Economic Integration and Global Markets to Uk Business Organizations

Topics: European Union, Monetary policy, United Kingdom Pages: 6 (1743 words) Published: May 21, 2012
Table of contents

Introduction-----------------------------------------------------2 Main body---------------------------------------------------------3 The definition of International trade------------------------3 The reason of International trade----------------------------3 The importance of international trade---------------------3

Economic integration and global markets to UK business organizations-----------------------------------------4 The impact of two policies of the European Union on UK business organizations------------------------------------5 The impact of fiscal policies on the UK business------------5 The impact of monetary policy on the UK business---------6

The economic implications for the UK of entry into EMU--------------------------------------------------------------------6 Conclusion-------------------------------------------------------8 References-------------------------------------------------------9

With the increase of the countries of the European Union, the European Union (EU), the European monetary Union (EMU), international trade, globalization, economic integration and global markets, and these nouns has come up in the line of sight of people. The report mainly analysis the international trade, the reason of international trade, the importance of international trade, economic integration and global markets to UK business organizations, the fiscal policy and monetary policy of the European Union on UK business organizations, and the economic implications for the UK of entry into EMU.

Main body

The definition of International trade
International trade is the exchange of goods and services between countries. An import is the UK purchase of a good or service made overseas. An export is the sale of a UK-made good or service made overseas. (BPP, 2011) In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries. International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. (reference, 2011)

The reason of International trade
The reasons for international trade are really only an extension of the reason for trade within a nation. Rather than people trying to be self-sufficient and do everything themselves, it makes sense to specialize. (BPP, 2011)

The importance of international trade
Economics deals with the proper allocation and efficient use of scarce resources. International trade is also concerned with allocation of economic resources among countries. Such allocation is done in the world markets by means of international trade. Under the concept of free trade, the best products are produced and sold in a free competitive market. Such benefits of production efficiency like better quality and lower price are available to all peoples of the world. One fundamental principle in international trade is that one should buy goods and services from a country which has the lowest price, and sell his goods and services to a country which has the highest price. This is good for the buyers and for the sellers. Another, with free trade, the less developed countries have the opportunities to accelerate the pace of their economic development. They can import machines and adapt foreign technology. They can send their scholars and technocrats to more progressive countries to gain more knowledge and skills...

References: Course Book on Business Essentials (2007), Business Environment, BPP Learning Media Ltd, United Kingdom
“The Importance of International Trade”, (n d), (,
“TREATY ON EUROPEAN UNION”, (29 July 1992), (, Available:
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