"Case studies YEARCase Studies. Written by:Submitted to:Date of submission:1 Case studies YEARTable of ContentsCase 1: ........................................................................................................................................................... 3Answer 1: .................................................................................................................................................. 3Answer 2: .................................................................................................................................................. 4Answer 3: .................................................................................................................................................. 6Answer 4: .................................................................................................................................................. 7Case 2: ........................................................................................................................................................... 8Answer 1: .................................................................................................................................................. 8Answer 2: .................................................................................................................................................. 9Answer 3: ................................................................................................................................................ 10Answer 4: ................................................................................................................................................ 11Answer 5: ................................................................................................................................................ 121. Factor conditions: ........................................................................................................................... 122. Government: ................................................................................................................................... 123. Demand conditions: ........................................................................................................................ 134. Firm strategy, structure and rivalry: ............................................................................................... 135. Supporting industry: ....................................................................................................................... 136. Chance: ............................................................................................................................................ 13Answer 6: ................................................................................................................................................ 14Bibliography ................................................................................................................................................ 16 2 Case studies YEARCase 1:Answer 1: Liberalization actually stands for the removal of the trade barriers by relaxation of the country'seconomic, political and social policies. The various economic benefits of liberalization to the EUenergy market can be identified as follows.1. The FDI or Foreign Direct Investment from one country to another is possible. This way thecountries in Europe with Capital Intensive features like Germany, Italy and France can investdirectly in the Labor Intensive country like Spain, Denmark and Portugal.2. The removal of trade barriers to the various European countries can help in increase in tradeties and the number of good traded can incline manifolds.3. The benefit of Economies of scale can be reaped. That is the extra income gained byincreasing volume of production leading to decline in cost can be obtained. That is by separatingthe production, supply and distribution of the energy the benefit of expertise in each field canhelp in gaining economies of scale. This way the energy can be produced at low costs.4. The Economic conditions of the countries through liberalization are possible. This way theGDP increases and along with the increase in trade leads to improving the economic conditionsof the countries involved.5. Rise in the employment opportunities in the countries supporting liberalization. Themovement of labor and foreign direct investment in various fields results in increasingemployment opportunities for the countrymen.3 Case studies YEAR6. Improved political and social relations between the countries involved in the business due toliberalization. The countries involved in the business break the ice of the old thoughts and cometogether to shape their future with improved trade ties.Thus all the European countries stand to gain from the liberalization. That is Germany, Franceand Italy will get the channels to use their capital to invest and gain profits from it. The laborintensive countries like Spain, Denmark and Portgual will get investment from abroad therebyincreasing employment opportunities. And finally the rest of the Europe would get the energy atlow cost and that too at regular level of supplies.Answer 2:The various implications of liberalization for energy producers in the European Union includethe followings.1. To improve the ability to of the energy producers to sell electricity and gas across nationalborders.2. To make efforts towards single European Union Energy market.3. To end the domination of single enterprise in a country over sale of energy.4. To obtain economies of scale and thereby benefit the end consumer with the cost effectiveadvantage.5. Splitting the generation, transmission and marketing of the energy as per the target to offerlow cost energy to the people.4 "