The business environment has always been one of the major contributing factors in the success of the business. When establishing a business, an entrepreneur has to consider many business aspects, as well as how it will be established in a particular environment. It is very important for both the new and experienced staffs to know that European Union has always been a very fertile ground for businesses.
The European Union is the political and economic union of 28 member states located in Europe. It operates under supranational independent institutions and negotiated decisions by the governments of all member states. The EU is composed of one representative from each of its member country, and its capital is Brussels, Belgium. The council of ministers, the parliament and commissions are always working hard to see that all member states are united to create common legal business environment.
As a way of establishment, a good economic relationship among member states, the EU developed a single market based on standardized laws that are applied in all member states. This is aimed at ensuring:
- Free movement of people
- Free movement of services
- Free movement of goods
- Free movement of capital;
The market structure of the EU with common trade policies help to attract foreign investors who has actually favored business, because every investor needs favorable governmental policies to carry out his or her business (De Jong, 2012). For example, the customs control policies applied on goods transported from China to Netherlands are not the same policies applied on goods transported from Germany to Netherlands. In this single market structure, some of the key areas of application of this single market are:
- The railway services. There are open domestic railway services in order to help to improve the cost efficiency and quality of service in the transport sector.
- Maritime transport. Goods transported between EU member countries are no longer subjected to administrative and customs control that are applied to goods arriving from other oversea ports.
- Air transport. There is improved safety, capacity and environmental impact on the transportation by air among member countries.
- The implementation of the third energy package. The legislative policies on gas and electricity among the EU member states are established in order to favor member countries (Pelkmans & Luchetta, 2013).
- Telecommunications and broadcasting. Telecommunications services are improved due to the provision of huge and high broadband networks.
The EU has established the consumer protection whose main goal is to ensure that consumers by themselves, the use of the internet and e-commerce, as well as a common currency across borders are protected.
It has also put in place policies that will ensure environmental safety and the increase in energy efficiency at the macroeconomic level, and also try to inform consumers about their household energy usage. This occurs in order to reduce the dependence on foreign source of energy. The consumer products sold in EU now have energy efficiency rating and their consumption statistics.
The EU has also adopted continent-wide information technology standards to ensure that consumers have access to information technology services such as telephone and internet services at affordable prices.
Personally, as a company controller, the efforts put in place by the EU makes life easier, because of the freedom to interact with people from different backgrounds and nationalities, and people of different status.
Also, from a corporate standpoint, the efforts of the EU to make doing business easier in Europe has been of great help in related with both local and foreign counterparts and consumers, and also in achieving success (Doing business in a more transparent world, 2012).
However, on an international level, the efforts of the EU have created a strong business relationship, for example, not only between two countries, but also between other countries and Europe as a continent. Furthermore, there is an improved level of integration among the member states compared to other continents.
In conclusion, both experienced and new staffs should know that, due to Europe's structure, geographical location, and also the policies put in place by the EU to foster economic and political growth among member states, businesses experience and will continue experiencing tremendous growth both among the EU countries and also with other countries.
Doing business in a more transparent world. (2012). The International Bank for Reconstruction and Development / The World Bank. Retrieved from //www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Profiles/Regional/DB2012/DB12-European-Union.pdf
De Jong, D. (2012). The importance of the European Union for the business community.
Brussels. Retrieved from //www.gibbelspa.eu/the-importance-of-the-european-union-for-the-business-community.
Pelkmans, J., & Luchetta, G. (2013). Enjoying a single market for network industries. Retrieved from //www.notre-europe.eu/media/singlemarketnetworkindustries-pelkmansluchetta-ne-jdi-feb13.pdf?pdf=ok