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international trade
. Such trade is governed by an 
extra layer of legislation contained in treaties and agreements and is potentially subject to a 
higher level 
of political risk
. This may be manifested in a variety of ways, such as taxation law, labour regulation and 
economic policy on such matters as ownership. At worst, there is a threat of expropriation or 
nationalisation. Failure to repress lawlessness and corruption are further complicating factors, as is open 
or covert refusal to consider international bidders for government contracts. 
2.6 The European Union 
The European Union operates a 
single European market
, allowing for the 
free movement
of labour, 
goods and services, and 
free competition
. 
The EU single market programme has involved areas as diverse as 
harmonising technical standards
, 
opening up areas such as telecommunications to competition, consumer protection, mutual recognition 
of professional qualifications, and so on.
2.7 International trade liberalisation: the World Trade Organisation (WTO)
The 
World Trade Organisation
was set up to promote free trade and resolve disputes between trading 
partners. 
The theory of 
comparative advantage 
suggests that 
free trade 
is the best way to promote global 
economic growth and, by implication, domestic prosperity. In other words, people should be free to buy 
and sell goods and services anywhere in the world.
 
3
Employment protection 
Much legislation has been aimed at the idea of 'employment protection'. As a result, all forms of 
termination of employment
must be treated with great care. 
3.1 Retirement 
In the UK, many employees are taking