How The EU Affects Honda's UK Plant.

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Humzah Ahmad Unit 38 – P5

Businesses are greatly affected by the UK economic environment. But increasing links between economies throughout Europe and the rest of the world means that the international economy is now also a major influence on the way that UK businesses trade.

European Factors have a big influence on the UK economy because the UK is part of the EU. The influence of the EU itself and individual EU countries affects the way that UK businesses perform. European Factors will also affect Honda because they also have a plant in the UK.

From Hondas point of view, having a European Market that links economies means that there is no need to pay any customs or excise charges to other member states. It also means that parts can be imported from countries such as China as a whole and then be broken up, again, without having to pay extra costs to the individual states involved. This has meant that costs have decreased for countries trading within the EU and for countries outside the EU that trade with it.

Creating a single market involved passing more than 1,000 pieces of legislation as part of preparations for integration. It also meant that EU countries had to start developing ways for their businesses which includes Honda to deal with company law, business rules and accounting principles in a similar way so that they would be able to trade more efficiently across the EU. Removing barriers to trade has made it easier for businesses like Honda to set up and operate across the EU whilst giving protection to customers everywhere with the same EU laws regardless of which countries they are living in and which businesses they are working with.

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The EU has encouraged is 27 member states to work extremely closely through the single market, and this means that as time has moved forward the economies of the individual countries have moved closer together and more closely linked. Many of the 27 member states use the same currency, the euro, so this means no exchange rate fluctuations between them.

There are a number of different European policies that may affect Honda in the UK. The Common Agricultural Policy is one of the oldest policies that was developed by the EU and seeks to benefit its members by Encouraging the ...

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