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The Best Protection Methods of the EU Market
Orientation toward high-tech industry and education - There are sectors where the EU cannot compare to the foreign importers. For example textile industry which main share is based on the unskilled labor force cannot compete with Asian producers, simply because the EU market does not have so much unskilled labor force as the Asian market (Pugel, T., Lindert, P. 2000). However, the EU is able to support sectors in which the comparative advantage or scientific start is higher as for example high-tech industry, chemistry or R&D programs and funds. Another great comparative advantage of the EU market is its education system and education capabilities. The EU market should orientate toward strong education which product - skilled labor force can be used in the high-tech industry. In other words the EU should have more successful Finland countries inside its community.
Decrease administration and quotas inside the EU - A huge administration apparatus is spending a lot of financial resources and bureaucracy is slowing down the amount of foreign trade. Also the quotas inside the EU are one of the factors that is slowing down some producers inside the EU market. Limits for sugar, milk or other products inside the EU do not permit some producers to fully exploit their comparative advantage, just because some business without perspective wants to be saved. If we finally reach a better allocation of business according to the availability of natural resources it would be not clever to use quotas for the producing sectors.
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