REPORT
Length: 2500 words
Brief description :
THE EU CULTURE
Britain may be in the front line of the Euro crisis, but it is not the only country affected. The Eurozone is a massive market for businesses from the United States, China, India, Japan, Russia and the other major world economic powers. China has considered lending money to Europe, they are that concerned that the Euro may collapse. Meanwhile, the International Monetary Fund (IMF), which was set up to help countries in economic difficulty, set aside hundreds of billions of dollars for a bailout of some of the Eurozone countries. The wider world is so keen to see the Euro survive — even if that means it has fewer members — for the following reasons.
To preserve the Eurozone’s massive consumer market.A staggering 322 million Europeans use the Euro every day. It’s the currency of seventeen nations. Besides daily activities, these people use the Euro to buy goods and services from overseas — if there was a collapse in its value, then they would be less able to buy imports.
To prevent a global recession.A collapse of the Euro or a situation where some European governments would be unable to repay their debt would have a huge, negative impact on the world economy. It would resemble the financial crisis of 2007 and 2008 (in truth, it could be much worse than that). At the very least, businesses around the globe would think twice about investing and taking on new staff while others might start to trim their operations and cut jobs. A global economic recession would be highly likely.
To protect the world financial system.Banks around the globe have invested in the government debt of Eurozone countries. These banks also hold large amounts of Euros. If the current crisis gets much worse, then the government debt and currency that they hold will fall in value, which could undermine their own financial well being. It could be like the 2007 and 2008 financial crash all over again, with the global banking system under threat. This would be bad news for everyone.
It’s not just the 322 million people in the Eurozone which depend on their currency — there are 150 million people in African countries whose currencies are pegged to value the Euro. If the Eurozone fragments and the value of the Euro collapses, these African countries will see the value of currency collapse too.
Against a backdrop of this ongoing Euro zone volatility, companies are continuing to review their exposures in Europe, including the nature and extent of their Euro-related contracts, and are asking what measures they can put in place to protect their assets and limit cash flow threats. This uncertainty has affected business confidence in different ways in nations across the world.
Please read the following extracts and papers in the context of the task outlined below –
http://www.pwc.com/us/en/issues/eurozone-business-impact/index.jhtml
http://www.economist.com/node/2156423
http://www.internationalbusinessreport.com/2012/eurozone_impact.asp
http://ijbssnet.com/journals/Vol_3_No_9_May_2012/28.pdf
http://www.cis.org.au/images/stories/issue-analysis/ia132.pdf
http://www.huffingtonpost.com/obrien-browne/a-different-take-on-the-e_b_1212418.html
http://www.cresc.ac.uk/publications/deep-stall-the-euro-zone-crisis-banking-reform-and-politics
http://www.theaustralian.com.au/business/wealth/greek-default-crisis-is-all-about-cultural- differences-in-the-eurozone/story-e6frgac6-1226144883522
http://www.pwc.com/gx/en/audit-services/publications/eurozone-crisis-impact.jhtml
YOUR TASK: You are a consultant tasked with a submission, developing a comprehensive analysis of the impact of the Euro crisis on “THE WORLD” in general and “AUSTRALIAN BUSINESS” in particular to assist them with their strategy in the Euro zone.Whilst doing this your focus will be on the “CULTURE” of the European country you select and you will analyse the situation based on the cultural dimensions and cultural theories that you study in class.Your report should encompass all risks: Political, Cultural, Social, Legal,Economic and provide advice on their impact to Australia business operating in EU. Please note you can select any country of your choice in the EU. In particular you are required to critique, analyze and assess the following four issues with CULTURE as a basis:
i. Global impact of Euro crisis on businesses and industries in EU, Australia and the World.
ii. Country (EU country of your choice) specific economic, political,legal, cultural, social, cultural characteristics and history
iii. Possible implications and contingency planning for Australian business
This Assessment Task relates to the following Learning Outcomes:
• Appraise the multicultural ‘big picture’ in which global trade and government forces operate, and summarise the major culture-based challenges faced by international managers (political, social, legal, economic and technological)
• Identify major cultural characteristics, including communication styles that characterise regions, nations, communities, organisations, groups and individuals
• Investigate major cultural differences in views on strategy for international alliances, including decision making and controls, labour relations and management of a range of culture-based tactics for international negotiations
