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How has the process of EU economic integration affected the car industry??
Member rating: No Rating | Words: | Submitted: Tue Mar 30 2004
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How has the process of EU economic integration affected the car industry?? The process of EU economic integration has affected the car industry in many ways. One of the major ways it has is through certain trading agreements that developed in the EU such as the free trade area where tariffs were removed between signatories to encourage free trade in goods also tariff and quota barriers removed and also non-tariff barriers e.g., import export documentation standardised or removed as well. Due to these factors it has enabled car industries to move around in Europe more freely which has led to car industries increasingly concentrating more in central and eastern Europe where factors of production are cheaper. The benefits for car industries to set up specifically in EU countries which are based in central and eastern Europe is that the cheaper factors of production leads to fall in prices and greater demand...
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