The success of the European Union is defined by economic free trade, as well as the peace that it has brought to its members. The first and second world wars were the end result of centuries of conflicts between European powers. Starting in 1950, the The European Coal and Steel Community became the precursor to the European Union. The European Economic Community would be created in 1957. It would expand with the fall of fascist regimes in Spain and Portugal and the reunification of Germany (Gabel, 2020). In 1993 the European Union would officially begin to move towards its current incarnation. However, during its entire development the focus of the organization was to create a single economic community, with the underlying goal of fomenting peace through commerce. The European Union would aid in bringing countries like Spain and Portugal out of poverty after the fall of fascism. However, with the arrival of the greatest economic crisis since the Great Depression, the rise of a new concept would threaten the unified group, as well as commercial benefits it provides its members.  Euroscepticism is “criticism of, or reluctance towards, EU membership, as a reaction to the EU’s accession conditionality” (Baris Gulmez, 2013). The concept has been used in various nations as an excuse for wide ranging problems such as industrial town stagnation, lack of funding, and the economic crisis. 

The United Kingdom

Perhaps the most well known example of euroscepticism comes from a country that never really fully embraced the concept of the European Union or the European single market–the United Kingdom. Euroscepticism has been expressed by both the prominent left and right wing parties in the United Kingdom–Labour and Tory–at various points throughout history. Eventually a political party bent on bringing the United Kingdom  out of the EU would be created–UK Independence Party (Helm, 2016). Mounting pressure would eventually lead to a nationwide referendum to decide whether or not to leave the union.

The Brexit vote, as it came to be known, was plagued by misinformation about the European Union and possible benefits. One of the most famous claims by pro-Brexit campaigners was that the the National Health Service would take back 350 million GBP a week after leaving the EU (“The misinformation that was told about Brexit during and after the referendum, 2018). This, and many other claims would be proven false, but not before the country voted to leave. The vote has thrown the British economy into unstable territory. Two governments have tried to find a way to keep the benefits of the union–free trade primarily–while leaving any responsibilities behind. Now that the United Kingdom has left the European Union, its economic future with its biggest trading partner, the EU, is uncertain. This has hurt not just the United Kingdom, but the entire EU as well.

Italy

Italy was one of the hardest hit nations in Europe during the worldwide economic crisis in 2008. Italy was a country that had suffered from corruption and political stability for many years before the economic crisis (Di Quirico, 2010). The EU wide response to the crisis was austerity in public spending and support of financial institutions. This was what was done in Italy, but corruption meant that the support for financial institutions was inefficient. The stagnation of the economic recovery and the continued instability of the government eventually led to the rise of far right wing parties. These parties used the concept of European skepticism to their benefit, using the European Union as a scapegoat for Italy’s problems.

While Italy is susceptible to right wing populism, and the The League, eurosceptic party would enter the government in strong numbers in the 2010s, the country has not gone the way of the United Kingdom. In fact, The League’s bombastic populist leader Matteo Salvini changed his own position on leaving the single currency union. He came to power suggesting that Italy must leave the single currency. In 2019 Salvini stated that “I say this once and for all, and then I hope that no one inside and outside my party will raise this issue again. The League is not thinking about Italy’s exit from the euro or the European Union” (Amante, 2019).

While the case of Italy and the United Kingdom are just two examples of euroscepticism in Europe that turned out differently, they are not alone. Right wing populists are now consistently using euroscepticism to further their own power in countries such as Hungary, Poland, The Netherlands, among others. The danger of these parties is not simply to their followers. The seed of doubt these parties place within their public can grow into a full grown exit from the union in the same vein as the United Kingdom. The success of the European Union is based on cooperation, the single currency, and talent being able to move from one place to another in order to find work that suits their abilities. Should this disappear, so will the European Union.

 

References

Amante, A. (2019, October 14). Italy’s eurosceptic leader Salvini says euro is ‘irreversible’. Reuters. https://uk.reuters.com/article/uk-italy-politics-salvini-idUKKBN1WT1RA.

Di Quirico , R. (2010, March 19). Italy and the Global Economic Crisis. https://www.gla.ac.uk/media/Media_191024_smxx.pdf.

China, a country that counts itself among the oldest cultures on earth, has had a reintroduction to the world economy in the last 30-40 years. In 1979 China began what would be a slow move towards more free-market policies. “Since opening up to foreign trade and investment and implementing free-market reforms in 1979, China has been among the world’s fastest-growing economies” (“China’s Economic Rise: History, Trends, Challenges, and Implications for the United States.” 2019). In the last twenty years China has leap frogged other leading world economies to become a world economic powerhouse. This rapid expansion has meant that the heads of international brands have seen a great opportunity for a new and ever expanding customer base in the emerging Chinese middle class. However, doing business in China is quite different than in the United States. First, it is difficult to overlook the regulatory and state control of much of China’s economy. However, beyond the regulatory red tape, the collectivist Chinese culture may bump against the individualistic nature of Americans, and in particular American businessmen, and should be considered when expanding into China.

Western countries, and the United States as an extreme, emphasize an entrepreneurial individualistic culture which values the the goals, needs, and desires of the individual over the collective. Chinese culture is more collectivist and puts an emphasis on the good of society often above the gain of the individual. This can cause a chasm between Americans trying to do business or run a factory in China, and their Chinese counterparts. While Americans may be used to ambitious employees working to gain influence and ascend in a formal power structure, a Chinese workplace by contrast puts the focus not on individual power, but rather each member working towards the common goal. “Chinese companies operate with one big important person at the top and a whole bunch equally less important people just below. This makes sure that everyone is working toward a common goal and that no individual has too much power, except, of course, the CEO, who establishes the vision for the company” (Hill, 2018).

Another issue to consider for American businesses expanding into China is how to market to a Chinese consumer base. The collectivist spirit of the Chinese public means that the messaging of “individual gain” of products and services may not sound the same to a Chinese consumer as it would to an American consumer. “Chinese consumers may respond better to ads that place an emphasis on families or relationships, rather than those that put more stake in personal pride and autonomy” (Lee, 2015). This message does not sound completely foreign to American ears. Thus, it would not be difficult to adjust the image of marketing for a Chinese audience. The point is that it is important to consider these changes before introducing a product or brand to the Chinese market.

Another way that marketers in particular must adjust themselves to the Chinese market is in how they try to study it. Marketing professionals and leaders cannot simply take their same methods f measuring sentiment of consumers and use it for a Chinese market. “In Western cultures people tend to move toward the extremes, while in Asian cultures people tend to stay away from extremes—they see extremes as undesirable”(Lee, 2015).

The Chinese economy in the last two decades has offered a massive new opportunity for businesses around the world to reach the rising middle class. However, should brands want to expand into China, they must do their due diligence in understanding the consumer market, and understanding how collectivism means that in China, the collective good takes precedent over the individual.

 

References

China’s Economic Rise: History, Trends, Challenges, and Implications for the United States. (2015, June 25). Retrieved November 01, 2020, from https://fas.org/sgp/crs/row/RL33534.pdf

Hill, D. (2018, May 8). How Collectivism Manifests Itself in the Chinese Workplace. Retrieved November 01, 2020, from https://www.echinacities.com/career-advice/How-Collectivism-Manifests-Itself-in-the-Chinese-Workplace

Lee, A. (2015). What Chinese Consumers Want. Retrieved November 01, 2020, from https://insight.kellogg.northwestern.edu/article/what-chinese-consumers-want

Hi Class,

My name is Sam Kraus. I am an OLEAD major hoping to graduate in May 2021. I am originally from California, but I have lived in Barcelona, Spain for the last 6 years. I currently work in the SaaS industry in a client facing role. I returned to World Campus to finish my degree after a 5 year break. I’ve great experiences with classes. I also think coming back to my studies in my 30s allows me to have a different perspective.

In my free time I spend as much time outside in nature with my 3 dogs as possible.

Have a great semester everyone!