The European Union

The European Union (EU) is a supranational and intergovernmental alliance of 27 countries. It was founded in 1992 by the Maastricht Treaty. EU level 5 (As the economic and monetary union level) on continued public economic integration. Considered a whole, the European Union has the largest economy in the world; it has grown around 2.8% on the year so far this century. In 2006 it was estimated that 3.5 million jobs were created in the euro area.

multinationals

multinationals are considered stateless enforcement agencies globalization and lead to the emergence of a more comprehensive enterprise culture (which may take advantage of the EU). Multinational companies would rise above a particular nation and its culture. This would effectively make the national identity of the MNC useless, as they are considered stateless. When operating within Europe, it is believed Euro Company albeit origin. Multinational companies are considered inter organizational network that allows the transfer of knowledge and best practices across functional boundaries. It is expected that multinational companies, functional structures are transformed into network connections that are less centralized and not simply coordinated from headquarters. They are also said to initiate changes in the external environment (ie the market).

despite widespread criticism of multinational companies, they have made an unparalleled contribution to the development of Eastern Europe in the last 15 years. They have brought opportunities to the young, improving working conditions, saved communities from poverty, rehabilitated corrupt banking system and suggested modern telecommunications. Exports have driven economic growth; their presence has increased civil society. The effects have not always been positive, but their power and might, if effectively applied, can help overcome poverty elsewhere too.

The Eurozone

The Eurozone is a subset of EU Member States that have adopted the euro, creating a currency union. Monetary policy is controlled by the European Central Bank. The introduction of the single currency within a given area usually has economic benefits and economic costs. A single currency eliminates the ability to set prices between different economic areas through changes in the exchange rate. Previously, countries were able to set the price in order to negate any economic shock. However, the labor movement has been approved so people are able to move from different areas within the region is suffering from the economic recession to one that is desirable. Also, the single currency reduces transaction costs for the cost of buying and selling products there is no need to exchange currency. Multinational companies (euro or company for that matter, which is really a European multinational company), operating in a number of different currencies, would see a significant reduction in cost of revenue and general management costs would be reduced significantly. Foreign currency exchange risk and the cost of confusion these risks are also considered high cost of multinational corporations; this is out of the adoption of a common currency. Finally, the European Central Bank can focus on its primary objectives; control prices and to control inflation, the Central Bank has generally no political influence.