Independent monetary policy has achieved measurable gains with respect to gross domestic product growth.
The singe European market appears to have boosted both the European Union’s external trade performance and the volume of intra-community trade.
In terms of external trade performance, the European Union has moved from an external trade deficit, to trade surplus in merchandise goods.
The European Union – 15 enjoys a rapid increase in Internal and external trade in services and also on investment. With respect to intra-community investment flows, gains have been mostly felt in the United Kingdom and Ireland.
In today’s market the investor mostly aims at the advantages obtained by the Single European market and not any more at the European Union market barriers.
The advantages that such an investor aims at are:
- Closeness to the market – a thoroughly better joined market in order not to waste as much time and money.
- Better market information – by being closer to one another information is easier to obtain and thus action may be taken at a quicker pace
- Stimulating demand – when introducing a new competition to the market, one then has a raise in the level of the market demand.
- Raises image and local identity – one must be aware when competing in a foreign country, due to the local cultures, and the way local customers look at the firm.
- Access to public procurement – access for European Union members is accessible but non European Union members would have to have a local market presence to be eligible.
The IMP has shown that in many sectors it has a restructuring of industry, facilitating deregulation, and market liberalisation, which has encouraged competition in larger markets.
Along with it the single market brings its benefits, which are visible in the: telecommunications, automobiles, food-stuffs, energy, construction and building materials, financial services, transport services, textiles, clothing and pharmaceuticals sectors.
Nowadays individual businesses may benefit from various advantages. A few are listed below:
- With no visible barriers, it is easier to trade and also cheaper.
- Manufacturers may sell their product with no extra costs, within different European Union members.
- Products have to all reach one standard, even when importing to European Union members.
- No documentation and certification si needed to enter a European Union member country, thus making life easier.
- Opening factories in cheaper industrial estates has made products cheaper and also setting factories close to the selling point, thus reducing transport costs.
- Due to joining costs in insurers and financiers have reduced, due to being one common market.
- Expanding the organisation is nowadays encouraged. Due to lower expenses and less documentation, and no barriers.
Although we have seen many advantages / benefits, there are also many Threats and Challenges for the European businesses. These are:
- Competition increases, as big organisation may now sell their production your market.
- Due to more competition and an increase in products, prices may be reduced.
- Small organisations might close due to having larger competition thus they would not be able to cope with such low prices.
In this way by joining the European members and allowing them to compete within, businesses may now consider the whole market with no barriers or not as many disadvantages to stop such an opportunity.
