Second Assessment. CORP2549 European Business Issues
Answer 1 from 3 Essay style questions
1500 words (+ or -10%)
Submit on Blackboard/Turnitin no later than Tuesday 4 MAY 2021 before 11.59 am (mid-day)
Q.l Outline EU Competition policies that ensure a level playing field for businesses and to ensure consumers benefit from choice.
Q.2 Discuss and critique the impact of interest rate policy and commercial bank funding initiatives of the European Central Bank (ECB) to improve business opportunities in the Eurozone from 2011 until 2021.
Q.3 Using figures and percentages for categories in the EU 7-year Multiannual Finance Framework 2021-2027 what are the benefits of funding plans to increase prosperity in EU member states?
Q.1 Outline EU Competition policies that ensure a level playing field for businesses and to ensure consumers benefit from choice.
“Break down question into clauses:
i) EU Competition policies - “Outline EU Competition policies list the six categories shown on europa.eu link
ii) Level Playing field for Busines “that ensure a level playing field for businesses-: discuss what does common regulations and fair competition within the EU and the free flow of resources (4 Freedoms of movement Goods Services Capital and People)_ how “Freedom of movement- in the single market facilitates fair competition and efficiency
iii) Ensures benefit consumers “and to ensure consumers benefit from choice-:
If people can choose they select the best quality at the lowest price so CHOICE benefits customer service I prices.
In summary, the 6 categories of the COMPETITION REGULATIONS ensure companies compete to gain market share by giving the best level of service to customers they can do, This will encourage innovation of products and processes and employing / training staff to improve service in order to compete with rivals.
Lack of choice reducre the incentive to to improve quality at lowest price, the Regulations are set to prevent
ABUSE OF MARKET POWER BY COMPANIES GROWING BY ELIMINATING RIVALS
AND / OR PREVENTING UNFAIR PRICING AND LIMITING AVAILABILITY
E.g. Outline EU Competition Policy in the following Areas:
Antitrust-
Liberalisation;
State-aid
How does the EU apply these Policies to ensure that companies operate efficiently and on a Level playing field ?
How will EU citizens benefit as consumers and employees?
2. Draw up an Essay Plan by -de-constructing- the question
Plan: Introduction
i) Discuss EU Trade and Competition policies areas
ii) HOW policies ensure that EU companies operate efficiently/ iii) on a level playing field
iv] how the policies ensure that EU citizens also benefit as consumers
v] and how the policies ensure that EU citizens benefit as employees
vi] How does this encourage efficiency and innovation
Conclusion; Balance of -mini conclusions- from above sections
What is the question hoping to analyse?
-1 suggest the Q seeks to identify EU Competition Policy (see lecture week 9 ) Liberalisation weeks 1-5)
i) Level playing field: No barriers to corporate trade / no border control / free to compete and grow EQUAL / FAIR regulations
ii) 6 policy areas:- such as Antitrust, Merger, Cartels, Liberalisation, State Aid, International: Discuss examples; eg Antitrust-Google & Microsoft fined for abuse of mkt power; Phone Cos permitted to merge; Air, Telecoms Energy market opened up to comp from nationalised monopoly; State aid banned but Steel Industry & Banks: PERMITTED state aid for limited time in crisis
iii) Benefits to consumers = Choice =Low Prices, Quality, Innovation SO Companies become more efficient.
Companies compete / grow economies of scale allow /innovation low price to a) access to soomil consumers no border barriers / delays b) available resource free movement of labour and capital allow LOW COSTTO BUSINESS of HIGH SKILLS workers