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The European Commission, the Council of Ministers, and the Court of Justice of the EC have gained power in the last decade. Comment






The European Commission proposes and supervises execution of laws and policies. The Council of Ministers, one from each member country, passes laws based on commission proposals, it’s the decision-making body of the EC. The European Court of Justice consists of 13 judges and is the Community’s supreme court. Its first responsibility is challenging any measures incompatible with the Treaty of Rome when the commission, council, or national governments adopt them. Its second responsibility is passing judgment, at the request of national court, on interpretation or validity of points of EC law

Select any three countries, which might have some logical basis for establishing a multinational market organization. Identify the various problems that would be encountered in forming multinational market groups of such countries.

The US, Japan, Hong Kong, Taiwan, and China are frequently discussed as likely prospects to form multinational market groups. Reasons for cooperative trade agreements among these speculative alliances vary substantially. A Japan- US trade link reflects three lines of reasoning. The first is defensive and result from preoccupation with an internal unified EC market and fear that reciprocity means a closed market to US and Japan. The second line of reasoning sees a US- Japan free-trade agreement as a less political way to handle the growing number of trade disputes between two countries. The third is more complex extension of the second in that there have yet to be resolved increasingly troublesome issues of trade. Successful resolution of problems of the protection of intellectual property, government procurements, and regulatory issues within Japan requires a broader economic relationship than now exists.

11) US export to the EC are expected to decline in future years. What marketing actions may a company take to counteract such changes?

Не знаю, касаемо конкретно США, но вот способы входа на рынки ЕС:

- Firm based in several Europe countries with well-established manufacturing and distribution operations in several European countries

- Firms with operations in a single EC country

- Firms that export manufactured goods to the EC from an offshore location

- Firms that have not actively exported to EC countries

Strategies for effective competitiveness in the EC countries are different for each type of firm. The first firm, fully established in several EC countries with local manufacturing, is the best positioned. However, the competitive structure will change under a single Europe. Marketers will have to exploit the opportunities of greater efficiencies of production and distribution that result from lowering the barriers. They will also have to deal with increased competition from European firms as well as other MNCs that will be aggressively establishing market position. A third area of change will require companies to learn how their customers are changing and, thus, how best to market to them.

The second type of firm- with operations in one European country- is vulnerable when barriers come down and competitors enter the company’s market. The firm’s biggest problem in this situation is not being large enough to withstand the competitors from outside the country. The answer is to become larger, or withdraw. There are several choices for this firm: expand through acquisition or merger, enter a strategic alliance with a second company, or expand the company beyond being a local single-country firm to being a pan-European competitor.

The third type of firm, an exporter to European Markets from a non-European source, will be faced with the prospects of protectionist measures by the EC and the difficulty of maintaining a significant market share from offshore. These firm alternatives are: establish a European marketing branch; acquire a European company; or enter a strategic alliance.

The fourth type of company, with no business in the EC, in the most vulnerable. Even with a comfortable position in a home market, there is no guarantee against competition from foreign firms. This firm has only one alternative and that is to become involved in global marketing

12) “Because they are dynamic and because they have great growth possibilities, the multinational markets are likely to be especially rough and tumble for the external business”. Discuss

The possibility of new market barriers to the EC and the expanded NAFTA is troubling to outsiders.






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