EUROPEAN BUSINESS IN A GLOBAL CONTEXT

European Business in a Global Context

[Name of the Institute]

European Business in a Global Context

Question 1: Explain how the single European market has been and remains important to European integration and European business?

The economic theory works under the proposition of being the promoter of the welfare and dynamics in any competitive market. This is the core concept of the economic theory that runs in any competitive market throughout the globe. It is also quite evident that the market would also face failures in some point in time, but these issues can be controllable, as these can be identified with on the projections and also with the passage of time things became quite clear.

Prior to European integration, politicians had to face two possibilities of integration: economic and political. The support for an economic model was expressed by many European governments. The political model was proposed by former British Prime Minister Winston Churchill. By the early 50's, this confrontation has shifted to the ideological ground, and now the federalists and functionalists argue about the future of European unification (Layard, 2002, pp. 76-80).

The basis of the unity of Western European Federalists depends on the common cultural heritage, which should provide a basis for political association. Federalists gave priority to political integration services, primarily the creation of supranational institutions, which national authorities have broad powers to pass - the only way citizens can be guaranteed political and economic security. The result was supposed to create a complete federation of European states to replace the existing countries that are constantly vying with each other. Federalists have paid insufficient attention to economic factors of integration, but advocated the immediate establishment in Western Europe of the federal political structure. The main opponents of the Federalists were supporters of functionalism. Functionalism can be defined as the classical theory of regional integration, whereby the need of a technocratic management of the economic and social policy leads to the formation of international agencies. In turn, these agencies provide economic prosperity, gaining legitimacy and overcome ideological differences. In the long term, they have evolved themselves into a world government. Like federalism, functionalism pursued the goal of developing a theory that would create conditions to end conflict of interest that would have prevented, and a new war. Classical functionalism is presented in the works of its founder, David Mitrani, "The current system of peace," "The prospect of integration: federalism or functionalism." Mitrani has developed a strategy for establishing a permanent peace among nations, Mitrani was not looking for the ideal forms of world government, rather he thought of the inherent features, which a government will have." The functional approach to world politics and politics of European integration focus on human needs and general welfare and on the way of achieving these goals can proceed with the status of nation-states and any ideology. Functionalists express their doubt about the fact that nation-state in general capable of ensuring the welfare of man. Satisfaction of some needs a trans-boundary nature, so ...