• 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...


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.


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.


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 has the Common Agricultural Policy proved so controversial?

    This is intended to reduce supply which will then have the natural effect of pushing prices back up. Also, if scarcity becomes a problem then the EU can release these goods back into the market. Price support is also used in relation to the import/export market and is known as 'community preference'.

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

    the EU and USA be forced to cut back on export subsidies. 2001 Nobel Prize winning economist Joseph Stiglitz emphasizes the necessity for developed countries to open and completely liberalise their markets to the developing world without any 'political or economic reciprocity or conditionality' as such a mentality would be


    In case of dispute between the supplier and the buyer, the transaction will not occur or the supplies will not be delivered on time. As a result the inefficiency of the system shall evolve the non-satisfaction of the end customer, loss of competitiveness and waste of time and money.

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

    to move away from its individual interest serving roots of an interstate organization towards a more idealistic common good seeking supranational state-like organization. TECHNICAL ASPECTS With the introduction of the euro in 1999, the European Central Bank needed a real-time gross settlement system (RTGS)

  2. The Common Agricultural Policy.

    If world prices are below the intervention prices, then farmers will clearly prefer to sell to the EU authorities rather than export their products. In this case, farmers are encouraged to export their surpluses. However, if there is a shortage of foodstuffs in the EU it can be relieved by reducing the threshold price and by reducing subsides on exports.

  1. Transformation of the U.S. Hegemony in Europe through NATO after the Cold War

    NATO, in response was used comprehensibly as a platform to bridge the gap between the U.S. concerns, with the help of the other non EU NATO members such as Turkey, and the EU policies. For example, as a response, to the 3 D's (de-linking, duplication and discrimination)

  2. In 1957 the Common

    As well as this the setting of prices ensures that goods remain at a reasonable price that makes them affordable to E.U consumers. In saying this while the prices were deemed to be affordable but because one of the primary aims of Cap was to sustain agriculture as a viable

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