How a firm can make an entry into EU economic zone Essay

How a firm can make an entry into EU economic zone - Essay Example According to the research, European Economic Area was established in 1994 in order to facilitate trade between different member countries and to outline a uniform framework for member countries to actually trade with each other without any significant barriers to entry. In order to make a successful entry into any new market, it is important that the international firms must take into consideration particular factors related to that economic zone. Each zone has its own unique characteristics in terms of its demographics, culture, economics, legal framework, political environment as well as other issues which can directly have an impact on the organization and the way it is going to operate in that region. EU shares a larger cultural heritage which is relatively similar across all countries with most of the countries speaking either German or French with English being dominating language in the UK only. The cultural similarity coupled with integrated economic zone has actually made it easier for international firms to actually make an entry into this region. However, due to the uniqueness of the culture, economic integration, geo-demographics as well as legal and social factors, new businesses can easily tap into the great potential offered by EU economic zone comprised of many countries of the region. Increasing economic burden on the countries like UK and Germany to actually pay off for the sovereign debt of countries like Ireland, Greece, Spain, and Italy making it difficult for these countries to actually normalize political pressure in their own home countries.