European BusinessIntroductionThis assignment has been divided into two parts, Part A and Part B.Part A of the assignment I was asked to produce a report for Eurotown on the general trading conditions existing between the UK and France, Germany and Italy. Part B of the assignment I have been asked to write a report on one of the new countries joining the European Union regarding its economic profile, the impact of enlargement on UK businesses and the implications for the EU Single Market .Part AA As a local industry journalist, I feel I have valuable information to offer to Eurotown regarding the general trading conditions that exist between the UK, France, Germany and Italy.When a UK company or any other country, is thinking When exiting business with another company from another country, there are many factors to consider. These factors are the balance of payments of their country and the country they trade with, their country's exchange rate relative to the country they trade with, interest rates between companies and countries, and each person's current account. village. As we know, the countries we are dealing with are the United Kingdom, France, Germany and Italy. Since all four countries are part of the European Union, there is a free trade area for import and export between each of the four countries. A free trade zone exists when there are no restrictions on the movement of goods and services between the four countries. This also applies to the remaining eleven countries of the European Union. However, if one of the four countries decided to trade with another country outside the European Union, for example the United States, international trade barriers would be created. We must take into account the balance of payments of each of the four countries. . The balance of payments measures whether the country sells (exports) more abroad than it buys (imports) from abroad (a surplus) or vice versa (a deficit). If the UK has a surplus, this will tend to make the pound worth more against the euro, so that imports become cheaper, for example a British dealer of German cars. A deficit will have the opposite effect. Basically, if a company wants to operate with another company in a different country, it will have to look very carefully at the balance of payments.