This section examines the relationships between organisations and their external environment. Candidates should understand the opportunities and threats created by changes in the contemporary business environment. The importance of acquiring and managing information and of communicating effectively should be considered throughout. Specification section The Relationship between Businesses and the Political and Legal Environment Contents assessing the effects of: – government intervention in the economy – government economic policies – political decisions affecting trade and access to markets – the impact of legislation relating to businesses evaluating responses of businesses to a changing political and legal environment. AmplificationConsideration might be given to the provision of products by the government, government regulation and legislation and other forms of intervention such as tax and subsidy. Monetary, fiscal policy and supply side policies should also be considered. Political decisions should include issues such as: the enlargement of the European Union and moves towards greater freedom of trade. Legislation affecting businesses should include: employment law, consumer protection, environmental protection and health and safety legislation on businesses. A broad understanding of scope and impact is all that is required. BUSS 4: Assessing Changes in the Business Environment

What is the EU? The European Union is an economic and political union of 28 countries. It operates a single market which allows free movement of goods, capital, services and people between member states. Each of the countries within the Union are independent but they agree to trade under the agreements made between the nations. Rising European incomes and living standards, and the enlargement of the EU, offer huge opportunities for the UK to increase exports of goods and services. The UK has also attracted substantial inward investment from European businesses, which helps boost output and employment in the UK.

Better off in or out? IN OUT Research: What have Ford and/or Nissan said about the UK and their membership of the EU?

Businesses that have prospered or suffered in the EU….

Opportunity

Marks & Spencer plans to re-enter European markets Nearly a decade after Marks & Spencer shut up shop in mainlandEurope, the retailer is poised to return to the continent by buying back the stores it sold at the time. Britain's biggest clothing retailer is understood to have approached rivals in Spain and France about taking back some of its former shops. M&S is considering buying back some of the nine shops it sold to the Spanish department store chain El Corte Inglés nine years ago. The retailer also has its eyes on some of the 18 French outlets that were snapped up by retailer Galeries Lafayette. These include the store on Boulevard Haussman in Paris, its first ever European store which opened in Sir Stuart Rose, M&S's outgoing chairman, has made no secret of his desire to return to European retailing but a concrete plan to do so is likely to take the City by surprise. The bold move could be unveiled on 9 November when Marc Bolland, M&S's new chief executive, sets out his plans for the group after conducting a strategic review, alongside the group's half-year results. Recent sales figures were much better than expected and led analysts to ask whether this was "the start of a new era". In 2001, M&S closed or sold off its 38 stores across France, Germany, Spain, Belgium, Luxembourg, the Netherlands and Portugal after running into problems. The group's forays into the US, with the upmarket Brooks Brothers menswear chain and Kings Supermarkets, were sold at a loss in 2002 and 2006 respectively. M&S refused to comment last night. The shops traded well during the first two decades, but by 2000 the European division was making losses and the struggling retailer took an abrupt decision to close it down to focus on restoring its fortunes in the UK. It caused outrage in France and other countries as 3,350 M&S workers lost their jobs. The strength of the pound at the time, coupled with fierce competition from "upstart" clothing chains like H&M, contributed to the end of M&S's European dream. The retailer, which runs over 600 stores in the UK, returned to international expansion in 2008 when it opened its first store in China as part of a five-year plan to generate up to a fifth of sales overseas. Openings in India and Dubai followed, and the retailer now has more than 300 shops across 40 countries, although the majority are owned by franchise partners. Rose has repeatedly described the decision taken by his predecessor, Luc Vandevelde, to exit from Europe as a mistake. Last year, Clem Constantine, who is in charge of property and international, hinted that the retailer might soon be back in France and Germany, saying: "Western Europe is definitely worth a look at again." UK high street retailers' attempts to export their brands abroad have met with varying degrees of success. Among those to have tried to expand overseas and failed are Next, Dixons, J Sainsbury and Boots, while the jury is still out on Tesco's Fresh & Easy chain in US. Marks & SpencerEurope Sir Stuart RoseMarc Bollandsales figures were much better than expectedsold off its 38 stores across France, Germany, Spainreturned to international expansionretailer might soon be back in France and GermanyNextJ SainsburyTesco

Should we adopt the euro? Read through the article, make notes for and against and make a decision..article