Report on EU Enlargement: Firm Benefits and Competitiveness Strategies

This report delves into the multifaceted impacts of EU enlargement on businesses. It begins with an introduction to the European Union, its expansion, and the waves of integration, highlighting the historical context and the process of enlargement. The main body of the report analyzes the benefits firms derive from EU enlargement, including increased export potential, access to a diverse labor market, a safer business environment, and an expanded market size. Furthermore, it examines how these factors can lead to efficient allocation of labor and improved living standards. The report also addresses the disintegration of the EU, specifically focusing on Brexit and Article 50 of the Lisbon Treaty. The report provides two key recommendations for firms to enhance their competitiveness: investing in technological infrastructure and developing a strong team through training and collaboration with strategic partners. The conclusion summarizes the key findings and reinforces the significance of these factors for EU firms. The report references several academic sources to support its arguments.

ASSESSMENT 1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Enlargements:..............................................................................................................................3
History and future of EU as block: .............................................................................................3
Waves of integration:...................................................................................................................4
EU disintegration BREXIT and Article 50 of the Lisbon Treaty: .............................................4
Firm Benefits from enlargement: ................................................................................................5
Two key recommendations for improve their competitiveness:..................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
The European union is the economic and political partnership that represent the different
form of business among the 27 member states. After the world war second, the initially by the
six western European countries, political stability, to promote peace and economic prosperity in
Europe. The process of the enlargements is the most powerful EU policy tools that helps in
transformed the Europe stated into the functioning democracies and wealthy countries. The EU
expansion is embrace the more countries has perhaps the most essential development in Europe
in years. There have been the six main waves of the enlargements since 1957. In the context of
future sustainable enlargement of EU will lead to extensive dialogue between the government,
policy-makers and European citizens about the path for the firm constructive development. This
report will discuss the EU firms benefits from the enlargement of the European union and
provide the two recommendations that helps in improve the competitiveness.
MAIN BODY
Enlargements:
The enlargement is the process of condition of being enlarged. It is the act of enhancing
in volume and size as well s scope and quality. The enlargement is the process that states the join
the EU, after the fulfilled a set of the economic and political conditions (Lippert, 2021). The EU
is expanded a number of times end-to-end its history by the structure of increase of the new
member states to union. It is the best understood as both a policy and process.
History and future of EU as block:
There are some history of EU and it is developed over the decades. The European union
1980-89, the changing faces of the Europe and there are various blocks which faced by EU. In
august 1980, there was the shipyards strikes for the workers rights and the collapse of the
communism.
The EU is the world second the largest market and increase trade between the states of
members. In modern world, the EU enlargement policy is continues to drive the transformation
and its and anchor stability in the various countries of the south-East Europe aspires to the
European union membership (Sandkamp, 2020). The current enlarge agendas of the evolvement,
there will be more approaches that helps in rewards results.

Waves of integration:
There are various waves of the enlargement that helps in order to progress towards the
political democracy and free market of economy.
The waves of enlargement include the 1973 (UK, Ireland and Denmark), 1981 (Greece), 1986
(Portugal and Spain), 1995 (Australia, Finland and Sweden), 2007 (Bulgaria and Romania) and
2013 (Croatia).
The first wave is 1973 (UK, Ireland and Denmark) which were strongly affected by the
internationalization and the capital is moved freely between the both countries (Marin, 2019).
The essential drive behind these waves of integration were the technology could bridge and the
Britain was different from the European and also suffered the economic difficulties and it
prevents the development of the union.
The second enlargement is relation with the Greece and it also signed the association agreements
with the EU in 1961. The Greece also become the member of the European union (Orzelska-
Stączek, 2020).
The third enlargement is related with the Spain and Portugal from 1986 and it is also
known as the Iberian enlargement and there two countries which applied for the memberships
and it accepts because the different in the economic and political development from union and
both.
In the context of Romania and Bulgaria is signed on the 1993. The agreement
association is established the legal framework for the integration into the EU (Capelos and
Katsanidou, 2018). The establishment of the free trade areas, financial and cultural cooperation,
maintain of political dialogue and approximation of the economic and legislation. This
agreement enter into the 1995. The Romania and Bulgaria is get closer to the EU. It came into
effect 2007. It is The sixth enlargement of EU.
EU disintegration BREXIT and Article 50 of the Lisbon Treaty:
The European disintegration is like the Brexit. It refers as the dissatisfaction leads in
forms of integrations. The disintegration is also occurred the involuntarily, in this the one
member state exclude the member of state (Leruth, Gänzle and Trondal, 2019). The partial form
of the disintegration undermine the functioning of the EU. The article 50 of the Lisbon treaty
provide the invocation procedures where the business member can notify the council of
European and state member can decide to withdraw from the union in accordance with the own

constitutional requirements. It also expresses the fundamental principles such a representative
democracy, democracy equality and participatory democracy (Guha, 2018). In the context of
participatory democracy, it takes the new form in citizens initiatives. The directly applicable EU
law ceased to apply the UK under the EU treaties so, the EU member require ensuring about the
domestic legislation that meets the EU obligations are set out in the EU laws.
Firm Benefits from enlargement:
There are various benefits from the enlargement to business which directly impact on
business and helps in improve the UK economic performance and its result in the positive
economist.
 Export potential: with the helps of trade creation effects from enhance the size of
custom and imports the goods and services cheaply helps in improve the terms of
trade(Vachudova, 2019).
 Diverse European labour market: there are great opportunities for business to import
the lower cost skilled employees in areas where have the shortage of labour. It higher
contribute to a level of the potential national income.
 Make safer place: with the helps of accession process, the EU can promote the
fundamental and democracy freedom and also able to reduce the cross border Crime. It
helps in provide the safer place to employees and labour within the organization. Increase market size for firm: it is the business opportunity to increase the market size
for firm to increase the EU GDP of world and get the accession advantages by joining the
EU and also established the member states (Bélanger and Schimmelfennig, 2021). The
EU expand the business opportunities in the aspects of financial investors, consumers,
property owners and others aspects.
For example: company can increase is market size by offer to customer innovation technology,
hire talented employees, acquiring the competitors and strengthen the customer loyalty.
Company can also sell more to their existing customer and selling products and services with the
helps of new channels and also sell into the new markets. Efficient allocation of labour: the allocation of labor and capital to business with the
above average growth of productivity will helps in increase the economic well-being and
productivity of firms. It helps in obtain the large amount of the outputs from the labor

amount (Jones, Serwicka and Wren, 2020). There are some individual benefits such as it
helps in improve the living standards and working condition and it also helps in motivate
employees and enhance the incentives for welfare services.
For example the efficiency of labor helps in increased, if the employees has the prospects of
rewards, honour and promotion. By providing the incentives to employees also helps in work
better as well as raise productivity of labor by motivating employees.
Two key recommendations for improve their competitiveness:
The competitiveness moves to the market and encourage the business so, there are
requirements to business come with the strategies to survive. The competitiveness is the rivalry
between the companies in same industry and there are requirements of satisfy the expectation
and needs of customer to meet the competitive advantages in the marketplace. There are
recommendation for business so, that helps in improve their competitiveness.
 Investment in the technological infrastructure: the digital infrastructure is the key
driver that helps in make changes within the organization and also helps in improve the
future technologies. EU firms require investing on the technology for gain the
competitive advantages in the marketplace. The critical firm infrastructure is needed the
strategic dimensions such as connectivity infrastructure, artificial intelligence and
information technology are helps in boost the corporate innovation, key to transforming
and it also declines in the productivity growth.
 Develop strong team with training: the EU firm require to aware about the market
trends and keep all the knowledge of market that helps in train employees and provide
them training and development to improve their skills and knowledge. Team helps in
improve the performance of business and believes. It also helps in give the strong
competition so, training and qualification are most important for employees and
employers. It helps in encourage more employees to improve competitiveness. Collaborate with the strategic partners: EU firm require to gain the competitive
advantages than they need the right person because the good alliance helps in generate
more profitability for business.
For example: partners invests in business helps in generate the more profitability for business
positively.

CONCLUSION
As the conclusion, this report is elaborated the EU enlargement and it benefits to firm
from enlargement such as increase the business opportunities by enhance the market size for EU
firms and most efficient allocation of labour and its benefits to the firms and individuals. In the
conclusion, the EU firm is the European company and those companies established under the EU
law. This report also discussed the recommendation that helps in improve the competitiveness in
the market place and EU firm also require focusing on investment in technologies and digital
infrastructure as well as

REFERENCES
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Guha, P., 2018. Challenges and opportunities for the Indian migrants in the EU: In the context of
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