C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478HTL.3D
i [1–2] 6.2.2014 10:09AM
The Business Environment of Europe is the first textbook to provide a complete overview of Europe’s business landscape, examining the region’s diverse economies and government policies within historical, political, and cultural contexts. This well-researched text examines the European Union and select European nations, and leads students to a full understanding of the structure and dynamics of specific industries, the impact of globalization on European companies, and the future challenges facing the region’s business environment. Numerous tables, maps, figures, case studies, and chapter-specific bibliographies support students with little background knowledge of the subject, and lead them to total mastery of the material. Ideal for business students seeking background on the historical and cultural foundations of European business, and international studies students seeking specific information on European governments, policies, and economics, this textbook provides a comprehensive and interdisciplinary overview of the subject.
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478HTL.3D
ii [1–2] 6.2.2014 10:09AM
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478TTL.3D
iii [3–3] 6.2.2014 10:11AM
The Business Environment of Europe Firms, Governments, and Institutions TERRENCE R. GUAY
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478IMP.3D
iv [4–4] 6.2.2014 10:17AM
University Printing House, Cambridge CB2 8BS, United Kingdom Published in the United States of America by Cambridge University Press, New York Cambridge University Press is part of the University of Cambridge. It furthers the University’s mission by disseminating knowledge in the pursuit of education, learning and research at the highest international levels of excellence. www.cambridge.org Information on this title: www.cambridge.org/9780521694162 © Terrence Guay 2014 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2014 Printed in the United Kingdom by XXX A catalogue record for this publication is available from the British Library Library of Congress Cataloguing in Publication data Guay, Terrence R. The business environment of Europe : firms, governments, and institutions / Terrence R. Guay. pages cm Includes index. ISBN 978-0-521-69416-2 (paperback) 1. Industrial policy – Europe. 2. Industries – Europe. 3. Europe – Commerce. 4. Europe – Commercial policy. 5. Europe – Economic conditions. I. Title. HD3616.E853G83 2014 338.7094–dc23 2013046222 ISBN 978-0-521-87247-8 Hardback ISBN 978-0-521-69416-2 Paperback Additional resources for this publication at www.cambridge.org/guay Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate.
C:/ITOOLS/WMS/CUP-NEW/4758179/WORKINGFOLDER/GUAB/9780521872478TOC.3D
v [5–5] 6.2.2014 1:07PM
Contents List of figures
page vi
List of charts
vii
List of maps
viii
List of tables
ix
List of boxes
xi
Acknowledgements
xii
Preface
xv
Part I Understanding the context of Europe’s business environment 1 Introduction Part II The European Union
1 3 17
2 Origins, development, and institutional framework
19
3 Political economy of European integration
51
Part III Models of capitalism and national business–government relations 75 4 Market capitalism
77
5 Managed capitalism
112
6 State capitalism
136
7 Eastern Europe
164
Part IV Government policies and globalization
189
8 Promoting business
191
9 Regulating business
219
10 Globalization and global actors
242
Part V Opportunities and challenges
271
11 Industries
273
12 The road ahead
305
Glossary
331
Index
337
C:/ITOOLS/WMS/CUP-NEW/4764544/WORKINGFOLDER/GUAB/9780521872478TOCF.3D
vi [6–6] 8.2.2014 2:28PM
Figures 1.1
Greek protestors
page 8
2.1
EU leaders
44
3.1
Non-business interest groups
68
4.1
London’s financial district: “The City”
95
4.2
Advocates of the market capitalism model
101
5.1
German manufacturing
120
6.1
Leaders of France and Germany
152
7.1
Lech Walesa
167
8.1
National leaders promoting business
213
9.1
Denmark windmills
230
9.2
Social dumping
232
10.1
BRIC companies go global
246
10.2
NGOs and European business
262
11.1
Airbus
289
C:/ITOOLS/WMS/CUP-NEW/4758179/WORKINGFOLDER/GUAB/9780521872478TOCC.3D
vii [7–7] 6.2.2014 1:25PM
Charts 2.1
EU budget: expenditures (2013)
page 47
2.2
EU budget: revenues (2013)
48
9.1
Average annual hours worked per employed person
233
10.1
EU-27 trading partners: goods exports (2011)
252
10.2
EU-27 trading partners: goods imports (2011)
253
10.3
EU-27 trading partners: services exports (2011)
253
10.4
EU-27 trading partners: services imports (2011)
253
11.1
Europe market share: new passenger car registrations (2012)
295
12.1
Historical and projected fertility rates in Europe
310
12.2
Historical and projected elderly population
311
12.3
Historical and projected dependency ratios
312
C:/ITOOLS/WMS/CUP-NEW/4758179/WORKINGFOLDER/GUAB/9780521872478TOCM.3D
viii [8–8] 6.2.2014 1:27PM
Maps 2.1
Map of the EU
page 37
4.1
Map of contemporary United Kingdom
91
5.1
Map of contemporary Germany
116
6.1
Map of contemporary France
141
6.2
Map of contemporary Italy
156
6.3
Map of contemporary Spain
159
7.1
Map of Europe during the Cold War
165
8.1
Map of Eurozone
205
C:/ITOOLS/WMS/CUP-NEW/4764551/WORKINGFOLDER/GUAB/9780521872478TOCT.3D
ix [9–10] 8.2.2014 2:30PM
Tables 1.1
European views of globalization (percent in agreement with statements)
page 7
2.1
Key events in the early years of the EU (1945–70)
21
2.2
Key events in the middle years of the EU (1970–85)
26
2.3
Key events in the recent years of the EU (1985–present)
30
2.4
Responsibility areas of the twenty-eight Commissioners (as of January 2014)
40
2.5
European Union institutional structure in comparative perspective
46
3.1
Summary of theories and concepts of European integration
61
3.2
Major European business-wide associations
63
3.3
Members of the European Roundtable of Industrialists (ERT), 2014
64
4.1
World Economic Forum Global Competitiveness Index Rankings, 2013–14
4.2
80
Some comparative strengths and weaknesses of various European countries as determined by the World Economic Forum Global Competitiveness Report 2013–2014
82
4.3
Characteristics of the “ideal type” models of capitalism
88
4.4
Shares of world manufacturing output, 1750–1900
93
4.5
Fast facts United Kingdom
103
4.6
Inward foreign direct investment (2012)
104
5.1
Fast facts Germany
121
5.2
Merchandise exports selected countries (US$ million at current prices)
5.3
6.1
123
Average annual number of days lost due to worker strikes and lockouts
126
Fast facts France
142
C:/ITOOLS/WMS/CUP-NEW/4764551/WORKINGFOLDER/GUAB/9780521872478TOCT.3D
x [9–10] 8.2.2014 2:30PM
x
LIST OF TABLES
6.2
Companies owned whole or in part by the French government
148
7.1
Fast facts Central and Eastern Europe
176
7.2
Corporate tax rates, selected European countries
177
7.3
Eastern Europe’s largest companies
185
8.1
Composition of EU member state tax revenues, 2011
196
9.1
European views on environmental issues
225
9.2
Kyoto Treaty targets and 2011 results for EU15
229
9.3
Vacation days and public holidays, 2011
235
9.4
Maternity, paternity, and parental leave (selected countries, 2011)
236
9.5
Real GDP per hour worked ($)
237
9.6
Trade union density
238
10.1
Corruption rankings of selected European countries
244
10.2
Nationality of the world’s largest 500 companies
245
10.3
Gross domestic product 2012
251
11.1
100 largest European companies by market value
275
11.2
Top European sectors by market value
279
11.3
Number of top 500 companies by country
280
11.4
Government ownership of European airlines (2013)
283
11.5
Europe’s ten largest defense industry companies (2012 revenues)
286
11.6
Europe’s largest banks (2013)
291
11.7
Top fifteen European retailers
297
12.1
Debt and deficit levels, select countries
308
12.2
Foreign-born population in selected EU member states (2008)
313
12.3
Spending on research and development
315
12.4
World Bank “doing business” comparison
318
12.5
European views on inequality
321
C:/ITOOLS/WMS/CUP-NEW/4764551/WORKINGFOLDER/GUAB/9780521872478TOCB.3D
xi [11–11] 8.2.2014 2:33PM
Boxes 2.1
Customs unions and free trade areas
page 23
2.2
Enlarging the EU
28
4.1
A tutorial on political systems
85
4.2
“The City” of London
95
5.1
Germany’s Mittlestand
118
5.2
The Volkswagen Law
129
6.1
Business, government, and France’s ENA
145
6.2
French economic policies in an unstable time
153
6.3
Foreign investment controversies
155
7.1
Eastern Europe and the Euro
180
7.2
Attracting foreign investment to Eastern Europe
182
8.1
Microsoft and the EU
201
9.1
Regulations and the wine industry
220
10.1
Airbus, Boeing, and the WTO
259
10.2
Shell’s experience with NGOs
265
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478ACK.3D
xii [12–14] 6.2.2014 2:05PM
Acknowledgements
At times, it seemed like this book might never reach the point of publication. That is did is due in no small part to the insights, assistance, and support I received from a variety of people. The idea for this book germinated from the students I teach. After more than a decade of teaching courses on international business, Europe, and political economy, it became utterly clear to me that there was no book on the business environment of Europe that achieved my most important classroom goal of helping students see the need for an interdisciplinary approach to understanding the world in which we live. I have spent a large chunk of the past few years writing this book to satisfy this need in my classroom, and hopefully the classrooms of other instructors around the world who share similar views. So it is the classes I teach, and the students who enroll in them, that get credit for initiating this project. Several Pennsylvania State University students worked with me on this book, but I would especially like to thank Imran Farooqui, Matthew Krisch, Mithilesh Ranganna, Magali Rhein-Knudsen, and Cindy Wang for going the extra distance in their research. Anonymous reviewers of the original book proposal and various chapter drafts offered helpful recommendations for improving the book. Any errors or flaws in the structure, argumentation, or data presented in the following pages are, of course, my responsibility. I am indebted to the Cambridge University Press editorial team. Publishing Director Chris Harrison believed in the book’s promise and issued a publishing contract. Valerie Appleby provided very useful suggestions to improve the pedagogical value of the book for students and their instructors, and Claire Poole kept me on task by moving the project along with her editorial efficiency. But I am most thankful to Paula Parish, Senior Commissioning Editor for Business and Management. Paula is hands-down winner of “the world’s most patient editor” award, having endured numerous delays and missed deadlines on my end throughout this project. The reasons, both personal and professional, for the unusually long time needed to bring this project to fruition were accepted graciously (most of the time!) by Paula. Thank you so much for your patience and understanding, Paula.
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478ACK.3D
xiii [12–14] 6.2.2014 2:05PM
ACKNOWLEDGEMENTS
xiii
Finally, I would like to thank my family and close friends for their longstanding support in writing this book and for the demands placed on them as a result of my career as an academic, including my parents Bob and Virginia, my parents-in-law Phil and Sandra, and especially my wife Pattie, and children Laura and Nathan. This book is dedicated to the memory of my brother Neil, who passed away during the writing of this book.
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478ACK.3D
xiv [12–14] 6.2.2014 2:05PM
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478PRF.3D
xv [15–18] 6.2.2014 2:14PM
Preface The business environment of Europe is dynamic and exciting for companies and their managers, and for students of business who learn about them. For scholars, the topic presents interesting areas of research with respect to the region’s strengths and weaknesses relative to other parts of the world. It is also of interest to European policymakers and government officials seeking to improve the economic welfare of their constituents. And of course, the subject is fascinating for the casual but curious observer trying to make sense of newspaper headlines, and tourists who notice different products, currencies, and shop opening hours. In short, there are many reasons why one might want to learn more about business in Europe. There are several reasons why this book is well-suited to accomplish this task. The first is the unique approach taken to this subject. As will be discussed in more detail in Chapter 1, Europe is a region under pressure to be both homogeneous and heterogeneous. There are tensions between reducing differences across national business environments through the European Union (EU), while maintaining the characteristics that make Europe a fascinating mosaic of people, history, culture, and values. It is impossible to fully appreciate the complexity of Europe’s business environment by focusing on only one of these levels. There are many excellent books on the political economy of the EU and its regulatory impact on business, but they tend to leave country-level analyses out of their discussion. Other books provide in-depth examinations of a particular country or group of countries, but this focus on specific trees leaves out the broader view of the forest, which gives a student or business executive an incomplete picture of Europe’s business environment. Second, this book is structured around a coherent theme, namely the multi-level governance (MLG) literature of European studies. The MLG approach to explaining European integration and policymaking argues that the governing structure of Europe is largely two-dimensional, with national governments and the EU sharing responsibility for devising and implementing a range of public policies. The connection between MLG and Europe’s business environment is explained more fully in Chapter 3. But the approach taken throughout the book is one whereby the MLG framework is used to illustrate how both the EU and national governments impact specific facets of Europe’s business environment. A third reason why this book adds value to teaching and learning about Europe’s business environment is that it presents a multidisciplinary perspective. The idea
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478PRF.3D
xvi
xvi [15–18] 6.2.2014 2:14PM
PREFACE
for this book derives from almost twenty years of teaching international business, EU, and political economy courses to undergraduate, MA, and MBA students enrolled in business schools, political science departments, and international studies programs. These experiences reveal a knowledge gap among students and a publication gap among scholarly books and college texts on business and European studies. In the first instance, business students seem to have little understanding of, or appreciation for, how European history, politics, culture, and institutions have shaped the region’s business environment. Business school curricula tend to be rather narrow with the focus on building marketable skills in areas such as accounting, finance, marketing, and supply chains. Few schools integrate the liberal arts, social sciences, and humanities into the business curricula. At the same time, students of international or European studies are rarely familiar with business issues and terminology, the roles that firms play in policymaking, and the impact that government policies have on corporate decisionmaking. With respect to the publication gap, there is neither an academic book or textbook on the market today that aims to fulfill this need or tries to connect EU and national level dimensions of the business environment, nor is there a book that can speak simultaneously to business and international/European studies students and scholars in a language that readers of both can understand. While the narrow, single disciplinary approach to research and publication is the norm within most university academic units, it is not helpful for those topics (like the business environment of Europe) that simply cannot be fully understood within one disciplinary lens. Therefore, one of the principal objectives of this book is to bridge the knowledge gap among students. In doing so, students from a wide range of backgrounds, including business and management, MBA, international affairs, European studies, political science, and law, are likely to benefit from this multidisciplinary approach. Finally, the book tries to utilize the most up-to-date approaches to conveying information to students. This includes extensive tables and charts, cases studies, key words, study questions, and web-based resources where students can go to obtain additional information. Such tools are designed to help students get the most out of this book and subject matter. The book is divided into five parts. Part I expands on the themes presented in this preface. Part II focuses on the importance of the EU – the entity that shares responsibility with national governments for shaping Europe’s business environment today. A brief history of the EU and its structure is presented in Chapter 2, while Chapter 3 explains the influence that business groups have had in the development of the organization.
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478PRF.3D
PREFACE
xvii [15–18] 6.2.2014 2:14PM
xvii
Part III moves to the national level, although instructors may assign this section prior to Chapters 2 and 3 without any interruption in continuity. Instead of describing the business environment of every country, in these four chapters the aim is to categorize the countries of Europe into what are commonly referred to as “models of capitalism.” Chapters 4–6 provide an overview of what the business environment of individual countries is like by examining, in turn, market capitalism (with a focus on the UK and Ireland), managed capitalism (Germany and the Scandinavian countries), and state capitalism (France, Italy, and Spain). The reader should become comfortable with the fact that, while the EU’s policies and regulations are playing an increasingly important role in shaping the region’s business environment, significant differences remain among individual countries in terms of how history and culture have shaped their current business environment, the influence of political systems, the extent of public ownership of companies, labor relations, attitudes and policies relating to social welfare, and taxation and spending. Chapter 7 focuses on the Central and Eastern European countries, describing the formidable challenges that countries in this region have faced in moving from a communist economic system to a capitalist one. In Part IV, the book turns to specific policies and issue areas and explains the different responsibilities and influence of the EU and national governments for each. Chapter 8 looks at ways in which the EU and national governments promote business through, for example, the single market, competition policy, tax policy, and the Euro. Chapter 9 surveys regulatory aspects of Europe’s business environment, including personal privacy, social and labor, environmental, and product safety regulations. As discussed above, forces at both the European and international levels are putting homogenizing pressures on the region. Parts II and III of the book focus mostly on the European level. It is in Chapter 10 of Part IV where the international dimension is highlighted. At this point, the book evaluates the impact of globalization and global actors on Europe, and analyzes the pressures arising from other industrialized countries (e.g. the US and Japan) as well as developing states (including China, India, and the East Asian economic “tigers”). After all, the competitiveness of European firms is not judged within the region alone, but against companies throughout the world. And while Europe’s consumers are among the world’s richest, many of the best growth opportunities for companies are in emerging markets in Asia, Africa, and Latin America. As companies make such key decisions as where to invest, whose workers to hire, and how best to establish global supply chains, Europe is affected – for better or for worse. The chapter also assesses the impact of non-state actors, particularly intergovernmental organizations like the World Trade Organization (WTO) and
C:/ITOOLS/WMS/CUP-NEW/4758258/WORKINGFOLDER/GUAB/9780521872478PRF.3D
xviii
xviii [15–18] 6.2.2014 2:14PM
PREFACE
non-governmental organizations (NGOs) such as environmental groups, on Europe and European business. The purpose of Chapter 11 in Part V is to illustrate how specific industries in Europe are faring in the global economy. While it is not possible to assess the strengths and weaknesses of all the major industries in Europe, Chapter 11 presents an overview of major manufacturing sectors (aerospace/defense and automobile) and service sectors (financial services, retail, and airlines). The objective is to provide the reader with a familiarity with some of the industries and companies that often appear in the news, or which represent an important pillar of the European economy. The chapter also describes the policies – at national, European, and international levels – that are particularly relevant to them. Finally, Chapter 12 summarizes the main points of the book, while offering scenarios of what Europe’s business environment may look like in the years ahead. Given the complexity of Europe’s political structure, challenges like the financial crisis, demographic change, and long-term unemployment, a wide range of dissimilar national economies grouped within the EU whose citizens differ in their enthusiasm for change, and intensifying global competition from a host of countries on multiple continents, Europe’s future is anything but predictable. But that is just one of the many reasons why it is such a fascinating topic to study. In sum, the approach taken in this book is a novel one. This book intends to be informative, analytical, and both regional and global in scope. It looks at the business environment of Europe as it appears in the second decade of the twentyfirst century, and explains how it reached this point. It tries to be balanced in assessing the effects of EU- and national-level policies on business, but it is not prescriptive. It is this author’s hope that, by the end of the book, readers will have developed a sufficient background and curiosity in this subject from prior chapters to have their own ideas on how Europe’s business environment may play out in the years ahead.
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478PTL01.3D
PART I
1 [1–2] 8.2.2014 9:53AM
Understanding the context of Europe’s business environment
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478PTL01.3D
2 [1–2] 8.2.2014 9:53AM
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
3 [3–16] 8.2.2014 6:40AM
CHAPTER 1
Introduction
C H A L L E N G E S T O L E A R N I N G A B O U T TH E B U S I N E S S E N V I R O N M E N T O F EU R O P E The business environment of Europe is dynamic and exciting for companies and their managers, and for students of business who learn about them. For scholars, the topic presents interesting areas of research with respect to the region’s strengths and weaknesses relative to other parts of the world. It is also of interest to European policymakers and government officials seeking to improve the economic welfare of their constituents. And of course, the subject is fascinating for the casual but curious observer trying to make sense of newspaper headlines, and tourists who notice different products, currencies, and shop opening hours. In short, there are many reasons why one might want to learn more about business in Europe. This can be a difficult subject to present clearly and understand well, and so requires a multi-level perspective and interdisciplinary approach. There are several reasons for this. First, Europe is a region under pressure to be both homogeneous and heterogeneous – more similar while maintaining distinctive local characteristics. The tension between reducing differences across national business environments, while maintaining the variety that makes Europe unique, will be one of the region’s greatest challenges in the twenty-first century. In the 1950s, the founders of the European Union (EU) believed that economic integration could be the engine by which closer political cooperation would be achieved, thereby reducing the likelihood of another devastating continental war. Thus, one of the fundamental objectives of the EU is to bring together the region’s countries into a “common market” by, for example, “harmonizing” national policies and regulations and reducing national barriers to the free movement of goods, services, capital (money), and people. The rationale is
3
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
4
4 [3–16] 8.2.2014 6:40AM
EUROPE’S BUSINESS ENVIRONMENT
that, if countries become more intertwined economically and socially, war becomes too costly and unpalatable. But this process is a double-edged sword for business. For competitive companies seeking new markets, the elimination of barriers to entry in neighboring countries is beneficial. It allows them to find new customers, diversify their production and operations base, and secure alternative sources of financing. For less competitive firms, the removal of national barriers will lead almost certainly to an intensification of competition – and perhaps even their own demise. While most economists would argue that this is a good thing, since competition should (at least in theory) provide better goods and services at lower prices, what is good for the whole may not be good for individual parts. Threatened companies, workers, and other stakeholders, including democratic governments whose tax revenues and likelihood of being re-elected depend on the survival of some of these less competitive businesses, often mobilize to resist these European-level forces. Instead of one uniform business environment, Europe is a hybrid consisting of the EU’s forces of convergence and the resistance presented by the differences across the region’s many countries. Similar homogenizing forces are exerted from an international level, too. “Globalization” is almost certainly the most talked-about international phenomenon of the past twenty years. While globalization is notoriously difficult to define, most people claim to know it and its effects when they see it. The International Monetary Fund (IMF)’s often-used definition of globalization is “the growing interdependence of countries world-wide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology.”1 So the forces of globalization include international organizations like the World Trade Organization (WTO), which seeks to reduce trade barriers across the 159 (and counting) countries that comprise its membership, as well as smaller groupings like the G20, comprising nineteen advanced and emerging market countries and the EU, that provide opportunities for world leaders to discuss economic and financial concerns. They include think-tank type groups like the World Economic Forum, which brings together business and political elites to discuss policy issues of mutual interest. Technological innovations like cell phones, satellite communications, Facebook and other social media, and the Internet also play a major role in globalization. The forces of globalization also shrink distance for business and their critics (such as nongovernmental organizations, or NGOs) alike. And, of course, globalization’s forces are carried out by the day-to-day actions of manufacturers, service providers, and financial institutions large and small.
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
INTRODUCTION
5 [3–16] 8.2.2014 6:40AM
5
The combined forces of European regional integration and globalization represent homogenizing pressures. Yet forces of heterogeneity shape contemporary Europe, too. Some of these latter pressures are reactions to the former. As non-European firms make deeper inroads into the region, some Europeans view this as a threat to their economic well-being. The increased competition presented by Japanese automobile companies, a surge in clothing imports from China, and the pervasiveness of the Microsoft Windows computer operating system, among numerous other examples, worry many Europeans that their companies, jobs, and even culture and identity are threatened. Thus, some national governments implement policies to protect domestic industries from the pressures of globalization, or at least to try to slow down the process. Part of the reason for doing so is in response to public pressure. Eurobarometer is a part of the Commission of the EU that has conducted public opinion polls of member country citizens since 1973. These surveys provide a good understanding of how Europeans view political, economic, and social issues at various points in time. A 2008 survey, which was conducted near the beginning of the current economic crisis, focused on globalization themes.2 Among the findings were: H
H
When Europeans hear “globalization,” the first image that comes to mind to 41 percent of them is the “relocation of some companies to countries where labor is cheaper.” Only 16 percent think of “opportunities for domestic companies in new outlets.” Only 22 percent of Europeans believe that globalization protects them from price increases.
An extensive 2010 survey of globalization, conducted during the early stages of Europe’s financial crisis, showed that many Europeans continued to be skeptical of the benefits of this phenomenon.3 Among this survey’s findings: H H
H
60 percent feel that that globalization increases social inequalities. 62 percent agree that “globalization is only profitable for large companies, not citizens.” Agreement with this view ranged between 45 to 81 percent in every EU country except Malta. Only 41 percent of Europeans agree that “the EU and the US have the same interests when dealing with globalization,” and even fewer – 23 percent – have this view with respect to China. This is rather surprising when one considers that the US and China are the EU’s largest trading partners.
More recent surveys from 2012 revealed that Europeans’ views of globalization, if anything, have become even more skeptical.
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
6 [3–16] 8.2.2014 6:40AM
6
EUROPE’S BUSINESS ENVIRONMENT
H
Only 51 percent believed that globalization “is an opportunity for economic growth.” There is wide variation on this view, ranging from 23 percent of Greeks holding this view to 79 percent of Danes.4 65 percent believe globalization “requires common global rules or ‘worldwide governance’”.5 More Europeans (42 percent) believe that globalization represented a threat to employment and domestic companies than those (40 percent) who view globalization as a good opportunity for national companies thanks to the opening-up of foreign markets. In only seven EU countries (Denmark, Estonia, Finland, Germany, Malta, Netherlands, and Sweden) did more than half of respondents regard globalization as an opportunity for indigenous companies.6 (See Table 1.1) Only 42 percent feel that the EU “helps to protect European citizens from the negative effects of globalization.” A slightly higher 47 percent agree that the “EU enables European citizens to better benefit from the positive aspects of globalization”.7 63 percent feel that the EU has sufficient power and tools to defend its economic interests in the global economy. Yet only 33 percent believe the EU has acted effectively to combat the economic crisis.8
H H
H
H
Similar polls by the BBC, Financial Times/Harris, German Marshall Fund, Pew Research Center, and WorldPublicOpinion.org, among others, report similar views.9 While there are, of course, good reasons not to rely exclusively on opinion polls in making public policy decisions, political and business leaders are well aware that moving too far or too quickly in a direction perceived by the public as too pro-globalization could result in strong – perhaps even violent – resistance, with electoral and economic consequences that could reverse many of the gains to date (see Figure 1.1). It is important to note that there are variations in these views across Europe. In general, northern Europe, particularly the Scandinavian region (including Denmark, Finland, and Sweden), the Netherlands, and Germany, are more enthusiastic about globalization and the opportunities presented by international business, trade, finance, and exchange, whereas the Mediterranean region (including Greece, Italy, Spain, Portugal, and to some extent France) are more wary of these global forces and skeptical of the benefits they may offer for domestic companies, job opportunities, and economic growth. Most of the Central and Eastern European countries that have joined the EU since 2004 are somewhere in between. As will be discussed in subsequent chapters, such a diversity of national views, and the constraints these place on national governments, makes it difficult for the EU to
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
7 [3–16] 8.2.2014 6:40AM
7
INTRODUCTION
Table 1.1 European views of globalization (percent in agreement with statements)
Austria
Globalization represents a good
Globalization represents a threat Do not
opportunity for (nationality) companies
to employment and companies
know
thanks to the opening-up of markets (%)
in (our country) (%)
(%)
41
47
12
Belgium
37
57
6
Bulgaria
40
32
28
Croatia
46
41
13
Cyprus
26
59
15
Czech
36
50
14
Denmark
72
21
7
Estonia
52
28
20
Finland
52
40
8
France
25
65
10
Germany
53
36
11
Greece
28
64
8
Hungary
31
54
15
Ireland
46
29
25
Italy
29
48
23
Latvia
27
53
20
Lithuania
42
27
31
Luxembourg
47
40
13
Malta
51
25
24
Netherlands
68
24
8
Poland
41
32
27
Portugal
31
44
25
Romania
29
33
38
Slovakia
49
39
12
Slovenia
42
46
12
Spain
35
33
32
Sweden
68
27
5
Republic
UK
45
37
18
EU 27*
40
42
18
* Croatia was not a member of the EU when the poll was conducted. Source: European Commission. 2012. Standard Eurobarometer 77: Tables of Results. May (http://ec.europa.eu/ public_opinion/archives/eb/eb77/eb77_anx_en.pdf).
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
8
8 [3–16] 8.2.2014 6:40AM
EUROPE’S BUSINESS ENVIRONMENT
Figure 1.1 Greek protestors. Greek protestors demonstrate against job cuts and tax hikes imposed by their government in response to pressure from the European Union and International Monetary Fund
reach a consensus among its member countries in crafting a unified response to globalization. Opposition even arises to the homogenizing forces of European integration. For example, while most transnational businesses lobbied for a common European currency to reduce the cost of currency exchange, many citizens (especially in Germany) were opposed to Economic and Monetary Union (EMU) that allowed for the introduction of the Euro. Many smaller businesses, particularly those in the service and retail sectors, also opposed EMU, since they had almost exclusively domestic customers but still would bear the financial burden of converting cash registers, financial records, and price tags to accommodate the Euro. Similarly, while there are strong arguments made for harmonizing various tax rates across the EU, countries with lower taxes have resisted efforts to do so, since lower than average corporate taxes have helped countries like Ireland and Latvia attract high levels of foreign investment (and retain the operations of domestic companies), and they regard “harmonizing tax rates” to really mean “raising tax rates”. Other forces of heterogeneity stem from culture, language, and history. For example, no matter how much European integration takes place, and how far barriers are lowered to allow workers to find employment outside their home country, few Greeks will choose to leave the sunny Mediterranean to work in Finland. Other Europeans see the globalization of media, particularly through the US film, television, and entertainment industry
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
INTRODUCTION
9 [3–16] 8.2.2014 6:40AM
9
as a threat to national cultures and even language, since French, Italian, and other European media groups cannot compete with Hollywood’s economies of scale. And one does not have to walk far in many European cities before the number of McDonald’s and Starbucks stores become too numerous to count. Government leaders, sensitive to vocal constituents who argue that their country’s economy is intertwined with the country’s culture, history, and identity, often resist the homogenizing pressures by either implementing national policies that run counter to globalization’s forces (such as restrictions in some countries on shops opening on Sundays), or working within the EU to slow or halt initiatives promoting deeper integration and harmonization (as in the optouts that the Czech Republic, Denmark, Ireland, Poland, and the UK secured for themselves during the negotiations leading up to the 2009 Lisbon Treaty). Taken together, the forces of homogenization and heterogeneity can help explain the complexities of the European business environment. On the one hand, Europe is one of the richest regions of the world, with some of the most competitive national economies in the world, and with some of the largest and most successful companies in the world. On the other hand, Europe sometimes can be seen as a region trying to cling to what remains of past glories (economic and global power), with political and business leaders taking steps to protect industries that, on a simple market efficiency basis, should no longer be protected, and with national governments administering socioeconomic policies that may very well lead to a deteriorating business environment. Understanding the dynamics of the European business environment requires an appreciation for the effects that these countervailing forces have on the region. A second reason why a holistic approach to describing Europe’s business environment is difficult to present is that it requires a multidisciplinary perspective. The idea for this book derives from two decades of teaching international business, EU, and political economy courses to undergraduate, MA, and MBA students enrolled in business schools, political science departments, and international studies programs. It has become apparent that there is a knowledge gap among students and a publication gap among scholarly books and college texts on business and European studies. In the first instance, business students seem to have little understanding of, or appreciation for, how European history, politics, culture, and institutions have shaped the region’s business environment. Business school curricula tend to be rather narrow, with the focus on building marketable skills in areas such as accounting, finance, marketing, and supply chains. Few schools integrate the liberal arts, social sciences, and humanities into the business curricula. At the same time, students of international or European studies are rarely familiar with business issues and terminology, the
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
10
10 [3–16] 8.2.2014 6:40AM
EUROPE’S BUSINESS ENVIRONMENT
roles that firms play in policymaking, and the impact that government policies have on corporate decision-making. It does not help that liberal arts colleges and business schools often operate as intellectual silos, even on the same university campus, with little interaction between faculty and students on research, curricular issues, and pedagogy. Professors typically enhance their reputation by publishing in discipline-specific rather than interdisciplinary journals, and administrative hurdles often discourage students from taking courses outside their home college. The purpose here is not to change the structure of higher education. That would take far more than one book to do. The parochialism of academic departments within universities is a fact of life, although some progressive universities are trying to change this. But one of the principal objectives of this book is to bridge this knowledge gap among students. With respect to the publication gap, there is neither an academic book or textbook on the market today that aims to fulfill this need or tries to connect EU and national level dimensions of the business environment, nor is there a book that can speak simultaneously to business and international/European studies students and scholars in a language that readers of both can understand. While the narrow, single disciplinary approach to research and publication is the norm within most university academic units for promotion and tenure, it is not helpful for those topics (like the business environment of Europe) that simply cannot be fully understood within one disciplinary lens or silo. Finally, the business environment of Europe is difficult to explain because Europe is difficult to explain. If one were to play an image association game with the word “Europe”, there would likely be at least three things that come to mind. One might be the region bordered by the Arctic Ocean to the north, Atlantic Ocean to the west, Mediterranean Sea to the south, and any number of boundaries (perhaps the Ural Mountains in Russia) on the east. A second image might be the EU. In fact, in many instances, “EU” seems to be shorthand for Europe, even though the organization does not yet (if it ever will) include important countries like Switzerland, Norway, Iceland, some of the countries that comprise the former Yugoslavia, and (depending on one’s geographic image of Europe) Belarus, Moldova, Russia, Turkey, and Ukraine (among others). Nonetheless, the combined population of the EU’s twenty-eight member countries totals over 500 million people. Yet a third image of “Europe” is that of a collection of unique countries. One reads about the histories of countries with their kings and queens, wars and revolutions, artists and writers, and foods and scenic regions, or visits them on holiday. But these diverse images make it difficult to explain the business environment of Europe since one could write a book on the subject from each of these three perspectives – and perhaps others. This book
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
11 [3–16] 8.2.2014 6:40AM
INTRODUCTION
11
tries to do it all – or, at the least, present aspects of each of these perspectives. The reader can decide the extent to which this objective is achieved. It should be made clear from the outset what this book is not. It is not a “how to” book. After finishing this book, the reader will not have learned how to find a joint venture partner in Hungary, how to get a listing on the London Stock Exchange, the paperwork required to fire a worker in Spain, or the specific tax package a company is likely to get from the Estonian government. Nor will readers learn whether Italians prefer mint or cinnamon flavored toothpaste, or the appropriate distribution channels to get their toothpaste on the shelves of Polish stores. These are important, practical questions that companies seeking to do business in Europe will want answered. But getting into such details would lengthen the book considerably and avert attention from the objectives described above.
THE ORGANIZATION OF THE BOOK While, on the face of it, this book may appear descriptive in nature, there is one central organizing argument: the business environment of Europe is shaped at multiple levels: international; the EU; national governments; and local governments. The two levels given most attention here are the EU and national governments, since it is EU-level policies that generate the dynamics of regional integration, and it is through national-level policies, the forces of domestic interest groups, and the countries’ unique attributes that provides the variety of the European business environment. As such, this organizational structure draws on the multi-level governance (MLG) literature of European studies. The MLG approach to explaining European integration and policy-making argues that the governing structure of Europe is largely two-dimensional, with national governments and the EU sharing responsibility for devising and implementing a range of public policies. The connection between MLG and Europe’s business environment is explained more fully in Chapter 3. But the approach taken throughout the book is one whereby the MLG framework is used to illustrate how both the EU and national governments impact specific facets of Europe’s business environment. Following this chapter, Part II focuses on the importance of the EU – the entity that shares responsibility with national governments for shaping Europe’s business environment today. A brief history of the EU is presented in Chapter 2 for two reasons. First, not all readers or students of international business may be aware of the development of the EU and the major milestones in its history. Thus, the chapter summarizes the main events that shaped European
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
12
12 [3–16] 8.2.2014 6:40AM
EUROPE’S BUSINESS ENVIRONMENT
integration and the reasons why the EU has evolved in the way that it did. The overview covers the motives for the creation of the EU in the 1950s, successes in its early years, the challenges of the 1970s, its resurgence in the mid-1980s, and events since the end of the Cold War. While the emphasis is on economic matters, political and institutional issues such as power-sharing and enlargement also are addressed. Readers may be surprised by the squabbles that have taken place between member countries, as well as the great strides the EU has taken in little more than a half century of existence. This chapter also summarizes the responsibilities of the four main EU bodies: Council; Commission; Parliament; and Court of Justice. The second objective is to demystify this organization that, to many (both within and outside Europe), seems like either a black box or the figure behind the curtain (“the great and powerful Oz”) in the movie The Wizard of Oz. Obviously, there is not sufficient space in this book to describe the many intricacies of this institution. There are plenty of books out there that do this very well. But the chapter does provide a sense of how the EU is structured, how decisions are made, and the strengths and weaknesses of each body. Chapter 3 continues with the EU-level dimension by explaining the influence that business groups have had in the development of the organization. This includes the roles that firms play in some of the theories of European integration (such as neofunctionalism and policy networks), as well as some of the milestones of the EU, particularly the prominent position that business played in pushing for a single market in the 1980s, culminating in the Single European Act. The last part of this chapter provides an overview of lobbying in the EU by explicitly linking the relationships that business has established individually and collectively through trade associations with the institutions described in Chapter 2. While these topics are addressed in later chapters with respect to specific business-oriented policies, this chapter serves to familiarize (without overwhelming) the reader with these themes early in the book. Part III of the book moves to the national level. Instead of describing the business environment of each country, the aim in these four chapters is to categorize the countries of Europe into what are commonly referred to as “models of capitalism.” One reason for doing so is that a chapter on the business environment of each country in Europe could consume an entire book in itself. To do this would make it virtually impossible to complete the other objectives set out for this book. A second reason for grouping countries into various models is that it simplifies comparison. While each country in Europe is unique, comparing the twenty-eight members of the EU would get incredibly complicated and detailed. As the saying goes, spending too much time looking
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
INTRODUCTION
13 [3–16] 8.2.2014 6:40AM
13
at individual trees may result in one missing the forest. Third, most European countries can be fairly grouped into one of three or four categories without oversimplifying those characteristics that make individual countries unique. Overall, Chapters 4–7 provide an overview of what the business environment of individual countries is like. The reader should become comfortable with the fact that, while the EU’s policies and regulations are playing an increasingly important role in shaping the region’s business environment, significant differences remain among individual countries in terms of how history and culture have shaped their current business environment, the influence of political systems and ideologies, the extent of public ownership of companies, labor relations, attitudes, and policies relating to social welfare, and taxation and spending. Each chapter addresses these topics within the models of capitalism framework. Chapter 4 describes the market capitalism model, which is best represented by the UK, and to an extent Ireland, where market forces play a prominent role. Chapter 5, on managed capitalism, analyzes the business environments of Germany, Austria, the Netherlands, and the Scandinavian countries (Denmark, Finland, Norway, and Sweden). In these countries, governments tend to share responsibility with business and even other stakeholders in guiding economic policy. State capitalism, as its name implies, is a model characterized by an activist government and is described in Chapter 6. France is the best example of this model, although Italy and Spain exhibit many elements of state capitalism, too. Finally, Chapter 7 focuses on the Central and Eastern European countries. Of the fourteen countries to join the EU since 2004, twelve are in this region (Malta and Cyprus are islands in the Mediterranean Sea). Since the fall of the Berlin Wall in Germany in 1989, each of these countries has struggled to develop a business environment within their unique political, cultural, and economic constraints. There is no one model that describes these twelve countries, nor is it yet clear that one of the previous three models best fits Central and Eastern Europe. This chapter describes the formidable challenges that countries in this region have faced in moving from a communist economic system to a capitalist one. In addition to the tremendous difficulties of overhauling an economic system, these countries face issues that their richer neighbors to the west do not, including establishing the foundations of a democratic political system and the institutions that support it, stemming a “brain drain” whereby some of their most skilled and talented citizens choose to leave, and persuading foreign companies that their countries offer attractive locations for investment. In Part IV, the book turns to specific policies and issue areas and explains the different responsibilities and influence of the EU and national governments for
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
14
14 [3–16] 8.2.2014 6:40AM
EUROPE’S BUSINESS ENVIRONMENT
each. Chapter 8 looks at ways in which the EU and national governments promote business. This includes initiatives to create a single market across the EU that breaks down national barriers to the flow of goods, services, capital, and persons – and the reasons why some national governments have resisted these initiatives. The chapter also describes competition policies (referred to in some countries as “antitrust policies”). At the EU level, competition policy permits the organization to investigate anti-competitive practices in which companies may be engaged, prevent monopolies from emerging, approve (or not) large corporate mergers and acquisitions that would lead to dominance in specific industries, and rule on the permissibility of financial support and other aid that governments provide to favored companies. But national authorities regulate aspects of these issues, too. The Euro is one of Europe’s greatest recent success stories, and Chapter 8 reviews the reasons for the creation of a common currency and how it has affected business in the region. For example, while companies have saved millions of Euros in currency exchange fees, the EU’s move toward monetary union sowed the seeds of the recent financial crises in some member countries, raising concerns about the business environment across the region. The chapter also discusses how national tax policies, research and development programs, and other initiatives are pursued in an effort to make companies and countries more competitive in the global economy. Chapter 9 surveys regulatory aspects of Europe’s business environment, including personal privacy, social and labor, environmental, and product safety regulations. Labor groups are important actors in European economics and politics, and this chapter examines the present state of business–labor relations, and changes in labor-oriented policies. Labor policies are different than many other policies related to Europe’s business environment, since the EU is less influential than national governments and domestic actors. It is also an important issue, since many business executives contend that highly regulated labor markets are an impediment to Europe’s international economic competitiveness. On the other hand, the EU is a very important actor in establishing privacy, environmental, health, and product safety regulations, not just in Europe, but globally. This is because many EU regulations in these areas ultimately are adopted by other countries around the world. So understanding how and why these, and other regulatory actions in Europe, are made is essential to appreciating some of the constraints on business. As discussed earlier in this chapter, forces at both the European and international levels are putting homogenizing pressures on the region. Parts II and III of the book focus mostly on the European level. It is in Chapter 10 of Part IV where the international dimension is highlighted. While the EU remains the world’s
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
INTRODUCTION
15 [3–16] 8.2.2014 6:40AM
15
largest economy in terms of gross domestic product (GDP), the US is the country with the biggest GDP. But other countries are quickly closing the gap, and this is having a tremendous effect on Europe’s business environment and the global competitiveness of European companies. Chapter 10, on globalization and global actors, analyzes the pressures arising from other industrialized countries (e.g. the US and Japan) as well as developing states (including China, India, and the East Asian economic “tigers”). After all, the competitiveness of European firms is not judged within the region alone, but against companies throughout the world. And while Europe’s consumers are among the world’s richest, many of the best growth opportunities for companies are in emerging markets in Asia, Africa, and Latin America. As companies make such key decisions as where to invest, whose workers to hire, and how best to establish global supply chains, Europe is affected – for better or for worse. The chapter also assesses the impact of non-state actors, particularly intergovernmental organizations like the WTO and NGOs such as environmental groups, on Europe and European business. For example, the WTO serves as an arbiter on hundreds of trade disputes among the organization’s 159 member countries. Chapter 10 gives particular attention to trade disputes (particularly those between the EU and US), and how they affect specific companies and industries. With respect to NGOs, the chapter contends that, while European companies are among the world’s most experienced in working with NGOs to achieve mutually satisfactory solutions to some of the world’s most pressing environmental and social problems, the growing influence of these groups requires businesses to be even more proactive in working with such stakeholders. The last part of the book, Part V, is organized around opportunities and challenges in Europe’s business environment. The purpose of Chapter 11 is to illustrate how specific industries in Europe are faring in the global economy. While it is not possible to assess the strengths and weaknesses of all the major industries in Europe, this chapter presents an overview of several of the major manufacturing sectors (aerospace/defense and automobile) and service sectors (financial services, retail, and airlines). The objective is to provide the reader with a familiarity with some of the industries and companies that often appear in the news, or which represent an important pillar of the European economy. The chapters also describe the policies – at national, European, and international levels – that are particularly relevant to them. Since Europe has its share of industries in both the “sunset” (or declining) stage and “sunrise” (promising future) categories, different policies are devised to respond to these very different needs. Finally, Chapter 12 summarizes the main points of the book, while offering scenarios of what Europe’s business environment may look like in the years
C:/ITOOLS/WMS/CUP-NEW/4763570/WORKINGFOLDER/GUAB/9780521872478C01.3D
16 [3–16] 8.2.2014 6:40AM
EUROPE’S BUSINESS ENVIRONMENT
16
ahead. Given the complexity of Europe’s political structure, challenges like the financial crisis, demographic change, fostering innovation and entrepreneurship, long-term unemployment, a wide range of dissimilar national economies grouped within the EU whose citizens differ in their enthusiasm for change, and intensifying global competition from a host of countries on multiple continents, Europe’s future is anything but predictable. But that is just one of the many reasons why it is such a fascinating topic to study. In sum, the approach taken in this book is a novel one. This book intends to be informative, analytical, and both regional and global in scope. It looks at the business environment of Europe as it appears in the second decade of the twenty-first century, and explains how it reached this point. It tries to be balanced in assessing the effects of EU and national level policies on business, but it is not prescriptive. It is this author’s hope that, by the end of the book, readers will have developed a sufficient background and curiosity in this subject from prior chapters to have their own ideas on how Europe’s business environment may play out in the years ahead. NO TES 1 2 3 4 5 6 7 8 9
International Monetary Fund. (1997) World Economic Outlook, May, p. 45. European Commission. (2008) Eurobarometer 69: The Europeans and Globalisation. November (http://ec.europa.eu/public_opinion/archives/eb/eb69/eb69_globalisation_en.pdf) European Commission. (2010) Eurobarometer 73: Report Volume 2. November (http://ec.europa. eu/public_opinion/archives/eb/eb73/eb73_vol2_en.pdf). European Commission. (2012) Standard Eurobarometer 78: Tables of Results. November (http://ec. europa.eu/public_opinion/archives/eb/eb78/eb78_anx_en.pdf). European Commission. (2012) Standard Eurobarometer 77: Tables of Results. May (http://ec. europa.eu/public_opinion/archives/eb/eb77/eb77_anx_en.pdf). European Commission. (2012) Standard Eurobarometer 77: Tables of Results. May (http://ec. europa.eu/public_opinion/archives/eb/eb77/eb77_anx_en.pdf). European Commission. (2012) Standard Eurobarometer 78: Tables of Results. November (http://ec. europa.eu/public_opinion/archives/eb/eb78/eb78_anx_en.pdf). European Commission. (2012) Standard Eurobarometer 77: Tables of Results. May (http://ec. europa.eu/public_opinion/archives/eb/eb77/eb77_anx_en.pdf). See, for example: American Management Association. (2007) “New Survey Finds Little Enthusiasm for Free Market Capitalism” (www.amanet.org/training/articles/New-Survey-FindsLittle-Enthusiasm-for-Free-Market-Capitalism.aspx); BBC World Service. (2008) “Widespread Unease about Economy and Globalisation: Global Poll” (http://news.bbc.co.uk/2/shared/bsp/ hi/pdfs/07_02_08worldservicepoll.pdf); German Marshall Fund. (2012) “Transatlantic Trends” (http://trends.gmfus.org/transatlantic-trends/); Pew Research. (2008) “Global Attitudes Project” (http://pewresearch.org/pubs/879/assessing-globalization-benefits-and-drawbacks-of-tradeand-integration); WorldPublicOpinion.org, various dates, (www.worldpublicopinion.org/pipa/ articles/btglobalizationtradera/index.php?nid=&id=&lb=btgl).