Foreign Recommendation

It is my strong recommendation that Acme chooses an acquisition with JEL Industries, located within the European Union (EU) over an acquisition with DBC Industries, located outside the EU. The advantages of running a business within the EU far outweigh the disadvantages or restrictions placed upon the business through their involvement in the EU. Safety, security and economic solidarity are all things that the EU has both achieved and maintained for the participating countries. Perhaps one of the greatest achievements of the EU as well as one of the biggest advantages to businesses within the EU is the establishment of the ‘single market.’ Because all twenty-five members, (“European Union Member States,” 2005), of the European Union use the euro as their currency, trade and commerce has become much easier between the involved countries. As a result, collectively the EU has become one of the world’s leading trading powers (Fontaine, 6).

If the business primarily sells its products to other European countries I would highly recommend that business be located in a country that is a participant in the EU. The European Economic Community (EEC) has made it hassle free to transport goods and services within the participating countries (Fontaine, 40). The ‘single market’ in place in the EU includes more than 300 million consumers, all of whom are using the euro as their monetary means, resulting in a unification of commerce between the EU countries (Fontaine, 40). In addition, the EU has taken great measures to create rules for businesses to ensure fair competition (Fontaine, 41).

For businesses focused primarily on selling their products to countries outside of Europe, it is still in their best interest to be in an EU country. The main reason for this is that the EU is quickly growing, expecting to have 27 members within the next few years. The protection, funding, and unification that the EU has accomplished is much more of an advantage to the business than the possibility of restrictive business to the Far East and the United States. Perhaps the biggest concern for businesses that rely on commerce with these countries is the possibility that they will be forced to ban operation if the EU feels that selling their products to these markets as jeopardizing the ‘single market’ (Fontaine,41).

References:

European Union Member States. November 16, 2005, from http://europa.eu.int/abc/
governments/index_en.htm

Fontaine, Pascal. (2003). Europe in 12 Lessons, European Commission, from
http://europa.eu.int/abc/12lessons/index_en.htm