Romania entering the European Union (EU)

Question 1.
Romania entering the European Union (EU) offers opportunities for Renault Company. This is because the EU is a trading block and would allow the company to import parts from other EU countries at cheaper prices by taking advantage of the free trade agreement that is in place for the member countries. In essence, joining the EU implies that Romania has eliminated the trading barriers with other EU countries and is in a position to promote free trade. In addition, it allows the company to use the parts produced in its Romanian facilities as local content without paying any import duty on them even when they are transported to Renault production facilities in other EU countries. This is a particular concern with regards to the imports from Africa and Morocco since they have to pay high import duties that cut into their earnings and profitability. Besides that, it increases the investment opportunities for the Romanian production facilities. This is because they are brought to the attention of the greater EU investors, can now be listed in their stock exchange, and open up credit facilities at favorable conditions. Also, it allows the company to protect its intellectual property rights since the EU makes it a point to put the interests of its member states above all other interests. Additionally, Romania entering the EU opens access for Romania produced goods to a greater market size since the EU presents a significant export market. The increased competition from the…