Europe 1992: how will it affect international competition?

At the heart of the plans for the European Community (EC) in 1992 are some 285 directives whose central principle is "mutual recognition." This means standards in one nation will be accepted by other EC countries. Although almost 100 directives have been approved, the restrictions on the 1...

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Bibliographic Details
Published in:Financial executive (1987) 1989-09, Vol.5 (5), p.20
Main Author: Hexter, David R
Format: Magazinearticle
Language:English
Subjects:
Administrative support
Automobile industry
Competition
Competition (Economics)
Economic policy
Europe
Financial executives
GATT
Information systems
International trade
Management
Management information systems
Markets
Political risk
Single European market
Strategic planning
Teamwork
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Summary:At the heart of the plans for the European Community (EC) in 1992 are some 285 directives whose central principle is "mutual recognition." This means standards in one nation will be accepted by other EC countries. Although almost 100 directives have been approved, the restrictions on the 1992 plan made by national political considerations cannot be underestimated. For example, deregulation of the automobile industry will likely have mixed results. While consumer preferences will not change, a larger standard market should benefit consumers. Competition should also improve banking services and public procurement. In contrast, the effect on international competition is less clear. The EC's enthusiasm toward open international competition has, on balance, decreased over the years - agriculture is a prime example. Mitigating this is the EC's policy for foreign merger and joint-venture activity within Europe. The risk remains, however, that after the EC lowers its internal barriers, it will redeploy them toward its international trading partners.
ISSN:0895-4186