The citizens of the member states can move and work freely within the member states. Free movement will enable the firm to employ the best skilled staff from any member state. A multinational firm has an easier access to expertise than a domestic firm. The expertise acquired from the firm in the European Union will then train the local staff on best practices and new ways of doing business. The firm will have the opportunity of learning the new methods of developing the resources that we already have. New expertise will also help the firm to compete other firms both in the United States and the Europe. The members use Euro as a single currency. The firm will, therefore, not incur costs associated with conversion of the currencies. The common currency will also help the firm to compare the prices in the market easily and implement its pricing strategies efficiently. The firm will also cut costs because we will be able to find the cheapest raw materials easily (Pabst, 2017). It ensures price transparency in the market and other firms cannot use under-cut methods to gain advantage over other firms in the market. Common currency also increases inward investments in the European Union which makes it easy to find other firms who can provide support services to our firm. Other advantages of the EU is a clear legislation, easy access to external funding and protection to the creditors and the shareholders. The people within the European Union can move freely within the member states. All the persons, both natural and artificial, have the same jurisdiction within the member states. This means that the firm can easily expand to other states within the EU. Acquiring the company in the European Union will give us the opportunity to open other branches within the member states. Moreover, the company can also invest in other activities and products using the same company name. The European Union provides an environment which makes it easy for the other firms to flock the market. Having common currency and free trade zone encourages firms to invest in the union. This investment ensures that almost every opportunity has been taken and the firms operate under steep competition. Firms which fail to strategize enough can easily be competed out of the market. The countries within the European Union use different languages. Using different languages makes it difficult to communicate effectively within the EU. It also makes it difficult in coding and labelling of machines of the company. The firm’s multinational meeting can also be affected by different languages used by its staff members. The people with the European Union enjoy a free trade zone. The free trade zone makes it easy for people to steal ideas, inventions, new processes and patents. The firms find themselves competing with domestic knock-offs which are low priced. The firms should find a way of protecting their intellectual property. Lack of common currency free trade outside the European Union makes other firms to shy off from acquiring companies outside the European Union. This means that the competition outside the EU is reduced. A firm can therefore sell its goods at higher prices and can also have a large pool of customers because it might be the only one offering the services in the market outside the European Union. Some large economies like Japan and China can still offer a ready market with a common language unlike the European Union. China, for instant has a population which is twice that of the EU. Common language ensures an effective communication in the chain of command. Meetings and other business activities can be organized effectively with a common language. Lack of common currency makes firms outside the EU to incur extra cost of converting the currencies. Moreover, the prices in the markets are not transparent and firms can use under-cuts to compete other firms in the market. Lack of the common currency complicates doing business across the borders.
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