abhishreshthaa
Abhijeet S
OPPORTUNITIES :
The creation of a single market offers significant opportunities because markets that were formerly protected from foreign competition are opened . fo example , in Europe before 1992 the large franch and Italian markets were amongst the most protected.
These markets are now much more open to forign competion in the form of both exports and direct investments .
THREATS:
Just as the emergence of single market EU and America creates opportunities for business, it also presents a number of threats. For one thing the business environment within each group will become more competitive.
The lowering of barriers to trade and investment between countries is likely to lead to increase price competition through out the EU and NAFTA .
To survive in tougher single market environment firms must take advantage of the opportunities offered by the creation of single market to rationalize their production and reduce their costs. Otherwise they will be severely disadvantage.
A further threat to firms out side these trading blocks arises from the likely long term improvement in the competitive position of many firms within areas.
this is particularly relevant in the EU, where many firms are currently limited by a high cost structure in their ability to compete globally with N.American and Asian firms.
The creation of a single market and the resulting increased competition in the EU is beginning to produce serious attempts by many EU firms to reduce their cost structure by rationalizing production . this could transform many Eu companies into efficient global competitors .
The creation of a single market offers significant opportunities because markets that were formerly protected from foreign competition are opened . fo example , in Europe before 1992 the large franch and Italian markets were amongst the most protected.
These markets are now much more open to forign competion in the form of both exports and direct investments .
THREATS:
Just as the emergence of single market EU and America creates opportunities for business, it also presents a number of threats. For one thing the business environment within each group will become more competitive.
The lowering of barriers to trade and investment between countries is likely to lead to increase price competition through out the EU and NAFTA .
To survive in tougher single market environment firms must take advantage of the opportunities offered by the creation of single market to rationalize their production and reduce their costs. Otherwise they will be severely disadvantage.
A further threat to firms out side these trading blocks arises from the likely long term improvement in the competitive position of many firms within areas.
this is particularly relevant in the EU, where many firms are currently limited by a high cost structure in their ability to compete globally with N.American and Asian firms.
The creation of a single market and the resulting increased competition in the EU is beginning to produce serious attempts by many EU firms to reduce their cost structure by rationalizing production . this could transform many Eu companies into efficient global competitors .