A sui generis system: An in depth analysis of European Union governance and political innovation and its effect on business
Date
2009
Authors
Spicer, Mike
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Publisher
Bachelor of Commerce Best Business Research Papers
Abstract
The formation of the European Union (EU) just over 50 years ago signalled the beginning of a new era for European businesses. The eventual removal of trade barriers and increased co-operation between members along with the more recent eastern expansion has led to a more interdependent system where some firms are struggling to sustain their competitive advantage. This paper attempts to clarify the EU’s unique blend of capitalism, governance and corporate lobbying as an example of Europe’s history of political innovation. Secondarily it investigates the effects these factors have on business within the EU, with emphasis placed on the Dutch business environment. Indeed, the EU is a constantly evolving political structure that highlights the increased pressures of globalization and economic interdependence. Furthermore, the greater liberalization associated with the EU has encouraged the Netherlands to pursue a strategy of more strict market capitalism, a departure from its social welfare roots. The establishment of multi-issue politics participation in multiple trade associations and interest groups, as well as more informal networks, has become a source of competitive advantage for Dutch firms. Due to their ability to maintain high positions within these associations and create a standardization of group actions, firms can influence the outcome of the EU’s decision-making process. Although the EU has brought about many changes within the structure of its members’ business systems, it is also reflective of the trend of globalization. This paper illustrates the interdependence and interaction between firms and political institutions within the European Union.
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Citation
Spicer, M. (2009). A sui generis system: An in depth analysis of European Union governance and political innovation and its effect on business. Bachelor of Commerce Best Business Research Papers, 2, 43–49.