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Required Format for Case Analysis: A cover sheet is not required. Use size 12 font. The heading of the case should be Your Name, Course Name, Case I (or Case II or Case III). I will grade your referencing/citing, grammar, spelling and style. See the Rubric for Written Work at the bottom of the course syllabus. In addition, in mini-cases A, B and C you must answer all sections of the questions and use numbers and letters. The penalty for not using the answer-labeling format of 1, 2, 3, a, b, c (red lettering is not required) is an automatic 15% points reduction. The reason for this penalty is students often inadvertently bury their answers in a wordy array of sentences and paragraphs which makes it difficult for the instructor to grade the student’s deliverable. I do not want to go on a hunting expedition for your answers. Finally, when you tie your analysis to a concept in the text or to a current world event (either strongly encouraged), you must underline your statements or make them bold. That way I can find them. If you do not use an underline or a bold, I will deduct 5%. DO NOT USE AI TO WRITE THIS PAPER.
A. The European Union Sans Frontière?
An EU without borders? After accepting 10 new members in 2004, another two in 2007, and one more in 2013, the EU experienced severe integration problems, especially since the beginning of the global credit crisis in 2008 and the spillover European sovereign debt crisis of 2010 as well as with the United Kingdom exiting the EU in January 2021. Some EU taxpayers wonder if proper vetting was done before so many new members were admitted in haste. The massive bailout of the banking sector in Ireland and Portugal, followed by the painful restructuring of Greece’s sovereign debt and chronic fiscal deficit problems has exposed the limits to which well-off EU members are willing to rescue other EU countries. The total failure of the financial sector among “star economic performers” of the recent past—the United Kingdom, Ireland, and Spain—clearly exposed the weakness of the deregulated Anglo-American capitalism that was practiced by some “market-oriented open economies. Public demand for tighter, more effective regulation of the financial sector has resulted in the introduction of new banking legislation in the United States and Europe as taxpayers in the west were fed up with a “so-called capitalist system” that privatizes profits and socializes risk.
The scenario asks many questions:
(a) whether the EU has moved eastward too fast and too soon;
(b) whether EU has resorted to “à la carte” membership that is straining the management of the union;
(c) whether new members should be admitted any time soon; and
(d) whether there ought to be a demarcation—referring to countries such as Turkey, Georgia, and Ukraine—beyond which the EU will not cross.
EU critics argue that just as the Soviets aggressively and forcefully took over neighboring states to keep communism safe, the EU is accepting new members to its fold—all the way to Russia’s borders—to keep Europe safe for democracy. In this process, several countries have been (and are) in the course of being accepted into the EU without adequate vetting. The Russians are concerned because many EU members are also members of NATO (the North Atlantic Treaty Organization), which has a policy stating that an attack on any one NATO member is an attack on all its members; therefore, a military incident would require a coordinated military response. Russia is watching the proposed EU and NATO memberships of Georgia and Ukraine very closely because of this. While Russia may not be very concerned about Georgia and Ukraine joining the EU, their membership in NATO will not be acceptable. Russia’s annexation of Crimea and incursion into Russian-speaking eastern Ukraine in 2014 clearly shows that Russia’s patience has been tested. It may be in Russia’s interest to destabilize Georgia and Ukraine if they ever decide to join NATO.
Although the EU has some exemplary value-based goals that all member countries must follow (the so-called Copenhagen criteria of adherence to democracy, rule of law, rights of minorities, etc.), critics argue that member countries appear to be “cherry picking” aspects of EU goals they would like to follow. Hence, the EU essentially practices differentiated regional integration. For example, Denmark has chosen to opt out of the euro after meeting euro-entry requirements. The Schengen open-border area (which dictates that once a person enters an EU country legally, that person can cross into other EU member states without other country’s visas) extends to nonmembers, such as Iceland, Norway, and Switzerland; while EU members such as Ireland remain outside of this agreement. The Lisbon Treaty (2009) exempts Britain and Poland from the Charter of Fundamental Rights although they violated human rights by renditioning 9/11 terrorism suspects to third countries to extract confessions through torture. A lack of uniform enforcement of the rule of law within the EU will only weaken the EU as monitoring the various permutations and combinations of membership policies could turn into a Brussels nightmare.
Questions
1. Given the security concerns of both the EU and Russia, where should EU’s eastern border end?
2. a) Do you think the buffer states should become NATO members as well? b) Why or why not?
3. a) Should nonuniform policies in the EU (i.e., cherry picking EU policies that members may choose to follow) be tolerated or encouraged? b) Why or why not?
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B. Cultural Aspects of Exporting to Ecuador
After graduation, you have been employed by a large consulting firm that specializes in advising U.S. clients on exporting to various overseas markets. Your firm has specialized in European and Asian markets, but now sees opportunities for advising clients about the Latin American market. You and seven of your colleagues have each been assigned a specific country in Latin America. Yours is Ecuador.
You start your research by obtaining some basic facts about the country. Its name is Spanish for “Equator,” obviously derived from the fact that it is located on the equator. Its capital, Quito, is 9,300 feet above sea level; it has fairly constant year-around temperatures of 75 degrees (high) and 55 degrees (low).
Ecuador’s population is about 17 million. Sixty-six percent live in urban areas. Spanish is the official language, and 95 percent of its people are Catholics. Its land mass is about 109,000 square miles.
Major industries in Ecuador include oil, food processing, textiles, wood products, and chemicals. Its chief crops are bananas, coffee, cocoa, rice, potatoes, manioc, plantains, and sugar cane. Its GDP was $158 billion in 2013, with a per capita GDP of $11,000. Its currency is the U.S. dollar. Twenty-eight percent of its imports come from the United States; 37 percent of its exports go to that nation.
Your boss wants you to develop a cultural map of Ecuador so that your firm can include this in its prospectus to potential clients. You begin by noting that its official language is Spanish and 95 percent of its people are practicing Catholics.
Questions
1. What sources about Ecuador should you consult to obtain cultural information about this country that will need to be included in your cultural map?
2. What other aspects of Ecuadorian culture, other than its predominant religion and language, might affect that country’s culture?
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