There are many issues that U.S. multinational corporations are facing throughout Europe and the world. There are many political and economic changes going on in Europe which United States multinational corporations must follow. Participation in international business has become a necessity for companies so companies need to realize these changes so they can be ethical and prosperous.
The European Union is the largest emerging issues that United States multinational corporations is facing right now, and in the future. It is so important because it is reshaping the way that business is being conducted in Europe. The European Union is the institutional framework for a united Europe. Under the European Union all the countries involved will share common institutions and policies, which will bring peace and prosperity to Western Europe. The European Union was created after World War II to prevent any more wars between the European countries. There are fifteen countries participating in the European Union which are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain, Sweden, and the United Kingdom. The European Union brought together a market of 370 million consumers, which share common institutions and policies. The European Union made Europe one of the world's trading powers. The European Union has also created a single market that took effect in 1993, and established a free trading environment between these countries, so there are no longer tariffs between each country. United States companies wishing to export goods throughout the Europe will now only have to worry about complying with one product standard in order to distribute with all of the fifteen European Union countries. United States businesses operating in Europe should grow because it is now easier to reach more markets within the Union. The budget for the European Union was comprised from a Value Added Tax collected by each member state. So, United States multinational corporations located in the European Union countries have helped, and will continue to help fund the budget for this project. The Treaty of Amsterdam is the latest treaty that was passed under the European Union. This policy set the policies and guidelines for people who are going to be living under the European Union. The treaty sets the rights for the peoples freedom, security, and justice. Under new laws actions can be taken on companies who breach citizens personal rights. An example of this was the regulations set on the Internet to make sure peoples personal data is not given away. There are also new laws on the protection of the environment which companies must follow or they are subject to be brought up by the European Union Commission. Many other new policies are coming into play from the passage of this treaty. United States companies need to make sure they implement these laws so no actions can be taken against them.
One other aspect of the European Union which will takes place in the future is the establishment of a single currency called the Euro. Right now only eleven of the fifteen countries are going to participate in the establishment of the Euro. On January 1, 1999 the Euro concept is going to be introduced into the banking system. Next, wholesale financial and capitol markets are going to switch to the Euro. Then, public administration is next in line to switch to the Euro to help its progression. All of the first steps are going to use electronic Euro money, no actual paper or coin currency. On January 1, 2002 actual currency is going to be implemented into the system. There are plans to produce 12 billion Euro notes, and 50 billion Euro coins. United Stated multinational corporations are going to have to work on the adoption of the Euro into their transactions along with the rest of Europe to ensure there are no problems between the two countries.
The European Union is going to have a large effect on United States multinational corporations, and may open the door for new issues which United States corporations need to be careful of. As stated before the Union is going to make it easier for the United States to export goods to countries within the European Union. United States multinational corporations operating within the European Union will