For wendy lewis | Business & Finance homework help
Advantages of Investing in the European Union:
-Access to a large, affluent consumer market.
-Favorable tax environment with many member countries offering incentives for foreign businesses.
-Highly educated workforce ready to work with multinational companies.
-Strong infrastructure and transportation networks across the continent, making it easy to move goods and services around quickly.
-Transparent financial markets and well established regulations which provide investors with protections from fraud or mismanagement.
Disadvantages of Investing in the European Union:
-Potential regulatory risk related to changing laws, rules and policies within the EU that may affect a business’s operations or profits.
-The Euro currency is volatile which can lead to exchange rate risk for investors doing business outside their home country.
-Competition from other foreign companies looking for opportunities on this large trading block as well as local businesses who may have an advantage due to their knowledge and experience of specific markets or cultures within Europe.