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Unit 38 Business And Economic Environment P5 M3 European And Global Factors

Satisfactory Essays
European & Global Factors
In this report, I will be exploring the European and global factors that occur within the economic environment. The business I have chosen to refer to is L’Oreal.
The European Union is a union consisting of 27 countries that have an agreement of free trade. This is when the countries within the EU can trade with each other without any tariffs. They all use the same currency which is Euros apart from the UK and Gibraltar who use GBP (Great British Pound). The advantage of this for L’Oreal is that it allows them to expand in other countries such as France, Spain and Italy without being charged any extra fees for selling and trading within that country. It also allows L’Oreal to invest in other EU countries if
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L’Oreal could look into outsourcing which is when the manufacturing process is moved abroad to other countries. The advantage of this is that production costs would be a lot cheaper but there may be issues regarding rules and regulations within that country such as child labour issues. This would create a negative image on a luxury company like L’Oreal if they were to have children working in their factories or just people working under bad conditions. China may encourage
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