Explain the economic implications for the UK of entry into EMU (Economic and Monetary Union).

A

The entry of economic and monetary unions has transformed the whole of Europe into a single market with a common currency. This has recently translated into a trade bloc, leading to an increased market for the goods produced, free movement of labour and creating a pool of trained workforce. The capital movement has been enhanced leading to increased investment. Similar organizations have formed cooperation in purchasing their wares. This has provided them with an opportunity to bargain for better international prices as well as provide a better platform of market sourcing. The common currency has allowed free trade across the region without conversion. The Euro as an international currency has eased bilateral exchange providing free exchange.

Labor dynamics have enhanced affordable labor.The use of a common currency has lowered inflation. The recent recession might have posed a major challenge to the business community as well as the European Union. This has had a major challenge to the European economy. The union has now got stable roots in its operations with many countries seeking inclusion like Turkey, a Muslim country.

This means the union is growing immensely and soon may become the strongest economic bloc of preference with their currency overcoming the tides of inflation and recession. The union is facing stiff competition from other regional blocs especially from Asia and the USA. Therefore, the UK economy is influenced by the decision made by the EMU which provides a platform of selective borrowing.

In conclusion, the big multinational companies have been able to increase their threshold across the globe increasing their earnings while meeting the needs of the surrounding communities. This social and moral obligation to the company has increasingly changed the way the success of a company is evaluated by the shareholders and the public in general. The companies that are prioritizing to take care of the environment and the community social needs are becoming more famous and preferable to clients than those concentrating on profiteering business alone. There has been accelerated growth even in far areas because capital has been distributed across the globe through multinationals.

The profitability of these organizations has grown immensely because of the support they get from the local communities as they appreciate their contribution to the local economy through job creation and development of the necessary infrastructures which allow unilateral development. This in turn has made the companies be counted as part of the larger society as the communities feel more and more affiliated to them, not only as workers, shareholders or customers but also as responsible neighbors. As the pressure on global competition stiffens companies are expected to come up with more innovative ways to ensure that they abide by the new industrial policies and meet the desires of the stakeholders and the community while at the same time making a profit in the business ventures. Shell Company has managed to retain its good image as an example in the global arena in balancing social, moral, environmental and business requirements.

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