Notes on EU Business
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CHAPTER 6 EUROPEAN INDUSTRIAL POLICY
In short, the concept of an integrated industrial policy means that it encompasses a full range of EU policies such as competition, trade, innovation or energy since they all have an impact on the competitiveness of industry. (creation of a sustainable competitive economy)
The competitiveness of an economy refers to the ability of its companies to compete in the international market.
Promoting the creation and growth of small and medium-sized enterprises has to be at the core of EU industrial policy.
The changing nature of European industry
Industry is changing as Europe relies for an increased proportion of its wealth upon services and less on manufacturing;
Since the 1970s he contribution of manufacturing to total EU output has declined, while the contribution of services has increased.
The richer states will have to rely upon the service sector and knowledge-based or capital-intensive industries to sustain and enhance their position within the global economy.
Many sectors (textile, food processing a retailing) have increased technological capability. – this has led to a change in labour demand in favour of higher skilled employees.
The competitiveness of EU business depends upon human capital and investment in employee capability.
EU has low productivity growth in such sectors (electronics, office machinery ) because of such problems: - difficult to access private research finance for RTD in Europe, a culture that is too risk averse, insufficient collaboration between public research bodies and the private sector; lower proportion of researchers in the population.
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