The EU and International Economy

Paper Summary:

With an annual GDP comparable to that of the United States, and a population of about 450 million people as of May 1st, 2004, with the addition of 10 more East European countries, the European Union has become a major economic force in the world economy and will continue to be a dominant factor in how other countries do business within Europe. This paper shows that because of the influence and reach the European Union has on the international economy, it is important to understand how EU legislation will affect international marketing functions between European countries and international countries. Because the European Union is still in its developmental phases and growing at a tremendous rate, rules and regulations are constantly changing, making it extremely difficult for international companies to keep up to date with all the changes. This paper looks at the various aspects of the marketing mix that have been affected by EU legislation.

From the Paper:

"The creation of a single monetary system under the European Union will change the way companies do business both within the EU and internationally. The change to the single monetary system will impact the pricing variable of the marketing mix by creating more price transparency, reducing exchange rate risks with the European Union, and lowering transaction costs. Many companies doing businesses within the European Union will spend a great amount of time updating their financial systems and converting existing currency and pricing into the new monetary system. International marketers will also have to establish new pricing structures under the new monetary system."

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• Term Paper # 148574 : "International Trade Regulations in China"

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