Business Strategies for Europe Business Strategies for

Free Trade Area - This is where nations eliminate tariffs and quantitative trade restrictions between them. This means that goods move between the member countries without tariffs or quotas to restrict their movement. Free Trade Areas include the North American Free Trade Agreement (NAFTA) and the European Free Trade Agreement (EFTA).

Customs Union - This is where member nationas both eliminate trade barriers between them and implement a common external tariff scheme. The problem with a Free Trade Area is that if members have different tariffs for goods coming from outside of the FTA then all goods will come through the member who has the lowest tariff. For instance, if France imposes a 5% tariff on VCR's, Germany 10% and Belgium 12%, all VCR's will come through France as it has the lowest tariff . In a Customs Union, all countries would impose the same tariff on VCR's. (This is how the EEC started out under the Treaty of Rome in 1957)

Common Market - This is a Customs Union which also includes free movement of goods and labor between member countries. (This is what EC 92 constituted)

Economic Union - This is a Common Market plus unification of fiscal, monetary and socioeconomic policies. (This is where the European Union

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r. Also price will help determine what distribution channels are appropriate. If is a low priced product then keeping costs low will be a priority. Capital required and costs which must be covered. Customers - where do your customers expect to find this product? Also, through what channels do you expect to find your customer. Are you providing adequate market coverage. Competition - where are your competitors selling and what channels of distribution have been closed to you through the use of exclusive agreements. Service - How much service will be required with this product and what kind of inventory of spare parts will have to be maintained. Flexibility is an issue either in response to a change in the market or an unexpected problem such as a natural disaster or a strike. Compatibility between the company and the distribution channel members - do you have compatible strategies and philosophies. Distances between the company and the channel members: Geographic, social, cultural, technological and temporal. What aspects of the Single Market will affect distribution: Open borders and free movement of goods will: Lower transportation costs Facilitate centralized distribution Encourage consolidation among reta
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Some common words found in the essay are:
Assessment Shopping, Distribution Considerations, Packaging Size, Issues Promotion, Activities Primary, Canada Remember, Toyne Walters, Data Solutions, European Union, Germany Germans, target market, marketing mix, product service, single market, elements marketing, elements marketing mix, national market, market share, free trade, market product, domestic consumption, economic performance elements, specifically entity using, tertiary service activities, entity using secondary,
Approximate Word count = 4723
Approximate Pages = 19 (250 words per page)

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