The Business Environment of European Union Research Paper

The Business Environment of European northward - Research Paper ExampleWith the formation of the European Union, all the member states are required to fol broken in the EC 92 as the Single European Act. The single European act was a step closer to the goal of economic integrating. Economic integration has revolutionized all the laws and regulations and has changed the whole business environment in most of the member states.With the dismissal of the guile barriers the European act also proposed an array of commercial policies including single European standards for goods produced. This has given rise to difficulties for the companies producing below the standards as they are faced with the challenges of technology upgrade and quality advancement while keeping the prices private-enterprise(a) overdue to increased competition. For example in the Italian textile industry producers are struggling to keep beneath priced clothes from flooding the Italian market, designer label brands are waging another battle - against imitations, or knockoffs, as they are known in the trade. (Italian designers, 2005) Most of the fakes come from China or other Asian countries with low labor costs and no concern for social services, welfare and pollution control.Although the Italian sector is currently facing unprecedented challenges these challenges can be faced only by innovation. These include the abolition of valued restrictions (quotas) which took place on 1st January 2005. These challenges are occurring in a period of marked slowdown in economic activity, which has a significant impact on sectors such as textiles and clothing. Furthermore, at the same time, the Euro has shown a significant upward trend against the US dollar. All in all, every segment of textiles and clothing production, from whirl and weaving to garment make-up, has in one way or the other suffered from the impact of the developments of the last fewer years. (Textiles and clothing sector in the EU-25) T he years 2001-2004 have been particularly difficult for the industry. After substantial travel in production and employment in the previous three years, it is estimated that in 2003 production fell by a further 4.4% and employment by 7.1% (EU-25, source Eurostat). The trade deficit (EU-25) amounted to 29.4 billion in 2003, the trade in textiles reaching a surplus of 3.7 billion and the deficit in clothing 33.1 billion.The European Union was expanded in May 2004 having 25 members. The aim of the creation of the union was to create the most competitive and dynamic knowledge-based economy in the world, capable of substantial economic growth with more, and better, jobs and greater social coherency (Elizabeth Hunt Recruitment). All the member states of the EU have to follow common trade and employment laws, which on the one hand provided them with the ease of free trade and larger availability of workforce and a bulky product market on the other.