In considering the international realm, let’s consider the concept of economic treaties. Specifically, let's think about an organization like the European Union (EU). Why was it formed? In addition, what are some of the objectives of the nations that are joining the EU?
The benefits of the single market for BP include: the creation of trade - falling costs and prices, due to the greater exploitation of comparative advantage. This means that currently BP can focus at a relatively low price, which provide goods and services in the EU. BP also distribution costs will fall, because it will be a full range of prices. Reducing barriers to direct costs - the single market so that BP has its own administrative costs, border delays and technical regulations cost savings. The elimination of border controls of cross goods and services with lower costs, shorten lead times, thus establishing a larger room for vendor selection. Border delays often lead to much confusion BP oil services. Although BP is their energy and fuel suppliers are still some vendors offered their goods stations. Adverse regional
In order to understand the evolvement of the Single Market of the European Union, one has to take the general background into consideration. Therefore, it is important to have a look at the Treaty on European Union (Maastricht Treaty) which gave birth to the creation of the Single Market. Having been the Common Market before the Maastricht treaty, the European Economic Community (EEC) Treaty already clarified the objective of cooperation between member states. Throughout the Single Market, those objectives should be transformed into reality.
Moving on to the economic union that is a type of trade bloc comprised of a common market with a customs union. The member countries have common policies in few sectors, which involved, product regulation, freedom of movement of goods, services and factors of production such as capital and labour, and common external trade policy.
The European Union more commonly known as the EU, is known formally as the European Economic and Monetary Union. The EU establishes a common market among its 28 member countries which means that all border controls between members have been eliminated, allowing the free flow of goods and people. Public contracts are open to bidders from any member country. The EU common market also means that any product legally manufactured in one member state can be sold in any other member state without the effect of tariffs or duties set on the products or services. Taxes have been standardised.
Properly defined, the Single Market is a common regulatory area. A country is either part of it, or it is not. If it is not, then it can trade with the countries forming the Single Market, on defined terms. But for the most part those countries which have trading privileges are not required to accept the full freedoms.
The EU has delivered more than half a century of peace, stability and prosperity, helped raise living standards and launched a single European currency: the Euro. The core values of the EU are Human dignity, freedom, democracy, equality, the rule of law and respect for human rights. Furthermore, The EU takes on the many responsibilities that include, human rights, policy areas, from climate, environment and health to external relations and security, justice and migration. The EU is an organization of countries that follow a cooperative political economic system. According to The Global Organization Series: The European Union, these individual countries voluntarily give up some power over their own territories to cooperate with other countries in order to make decisions together (11). This concept creates a free trade zone for the European Union’s political and economic community.
The Treaty of Rome established the European Economic Community (EEC) in 1957. With this treaty member countries goods would not be taxed, but outsiders’ goods would. The member countries of the EEC specialized their products and their economies flourished. Then in 1992 with the Maastricht treaty a single economy was created along with a single currency (euro) and a regional bank. The EEC established a currency that is a major player in international business. The single currency is good on the domestic level because it eliminates the differing exchange rates between individual countries, which in turn encourage customers to travel and shop in different countries.
The internal market is a large trading unit with no internal barriers to trade. The creation of the internal market is one of the central purposes of the European Union. Article 26(2) of the Treaty of Functioning of the European Union (TFEU) stated that “internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties”. Under Article 26 of TFEU, four freedoms identified which are the free movement of persons, free movement of services, free movement of goods and free movement of capital. In our hypothetical situation, we will only be looking at free movement of persons and free movement of
Although Norway’s economy is integrated in the market of the European Union [EU], it is still one of the countries not formally included in this organization. Previously known as the European Economic Commission in 1972, Norway did not join the EU. In 1994, Norway once again rejected membership to the European Union based on a referendum: 47.6% voted yes but 52.4% voted no to membership of the EU. Instead, Norway signed the European Economic Area Agreement (EEA). This Agreement guarantees the internal market’s four freedoms: the free movement of goods, people, services and capital. Signing this agreement was a smart and calculated choice because Norway has benefited from trade advantages while averting regulation enforced by the EU, and
In the aftermath of the 1957 Treaty , the European Economic Community (EEC) was established and customs barriers between the member states have been abolished. Member States throughout the Community, can “promote a harmonious development of economic activities, a continuous and balanced expansion, an increased stability, an accelerated raising of the standard of living and closer relations between them”. Therefore, in order for a common market to be established between Member States, the Community enacted some legislative provisions which aimed to a true harmonization of laws; incorporate different legal systems under a basic legal framework. The main issue arising is whether these legal provisions in accordance with the case law, ensured the free movement of goods within this market.
One of the main objectives of the European Union (EU) is the establishment of the internal market, which shall consist of “area without internal frontiers in which the free movement of goods, persons, services and capital is ensured. The internal market is based upon a customs union achieved through the abolition of the imposition of customs duties and charges having an equivalent effect and the prohibition of discriminatory taxes on intra-EU imports. The internal market is enhanced by the provisions on free movement of workers, freedom of establishment, free movement of services, and free movement of capital. Whereas Articles 28 to 30 of the Treaty on the Functioning of the European Union (TFEU) provide for the establishment of an EU common external tariff and the elimination of customs duties, Articles 34 and 35 of the TFEU (with exceptions under Article 36) go further, and prohibit quantitative restrictions and measures having equivalent effect. Taken together, Articles 28 to 32 and 34 to 36 serve to ensure the free movement of goods within the EU and to facilitate the operation of the internal market.
The single European Market is the singular territory barring any internal borders or regulatory fetters to prevent a free movement of goods and services . The SEM was first instated in 1st July 1987, and fully coming into force on the 1st July 1992. The SEM effects were to encourage healthy competition within the EU, raise the quality of goods and service, and improve their efficiency and to keep prices or products and services low. This concept has been a great success as due to the raise in economic growth the movement of people which has made the European Union’s society easier to function from a business perspective and a consumer’s perspective.