THE LIBERALISATION PROCESS HAS RADICALLY TRANSFORMED THE ENVIRONMENT IN WHICH EUROPEAN BUSINESS OPERATES. CRITICALLY EVALUATE THIS STATEMENT AND DISCUSS HOW BUSINESS IN ONE OR MORE SECTORS HAVE RESPONDED TO THESE CHANGES
I would like to start by saying what does liberalisation mean. If we have a look in a dictionary for instance Collins English Dictionary we can find the following:
The word liberal, derives from Latin "liber" (free), has several senses, in that particular case, when a country or government liberalizes its laws or its attitudes, it becomes less strict and allows people more freedom in their actions.
Some times several terms are used with the wrong meaning, for instance:
Liberalisation is not synonymous with deregulation. Rather, the nature of regulation evolves over term with the degree of liberalisation. Organisation and regulation of the network industries also reflect the extent to which non-economic objectives are pursued in the form of, for instance, obligations to provide services of general interest.
And privatisation is different from liberalisation and is related to the change of ownership from public authorities to private operators. (*). Liberalisation is generally accompanied by privatisation in network industries since the late 1980s.
So, what about market liberalisation?
Market liberalisation has changed the European business environment and it goes hand-in-hand with regulatory reforms, as the nature of regulation has to adapt over time to the new economic environment (globalisation, shifts in technology etc...) In a changing business environment, regulations that were appropriate in the past may no longer be so in the future. They may even prevent enterprises from competing successfully in the larger EU or world markets, causing a destruction of employment or productive capacity. Governments because the Market Liberalisation have a responsibility to keep regulations under continuous review and assess their appropriateness in the current...