Changes in the Global Economy
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The European union consists of 15 countries, which were Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom. They were then joined by another 10 countries, which were, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.
The European Union is trading blocks were countries can trade between each other without extra costs.
I have chosen to show the advantages and disadvantages of WH Smiths expanding into Europe.
An Advantage of going into the Europe is a huge market of nearly 400 million people so WH Smith will be able to sell their goods without restrictions.
An advantage of expanding would be that they have a free trading policy. This would allow all European countries to trade between each other with no extra costs. This also makes companies have no barriers on Capital, Goods, Service and People.
A advantage for expanding into Europe is that there is a to a great extent a bigger market, as buying materials and things needed by WH Smiths is a lot cheaper in Europe, so WH Smiths would make more profit. This is due to more materials available so the more there is the more likely you are to get it for cheaper.
Also if WH Smith were to expand into Europe they could gain global market share.
Another advantage would be employment only to countries that have recently joined the EU. This is because WH Smiths could gain cheaper employees, which would give them less money going out.
WH Smiths can take advantage of exploiting different growth rates in different countries as some countries have periods of economic growth.
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