There have been many debates around the topic of enlargement as it relates to the European Union (EU) due to political factors, institutional, cultural and economic which are involved. This essay examines how businesses in EU-15 countries have been able to exploit the growing number of consumers, the possibility of offshoring to reduce production and labor costs, and cross-border supply chains. Emphasis will also be placed on the impact of liberalization, labor migration and the integration of goods, services and capital markets on businesses. In recent years, the enlargement of the European Union has become a hotly debated topic. Much of the discussion focused on new business opportunities that could arise in the new EU member states for companies from “old” EU member states. It was believed that enlargement would result in an improved economic environment for businesses. This is because by removing barriers to the movement of goods, capital, services and labor, new market opportunities could emerge for businesses. In 1999, mergers and acquisitions involving international groups totaled $16.86 billion, almost double the 1998 figure (Wagstyl 2000). It is no wonder that it is now much more difficult to distinguish between CEE and EU countries based on their regional trade structure. The change in the geographical composition of trade towards the EU has been rapid and considerable (EBRD 1999). Estonia's share of exports to the EU is not as high as that of Hungary and Greece, and the Czech Republic provides a share equivalent to that of France in its imports from the EU (Fidrmuc, Wörgötter and Wörz 1999). In terms of depth of economic integration, through...... middle of paper ......direct control of foreign interests, absolute and comparative advantages and sometimes strength of links with major foreign markets . The problem of geographic and economic distance is not easy to solve. There must be cross-border trade in goods and services and this could be done with little direct overseas involvement. Companies may also be able to systematically exploit local markets abroad by establishing branches in the given country. There is also the option of investing in an existing business abroad, which minimizes the risk involved. Ideally, investor motivations will largely match the requirements of the target countries or companies, with the latter's interests focused on expanding production capacity, improving productivity growth, benefiting from employment opportunities and access to technological know-how (A. Breitenfellner, 2008).