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How Can European Automotive Companies Increase Their Exports Of Japan?

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How can European automotive companies increase their exports to Japan?: as a business consultant, a suggestion of possible actions for the EU-Japan FTA. Introduction Today, it has been approximately 8 years since the EU experienced the financial crisis in 2007. However, the aftermath of the crisis in the European Single Market still exists and decelerates its speed of revival. As a result, the EU trade policy-makers seeks to conclude comprehensive bilateral free trade agreements (FTAs) with emerging economies. This particular form of market liberalisation is, in theory, to generate a boost of exports and investments from the other country. The EU-Japan FTA is also known as the Economic Integration Agreement. This would be one of the largest accord which ever been negotiated in trade agreement history, between the largest and fourth largest economies in the world (Lee-Makiyama, 2012). However, FTAs with larger economies (e.g. the US, China and Japan) for the EU may not have the same effects as with small-medium sized economies.

One one side, free trade agreements would increase exports, investments and access to more developed technology from partner country or countries. On the other hand, since the financial crisis has struck the EU, it seems to be difficult to create the necessary trade-offs between industries. At the centre of these discussions, European automotive industry (automobile, parts and engines) has always been a controversial area in FTA negotiations with its
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