Essay On International Business Trade

This report will look at the benefits and issues surrounding the UKs decision to remain as a member state of the European Union (E.U.). Along with the newly elected conservative government, came the announcement that a nationwide referendum would be held, by the end of 2017, in order to determine the British public’s stance on the issue of EU membership.

While the contributions of all member-states in the EU have been important and appreciated, the UK has brought a lot to the table that many other countries couldn’t. For example, the UK’s influence and the weight of just its name. For hundreds of years the UK has been powerful and if it had something to say, the world would listen. When the UK joined the EU it was a monumental victory for the existing member parties, because it meant that a powerful country, that could bring credibility and importance to a coalition previously lacking in both areas, would be joining their ranks.

The EU and the trade agreements entered into by member countries are examples of economic integration and cooperation. The benefits of joining an economic or trading bloc and reducing trade barriers can be plenty and they encourage countries to join them, and can be gained by all of the countries who are part in the economic integration agreement.

The European Union was established as an economic and political partnership between 28 European Countries (European Union, 2015). The UK has been stayed in the EU for over four decades from 1973 to now. In 1975, Labour Prime Minister Harold Wilson had ever held a referendum on Britain’s membership in the EU and the voting result is to stay in the European Community. Recently, the article (BBC NEWS, 2015) reported that the UK has a plan to hold the second referendum by the end of 2017 to decide whether or not the UK should stay in or leave the European Union. This might be a significant referendum that may bring lots of impacts on the UK’s economy.

Throughout history, countries have made agreements and alliances in order to improve their economy, their government, and their international trading. Countries must decide whether an agreement will be beneficial for the country in the long run or if it will have more of a negative effect on their economic and trade relations than a positive one. Two of the most significant international agreements that have been made in history are the European Union and the North American Free Trade Agreement. These agreements are two examples of how international agreements positively affect countries and their economic status. The EU is a political and economic union of 28 European members of state, which the United Kingdom is currently departing from.

One of the most visible benefit of the membership in the EU is the absence of trade tariffs between its members. However non-European markets are becoming more important for British producers because of the stagnation of the Eurozone economy and economic growth of the other region especially Asian one. Main claim against membership in the EU is that Britain sells much more goods to the EU than buys. Still this is barely a good reason to leave the Union. Mainly the EU’s trade surplus is accounted by only two counties: Germany and Netherlands, so the UK will not be able to dictate its terms after exit (Sprinford, Tilford and Whyte, 2014). In addition open market with the EU counties boosts the UK’s economy providing more labour and capital for producers. If Britain withdrew from full membership some options may take place in trading relations. Researchers mostly agree that British exit will directly cut the UK’s income from trade in the case of any not free trade agreements. However, the new free trade agreement seems likely to take place.

The EU operates single market that allows for the free movement of people, goods, capital, and services between the twenty-eight member countries. The union has also been experiencing various problems such corruption and member countries threatening to leave the union due to some reasons that are best known to them. For instance, in recent times, England has been contemplating on leaving the union. Therefore, the paper will be focused on whether England should consider remaining in the EU from economic, environment, social and geo-political perspective.

Firstly, it must be established exactly why withdrawing from the EU would be a poor decision for the UK to make. This will be accomplished by critically assessing the main arguments for withdrawal in order to remove the gild that the public’s misinformed perception has coated these arguments in, which has led to recent polls finding that a “Vote today would see Britain exiting [the] EU” (Orb International, 2014, cited in Shipman, 2014).

The EU has become more economically integrated by becoming a common market. This removes barriers to production, like capital and labor.

The purpose of this assignment is to discuss and analyse if the United Kingdom should remain a member of the European Union or if they should leave. And to also discuss the decision making process used in analysing the assignment.

For example, every country has different currency and different legislation. They follow different set of rules and the value of currency differs from one country to another. According to EU’s rule and regulations member states don’t pay extra tax because they are a part of single access market. But for example another country outside of EU needs to pay tax and there is cost involved when the products or goods cross borders. Since Norway, Iceland and Lichtenstein are not European Union’s member states they pay higher tax to enter in European Union area moreover they are entitled to follow their rules and regulation and their own tariffs. If UK decides to not to be a part of EEA or single access market they will be subject to trade barriers. As a result Britain will loss vast amount of profit which they made when they were part of EU.

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.

However, there a number of hindrances that may limit the UK and the EU in achieving a compromise where the UK would be allowed the join the EFTA and EEA. Currently, the most relevant variable is the general election on the 8th of June and the different stances held by the

The EU’s members have built developed economic connections and have deepened the trade with other member states. Geographically and economically, EU’s intra trade has shaped a circular pattern (Hu & Zheng, 2004). The EU members could be divided in four types: the core, the inner ring, the middle ring and the out ring (Hu & Zheng, 2004). Up to 2004, Germany took up almost 20 percent of the import and export share within EU and locates in the center of the Western European, acting as a core in the EU market (Hu & Zheng, 2004). France, Netherlands, Belgium, Italy and Britain contribute near 40 percent, totally, of the market share within the EU and surround Germany, as the inner ring of the pattern (Hu & Zheng, 2016). In the EU intra market, the Germany and the inner ring countries hold near 70 percent of the market share, and the rest of the 18 EU members geographically lie outside, looing like the middle ring and the out ring, which hold comparatively less share in the EU intra market (Hu & Zheng, 2016).

The European Union (EU) was established in order to prevent the horrors of modern warfare, experienced by most of Europe during the World Wars of the 20th century, from ever ensuing again, by aiming to create an environment of trust with the countries of Europe cooperating in areas such as commerce, research and trade (Adams, 2001). The EU has evolved into an economic, trade, political and monetary alliance between twenty-eight European Member States. While not all Member States are in monetary union (i.e. share the currency of the euro), those that are form the ‘Euro-zone’ (Dinan, 2006). The EU can pass a number of types of legislation, with a regulation, act, or law, being the most powerful. Its ‘tricameral’ (European Union, 2007)