Benefits and drawbacks of exporting to europe or establishing a company within europe territory
3704 mots
15 pages
KUBOTA Corporation is a medium-sized company incorporated established in 1890 in OSAKA, Japan. It manufactures garden tractors and ride-on mowers for professionals and private individuals as mechanized farming. The company has subsidiaries and affiliates in Oceania and Asia, as well as in North America, and is considering an expansion of its operations in Europe. Indeed, the European Union territory contents an enormous potential in terms of trade thanks to its internal market but also to its citizens. Indeed, constituted of its 27 Member States, European businesses have access to 500 million consumers. This is “the world’s largest trading bloc” and the best place to expand our operations, but this supranational community is not unique in the world. As we have subsidiaries and affiliates in Oceania and Asia as well as in North America, you know about the existence of some others such communities, international and transnational bodies such as the North Atlantic Free Trade Area (NAFTA) and the Association of South-East Asian Nations (ASEAN). However, the EU, established by the Treaty of Rome in 1958, is constituted of the internal or common market based on a liberal politics and realised by the Treaty of Maastricht in 1992. The community is composed of five community’ institutions: The European Parliament which represents the interest of the nationals of the Member States; the Council which represents the interests of Member States; the Commission which represents the interests of the Community (by example, which negotiates within the WTO); the European Court of Justice which protect the respect of EC law and the Court of Auditor which supervises the financial aspect of the Community.
Its principle aim is to create a single market within which one and all the internal frontiers between its 27 Member States within its territory would be erased in order to ensure the free movement of people, goods, services and capital. However, it took some time for the