shows that in rough cases, markets are completely closed or partially control freedom of movement. This is the primary(prenominal) cause for some of import cases in the hail of Justice (now the European Court of Justice), related to the restriction of the free movement of goods. The case under the name of The Cassis de Dijon became significant manikin (Atkinson and Oleson, 1994 984).very considerably. It is raised by Rewe Zentral AG against the Federal Office of West Germ whatever in the monopoly of alcohol drinks that deflect the import of French liqueur, since it does not fit into any existing categories of alcohol used in the country and hence the in king to have an steal excise. The decision of the Court (case court -120/78) is that the refusal to license is a measure having analogous essence to quantitative restrictions. in truth well The case sets a case law for the principle of mutual recognition of the conditions for access to the inherent market of the Member States. unspoilt There are other obstacles to the single market, such as bothers with revenuees and charges having similar effect to customs duties. The free movement of workers is also difficult. For example, the nation of Belgium was forced to reconsider the requirement to have Belgian citizenship in order to occupy certain positions (C-149/79). Yes good exampleThe integration process in the second half of the 70s and mid 80s of the 20th century is generally radiate. The main(prenominal) prob lems for the functioning of the Single Market are non-tariff in nature, stemming from differences in national legislation (Atkinson and Oleson, 1994 984). In 1985 the relegating provided the EU Council with the White Paper end the Internal Market. The document recommends the elimination of physical barriers (border control at intra collection borders) the removal of technical barriers (requiring substantial harmonization, including industry standards, document exchange), as well as removal of fiscal barriers (taxes and governmental science fees, which have the effect of duty, verifying taxes in particular VAT). All this requires considerable coordination and implementation of common policies in the field of police cooperation (due to the increased endangerment and free movement of criminals, terrorists, and so forth) entering of common rules regarding state aid and competition, cosmos procurement and more. Very well The report sets a new stage of enhanced removal of techni cal, legitimate and other obstacles. A number of directives and regulations have been adopted the most authorised one is the signing and entry into force of the Treaty on European Union (1992) and functional creation of Single Market. The process continues after(prenominal) that and becomes the radical for the eastward enlargement after move behind the fear of socialism. Good According to the Eur-Lex current regulations in the field of Internal market regarding harmonization of legislation are 1053, and in the field of Internal market policy related to enterprises 48. Source?Despite these achievements, nowadays the Single Market continues to manifestation some obstacles and problems (non tariff barriers), that are intensified in the conditions of a crisis. A new dodging for the Single Market (Monti, 2010) is published in 2010 in order to get well the new challenges (especially the growing nationalism and weak political bodily process for alter the Single Market in term s of continuing crisis) in 2010 published report A new system for the Single Market (Monti, 2010). The report concludes that in many areas the Single Market is not yet sufficiently develop. Yes It remains fragmented which hampers the innovations and suppresses the growth potential of the European delivery. Free movement of persons, goods, services and capital is not always smooth yes , which is often a result of administrative barriers and weak enforcement of EU regulations. Among the main recommendations is the building of a stronger Single Market (including through with(predicate) the tuition of digital Single Market and providing green growth). This requires the achievement of political consensus and continuing efforts to step up integration and improvement of the Single Market.Existing barriers can be summarized for each of the four freedoms. Movement of goods is hampered by problems such as licensing regimes (neediness of a European patent), counterfeiting and piracy go od national fiscal policies (in particular VAT) etc. The Free Movement of Services faces more important barriers, including lack of standardization (reflecting on the difficulty to assess their quality and effectiveness), insufficient transparency in some sectors (e.g. banks in relation to taxes and commissions) etc. good Free movement of persons is hampered by barriers to the recognition of professional qualifications, the availability of physical control of borders (airports, delaying the accession of Bulgaria and Romania into the Schengen area) etc yes . Free movement of capital is hindered mainly by fiscal and other barriers (an important issue is offshore zones, allowing evasion of tax systems Eden and Kudrle, 2005) yes.The efforts of the bearing to overcome the problems continue. Commission makes 50 proposals in its Single Market Act (COM/2010/0608), which after public consultation have been reduced to 12 instruments (COM/2011/0206). Whether their practical implementation w ill lead to real development in the Single Market depends to a high extent on the desire for political cooperation and practical efforts towards change.Very good ReferencesAtkinson, G. and Oleson, T. (1994) Europe 1992 From Customs Union to Economic Community. ledger of Economic Issues, 28(4), pp. 977-995Treaty establishing the European Economic Community (1957). Online. Available at http//eur-lex.europa.eu/en/treaties/index.htmfounding Accessed 9 July 2012-120/78, savvy of the Court of 20 February 1979. Quantative restrictions measures having equivalent effect Online. Available at http//curia.europa.eu/jcms/upload/docs/application/pdf/2009-05/tra-doc-bg-arret-c-0120-1978-200802154-05_02.pdf Accessed 10 July 2012C-149/79, Judgment of the Court of 17 December 1980. Commission of the European Communities v region of Belgium. Free movement of workers.Online. Available at http//curia.europa.eu/jcms/upload/docs/application/pdf/2009-05/tra-doc-bg-arret-c-0149-1979-200802156-05_00.pdf Accessed 11 July 2012Commission Of The European Communities, Completing the Internal Market. White Paper from the Commission to the European Council (Milan, 28-29 June 1985), COM(85) 310 final, Brussels, 14 June 1985. Online. Available at http//europa.eu/documents/comm/white_papers/pdf/com1985_0310_f_en.pdf Accessed 11 July 2012Treaty on European Union, Official daybook C 191, 29 July 1992. Online. Available at http//eur-lex.europa.eu/en/treaties/dat/11992M/htm/11992M.html Accessed 11 July 2012Eur-Lex, 13 Industrial policy and internal market. Online. Available at http//eur-lex.europa.eu/bg/legis/latest/chap13.htm Accessed 11 July 2012Monti, Mario (2010) A new strategy for the Single Market. At the service of Europes economy and society. Report to the President of the European Commission Jos Manuel Barroso. Online. Available at http//ec.europa.eu/internal_market/strategy/docs/monti_report_final_10_05_2010_en.pdf Accessed 11 July 2012Communication from the Commission to the European Parliament, the Council, the Economic and affectionate Committee and the Committee of the Regions, Single Market Act Twelve levers to boost growth and strengthen confidence working(a) together to create new growth, COM/2011/0206 final. Online. Available at http//eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM20110206FINENHTML Accessed 11 July 2012Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions. Towards a Single Market Act For a highly competitive social market economy 50 proposals for improving our work, seam and exchanges with one another, COM/2010/0608. Online. Available at http//eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX52010DC0608ENNOT Accessed 11 July 2012Eden, Lorraine Kudrle, Robert T., Tax Havens Renegade States in the International Tax Regime? legality Policy, Jan2005, Vol. 27 Issue 1, p100-1272) Corporate social responsibility (CSR)The interest of the public att ention to CSR should be viewed in the context of contemporary culture and in particular global interest in the protection of merciful rights and freedoms and the rationality of responsibility in various aspects. Yes . The promotion of human rights and fundamental freedoms in the Universal Declarations of pitying Rights (1948) (no doubt influenced by Christian ethics) is the result of realizing the place of human life and equality of persons before the law. The constitutional rights and freedoms of citizens in authentic societies is the basis for developing various initiatives for their actual implementation in society. Therefore, drab violations of these rights are a gene which attracts attention to CSR. Very well. well-nigh violations of international corporations (MNC) areInjuring local community in the process of exploitation of inbred resources. An important example is the activities of Shell in Nigeria. During the military regime the government did not return any or v ery little of the rock oil revenue to the local population. In this reason Ogoni people started a political fight to defend their rights. The attention of the international community is drawn to the problem after the execution of representatives of the Movement for Ogoni Rights (Holzer, 2007). Good exampleexploitation of workers, including children. This category includes issues such as disregard for labour rights, long working hours, rest in work time, working under hazardous conditions without protective equipment etc. In many cases this is caused by imperfect legislation or lack of it in developing countries, but also it depends on cultural differences. For example, on that point is considerable opposition to introduce a ban on children working in the footwear sector in Brazil (Zwolinski, 2007). Good exampleAnother factor directing public attention to CSR is associated with the use of environmentally harmful practices. In the late 70s some MNC (especially in oil and gondola i ndustries) are accused of serious pollution of air, ocean, soils (Eells, 1975). The activities of Shell in Nigeria have significant environmental damage to areas in the delta of the River of Niger (Holzer, 2007). The ocean oil spills also caused a significant damage to nature. Among the worst spills in the history are those in the disjunction of Mexico after the explosion on the platform Deepwater visible horizon (about 4.4 million barrels Griggs, 2011) and spills from tanker Exxon Valdez (240 thousands barrels poured into the Gulf of Alaska in 1989 Bowen and Power, 1993). yes motionless principle of the responsibility is that the one caused some damage is obliged to reconstruct it or compensate proportionately it. This is one of the fundamental principles underlying the CSR. Moreover, in todays world not correction (after the damage) is increasingly important but to make efforts to prevent and reduce the negative practices good point. This promotes the use of CSR as a good pra ctice. In opposition to the socio-economic uprise of CSR is the purely economic approach to line of descent. The most outspoken supporter of the economic approach is the monetarist Milton Friedman (1970). He sees headache as an activity whose main task is to maximize wealth of shareholders. In the free-enterprise system business can not have any purpose other than profit which implies reducing unnecessary costs including those for CSR. Yes indeed. In this sense, the implementation of extraneous social work is a kind of tax on friendship activity which reduces economic efficiency and competitiveness. Moreover, according to Friedman (1970) the dissimulation of public opinion to corporations for providing CSR violates the foundations of liberal society (democracy) which values are replaced by values of socialism. An additional argument of Friedman (1970) is that the corporation itself is an artificial product of man, it cannot be liable only people can have responsibilities. Yes Another system in opposition to the CSR concept is the theory of Henderson (2009) who considers the continued spread of CSR in practice as a threat. According to Henderson (200911) The doctrine rests on chimerical presumptions about recent economic developments and their implications for the eccentric and conduct of enterprises, while putting it into effect would make the world poorer and more over-regulated. According to Henderson (2009) the true role of business consists of four propositions. First of all, the economic maturate is driven by modern activities related to profit. Secondly, the competition should be the only tool that contributes to development and thus improve welfare. Thirdly, the role of business units should be the engine of progress through private ownership and profit-directed activity (capitalism). Fourthly, in market economy conditions and intense competition, companies make their profits by attracting customers with various offers in an innovative way. I nteresting point Very good answer ReferencesBowen, Michael G. and Power, F. Clark (1993) The moral film director communicative ethics and the exxon valdez disaster. Business Ethics Quarterly. 3 (2), p.97-115Eells, Richard (1975) Multinational corporations under fire. Management Review, 64 (2), p.43-45Friedman, Milton (1970) The Social Responsibility of Business is to Increase its Profits. The peeled York Times Magazine, September 13. Online. Available at http//www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html Accessed 12 July 2012Griggs, privy Wyeth (2011) BP Gulf of Mexico Oil Spill. Energy Law Journal, 32 (1), p.57-79Henderson, David (2009) Misguided corporate celibacy the case against csr, and the true role of business today. Economic Affairs. 29 (4), p.11-15.Holzer, Boris (2007) flesh the Corporation Royal Dutch/Shell and Human Rights Woes in Nigeria. Journal of Consumer Policy, 30 (3), p.281-301.International Bill of Human Rights. A Univers al Declarations of Human Rights, 1948. Online. Available at http//daccess-dds-ny.un.org/doc/RESOLUTION/GEN/NR0/043/88/IMG/NR004388.pdf?OpenElement Accessed 12 July 2012Welles, John C. (1973) Multinationals Need New Environmental Strategies. Columbia Journal of World Business. 8 (2), p11-18Zwolinski, Matt (2007) Sweatshops, choice, and exploitation. Business Ethics Quarterly. 17 (4), p.689-727.3) Internationalization of the businessThe club has the opportunity to expand its operations by penetration of the contradictory market. some(prenominal) reasons support the decision to internationalize company operations. The first factor is the prospered business development in the local market (Thai and Chong, 2011). The internationalization of business is facilitated by resources, ensuring local competitiveness, such as cognition and experience in manufacturing and merchandise (to know the characteristics of demand and market segmentation which can be victorfully applied in other mark ets particularly when demand has a similar characteristics), known brands, ability to learn and utilization of knowledge and others (Wright et al, 2007). goodAnother internal factor facilitating internationalization is the availability of adequate human resources, including international experience of managers and entrepreneurs, managerial competence (international business skills and management know-how) (Ruzzier et al, 2007), leadership skills, etc. The interpersonal business skills include cognitive capabilities and personal aptitudes, cross-cultural competence and communication skills, knowledge integration and applications, disciplinary knowledgebase and methodologies (Mughan and Kyvik, 2010). good some other factors that influence decision for international expansion are the expectations for growth and other arrogant effects of the internationalization of business. The company should have adequate organizational capability securing growth in order to achieve these benefits (Thai and Chong, 2011). Some of the positive effects of internationalization are increased volume, revenue and profits. In addition, the company can expect so-called learning by exporting effect (Sicoli, 2012). As a result of the internationalization of business companies could improve knowledge which leads to increased productivity (including effects due to economies of scale). Very good Some external factors also influence the internationalization of corporate activities such as processes of globalization and integration, liberalization of international trade and removing trade barriers (Sicoli, 2012). Other factor is price differences of manufactured products between domestic emerging market and developed foreign markets (due to existing cost differences) (Vasilchenko and Morrish, 2011). yesThere are few workable strategies for entering the foreign market. The strategy of direct export has the lowest risk and lower costs but it gives a more limited ability to control business ac tivity yes (Wright et al, 2007). Exports of foreign market are achieved through a sales network agents, distributors, retailers which are generally independent business units. The relationships in the network are based on contractual agreements (Philippe and Lo, 2011) yes . Strategic alliances with suppliers or customers (even though it carries risks such as choosing the wrong companion or excessive dependent on them) allow the realization of cost benefits and service benefits, including taking advantage of technological advance or prior(prenominal) knowledge (Vanpoucke and Vereecke, 2010) yes . The creation of a joint venture is characterized by high risk and significant investments. However, it allows far greater control over the activity and can bring all the benefits of strategic alliances yes . Creation of subsidiaries (with the highest risk) or franchise network (with relatively low risk but here the success requires effort for standardization and control) provides the hig hest level of control (Wright et al, 2007) yes. In theory there is an common view that unwaveringlys should enter the foreign market incrementally, first through direct export and subsequently by partly controlled network (join venture, strategic alliance) or fully controlled network (subsidiaries, franchises) taking into account the current percentage and firms competitive advantages (Philippe and Lo, 2011) very good . No matter which strategy will be chosen in order to internationalize the business, the firm needs to create a network. The relationship, trust and relationship commitment decisions influence future success because what happens, happens in relationships. So success depends on the forthcoming knowledge and ability to learn opportunities and creativity capabilities and trust building (Schweizer et al, 2010). GoodIn order to achieve successful penetration of foreign markets pilar cyst and Arokiasamy (2011) propose firm to implement integrated business strategies in foreign market, which is separated by three groups of strategies. The first group is the international marketing strategies, which include Market entry strategies, Diversification and Marketing mix. The second group is The International Operation Strategies, which includes Logistic Management, Oversea Subsidiaries, Oversea Production and Headquarters. The third group of strategies is International Business Strategy, which include Standardization, Differentiation, Localization and Level of Commitment. Very good However, to enter a foreign market successfully the company has to learn quickly (which will contribute to reduction of the risk) and keep cultural differences into account (Thai and Chong, 2011). Many cultural differences can affect the operational efficiency (increase costs or reduce revenues) such as using language, religion, doings standard, body language and greetings, power distance, etc. The main problem is when after the internationalization firm faces to cultural sho ck (stress caused by cultural change). cultural shock can significantly worsen the working environment negatively affect the organizational culture and performance very good (Grundey, 2008).