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Individual Case Study Report Essay Example

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Individual Case Study Report

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Countries that are not democratic may not be able to join the union and if they join, they should change their systems so that they become autonomous.The European Union has a stable political environment that enables businesses to develop in the region. The stability of the union is governed by the European Council, which is has the greatest political power (Ailey, 2011). The council is headed by a president who is in charge of solving disputes that arise among member states. The president of the council also develops objectives that the union aims at achieving and the strategies that they use to realize these goals. The European Council is also in charge of bringing member states together when discussing new laws (Poletti, 2012). This means that the council is in charge of maintaining the political stability of the region. The stability that the council maintains enables investors to invest in long term businesses in the region because they are assured of the permanence of their operations.The EU also has a parliament that is in charge of making laws for the region. The parliament makes laws that encourage businesses to develop in the region, for example, the elimination of trade tariffs among member states (Poletti, 2012). The elimination of trade tariffs encourages businesses to conduct their operation in any country in the region as well as obtain raw materials from the state that offers them at the cheapest prices (Wetherly, & Otter, 2011). This law helps businesses to reduce their costs, sell goods at favourable prices, and earn high profits. However, the union charges tariffs when conducting business with non-member states (Ganzle, Grimm, & Makhan, 2012). This discourages businesses from the non-member states from trading with the EU countries because they incur high expenses that reduce their profits.There are no trade restrictions between member states of the European Union meaning that businesses trade in the region at low costs. The freedom of movement from one state to the other enables businesses to access a large market (Cavusgil, Knight, & Riesenberger, 2012). The large market leads to a high demand for goods and services and this encourages businesses to invest in the union.The freedom of movement also enables businesses to reduce their cost of production by employing cheap factors such as labour, raw material, and technology (Altug, Neyapti, & Emin, 2013). For example, a company in Netherlands may employ workers from Belgium if

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