• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Common Agricultural Policy.

Extracts from this document...

Introduction

Multinationals, corporations that have direct business activities in many countries. The terms "transnational" or "international" are used more or less interchangeably with multinational. Similarly the terms "companies", "firms", "enterprises" are often used instead of "corporations". Their activities involve some form of direct production and/or distribution, and the establishment of branches or affiliates, in the host countries in which they operate. According to the United Nations Centre on Transnational Corporations: "A foreign branch is a part of an enterprise that operates abroad. An affiliate is an enterprise under effective control by a parent company and may be either a subsidiary (with majority or sometimes as little as 25 per cent control of the voting stock by the parent company) or an associate (in which case as little as 10 per cent control of voting stock may be judged adequate to satisfy the criterion)." The foreign activities may be measured in terms of assets, employment, sales, or profits of the branches or affiliates. The Foreign Direct Investment (FDI) by the Multinational Corporation (MNC) ...read more.

Middle

Therefore, by far the largest share of FDI by MNCs originates from developed countries; and not only the source but also (contrary to popular belief) the destination of the largest share of such investment lie within the developed countries themselves. Most MNCs are indeed very large corporations. However, the 1980s and 1990s have seen an increasing number of smaller corporations expanding their production activities abroad and thus joining the league of multinationals. Similarly, an increasing number of MNCs now originate from the newly industrializing countries and some from the developing ones. These developments are aided by improvements in the technology of transport and personal communications, as well as by the application of new technologies to production processes. Common Agricultural Policy (CAP), system supporting and regulating agriculture in the member countries of the European Union (EU). The Treaty of Rome, which established the European Economic Community in 1957, made explicit provision for a common agricultural policy, the fundamental objectives being to increase agricultural productivity, ensure a fair standard of living for the agricultural community, stabilize markets, guarantee a secure supply of food, and make products available to consumers at reasonable prices. ...read more.

Conclusion

Reforms to the CAP to curb over- production were introduced in 1984, 1988, and, most radically, in 1992. These involved a market-oriented price strategy (the resulting drop in agricultural incomes being cushioned by specific income support); quantitative and qualitative control of production through quotas and compensatory payments; premiums for set-aside schemes (grants to farmers to take land out of production); and diversification of production to bring supply more in line with demand. The adoption of more environmentally friendly agricultural practices has also been encouraged. The CAP has long been a contentious issue in international trade relations, not least during the Uruguay Round of the General Agreement on Tariffs and Trade, which concluded in December 1993. Under the new international rules, agreed despite considerable opposition from EU farmers, the EU is committed, over a six-year period from the beginning of 1995, to reduce substantially its agricultural import charges and domestic subsidies, to cut the value of its export subsidies, and to reduce the volume of its subsidized food exports.1 Prospects 1"Common Agricultural Policy," Microsoft(r) Encarta(r) Encyclopedia 2000. (c) 1993-1999 Microsoft Corporation. All rights reserved. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level European Union section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level European Union essays

  1. A clear explanation of key underpinning economic theories relevant to the EU.

    Language should be considered when marketing the product internationally and when representing the product. Language should be considered when launching a product as instructions might be hard to understand and to satisfy all needs. Language is linked to education if a country has a good education system then there would be less difficulties.

  2. Why are developing countries unhappy with the global arrangements under the Bretton Woods system?

    According to Stiglitz, the gross imbalance in the global trading system is mainly due to economic globalisation out pacing political globalisation. Agricultural protectionism may not be the cause of poverty and underdevelopment in Africa; however the liberalization and implementation of free trade routes without barriers would sufficiently aid and improve the perilous situation in Africa.

  1. An examination of British policy with regard to European Unity during the period 1945 ...

    Yet it never reality provided a viable, pragmatic alternative to the supranational approach (Pilkington, 2001: 4). British and its role as one of the `Big Three' The craving for continued international power and prestige forms further justification of British policy with regard to its plight for a global role.

  2. EU actorness in relation to Environment policy and Development policy: An evaluation.

    As the EU does not have a 'cabinet office' it is often the Commission that is given the most power and responsibility although in recent years the publicly elected European Parliament has been seen to take on extra responsibilities. Availability of policy instruments- this is the ability of the EU

  1. LEGAL ASPECTS OF SUPPLY CHAIN MANAGEMENT

    "The directive requires that member states enact legislation that affords legal recognition to electronic signature that is based on qualified certificate so long as they were created by a secure-signature-creation device..." (Pappas 2003)

  2. Common Agricultural Policy

    The intervention price is set lower than the target price. The internal market price will vary in the range between the intervention price and target price. * A system of production subsidies. Historically these have been set at different levels for different crops, but a flat-rate subsidy per productive hectare is being phased in.

  1. In 1957 the Common

    the EAGGF but due to the unforeseen and indeed rapid increase in agricultural produce within the E.U and therefore a reduction in imports this has not been the case and the financial burden has fallen on to national governments, however in recent years the E.U has decided to rely on its own resources for the funding of EAGGF.

  2. Regulation 2560/2001 on cross-border payments in Europe.

    because of a situation of imperfect competition and because most alternative payment methods whether they were credit card based or internet systems are either too cumbersome or just as expensive. Finally, in December 2001, the EU enacted regulation 2560 that forced banks to price international money transfers like domestic ones.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work