European BusinessIntroductionThis assignment has been divided into two parts, Part A and Part B. Part A of the assignment was asked of me to produce a report for Eurotown on the general business conditions that exist between the United Kingdom. and France, Germany and Italy.Part B of the assignment I was asked to write a report on one of the new countries joining the European Union on its economic profile, the impact of enlargement on UK business and the implications for the EU single market. .Part AAAs a local industry journalist, I feel I have invaluable information that I can offer to Eurotown on the general trading conditions that exist between the UK, France, Germany and Italy. When a business from the UK or any other country is considering whether to trade with another business from another country, there are many factors that also need to be considered. These factors are the balance of payments of their own country and outside the country with which they trade, the exchange rate of their own country in relation to the country with which they trade, interest rates between companies and countries and each person's current account. country. As we know, the countries we deal with are UK, France, Germany and Italy. As all four countries are part of the European Union, there is a free trade zone 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 other eleven countries of the European Union. However, if one of the four countries decided to operate with another country outside the European Union, for example the United States, then there would be international trade barriers. We must take into consideration the balance of payments of each of the four countries. . The balance of payments helps determine whether the country sells (exports) more abroad than it buys (imports) abroad (a surplus) or vice versa (a deficit). If the UK has a surplus this will tend to make the pound sterling more valuable relative to the euro so imports will become cheaper, for example a UK dealer selling German cars. A deficit will have the opposite effect. Basically, if a company wants to operate with another company in another country, it will have to look very carefully at the balance of payments..