European Union Law/Competition Law

Answer ONE question
1. ‘By codifying the rights of EU citizens in the ‘host’ state, Directive 2004/38 has empowered the free movement of workers within the EU. At the same time it limits the judicial expansion of those rights by the Court of Justice thus ultimately undermining the further expansion of those rights to the detriment of the EU citizen and to the advantage of the host Member State.’
Discuss the validity of the concerns raised in the above extract.
2. Critically evaluate the EU Commission’s and the Court of Justice’s interpretation of Article 102 of the Treaty, with particular reference to:
a) the ‘inter-changeability’ and the ‘SSNIP’ tests
b) what is meant by a ‘substantial’ part of the market
c) the development of the ‘essential facilities’ doctrine and why this doctrine is considered controversial.
3. In 2016, Mo and Noor, two Bangladeshi nationals, arrived on a flight from Bangladesh to London Heathrow. On arrival, they immediately applied for asylum and were housed in Hounslow detention centre until a decision was made. Whilst awaiting the outcome of their application, Noor gave birth to twin boys in September 2018. The twins acquired British nationality under UK (imaginary) law.
Last month, the couple were told that their application had been unsuccessful. They were served with an immediate deportation order via SMS text message. They are scared to return to Bangladesh as they fear they will be tortured as they were ‘deserters’ from the army who fled to the UK.
Meanwhile, Salman, a Pakistani national married to Katrina a Scottish/Irish dual national, has been told he must leave the couple’s home in Aberdeen in one month’s time as he over-stayed his original six-month tourist visa which expired a year ago. The couple have no children, are unemployed, live on state benefits and have previous convictions for peddling ‘soft drugs’. Katrina decides to invoke her EU rights by moving to Dublin so that Salman can join her there with a view to moving back to the UK as soon as possible with her husband.
Katrina’s brother Robert is enraged at his sister’s plight. He has dual UK/Russian nationality. He decides to leave the UK for good and make a new life in Germany as ‘life in the UK is unfair’. He is prevented from moving to Berlin as German law states that in relation to dual nationals your place of birth determine your nationality. Robert was born in Moscow.
Advise Mo, Noor, Salman, Katrina and Robert as to their respective rights under EU law as a result of the above (imaginary) laws/events.
4. Macrosoft is a manufacturer of computers and has a 27% share of the laptop market in the EU. It wishes to revise its dealings with distributors in Denmark, Estonia and Finland and seeks your advice on whether the following can be included in its existing arrangements with them. Macrosoft conducts all its correspondence with these firms via email.
Advise Macrosoft on whether the following complies with the relevant EU competition law rules:
(a) Macrosoft wants to ensure that each of its distributors has a guaranteed ‘sales territory’ by preventing them from selling to customers in the territory of any other Macrosoft distributor.
(b) Macrosoft wants its Danish distributor to stock only its own range of spare parts, its Estonian distributor to provide an after-sales service and demands that its Finnish distributor must only sell Macrosoft range of electrical products.
(c) Macrosoft wants all three distributors to adhere to its recommended price list for each individual territory and to increase prices by 10% every three months.
If you advise Macrosoft that any of the above breaches Article 101 and your advice is ignored, explain the possible penalties Macrosoft may be faced with. Is there any possibility that Macrosoft may be able to escape liability under the EU competition law rules?
5. “Financial and non-financial charges and all other measures having equivalent effect to customs duties and quantitative restrictions on the free movement of goods within the EU are outlawed by the EU Treaty.”
Explain how the above is achieved and whether there are any circumstances where exceptions can be legitimately made.
END
NOTE: Answer question 1, or 2, or 5…
This is 3000 words Essay…


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Strategic Financial Management (AF4S31-V2) -Capital Investment Appraisal Report for AYR Co.

Assignment AYR Co. is considering two separate projects known as ‘Aspire’ and ‘Wolf’ which are quite different but each of which has the potential to increase AYR Co.’s market share. To date $120,000 has been spent on market research into the increase in demand that can be expected for each project. The next stage is to conduct a financial appraisal to determine which project should be taken forward as AYR Co. can only afford to fund one project at this time.
Project Aspire:
This project will require the acquisition of plant and machinery costing $2,250,000 which is payable immediately. This machinery will have a scrap value of $375,000 at the end of the 5 years. There is also $140,000 working capital to be used immediately. This amount has been taken from the company’s retained profits and will be repaid at the end of the project. Cash inflows are expected to be $650,000 in year 1 rising at a rate of 7.5% per annum for years 2 to 5 inclusive. Variable costs in year 1 are expected to be $27,000 per annum and are expected to rise at 6.75% per annum. Capital allowances are available on the plant and machinery as follows: $ Year 1 Year 2 Year 3 Year 4 Year 5 600,000 390,000 345,000 300,000 240,000 This project will expand the current product range and will appeal to existing and potential customers. Project Wolf: This project will require an immediate outlay of $2,250,000. This expenditure will not attract capital allowances. Annual cash inflows of $955,000 are expected to be constant for the life of the project. Material costs are expected to be $14,400 in the first year, rising at an annual inflation rate of 7.5% per annum. Other expenses are expected to be $18,000 in year 1 and these are expected to fall by 7.5% per annum over the life of the project. To undertake Project Wolf, factory space which is currently generating rental income will need to be used for the project. The rental income, which would not have been expected to change over the five-year period, is $75,000 per annum. This project will take the company in a new direction appealing to a different type of customer. Additional financial information:

  • Corporation tax is paid at a rate of 20% and tax is payable one year in arrears.
  • The weighted average cost of capital is 10% and, unless otherwise stated, cash flows occur at the end of the year to which they relate.
  • A straight line method of depreciation at a rate of 20% is applied to all noncurrent assets. The initial investment of $2.250m, for whichever project is chosen, is significant in terms of value for AYR Co.

The board of directors is considering ways to finance the investment, and will choose between, increasing equity by issuing new ordinary shares, or taking on new debt in the form of a bank loan at a fixed rate of interest. AYR Co. is currently financed as follows:
Capital Employed $million Equity holder funds 20 Long term debt 18 Total 38 Required: Prepare a report to the Directors of AYR Co. which includes the following.

  1. A calculation of the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period for projects Aspire and Wolf. Detailed calculations should be included as an appendix to the report. All cash flows should be rounded to the nearest $. 30%
  2. Analysis and evaluation of the investment project options as follows: i. A recommendation regarding which project (if any) to undertake; ii. Justifications for your recommendation including an evaluation of the investment appraisal techniques used in task 1 above. iii. A summary of other factors that should be considered and information that may be needed prior to making a final decision. 30%
  3. A discussion of the two sources of finance being considered by the board of AYR Co. Your report should include:
  4. A description of Equity and Debt.
  5. An explanation of the costs of each source of finance.

iii. An analysis of the effect the selection of the source of finance may have on AYR Co.’s weighted average cost of capital.

  1. An assessment of the impact of the selection of finance on current and potential shareholders and lenders.

30% Marks are available for presentation of the report, which must not exceed 3,000 words. 10%


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Efficient Capital Market

The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market. Students will gain an understanding of the different levels of market efficiency and how behavioral finance can inhibit reaching market transparency.
Assignment Steps
Resources: Microsoft® Word
Explain in 525 words what it means to have efficient capital market, including:

    • Describe the behavioral challenges in achieving efficiency.
    • Discuss the three forms of market efficiency.
    • What are the implications to corporate finance?
  • Would you consider the real estate market an efficient capital market? Please explain why or why not.

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CLO Business Decision Making Project, Part 1

Identify a business problem or opportunity at a company where you work or with which you’re familiar. This will be a business problem that you use for the individual assignments in Weeks 3-5. It should be a problem/opportunity for which gathering and analyzing some type of data would help you understand the problem/opportunity better.
Identify a research variable within the problem/opportunity that could be measured with some type of data collection.
Consider methods for collecting a suitable sample of either qualitative or quantitative data for the variable.
Consider how you will know if the data collection method would be valid and reliable.
Develop a 1,050-word analysis to describe a company, problem, and variable.
Include the following in your submission:

  • Identify the name and description of the selected company,
  • Describe the problem at that company,
  • Identify one research variable from that problem,
  • Describe the methods you would use for collecting a suitable sample of either qualitative or quantitative data for the variable (Note: do not actually collect any data)
  • Analyze how you will know if the data collection method would generate valid and reliable data (Note: do not actually collect any data)

Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.


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