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

How has the process of EU economic integration affected the car industry??

Extracts from this document...


How has the process of EU economic integration affected the car industry?? The process of EU economic integration has affected the car industry in many ways. One of the major ways it has is through certain trading agreements that developed in the EU such as the free trade area where tariffs were removed between signatories to encourage free trade in goods also tariff and quota barriers removed and also non-tariff barriers e.g., import export documentation standardised or removed as well. Due to these factors it has enabled car industries to move around in Europe more freely which has led to car industries increasingly concentrating more in central and eastern Europe where factors of production are cheaper. ...read more.


Another way in which the EU economic integration has affected the car industry is through pricing laws specifically affecting the UK. Various surveys done by the EU have shown that prices of cars in the UK are far higher than in other EU countries. Eg: A Subaru Legacy costing �14,342 in the UK before tax could be purchased in Denmark for �7,115. European commission therefore endorsed a radical shake-up of the way in which new cars are sold in the single market. Brussels has given dealers the freedom to open for business anywhere in the EU. Until now their commercial activities have been confined to a specific geographical area, but in future a dealer from France, the Netherlands or Denmark - or anywhere else where prices are lower could set up shop in the UK. ...read more.


Under the new regime, dealers will: have to chose between two distribution methods: * Selective, where they may sell actively to consumers in any location and in any EU country. * Exclusive, where they are still allocated exclusive distribution areas, though they will also be free to sell to independent resellers and to customers from outside the area who contact them directly They will also be allowed to exhibit cars of different brands in the same showroom but in separate sales areas. HOWEVER THE CAR INDUSTRIES IN MANY EUROPEAN COUNTRIES HAVE BEEN AGAINST THIS BECAUSE: The car industry is worried that supermarkets will push small car dealers out of the market, dilute car brand integrity. ...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.

    This would benefit a firm as it would mean more customers can be attracted and a firm can cater for foreigners and can open branches in other countries. On of the main advantages of this treaty is that consumers can so easily travel from one country to another that businesses will be attracted by huge number of customers.

  2. Explain the process by which EU law is made and the process by which ...

    the EU; * Article 141, which guarantees equal pay for equal work regardless of sex. The effect of Article 39 is that there must be no discrimination as regards to employment, pay or other conditions of employment against workers from other member states based on nationality, unless it is justified

  1. Austria - An economic and political overview.

    While formating the new government a lot of possible combinations were suggested, werein the OVP put itself in a difficult position. They refused to work with the FPO, and could not agree with the SPO on the division of important functions The SPO suggested that the FPO could form a

  2. "Analyse and compare the gains predicted by economic theory from theremoval of (a) tariff ...

    The move to establish a Single European Market (SEM) was simply a programme to enable the EU to create a single market. As said before the EU has been committed to establishing the common market since the treaty of Rome was signed in 1957. Before agreement was reached to establish the market by the end of 1992, there had been little progress in creating this.

  1. Analyse of the effects of price transparency in Europe, with particular reference to the ...

    Thus, price transparency in the Eurozone should help consumers and businesses discover the best terms of purchase for final and intermediate goods, as well as assisting them in avoiding poor terms of purchase arising from ignorance generated by the 'mask' of different national currencies.

  2. Czech Republic: What potential benefits and losses are there for this country if it ...

    I argue that having secured relative military security through NATO, the Czech Republic is now seeking to gain economically from joining the EU. My point is supported by a study undertaken by Baldwin, Francois and Portes who stated that joining the EU will 'make the entire region less risky from the point of view of domestic and foreign investors'5.

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