CAS EC 330 / IR 336 The European Business Environment: Institutions and Enterprise Credits: 4 Professor: Laurence Blotnicki ([email protected]) Schedule: 16 two-and-a-half-hour sessions over 7.5 weeks (Monday & Wednesday – 3:30 to 6:00 pm + 2 additional sessions) Office hours: By appointment before or after class Course material: On‐line academic texts and press articles (Blackboard) Visits: Issy-les-Moulineaux, an innovative territory -the eco- neighbourhoods of businesses- European Parliament- Liaison Office in A firm oriented towards the European market Speakers Marie-Hélène Cussac : “Lobbying the EU” Fabien de Silvestre : “Energy Issues and Sustainable Development”

I. COURSE PRESENTATION AND OUTCOMES

Over sixty years ago, six Western European countries laid the foundations for one of the most ambitious projects in the history of the continent: the voluntary integration of independent states to form a single entity. Since, the has experienced 7 successive enlargements and has 28 member states in 2018. The European Union is one of the major economies of the world accounting for 17% of the wealth created and the largest consumer market with the average purchasing power of its 511 million citizens. This vast market offers real opportunities and is an exceptional force of attraction to do business, both for local firms and foreign investors who want to set up in the European Union. Since the European regional integration process began, the EU has made great progress to facilitate business and promote economic growth : the establishment of a vast, borderless single market (sometimes also called the internal market) where people, goods, services and money can move around the European Union as freely as within a single country; the monetary integration with the introduction of a single currency, the Euro, adopted by 19 member states. The European Union has also set-up common institutions (the , the Council of European Union, the Parliament). The European Union system of regional integration operates via “competences” ceded to, or shared with, EU institutions by member states. The European business environment is powerfully shaped by these competences, which exist in such critical areas as trade policies, competition policy, energy security and environmental regulation, consumer protection, etc. But today many threats weigh on the European Union: on the one hand, internal threats with Brexit and, on the other hand, external threats with the new American position and the resolutely protectionist options expressed by President Donald Trump, as well as the rising of emergent countries. They are so many new constraints that the European Union will have to integrate into the future. This course provides an introduction to the European Union system of regional integration, its functioning through the common policies implemented by the European institutions, and its impact on European business environment with which firms must deal. This global vision will be illustrated by numerous case studies of key firms operating in the EU, addressed either during class discussions or during individual students’ oral presentations.

The course, including additional seminars and visits, is conducted entirely in English.

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Outcomes By the end of this course, students will have developed • a thorough understanding of the EU’s functioning through the concepts of single market, Economic and Monetary Union and through the main common economic policies (trade, completion, industrial) implemented in this area; • the impact of the European Union system of regional integration on businesses; • the ability to analyze the singularity of European integration in comparison with other regional integration areas (NAFTA, MERCOSUR, ASEAN); • a comprehension of major current issues and debates in today (Brexit, the decline of EU’s competitiveness in the changing global economy); • the ability to search for, select, and use a range of publicly available and discipline-specific information sources ethically and strategically to address research questions; • the ability to demonstrate understanding of the overall research process and its component parts, in order to formulate good research questions or hypotheses, to gather and analyze information, and to critically interpret, and communicate findings; • the ability to craft responsible, considered, and well-structured written arguments, using media and modes of expression appropriate to the situation; • the ability to read with understanding, engagement, appreciation, and critical judgment; • the ability to write clearly and coherently in a range of genres and styles, integrating graphic and multimedia elements as appropriate.

II. ASSESSMENT AND GRADING Workload: Mandatory readings for each session In depth research for the oral presentation In depth research for the essay Oral presentation: 15% Students (in groups of 2 to 3) will prepare a 15 minute presentation including a typed outline and a Powerpoint presentation. The oral presentation deals with a case study about the business strategies of a firm, chosen amongst key players from various sectors in the European Union market. The analysis will cover a variety of themes associated with topics studied in class: market study, competition study and European regulatory constraints. A presentation of methodological tools (SWOT and PESTLE) will be introduced during the first seminar. Topics will be assigned during the first week of class and the professor will meet with each individual group for a preparatory session dedicated to research and outlines. Case study: 20% Students will further develop their research on, and analysis of, the subject addressed in their presentation in a 10-15 page paper. The case study must be handed in for session 16. Quizzes: 10% Two short, multiple-choice quizzes will check in on students understanding of the course content. Midterm exam: 15% The midterm exam will include short essays from a choice of three out of four questions. Final exam: 30% The final exam will involve writing a well-developed essay answering one of two questions. Participation and preparedness: 10% This grade takes into account the quality of a student’s presence in class, energy, relevance of comments in class, effort and progress in language proficiency, and attendance and punctuality. Grading conversion (out of 100)

FINAL GRADE FOR THE COURSE GRADES FOR INDIVIDUAL COMPONENTS/ASSIGNMENTS B+/A- = 89,5 C+/B- = 79,5 D+/ C- = 69,5 93-100 : A 77-79,5 : C+ A+ = 97 B+ = 88 C+ = 78 D+ = 68 90-92,5 : A- 73-76,5 : C A/A+ = 96 B/B+ = 86,5 C/C+ = 76,5 D/D+ = 66,5 87-89,5 : B+ 70-72,5 : C- A = 95 B = 85 C = 75 D = 65 83-86,5 : B 69-60 : D A/A- = 92,5 B/B- = 82,5 C/C- = 72,5 D/D- = 62,5 80-82,5 : B- 59,5-0 : F A- = 91 B- = 81 C- = 71 D- = 61 A-/B+ = 89,5 B-/C+ = 79,5 C-/D+ = 69,5 F = 55

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Attendance Policy

Our program is subject to French student visa laws where an active student status is mandatory. As the sponsor of your visa, Boston University has the legal obligation to ensure that you comply with visa requirements. If you do not attend classes or your internship as required, you will be considered to be in breach of your visa and can be deported. Any student who does not comply with this policy may be sent home from the program at the discretion of the program director, and may, as a result, forfeit credit and program costs for part or all of the semester.

1 absence = -1 point on your final grade (courses* or internship**) More than 3 unexcused absences = F for the course Unsubmitted written work Absence for a presentation or exam = F (0 points) for the assignment in question Plagiarism *Courses: class sessions, exposé preparation, in-class presentation ** Internship: EUSA meetings, BU Paris workshops, work placement schedule

EXCUSED ABSENCES = - Absence for illness excused by the certificate of a French doctor - Internship interview - OFII medical visit (must have convocation) - Professional imperative that conflicts with academic workshop Documentation to be submitted to [email protected] the day following the absence

TARDINESS • The professor reserves the right to not admit a tardy student to class or to count a tardy arrival as either a half or whole unexcused absence. • Late arrivals to class will impact the class participation grade. • Leaving class before it ends is considered as tardiness. • Late submission of written work will entail a penalty on the assignment grade. • Written work submitted more than a week late or after the final exam will not receive credit (grade=0). Students who do not complete a course on time will be given an F. There are no withdrawals from classes, the internship nor the internship course. PLAGIARISM – OFFICIAL BU POLICY Simply stated, plagiarism is taking another’s work and presenting it as your own. It is, in fact, intellectual theft. It is one of the most serious forms of academic misconduct. Plagiarism committed by a student will certainly result in course failure and may result in suspension or dismissal. It can take many forms, including reproduction of published material without acknowledgement, or representing work done by others as your own. This includes the increasing common practice of purchasing and downloading work from the Internet “paper mills”. Plagiarism applies to all media – printed matter of all kinds, video, audio, and oral presentation. Even unacknowledged paraphrasing or use of another’s methodology, structure or management of material is plagiarism. You must use quotation when quoting even if you do the translating yourself.

All students are responsible for having read the Boston University statement on plagiarism, which is available in the Academic Conduct Code. Students are advised that the penalty against students on a Boston University program for cheating on the examinations or for plagiarism may be ‘expulsion from the program or the University or such other penalty as may be recommended by the Committee on Student Academic Conduct, subject to approval by the dean’. Read the full Academic Conduct Code online at: http://www.bu.edu/academics/policies/academic-conduct- code/

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III. CALENDAR

Topics and Readings Assignments and Activities Session 1 Introduction - Presentation of the course - Business environment: what are we talking about? - Methodology of business analysis environnement (SWOT AND PESTLE)

Part One: The functioning of European integration Session 2 The establishment of the single market - Various forms of regional integration in the world - Key features of the European single market - Benefits and weaknesses for businesses Readings: Miron D., “The single european market: challenges for doing business”, in Dima, A. M. (eds), Doing business in Europe: economic integration, processes, policies and the business environment, Bucharest, Springer ed., pp. 21-50. Eurostat, Key figures on Europe, Brussels, 2017 edition (excerpts). Session 3 European institutions - Focus on the “Institutional Triangle” - Power distribution between European institutions and member states - EU decision making - Critical view of European institutions Readings : European Commission, How the European Union works. Your guide to the EU institutions, Brussels, 2014, pp. 3-22. Session 4 A community budget Guest speaker - The EU budget : a priority for inclusive and intelligent growth - Structure of EU budget - Reform tracks Readings : European Commission, European budget at the glance, Brussels, 2017. Speaker: Cussac, M. H. : “Lobbying the EU” Session 5 A single currency Quiz 1 - The Euro in the Economic and Monetary Union (EMU) - The European central Bank: an independent European institution - Benefits and limits for businesses - The Euroland: an optimum currency area? Readings : Thygesen, N., “Why did Europe decide to dove to a single currency 25 Years Ago?”, Review of European Economic Policy, Vol 51, January-February 2016, n° 1, pp. 11-16. Paun, C., “The Euro and European Monetary Policy: a Critical View”, in Dima, A.M. (eds.), Doing business in Europe: economic integration, processes, policies and the business environment, Bucharest, Springer, pp. 125-148.

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Part Two: Common Policies in the Service of businesses

Session 6 Environmental policy - The European strategy - Impacts on businesses - Case studies Readings : Tindale, S., “State aid for energy: climate action is now more important than the single market”, Center for European reform, working paper, February 2015, 8 p. Selin, H. & VanDeveer, S. D., “EU environmental policy making and implementation: changing processes and mixed outcomes”, Boston, conference of the European Union Studies, march 2015, 28 p. Session 7 Visit to Issy-Les-Moulineaux, an innovative territory Visit The eco- neighbourhoods of businesses. Session 8 Energy policy Guest Speaker Speaker : De Silvestre, F., EDF,” Energy Issues and Sustainable Development” Readings : Dempsey, J., “A selection of experts answer a new question on the foreign and security policy challenges shaping Europe’s role in the world.”, Carnegie, July 12, 2017. Session 9 Competition policy : a key to a fair single market Midterm exam - Main tools: anti dumping, anti trust, state aid - Impacts on businesses - Case studies Readings : European Commission, Economic impact of competition policy enforcement on the functioning of telecoms markets in the EU, Brussels, 2017, (excerpt).

Part Three: The European Union in the changing global economy

Session 10 The international business environment : the necessity to adapt the European strategy - International trade theory (comparative advantages, model HOS) - The decline of European Union in the global economy - The failure of multilateral negociations in WTO and the rising of protectionism in the world Readings : Madner, V., “A new generation of trade agreements: an opportunity not to be missed”, Griller S., Obwexer W., Vranes E., in Mega-regional trade agreements: CETA-TTIP and TISA, new orientation for eu external economic relations, Oxford University Press, 2017, 20 p. Lamy, P., “What future for the EU in the global trading system?”, Review of European Economic Policy, vol. 51, January-February 2016, N° 1, pp. 34-36.

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Session 11 Visit of European Parliament – Liaison Office in Paris Visit

Session 12 Foreign investments in the European Union - The attractiveness of the single market - The impact of Brexit - General overview of direct investments in EU Readings: Ernts &Young, Inverstors vote remain in Europe, EY’s Attractivness survey, May 2017, 48 p. The European Commission, “Welcoming direct foreign investment while protecting essential interests”, Brussels, Communication Sept. 13th 2017, 12 p. Session 13 Case Studies: oral presentations Oral presentations Session 14 Visit of a Firm oriented towards the European market Visit

Session 15 Perspectives of the European Union Quiz 2 Aussilloux, V. (al.), “Making the best of the European single market”, France Stratégie, Policy contribution, Issue n° 3, 2017, 18 p. Session 16 Review Written case study due Last Friday Final Exam

IV. ADDITIONAL BIBLIOGRAPHY

Books Dima, A. M. (Eds.), Doing Business in Europe: Economic Integration, Processes, Policies and the Business Environment, Bucharest, Springer ed, 2018. McCormick, J., Understanding the European Union: A Concise Introduction, Oxford, ed MacMillan, 7th edition, 2017. Baldwin, R. & Wyplosz, C. (2015), The Economics of European Integration, McGraw-Hill Inc.,US. Robert Schuman Foundation, Schuman Report on Europe. State of the Union, Paris, , coll. Lignes de repères (several years). Muller, P. (eds), The EU single market: impact on member states, Brussels, Le Europe org., 2017. Sanz Caballero, F., Single market integration and competitiveness: report 2016, Brussels, European Commission, 2017. Johnson, D. & Turner, C., European business, London, Routledge ed., 3th edition, 2016.

Websites specialized on the EU www.europa.eu (official website of the European Union) www.ec.europa.eu/eurostat (European statistics website) www.euractiv.fr (the news of European policies) www.robert-schuman.org www.presseurop.eu (website on the economic, political and social news of the EU)

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