What do the French, Italian and British economies tell us about the Essay

What do the French, Italian and British economies tell us about the extent to which there has been a convergence in the character of business systems across Europe - Essay Example The markets in Western Europe have been strong, active and stable for quite a long time.The countries in Central and Eastern Europe have to catch up. The introduction of Euros as common currency has already begun the gravitation process towards strengthening of the whole European market.The convergence in business systems across Europe has been the natural consequence of the European Union and its predecessors. There has never been a time in history when business convergence in Europe was as steadfast and purposeful as in the present. The factors responsible for this phenomenon are manifold. Some factors like the establishment of European Free Trade Association (EFTA) in 1959, followed by the European Economic Community (EEC) in 1961, and the current European Union (EU) are visible, and there are others such as the impact of globalization on Europe whose full impact have yet to be assessed holistically.Since the formation of the European Union, the European nations have diverted thei r resources and exports from the global market to the European market. Britain's example of trade shift from United States to the European Union is significant. Also, the effort to converge educational facilities in Europe is a welcome development. (European Convergence Reaches Higher Education).France, Italy and Britain are among the top and largest economies in the world. Over 50% of Britain's exports is now concentrated within EU. Also, in the cases of France and Italy, major business partners constitute the EU nations and USA. (Background Notes: France and Italy). In a broader context, the business systems the world over have converged significantly as a result of globalization and the effects of mergers and acquisitions. The markets in Western Europe have been strong, active and stable for quite a long time. However, the countries in Central and Eastern Europe have to catch up. The introduction of Euros as common currency has already begun the gravitation process towards strengthening of the whole European market. (Claire Smith). 3. Why Convergence The economies of Europe are laden with the twin responsibilities of addressing the needs of their own nation at home and also with their obligations to the EU. Agriculture, industry, economy, travel, methodologies, and every other aspect of the way things are done are traded within the EU as first preference. Moreover, innovation and advanced research are the key cornerstones. (President Chirac's wide-ranging interview). However, the industry has shifted focus on value more than competition in order to survive. Large corporations that were once avowed rivals merge or acquire the other. Behemoths like Corus were taken over by outside players like the Tatas of India. They read the clear message on the wall. Deliver or disappear! The market of the day is highly oriented towards value and innovations. The consumer has become extremely aware of the innovative nature of some industries like telecommunications and has high expectations. The telecom and information industries have done their bit by introducing new devices and schemes every now and then further whetting the consumer's