Harshana Shrestha - 19030980

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Module Code & Module Title

MN5005NI Transnational Business Management


Assessment Weightage & Type
30% Individual Coursework

Year and Semester


2019 - 20 Autumn

Student Name: Harshana Shrestha

London Met ID: 19030980

College ID: np01ba4a190013@islingtoncollege.edu.np

Assignment Due Date: 18th April 2021

Assignment Submission Date: 18th April 2021

Word Count (Where Required): 1038

I confirm that I understand my coursework needs to be submitted online via Google Classroom under the relevant
module page before the deadline in order for my assignment to be accepted and marked. I am fully aware that late
submissions will be treated as non-submission and a marks of zero will be awarded.
Table of Contents
 Facts....................................................................................................................................................3
 Issues...................................................................................................................................................3
 Rules...................................................................................................................................................4
 Article 28........................................................................................................................................4
 Article 30........................................................................................................................................4
 Article 34........................................................................................................................................4
 Article 36.........................................................................................................................................4
 Application.........................................................................................................................................5
 Article 28........................................................................................................................................5
 Article 30.........................................................................................................................................5
 Article 34........................................................................................................................................5
 Article 36........................................................................................................................................6
 Conclusion..........................................................................................................................................6
Bibliography................................................................................................................................................7
1. Analyse the relevant law and advise PharmaS whether European law will enable them to
import their goods into the French market and compete effectively with the French
producers.

To start, we'll state some facts from the case study and then analyze them before applying the
IRAC rule to help us conclude the case.

 Facts
 PharmaS headquarter is located in Potok.
 In this situation, PharmaS, a Croatian pharmaceutical company, is associated.
 Country France, imposed a ban on the importation of all liquid drugs and raised the tax on
inhalers, which harmed PharmaS.
 PharmaS employees have been experimenting with vaccines, putting their own health at risk.
 Trials are used for the majority of their studies, and medicines are manufactured, which are
then shipped and sold in most EU countries, with France being the most important market.

 Issues

 PharmaS is considering forming a joint venture with Bayer Limited, a German


pharmaceutical firm, to close the gap between inefficiencies in testing and experimenting, as
it has become more difficult to manufacture and distribute medicines and treatment.
 Following a recent case of leakage of cough syrups that resulted in ten people contracting a
non-life threatening illness, France, Pharma's primary market, has barred the manufacture of
all liquid medicines.
 As more of a result of Brexit, the company could face a labor shortage.
 Articles 26, 28, 30, 34, and 37 (1) of the EU Competition Law all have elements that apply to
the problems.
 Rules

 Article 28
 The Union shall comprise a customs which shall cover all trade in goods and which shall
involve the prohibition between Member States of customs duties on imports and exports and
of all charges having equivalent effect, and the adoption of a common customs tariff in their
relations with third countries.
 The provisions of Article 30 and Chapter 3 of this Title shall apply to products originating in
Member States and to products coming from third countries which are in free circulation in
Member States [ CITATION Eur12 \l 1033 ].

 Article 30
 Customs duties on imports and exports and charges having equivalent effect shall be
prohibited between Member States. This prohibition shall also apply to customs duties of a
fiscal nature [ CITATION Eur12 \l 1033 ].

 Article 34
 Quantitative restrictions on imports and all measures having equivalent effect shall be
prohibited between Member States [ CITATION Eur12 \l 1033 ].

 Article 36
 The provisions of Article 34 and 35 shall not preclude prohibitions or restrictions on imports,
exports or goods in transit justified on grounds of public morality, public policy or public
security; the protection of health and life of humans, animals or plants; the protection of
national treasures possessing artistic, historic or archaeological value; or the protection of
industrial and commercial property. Such prohibitions or restrictions shall not, however,
constitute a means of arbitrary discrimination or a disguised restriction on trade between
Member States [ CITATION Eur12 \l 1033 ].
 Application

 Article 28
Article 28 of the Treaty on the Functioning of the European Union underpins the free
development of merchandise inside the EU by making a traditional union. In arranging to
compete with French makers, PharmaS holds the plausibility of bringing its products to the
French market.

 Article 30
The European Union Working Arrangement contains rules that ensure the free development
of EU member states' merchandise. As a result, in accordance with Article 30 of the Treaty,
which guarantees the free development of the member states products, PharmaS will be able
to easily send its goods to France, as their right to free development is recognized by EU
Law. Article 30 states that the union should cover all product exchanges when one country
prohibits the sending out or consequences of merchandise from another country due to
excessive traditions and charges. The European Union has enacted laws to prevent nations
from imposing higher fees that impede the dispatch of another EU- based company. As a
result, PharmaS can market their products in France and complete effectively with French
manufactures.

 Article 34
In addition, article 34 notices that there should not be any quantities, taxes and obstructions
forced on a European nation on the off chance that there is a part state of the European
Union. So this article guarantees that PharmaS can send their items without any legitimate
commitment, and that if the French government makes an issue for them, they have been
following the rules specified by EU Law. In spite of the fact that the French government has
forced 60% assessment on PharmaS inhalers without any clarification, they are unable to
carry out such exercises because they have not followed the law specified by the European
Union.
 Article 36
Beneath Article 36 it clearly notices that items can be prohibited from being brought in and
sent out defended on grounds of open ethical quality, open arrangement or open security; the
security of wellbeing and life of people, creatures or plants; the assurance of national
treasures having aesthetic, notable or archeological esteem; or the security of mechanical and
commercial property. It appears that PharmaS has not been conducting any such exercises
and can clearly trade their items with the French and compete viably with the French
markers. Indeed, if the French government attempts to hold or force a boycott on PharmaS
without any clarification at that point, they still should still follow European law and allow
PharmaS to trade their items to the French advertise.

 Conclusion

Hence, ready to conclude that PharmaS can doubtlessly send its items to the French
showcase and can, moreover, compete viably with the French makers without any questions.
The EU law completely underpins the development of the products of the states. All the rules
and directions specified in Article 28, 30, 34 and 36 are being taken after by the staff of the
company PharmaS, so, they should not be confronted with any kind of lawful commitments
whereas trading their products to France. The European Commission secures all the rights
with respect to the development of merchandise, force of additional duties or boycott on
sending out items. Thus, the company PharmaS will not be influenced in the event that they
confront any kind of legitimate issues whereas trading their items to France. As a result, the
company PharmaS can send its items to France without apprehension or concern, as EU law
ensures that they will not be confronted with any sort of legitimate obligation within the
outside country.
Bibliography
European Union. (2012, 2021 17). Cosolidated Version of the Treaty On The Functioning of the European
Union. Retrieved from Classroom: https://classroom.google.com/u/0/c/MTYzNzc1NTk5OTA2

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