The politics of deficits, surpluses, borrowing and debt Essay - 1

The politics of deficits, surpluses, borrowing and debt - Essay Example A diverse empirical literature is provided by research based on industry level-data [Rajan and Zingales 1998; Wurgler 2000], time-series research [Neusser and Kugler 1998; Rousseau and Wachtel 1998, 2000], and econometric investigations that use panel techniques [Beck, Levine, and Loayza, 2000] supports the view that financial systems are essential for economic growth. While a strong relationship exists how sound and well-functioning financial markets impact economic growth, Beck et al raise a critical question: ‘How did some countries develop well-functioning financial systems, while others did not? Why do some countries have particular laws and enforcement mechanisms that support the operation of free, competitive financial markets, while others do not?’ (2001, p.2). Particularly, why do some countries post huge budget surplus amounts while other states suffer prolonged effects of massive budget deficits? According to Petersen (1999), governments face the fundamental issue of using credit and raising funds in the present that will be repaid in the future with interest, a cost just like any other economic choice. Governments usually borrow in order to finance deficits (easier than to raise taxes), stabilize the economy in the short term and invest in productive infrastructure and economy upskilling in the long-term. Foreign borrowing allows a country to invest and consume beyond the limits of current domestic production and, in effect, finance capital formation not only by mobilizing domestic savings but also by tapping savings from capital surplus countries (Narayanan 2002). Petersen notes that national governments face more options in this regard because it has control over the money supply as well as the operation of the banking system and credit markets than its local counterparts but argues that the more open that national economies have developed, â€Å"the more even those opti ons are curbed by the workings of the international economy†

Perestroika Essay Example | Topics and Well Written Essays - 1500 words

Perestroika - Essay Example The development of strategic plans worldwide is based on specific criteria. Most usually, the targets set have to be feasible – in terms of the resources and the time required – while the potential failures need to be identified in advance in order to ensure the limitation of failures. On the other hand, not all organizational initiatives have the same characteristics; when the achievement of specific targets is attempted then the methods used have to be carefully chosen – a balance between the cost of a specific strategic project and the expected benefits of this project must be pursued by managers in modern organizations. Current paper focuses on the examination of the strategic plans required for the increase of the market share of the firm LG in a particular sector: the televisions and audiovideo equipment. The firm’s current pricing strategy is reviewed and evaluated in order to decide on the appropriate of the marketing plans used in relation with th e specific marketing plan. It seems that the achievement of the specific target is feasible but specific measures will be required especially if taking into account the position of the firm’s competitors but also the challenges of the specific industry in all markets internationally.

ICT E-commerce business analysis Essay Example | Topics and Well Written Essays - 2000 words

ICT E-commerce business analysis - Essay Example Swift flow of information allows organizations to excel in their respective businesses and gain a competitive edge over the competitors. In today’s age, there are seldom any organizations that can avoid the use of technology in their business. It has become an integral part of every activity and the point of differentiation is now determined by the efficiency of the system involved. The more efficient the system, the better the operations and this reflects in the overall success of the business and its standing in the market. An appropriate and successful e-business plan can not only assist and compliment the business but also create growth opportunities in the long run. The availability of reliable and low-cost communications through the use of technology is providing new challenges and opportunities to every industry, especially the airline industry (Jiang, 2014). Relevance of technology to a business determines the effectiveness of its existence on the web. Airline industries over the world have accepted technology as an integral and unavoidable aspect of their business. Travelers require convenience and service along with information and timeliness. Use of the internet to obtain travel packages, flight information, itineraries, ticket booking and boarding details have revolutionized travelling and the airline industry greatly. Whether it’s advertising, being more mobile friendly, having an efficient response system at hand or merely being ranked above all as a result of search engine, the competitive e-business environment has had its due effect on the airlines industry too. With the shift in power from the companies to the customers, now they are at the liberty to research several options and opt for the one they find feasible for themselves (Lankes, 2008, pp. 667--686). For air travel, several website offers services like comparing rates and getting the best deal. In these circumstances, an airline company has to focus on

Equal Opportunity in Early Childhood Essay Example for Free

Equal Opportunity in Early Childhood Essay Children should be treated and respected as individuals in their own rights. Like any individual, children have rights to shelter, food and education. They too should be treated fairly and equally. Many a times, we have failed to recognise these needs and as adults, we think we know best for the child. If we are able to recognise these rights, it will greatly assist in a childs development both emotionally and spiritually. According to Bruce and Meggit (2002), equality of opportunity means opening up access for every child and family to full participation in early childhood services. There can be no quality in early childhood services unless there is equality of opportunity. Children should not be denied of their rights based on their race, nationality, gender or abilities, boys and girls should not be treated differently. Also, equal opportunities can be defined in general as not discriminating a person by his or her race, gender, family orientation or whether they belonged to the minority in the society. I truly agree with this statement and advocates for equal opportunity to be practiced in every way. It is now the 21st century but can we safely say that children in this world are treated equally? Some parents tend to treat their children differently if they are a boy, especially in the Eastern culture; succession is through boys instead of girls. Several parents have stereotyped the colours that their children should wear, boys should be in blue and gals should be in pink. Stereotyping basically means unduly fixed mental impression (Oxford, p. 546). Society too, plays a role in influencing the parents when it comes to bringing up their children in this part of the world and to a certain extent the childrens interest will be sacrificed. Children are expected to excel academically and those who do not will be branded as slow and they will be frowned upon by the society due to the competitive environment. Parents are ? pressured to have an academically sound child and as a result, children will feel ? inferior if they are unable to excel academically and this would hinder their fitting into the society in the future. In order to uphold the rights of the children in the world, UNICEF introduced the Convention on the Rights of the Child which was adopted by Unite Nations General Assembly on the 20th November 1989. (http://www. unicef. org/malaysia/UNICEF_FS_-_Understanding_the_ CRC. pdf). There are four principles that the Convention rests on and they are; non discrimination, best interests of the child, the childs right to life, survival and development and respect for the views of the child . (http://www. unicef. org/malaysia/UNICEF_FS_-_Understanding_the_ CRC. pdf ). The main idea of having this convention is to recognize that children should be treated fairly as human beings and they should be brought up in a safe and conducive environment in order for them to realize their full potential in life. Malaysia signed the convention in March 1995 and being a multi cultural country that also advocates for human rights has made many changes to its legislation to adopt the convention especially in the area of education and healthcare. However, a question that many Malaysians will ask today; are the changes sufficient to provide the children in Malaysia equal rights? Here, let us look into the two major areas to analyse the impact of the convention on Malaysias legislation concerning children. According to article 28 of the CRC, The child has a right to education, ? (CRC, p. 19). Malaysia however has reservation on seven articles and article 28 is amongst them. The preschool education is Malaysia is under the responsibility of a few government departments and social agencies such as the Ministry of Health, Ministry of National Unity and Social Development, Ministry of Rural Development and also several states departments (http://porta;. unesco. org/education/en/ev. php-URL_ID=46167URL _DO=DO_TOPICURL_SECTION=201. html) Under the Child Care Centre Act 1985, there are 2 categories of childcare centre, one being a home based childcare centre which takes in less than 10 children. The other being an institution based centre which caters for 10 or more children (The Star, 24th March, 1996). The curriculum guidelines of pre-schools are guided by the Ministry of Education and it has to provide a holistic development of the child being in social skills, intellectual skills, physical skills and spiritual skills (www. unesco. org/wef/countryreports /malaysia/Rapport_1. html) which is in accordance to article 29 of the CRC (CRC, p. 21) Due to the increasing awareness of the importance of early childhood education and also the increase in women joining the workforce, many private childcare centres have sprung up especially in the urban areas. These centres are mostly run by the private sectors that cater to mostly working parents from the middle to high income families and they charge a fee for their services. For the poor or rural areas children, the pre school programs are run by the government agencies and to a certain extent Non Government Organizations (NGOs). (http://unescodoc. unesco. org/images/0012/001279/127984e. pdf). The next area that Malaysia made changes to embrace the principles in the Convention is the healthcare policy. Child mortality in Malaysia has decreased significantly due to the effective healthcare programs that the government has implemented since the First Malaysia Plan 1996 (http://www. unicef. org/malaysia/ /children_4162. html). The most widely available health care service in Malaysia is public hospitals and for the rural community, there are over 1600 community health clinics (http://www. childpolicyintl. org/countries/Malaysia. html). Generally, children in Malaysia are provided with very comprehensive health services from vaccination to clean water supply and also sanitation. The government has taken steps to promote health programs to children in the rural areas integrating the promotion of health in its rural development strategies and programs. This is in accordance to Article 24 of the CRC where it states The child has the right to the highest standard of health and medical care attainable. Although Malaysia has taken various measures to improve its education system to embrace the CRC, sad to say that there are still children in Malaysia who are deprived of the right to education. This is especially apparent in vulnerable groups like children from the indigenous populations and also children in the rural areas. The indigenous children in Sabah and Sarawak have very little access to education and the curriculum in government schools do not cater to them culturally. Also, Malaysia has lifted its reservation on Article 22 which guarantees the childs rights seeking refugees status in 1995 but until today, there have not been changes when it comes to undocumented children (New Sunday Times, June 25th 2006). Undocumented children basically mean children who are born in Malaysia to migrant parents. Children in this category are deprived of education due to fact that they are not even recognized as Malaysian citizen. Although children in Malaysia are rather well taken care of in terms of healthcare services, there are still children who do not have access to their basic needs like healthcare. These are children born to poor parents, sex workers, alcoholics and sex workers. (New Straits Times, p. 19). Also, with the increase in HIV/AIDS cases in Malaysia and many children and women from the rural areas are still complacent of this disease. A childs formative years are extremely important as it will affect their growth in the later years. If Malaysia sees the significance of its younger generation, the government should seriously look into its commitment to uphold the Convention guidelines Firstly, awareness amongst the community is extremely important if Malaysia seeks to promote equal opportunity in the early childcare settings. Government should take steps to promote awareness amongst the people in order to change their attitudes towards children and this can be done by including the CRC as part of the school curriculum (The Star, p. N47). Secondly, early childhood education should be made compulsory to all children in urban or rural areas and available to all children in regardless of their background as every child has the right to education. Curriculum for children below the age of four should also address the current issues like AID/HIV and sex education. Materials and books used in the early childhood education should contain pictures of the different ethnic group in Malaysia. Activities organized by the childcare centre should be diversified as this would promote respect of various cultures amongst the children. More importantly, the curriculum should be sensitive to children from various cultural backgrounds especially the indigenous group. After all, Malaysia takes pride in its diversity of culture. Teachers in the early childcare sector should be trained in gender studies and also human rights (http://www. europeanchildrensnetwork. org/resources/infoDetail. asp? ID =12592). As childcare practitioner, the attitude of the person is utmost important in making sure that children under their care is not being discriminated. They have to be fully aware of the childs rights in order for the child to grow up in a positive environment as it is damaging for the child development. A childs potential to learn and develop their full potential should not be limited by prejudice (http://ferl. qia. org. uk/content_files/resources/organisations/caderdale_ council/sharon_chapman/equalops/prejandisc. htm).

Strategic Justifications In The US Wine Industry

Strategic Justifications In The US Wine Industry Mergers refer to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid in, finance, or assist a growing company in a given industry. As outlined by Lawrence Gitman, it is the combination of two or more firms, in which the resulting firm maintains the identity of one of the firms usually the larger. The primary reason for a merger is to improve a companys financial and strategic position. (Gitman, 2009) Determining whether the merger or the acquisition in the U.S. Wine Industry is offensive or defensive is dependent on each companys perspective. International Beverages quest for seeking an acquisition was considered a defensive action put forward by the company and it needed to lengthen its life within the organization. This company was known as a leading producer and marketer in the wine industry. This company being slow at achieving internal growth as their revenues grew at a mere 10% per year as a result of aggressive acquisition strategy. They needed to make an acquisition to prevent it from becoming a market failure as lack of any acquisition resulted in a no growth rate for the Company. This needed to be done to achieve growth internally and to refrain from going under. The wine industry has showed desirable preferences for change to higher end brand which placed International Beverage in a very dangerous position as customer would show a great deal of preference for the highe r end brand wines. International Beverage then had to take the initiative and move strategically in order to remain in the market as a key player, thus alleviating any adverse effects that would occur as a result of the new emerging preference in the future. One of the other companies to be acquired was Starshine. One of the main compositions of companies that International Beverage acquires was the fact that they were all producers of low end quality wine. Starshine was one of them. They too were also facing the fact that they could eventually lose in the market shares as the market began leaning towards a higher end brand of wine and Starshine were offering mid range labels in the market. Since Starshine produced only mid range brand wines, it would have been in their best interest to merge with the other company Bel Vino in order to secure a share in the market. This would have been their defensive action. The merger was crucial because had they not merged with Bel Vino, International Beverage could have acquired their company as the urgently needed some pull out, keeping in mind also that International Beverage also needed some fix for themselves to retain their market share. Starshine would then now be able to deal with their cost issues and competition from foreign producers. The merger between Starshine and International Beverage would be a defensive action with respect to the emerging market changes and also to avoid not having a say in the future business of the company. Bel Vino was producers of high-end wine with a very strong brand. Despite this, they also had sluggish performance, there prevalent management conflicts, these were the internal problems the company was faced with; also their inability to form good distribution lines, have a bad management team and as a result, has unflattering performance levels (Luehrman Kester, 2009). The market change favoured Bel Vino prospects as it allowed them to have more clients to form a better distribution line which will then have positive effects on its revenues. Bel Vino did not need a merger neither an acquisition because it could have solved the aforementioned issues by itself. Despite this fact, there was the option of solving these issues by taking advantage of the already established distribution lines and high earnings of both Starshine and International Beverage (Luehrman Kester, 2009). Given these reasons, Bel Vino is the only one that would be taking offensive action in both instances with respect to merger and acquisition. Question 2 What primary advantages did your company bring to the table? An acquisition of or merger with Bel Vino would benefit both company as Bel Vino, is the company that offered classic vintages and strong brands (Luehrman Kester, 2009). This would give them the comparative advantage over the other companies since these other companies, Starshine and International Beverage, deal mainly with lower end and mid range labels (Luehrman Kester, 2009). From the fact that industry has overcome the wine glut the demand for wine has shifted to the higher end products which neither of Bel Vinos competitors possess (Luehrman Kester, 2009). This was an advantage for Bel Vino since they were able to use this for their negotiations. This would be beneficial also for International Beverage and Starshine providing the opportunity to gain a market share and for their survival in the new market transformation. Bel Vino also benefited from the low cost advantages with respect to the merger with Starshine given the fact of the apparent cost control issues. (Luehrman Kester, 2009). Management in Bel Vino were able to utilize their finances as opposed to overspending on advertisement as Starshine did. All in all, Bel Vino brought several advantages to the table during this negotiation, all of which benefitted each of the companies of way or the other. Question 3 Compare the market positions, financial performance, and future prospects of Bel Vino and Starshine. What are the most significant sources of synergies for the potential transactions? Market position can be defined as the ranking of a brand, product, or firm, in terms of its sales volume relative to the sales volume of its competitors in the same market or industry (Business Dictonary, 2009). In analyzing the three companies, it was found that from the years 2006-2010 Starshine continually had higher net sales to that of Bel Vino. In 2006 Starshine had 475 million compared to Bel Vinos 359 million and International beverages 2980 million. In 2007 Starshine had 495 million compared to Bel Vinos 360 million and 2999.9 million. In 2008 Starshine had 525.1 million compared to Bel Vinos 366 million and 3019.9 million. In 2009 Starshine had 557.2 million compared to Bel Vinos 382.1 million and 6100.4 million. In 2010 Starshine had 591.5 million compared to Bel Vinos 390.1 million and 6141.2 million. (Harvard Business School 2009) This shows that Starshine had a greater market presence than that of Bel Vino and that Bel Vino was finding it difficult to generate sales esp ecially in the international markets to compete with its rivals. This was possibly due to its poor distribution lines. International Beverage could help Starshine and Bel Vino increase their market share both domestically and internationally and also help improve Bel Vinos distribution line. Financial performance refers to the measuring of a firms policies and operations in monetary terms. These results are reflected in the firms return on investment and return on assets (Business Dictionary, 2009). As the formula for return on assets is Net Income/Total Assets, the Return on assets for Starshine through the years 2006 to 2010 are; in 2006: 11.1/498.3 = 2.23%; in 2007: 8.6/503.9=1.71% ; in 2008: 17.4/507.5=3.43 ; in 2009: 28.3/531.5=5.32 ;in 2010: 36.9/556.9= 6.63%. In comparison, the returns on Assets for Bel Vino throughout the years are in 2006: 4.2/425.9=0.99%, in 2007:18.8/406.8=4.62%, in 2008: 27.7/389.4=7.11, in 2009: 33.2/403.6=8.23%,in 2010: 36.1/409.1=.8.82%. This shows that Bel Vino had a higher return on assets than Starshine. Our return on assets are as follows; in 2006: 162.2/1227.2=13.22%; in 2007: 109.9/1461.5=7.52; in 2008: 97.5/1544.5=6.31; in 2009: 423.7/22.32.7=18.98; in 2010: 446.6/2770.2=16.12. This again shows that our company, International Beverage company is a larger better run company. In relation to the future prospects of these companies, Bel Vino had to focus on the protection of their brands, increase in distribution lines and increase in sales volumes. Pertaining to Starshine, they need to cut costs and break into the high end market. Question 4 What was the rationale behind the choice of target for the opening bid and our overall bidding strategy? As we were in a better position than both companies, we were faced with the decision of it to stay as we were and run the risk of both companies merging or if to acquire on of the companies. We decided that were not under any pressure and we were going to keep our bidding low as we felt it was in the other companies best interest to merge with us. We started by making a bid for Starshine as we felt that with their greater presence in the markets would help us to gain an even stronger market share. We thus made an opening bid of $45 per share to Starshine. This bid was rejected. As a result our share price dropped by $0.50 to $64.70 while starshines rose by $2.26 to $56.64. We decided to start the bidding at such a low price so during negotiations; the ceiling price would not get too high. We realised that Starshine offered Bel Vino 1.05 new Starshine shares for each existing Bel Vino Share. So we decided to give Bel Vino something to think about by offering $39 per share. This was lo wer than their share price at the current time which was $45.96. We were not prepared to buy out any of these companies while incurring huge debts. This was another reason why our bids were kept so low. Bel Vino didnt see our bid as attractive despite the fact that we could improve their distribution line internationally considerably. So they rejected our bid. We thus decided it was not worth it to acquire any of the two companies as they lacked the vision to see that they could only benefit by merging with us. In the end Starshine accepted Bel Vinos offer and the companies merged. Question 5. If you were not successful at completing a transaction, why do you believe this was the case? Do you think it represents the best outcome for your shareholders? Would you do anything differently if given another chance to negotiate? According to the confidential information our team was provided with, both Bel Vino and Starshine were potential prospects for a merger. Our main prospect was Bel Vino since they sold high end products and our company would have received more value from this merger. We also noted that a merger with Bel Vino would have added worth to our company. Therefore in the long term, shareholder value will also be increased. In order to increase shareholders value, it is imperative that a company implements strategic planning. This can be done by increasing cost base while maintaining revenue and by increasing revenue share and by reducing cost (Ezine Article, 2010). A merger between Bel Vino and Starshine would have reduced cost of goods sold by roughly $3 million to $ 5 million. In addition, their Research and Development cost would decrease by a significant amount, roughly, one million on an annual basis. Bel Vino showed strategic planning and they recognized the goal of the company and beca use of their financial operations which were done effectively and efficiently, they were able to develop their working capital. There was a possibility of mergers between Bel Vino and Starshine, which actually came to fruition. Before any negotiation is made by any organization and for it to be successful it is critical for them to look over key issues that will affect their organization in the long run. In other words preparedness is one of the main key to successes in any business organization. In addition, a good strategy is also important for a healthy and long term existence of that company. Our team definitely lacked in the area of preparation was resulted in International Beverage not being able to merge with any of the two prospective companies. Our team members were definitely not ready to negotiate because we did not conduct enough background work in terms of focusing on our operating assumptions which included domestic and international revenues. In addition, due to the lack of understanding the game and time, we were not capable of making enough offers to the other two wine companies These factors needed to be decided upon before we ventured into the negotiation process. We also need to focus more on our balance sheet and make comparisons between Bel Vinos and Starshines balance sheets. Despite our unpreparedness, we were able to make bids by offers to both Bel Vino and Starshine at prices, $48.81 and $58.57 respectively. Both companies rejected our offers. We assumed that they believed that their companies were worth more than what we were offering them. At the end of the simulation, Starshine and Bel Vino merged. In conclusion, the wine simulation was a learning experience for our team and we realized the importance of conducting our homework before venturing into negotiations. It is important to learn about your counterparts in detail, as opposed to looking on the surface. Details such as financials are crucial in getting into mergers. If given the opportunity to negotiate again, we will definitely make serious preparations for the negotiations.

Greek Tragedy :: essays papers

Greek Tragedy The tragedy was a large part of people's lives in ancient Greece. Tragedies became prominent long before Christ was born. A tragedy, or goat-song, usually were seen during festivals in ancient Greek times. Tragedies gradually increased in seriousness until they were given utmost importance. Greek tragedies began at a festival in honor of a god, there were three great tragic authors, and all tragedies include a tragic situation. Greek tragedies began at a festival in honor of Dionysius, who was the god of wine. At the early festivals, drinking, quarrels, and sexual activity occurred frequently. Later on, tragedies gained much more respect and were taken very seriously. The plays dealt with man's relationship with god(s). These plays also dealt with a specific instance of life. The chorus wore goat-skins and served a great purpose in the tragedies, themselves. Thespis, the father of the tragedy, created an actor who talked with the leader of the chorus to further make the importance of the chorus seen. In Greek tragedy, three masters were paramount. They were Aeschylus, Sophocles, and Euripides. These three playwrights all wrote for the festivals of Dionysius, but none of the three were alike. Aeschylus writes about Athenian power, arrogance, and ancient rule. Sophocles accepts the gods as the way they are. He does not believe in the violation of cosmic order. Euripides questions spirit. He also faults the old way of doing things. Every tragedy has a tragic situation in which the tragic hero finds himself. There are two basic tragic situations. The most common situation is a man between two clashing principles. Every situation results in sorrow and suffering for the protagonist, or tragic hero. Creon is the tragic hero who suffers dearly for his situation. A choice is imperative to a tragic situation. In tragic situations, a conclusion must be made, or has already been made, which results in suffering for the hero.

Explore the Role of Trading Blocs on International Trade Essay

International Business In this assignment, I will be defining international trading bloc and their purpose before outline all the different examples of trading blocs such as WTO, Customers Unions, and Common Markets before explaining how these impact on the international trade. I will apply the trading blocs and examples to Jaguar – Land Rover, a multimillion-pound car manufacturer distributing worldwide. Trading Blocs Trading Blocs is a group of countries in a geographical area that gets together to protect themselves from countries outside the group, working together to make goods or services move more easily and placing restrictions on the number of goods or services being brought into the area. Some organizations help to make these countries work together and move goods or services more easily. These organizations include World Trade Organisation and other common markets such as the EU. World Trade Organisation (WTO) The WTO makes sure that countries can trade with each other as smoothly, predictably and freely as possible so that businesses can sell their goods all over the world. The WTO has negotiated agreements between countries so that businesses trading have legal rights and agreements to protect them. If there are disagreements or arguments between two countries then WTO will step in and assist the situation. WTO has a positive impact on international trading as they ensure all businesses trade fairly and legally and ensure that no one is ripped off or miss sold goods. Customs Unions and Common Markets In some areas of the world, customers unions and common markets have been established to allow free trade to take place between those different countries. This allows businesses more rights and opportunities to trade with each other with the support of the common market to ensure everyone is trading and operating legally and effectively. The EU The EU was established in Second World War through European Economic Community. At the start, 6 countries joined the EU, France, Germany, Italy, Belgium, Netherlands and Luxembourg. Over the next 60 years, more and more countries joined the EU, 28 countries including the UK joined by 1973. The EU was a very crucial in international trade as they set up their own internal market which allowed countries to move and trade goods or services even freer between the countries involved. It achieves the above through a number of different ways. – It has its own currency, the Euro. – It provides EU citizens the movement to other countries without VISA`s as long as they are a member of the EU. – They have their own set of rules they must adhere to in order to maintain a member of the EU. Mercosur Rather like the EU, this group was established to help the third world, less developed countries increase the trading opportunities between each other. Countries involved within the common market are Argentina, Brazil, Paraguay, Uruguay and Venezuela, all less developed countries who can`t afford the scale and size of international trade deals occurring in the EU, hence why they are a part of the Mercosur. They have more land and size than the EU, however, have made little progression when compared to the EU, however, have similar aspirations and goals, wanting to make international trade and movement as easy as the EU do. The effect it has on the countries involved is that it provides them with a platform to trade internationally and increase the size of deals, bringing in more money to the country and helping to improve local economies. They still have the same legal rights and regulations when it comes to b2b trading. The above have a massive positive impact on countries who are a part of the Europe Union as it provides plenty of other countries the opportunity to trade freely between each other using the same currency and operating under the same legal rules and regulations. If any deals went downhill and a business within the EU was miss sold goods or not paid the full balance then they can appeal to the EU for support and guidance, allowing them to take legal action against the other business. Jaguar – Land Rover will be impacted in different ways by the above trading blocs due to the size and scale of them having a negative impact towards local businesses. If Jaguar – Land Rover are having a positive impact on the economy of a country, increasing the countries revenue through their taxes and increasing employment rates then the government for that country may increase the easiness of movement of goods across the country, encouraging them to continue trading within, benefiting the country as a whole. The World Trade Organisation has a big role in the trade deals of Jaguar – Land Rover as the deals they are working on is worth millions of pounds and therefore involve high risk and liability if they go wrong, this is where the World Trade Organisation will step in, resolve the issue and ensure the deal is still going to go ahead. They will ensure no party is ripped off or miss sold goods and that all parties are aware of the terms and conditions througho ut the deal. The Customs Unions and Common Markets and the EU allow businesses or countries within a certain area free trade and more rights to trade between each other. This would have a negative impact on Jaguar – Land Rover as they would have to pay importation and exportation taxes, increasing the expenditure for each product meaning they can`t be as competitive on pricing as other businesses within the market. The Mercosur won`t have an impact on Jaguar – Land Rover due to the size and scale of them and how the Mercosur id directed at smaller, less established businesses acting as a platform to boost them. Jaguar – Land Rover will not face the competition from this market as the size and scale will counterbalance the benefits that Mercosur provides the smaller businesses with. Conclusion In the above assignment, I have listed, explained and evaluated the impact different common markets have on international trade for the countries involved. I have explained the different reasons for how they work and the benefits they bring. All markets have similar aims and understandings, have the same legal rules and regulations and all believe in fair, free movement of goods or services.