• 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...

Introduction

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.

Middle

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.

Conclusion

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 ...

    Where a worker enters another EU country, his or her family may also enter (Regulation 1618/68). The Jean Marc Bosman case (1993). Article 28 is concerned with free movement of goods in the EU and guarantees that Member States cannot prohibit goods being imported from other

  1. Austria - An economic and political overview.

    on Austria and the EU). Austria's main trading partners are in continental Europe, especially neighbouring Germany, Italy, and Switzerland. Because of a heavy dependency on imports, Austria usually has a negative trade balance, which is compensated for by positive services; tourism is especially important in reducing the negative trade balance.

  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