European Business Answer 2022

Running head: EUROPEAN BUSINESS
EUROPEAN BUSINESS
Name of the student
Name of the University
Author note

EUROPEAN BUSINESS1
Answer 1:
United Kingdom (UK) is no longer a part of the European Union (EU), which has led
to a new set of commercial policy within the country. After Brexit, it can be seen that UK
needs to be the largest partner in terms of trading within EU so that the economy of the
country can be balanced in a better way (Minford 2016). The major alternative for the
country would be to become the largest and single market in countries like Norway so that it
can stabilize its own economic conditions. Another alternative approach would be to try and
negotiate the bilateral trades with countries like Canada and Switzerland or go in to a trade
agreement with the EU with the help of the World Trade Organization (WTO) (Scalera
2017). The use of any of these options would help the country in maintaining the balance
between its political control and economic integration.
Countries like Norway, Liechtenstein and Iceland follow the policy of single market,
as they all are a part of European Economic Area (EEA), which allows the movement of
people, services and goods freely (Tynes and Haugsdal 2016). The UK needs to evaluate this
alternative as it may allow them in becoming a member of the EEA and follow the guidelines
laid by EU with respect to competition, employment, environment and protection of the
consumers.
The other option is to go in to an agreement for free trade within EU, which will help
the country to be economically stable. The use of free trade agreement (FTA) would help in
removing the taxes that are present on the trade that takes place between the EU and UK
(Belke and Gros 2017). The limitation of this alternative is that the access in the market by
the country is limited as compared to single market policy as it will allow them in gaining
control over the entire market of another country. The use of FTA however will restrict the
movement of free labour within the EU except Switzerland.