1. To list and explain at least five (5) significant features of the Single European Market using credible examples
Single European Market was one of the main principles of European Union and became a reality in 1993. All Member States try to adopt all laws, regulatory and legal barriers to enable free trade and movements between countries. There is number of features, which have and will have significant implications for businesses. The key features are: a) Free movements of people
b) Free movements of goods
c) Free movements of services
d) More powerful market which compete with other markets e) Deeper economic integration – the same currency f) Movements of capital
Free movements of people
Free movements of people are a basic principle of the single area. It was mainly introduced to open labour market and free migration of their families. People can move to almost any member state (restriction to new member sates), settle down and look for a job with perspectives for better life. Those people can fill the gap in the countries where is a need for professionals, such as engineers, doctors or other occupations. Free movements of people as well as goods give members opportunity to find better paid jobs and greater job security. This is also thanks to Schengen Agreement (1985), which had lifted most of the internal borders control to enable people easily migrate within member states. In 1999 Schengen Agreement was integrated into European Union legal and institution framework and it covers 22 EU members plus non- EU - Iceland, Norway which fully apply the Schengen provision on a basis of specific agreement and Bulgaria, Cyprus and Romania, which at the moment apply only partially and checks are still carry out at their borders. United Kingdom and Ireland do not apply to this agreement; they still carry out checks at their borders with EU member states.
Free movements of goods
Free movements of goods are another very important feature of internal market. There is more opportunity for businesses to import and export products as well as for individual citizen in any member state to buy anything from another country within European Union. People have the right to buy and sell products within member states without being subject to approval procedures. This has to be of course in accordance to Health and Safety and Community law. Today people can easily buy products from around the world, without paying exorbitant prices. Free movements of goods offer broader choice of products and large competitive marketplace. It is also good for the economy, which need large and fair market to grow. Around 75% of internal trade is in goods. European Union creates more workplace because businesses within EU employ more people to compete on the international stage and attract investment from other countries.
Free movements of services (Arts 49-55)
The principle of freedom of services enables businesses and individuals to conduct an economic activity in a stable and continuous way in one or more member states. It should be easier for businesses to provide and use cross-border services in the EU, thus increasing cross-border competition in service markets, bringing down prices and improving quality and choice for consumers. Free movements of services offer wider opportunity for businesses in EU. Organisations can easily settle down in each country within the member states without paying high taxes to foreign governments. For example Tesco have opportunity to launch their new stores in every country of EU and compete with regional stores. When new countries, such as: Poland, Czech Republic, Lithuania, etc. joined EU in 2004, Tesco has opportunity to offer their new stores in these countries with minimum government restrictions. More powerful market which compete with other markets
European Union can compete with...