European Economic Community: A Reflection on Global Business Aspects

This essay presents a reflection on global business, particularly focusing on the European Economic Community (EEC). It discusses the advantages of globalization, such as technological expansion, customer benefits, and increased capital liquidity, while also acknowledging potential drawbacks like environmental violations. The essay delves into the EEC, highlighting its formation in 1957 with the aim of removing trade barriers and fostering economic integration among member countries. The advantages of the EEC, including the development of a single market, job creation, and free movement of traders, labor, goods, services, and capital, are examined. Simultaneously, the essay addresses the disadvantages, such as high membership costs, discrepancies arising from a single market with common policies, increased unemployment, slow economic growth, and overcrowding due to immigration. The reflection concludes by referencing sources that provide further insights into the EEC's impact.

GLOBAL BUSINESS

TABLE OF CONTENTS
Reflection ....................................................................................................................................3
European Economic Community.................................................................................................3
Advantages of EEC......................................................................................................................3
Disadvantages of EEC.................................................................................................................4
REFERENCES................................................................................................................................1

Reflection
From the learning of week 1 to 3 there are The reflection of the learning from global
business is that global business leads to the expansion of technology. Factors influencing global
business are customer pressure, international trade. Various factors influence global business
such as political factors, law factors. Major advantage of globalisation is customer benefits and
increased liquidity of capital. Sometimes globalization leads to the animal and environmental
violation. Religious systems also affects the business in international field.
European Economic Community
It was an economic association formed with the purpose of removing trade barriers and
establish common external trade between the member countries of the community. Now it is
known as European Union. It was found in 1957 (Chirculescu, 2018). The aim of EEC was to
bring economic integration among its members. EEC also implemented an agriculture policy that
protected the EEC farmers from the competition that was increasing due to the agriculture
imports.
There were some advantages and disadvantages of the European Economic Community
that were later developed. Following are some points on pros and cons of the EEC.
Advantages of EEC
Major advantage of European economic community was that it developed single market
to the members of the association. It removed the barriers of trading and simplified the existing
trade rule. It helped countries to trade freely between the countries. Single currency by the
community reduced the flexibility of the currency exchange rate, this helped the traders to trade
easily without having risk of currency exchange rate. It also created jobs in the countries as
people were expanding their business in European Economic Community. In United Kingdom
10% of job opportunities were directly linked to the European Union.
Free movement of traders, labours, goods, services and capital was very helpful across
the nations with the help of European Economic Community. Removal of non-tariff barriers and
free trade decrease the cost of the product lead to the decrease in the market piece for the
consumer. Other advantages of European Economic Community were more influential economic
block, easier travel, modernization, international security (Vandermeersch, 2017). Countries
were gaining profits and low taxation were saving the capital of the government. European
Economic Community also help the development of the local environment.

Disadvantages of EEC
High cost of membership was the most affecting disadvantage of the European Economic
Community. Operating single market along with common policies resulted in many
discrepancies. Single currency was helpful but there were problems arising with the single
currency. This lead to the increase in the unemployment in all the member countries. Other effect
was slow economic growth, unstable interest rates in Eurozone areas.
Overcrowding due to immigration became the disadvantage of the European Economic
Community as there was loss of immigration control that resulted in overcrowding (Jongsma and
et.al, 2021). Other disadvantages of the European Economic Community was lake of
transparency, upper-hand on the local government on certain issues.

REFERENCES
Books and journals
Chirculescu, M. F., 2018. Advantages and disadvantages of tax competition in the European
Union. Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series,
pp.186-192.
Vandermeersch, D., 2017. The single European act and the environmental policy of the
European Economic Community. In European Environmental Law (pp. 79-101).
Routledge.
Jongsma, H. E., and et.al., 2021. Social disadvantage, linguistic distance, ethnic minority status
and first-episode psychosis: results from the EU-GEI case–control study. Psychological
medicine. 51(9). pp.1536-1548.
Online references
UK jobs and EU, 2021. [Online]. Available through <https://fullfact.org/europe/uk-jobs-and-
eu/>
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