Trading Places: Europe 1992

By Hallmark, William | Journal of Property Management, January-February 1990 | Go to article overview

Trading Places: Europe 1992


Hallmark, William, Journal of Property Management


Trading Places: Europe 1992 By the end of 1992, 12 diverse European countries will unite as one economic power--the European community (EC). The result will be a market that provides both opportunities and challenges to member countries and their trading partners. Those who plan strategically now may find success in this new, integrated market.

The European Community's move to a single market in 1992 is affecting global corporate growth at an accelerating pace. Corporate restructuring, mergers and acquisitions, joint ventures, and other alliances are creating changes in the corporate landscapes of Europe and the United States. In 1988 alone, there were 500 mergers and acquisitions within Europe. The value of intra-European deals soared to $81.5 billion, up from $11.1 billion in 1985.

Over 2,000 European alliances have been made by U.S. corporations in the 1980s. While European companies spent $38 billion last year to acquire American companies, Americans dole out just $8 billion to purchase European operations. The EC economy is strong. The gross national product rose 3.7 percent last year, a 13-year high. This strength is creating 1.5 million jobs a year, the most since the 1960s, according to EC economists.

As the 1990s approach, it is apparent that the velocity and magnitude of change is increasing dramatically at home and abroad. Whiel the EC change to a single market greatly increases competition, it also creates opportunities for corporate growth and associated services.

Yet, a recent survey found that one-third of top executives from Fortune 500 service companies do not have much understanding of the implication of the single market in Europe for their company. Media coverage in the past year has greatly heightened awareness, but the significance of the single market event is so great that continued evaluation and discussion are merited.

What exactly is the European Community? What affect might its formation have on future business opportunities? What countries lead in the expansion? What should American businesses be doing to prepare?

Framework for unity

The European Community is an institutional framework for the formation of a United States of Europe. When it is fully implemented, it will be the world's largest trading body and economic power, uniting more than 323 million citizens in 12 member nations: France, West GermanyM United Kingdom, Italy, Spain, Portugal, Denmark, Ireland, Belgium, Luxembourg, Netherlands, and Greece.

The EC has a centrally elected and appointed government based in Brussels, Belgium. According to EC President Jacques, DeLors, 80 percent of member nations' political and economic decisions will be made by this government within 10 years. The EC also has a national flag and an anthem, Beethoven's "Ode to Joy." A common currency, the Ecu, and a European central bank are anticipated. The first phase of monetary union has already been approved by the 12 EC members and is to begin July 1, 1990. It calls for closer coordination of economic and monetary policy.

Physical, technical, and fiscal barriers are falling as members prepare for unification. Obstacles that are being overcome include varying immigration controls and product standards, conflicting business laws, and differing value-added tax (VAT) rates and excise duties.

Though some member nations are anxious over losing political and economic sovereignty to the EC's centralized government, the general consensus is that the momentum is too strong to stop now.

Emerging opportunities in the EC

A recent survey by a major accounting firm of 10,000 U.S. executives was conducted to assess corporate attitudes about the formation of the EC single market. Of 872 senior executive respondents, 41 percent expected a negative impact on U.S. business because of greater global competition. Some feared that corporate resources earmarked for expansion in the U. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Trading Places: Europe 1992
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.