Internet Exercises


1			Fortress Europe? It seems to be the case in the European Union (EU) at the present time. Protectionism is in vogue, and shows no signs of going out of fashion. Nationalist sentiment is high, and there is a distinct effort to keep foreign competition out, and keep national companies in the hands of the locals. Concerns about the growing protectionism are quickly shot down by references to the looming recession and the need to keep people employed rather than seeking growth through the greater efficiency that comes with more competition. Some might argue that the EU is an example of economic integration gone bad. Discuss the economic and political arguments against regional economic integration. How do these arguments pertain to the current situation in the EU? Next go to the EU web site (http://europa.eu.int/index_en.htm) and examine the EU’s official perspective on protectionism. Then, discuss the effect of a single market and single currency on competition within the EU. It has been suggested that while the U.S. might normally be in a position to raise issue with the EU’s current actions, because of the Bush Administration’s agenda to protect both U.S. steel workers and U.S. farmers, any criticism by the U.S. would seem to be unreasonable. Do you agree with this notion? As CEO of a U.S. company that is being shut out of the EU, what action should you take? Source: "Putting Up Walls," Businessweek, 12/30/02, p.56.




2			Ask Europeans where Europe will be in 20 years and most will predict that Europe will be an economic and military rival for the U.S. Furthermore, most Americans agree with the prediction. By 2004, the European Union will include 25 countries for a total of some 450 million consumers. In fact, more than one-fifth of the world’s total economic activity will take place within the bloc. Interestingly, both Europeans and Americans believe that relations between the EU and the U.S. will not be negatively affected by a stronger EU. Consider the economic and political implications of a stronger EU (http://europa.eu.int/index_en.htm). How will a stronger EU affect both U.S. and Canadian U.S. businesses that operate within the bloc? What will be the effects of a stronger EU on a U.S. or Canadian company that exports to the EU? There has been some discussion of expanding the North American Free Trade Agreement (NAFTA). Go to NAFTA’s web site http://www.nafta-sec-alena.org and explore the bloc’s current position on future expansion. Would a bigger NAFTA change the relationship between the EU and the U.S.? Would your response be the same in 20 years? Why or why not? Source: "Europe’s Great Expectations," The Wall Street Journal, 1/24/03, p. A10.

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