Travel advice

INTERLAKEN SWITZERLAND!!

Places to visit

Go up the mountains!Short train ride from townRecommend: Grindlewald, Wengen,

Lauterbrunnen,Hikes / walks: First mountain, Schilthorn

“James Bond”, Jungfrau “top of europe”

Take the train / cable car to here:

Go for a hike…

Go for a hike…

Look for these waterfalls…

Lauterbrunnen (view from falls)

Follow the path…

tips

“gruezie” when walkingQuietCross at cross walk“tchuss”Danke (or Merci in Interlaken)Rules

WELCOME TO INTERLAKEN SWITZERLAND!!

Introduction to the European Union

Prof. Brian Butler

Prof. Brian David Butler

About: Brian Butler is a professor of International Finance and European Studies with Forum-Nexus Study Abroad, an academic program which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona, and the Catholic University of Milan. 

Brian was previously a teacher at the Thunderbird School of Global Management, MBA program in Miami, and was a researcher at the Columbia Business School in New York.  In Brazil, Brian has taught at FBV in Recife.

He previously worked for Honda of America Manufacturing in Ohio, and was involved in international trade. 

briandbutler@gmail.com

LinkedIn.com/in/briandbutler

www.globotrends.com

my slides:

www.slideshare.net/briandbutler

Exam material (potential)

• Students responsible for content from:

a) Prof. Brian’s lecturesb) Guest lecturesc) Group discussions during classd) Student presentations during classe) International IQ sessions (including map)f) Professional Visitsg) Assigned readings – book + supplemental

readings

•Notes:• Exam questions may come from any of these sources• Recommended exam review – pay attention to my lectures. If

there is something I think is important from professional visits, or international IQ sessions, or from the book…we will try to review it again in class.

Required books

Required Textbook: The European Union Series, “Understanding The

European Union, A Concise Introduction”, John McCormick, 4th Edition, 2008, Palgrave MacMillan

Read – allSpecial focus on: last 3 chapters

Course RULES + Expectations:

Attend ALL classes, professional visits

Turn in assignments before class Be prepared for class discussions – lots of small group assignments during class

Contribute to group assignment (team grading / peer review)

Rules / Expectations:

Request Closed book, open mind, Please turn off

everything except your minds…I want your full attention – this is a “participatory” class

No sleeping (if you feel tired, please stand up, go get some water, come back)

no laptops (sorry) No blackberries, no iPhones, no

iPads, etc, etc…

European Culture discussion

CULTURE

Weekend

Compare: Paris, London, Amsterdam

Soccer (football)

Question – where in Europe will you find the biggest/ best football (soccer) clubs (teams)?

Soccer (football)

Question:

Are any of the big clubs (teams) in Paris? Why not?

Comments about Culture (in Paris)

Attitudes toward “COMPETITION”

Cultural pride in being “ABOVE competition”

Learned from history… dangers of Competition (wars)

Question: who was the country behind dreaming up the EU? Who were two of the EU’s most important dreamers?

Founders

New ideas for lasting peace and prosperity…

Konrad Adenauer

Robert Schuman

Winston Churchill

Alcide De Gasperi

Jean Monnet

Italy

France

UK

W. Germany

France

Founders

France was the intellectual driver behind the EEC (later the EU)

Robert Schuman - France

It could really look like this…

Jean Monnet - France

Question

What was their main idea about how to achieve peace in Europe?

Question

UnityIntegration

Tools to limit nationalismTools to limit competition

Question

What does this tell you about French culture, values?

Do you expect French to rally behind a soccer team and cheer for them to beat another team?

(story of Mike at bar – shots)

Question

How does that compare with the British?

(rally the troops, go abroad, and BEAT the competition!)

French culture – socialism vs. capitalism

Attitudes toward competitionEffect:

Prefer “social”, sharing, equality (of results, not Anglo-Saxon version of opportunity)

Lean toward Socialism“Capitalism” seen with negativityBut then… Sarkozy… (who can

explain why he seemed different)…. What did he do?

Sarkozy's France

http://www.economist.com/node/16990726

Sarkozy's France

http://www.economist.com/node/16990726

Schweiz

Ok, now on to Switzerland…

Questions

Is Switzerland a member of the EU?

Of the Euro zone?

Questions

SHOULD Switzerland join the EU?

the Euro zone?

Question – who can tell where we are NOW?

Questions…

What do you know about Switzerland?Population? Capital?Languages?Religions?

Q. What do you notice that is unique about Switzerland?

Basic info:Helvetia, how the country was called in ancient

times (CH)Population: 7.3 million.GNI per capita PPP: $ 33 168Religions: Roman Catholic 42%, Protestant 33%,

Muslim 4.3%, others 5.4%, no religion 11%.Languages: German 63.7%, French 20.4%, Italian

6.5%, Romansch 0.5%, are official languages, other 9.4%.

Literacy: 100%. 

http://www.nationsonline.org/oneworld/switzerland.htm

Languages

How many “official” languages are there in Switzerland?

Is “Swiss German” an official language?

http://www.nationsonline.org/oneworld/History/Switzerland-history.htm

Languages

How many official languages are there in Switzerland? 4

Is “Swiss German” an official language?No!

http://www.nationsonline.org/oneworld/History/Switzerland-history.htm

Switzerland - languages

Q. What do you notice that is unique about Switzerland?

Multiple languages, religionsTrains run on time (plan year in advance)Food is “better”Prices (currency)Locals don’t travel (perception of distance)

Question: What are the major exports/ industries?

http://www.nationsonline.org/oneworld/switzerland.htm

Q. What do you notice that is unique about Switzerland?

http://www.nationsonline.org/oneworld/switzerland.htm

notes

Ties to Germany = important

Currency appreciation HURTS Swiss industry

Why? Explain…

Challenges for Switzerland

Currency Appreciation:

“the Swiss franc will tend to

appreciate during periods of

global financial volatility”EIU, special report on Switzerland, May 2011

http://finance.yahoo.com/q/bc?t=5y&s=EURCHF%3DX&l=on&z=l&q=l&c=eurusd%3Dx

Swiss franc appreciates during crisis

Question: does Switzerland get more expensive? Or less?

Challenges for Switzerland

Currency appreciation:

“investors’ fears over the stability of the euro will periodically lead them to seek a safe haven in the Swiss franc” EIU, special report on Switzerland, May 2011

Challenges for Switzerland

Which is more important to the swiss

The SFR/ USD exchange rate?

Or, the SFR/ EUR exchange rate?

Why?EIU, special report on Switzerland, May 2011

currency

During the crisis, whose exports have become more competitive…. Switzerland’s or Germanys?

EIU, special report on Switzerland, May 2011

Euro = stronger vs. US dollar

http://finance.yahoo.com/q/bc?t=5y&s=EURCHF%3DX&l=on&z=l&q=l&c=eurusd%3Dx

Euro = weaker vs. Swiss Franc

currency

So, would Switzerland benefit from being inside the Euro zone? How?

EIU, special report on Switzerland, May 2011

How does this compare with Spain, Greece?

Should Spain / Greece drop out of the Euro (to regain

competitiveness)?

(think about this as you answer your team projects)

Question – which part of Switzerland is Mountainous? Industrial?

Question:

Other than Switzerland, which other major Western European countries are NOT part of the EU?

3 important Western European countries:

1. Switzerland2. Norway 3. Iceland

Question – why is Switzerland not a member?

Neutrality

Modern reasons: Banking industry (two large Swiss banks, UBS and Credit

Suisse + many other private Swiss banks) Immigration Cultural preference – independence, like CONTROL (of

everything) euro skepticism Tax policy (some cantons very low taxes to attract foreign

direct investment)… multinationals use Switzerland as HQ

Historical reasons:….. See next slides….