Mccallum Graduate School of Business Bentley University GBE
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McCallum Graduate School of Business Bentley University GBE 790: Manufacturing in the EU and The Changing Dynamics of Turkey's EU Relations March 9-‐18, 2012 Munich, German and Istanbul, Turkey Cost per student: $5,200 Dr. Alan N. Hoffman Professor of Management Office: MOR 107; Office Phone: (781) -‐ 891 2287 E-‐mail: [email protected] REQUIRED READINGS Books: The German Economy: Beyond the Social Market, by Horst Siebert, Princeton University Press, 2005. Read Chapters 1-‐4, 6. Chapt.1: Basic Features of the German Economy Chapt. 2: The Social Market Economy Chapt. 3: The Weak Growth Performance Chapt.4: The Labor Market: High and Sticky Unemployment Chapt 6: Ageing as a Challenge Over the Next 40 Years. The Government and Politics of The European Union, th 7 edition, Neill Nugent, Palgrave Macmillion, 2010, Parts 1 & 2. Part 1: The Historical Evolution of the EU Part 2: The Evolving Treaty Framework Forces of Fortune: The Rise of the New Muslim Middle Class and What It Will Mean for Our World, by Vali Nasr, The Free Press, 2009. Articles: Turkey in Europe: The Economic Case for Turkish membership of the European Union: 1 Turkey’s Accession to the EU – The Business Case by Rt Hon David Miliband MP, Foreign Secretary Preface by Rt Hon William Hague MP, Shadow Foreign Secretary and senior member of the Shadow Cabinet Introduction: Turkey’s future lies in Europe by Adam Hug, Policy Director, The Foreign Policy Centre 1. Turkey’s economic integration with the EU: A case of win-‐win interdependence by Olli Rehn, European Commissioner for Enlargement 2. The Turkish Economy and the EU Connection: The case for moving beyond engineered uncertainty by Dr Mehmet Ugur, Jean Monnet Reader in International Relations, University of Greenwich 26 3. Trade, Investment and Migration by Professor Refik Erzan, Professor of Economics, Bogaziçi University, Istanbul 37 4. EU and Turkey: In search of an almost perfect equation by Dr Bahadir Kaleagasi, TUSIAD (Turkish Industrialists’ and Businessmen’s Association) representative to the EU and BusinessEurope 5. Turkey: Trade and EU Accession by Sir Julian Horn-‐Smith, UK co-‐chair, Turkish British Business Council 6. Turkey and the EU: the Business Case for Membership by Roland Rudd, Chairman, Business for New Europe. 7. Turkey and EU Energy Security by Dr Gareth M Winrow, independent analyst and formerly Professor of International Relations Istanbul Bilgi University Conclusion: Making Turkish membership a reality by Adam Hug COURSE DESCRIPTION The course will compare and contrast advanced manufacturing in the EU (Germany) and in an aspiring entrant to the EU (Turkey) that is already leader of manufacturing and trade in the EEMENA Region (Eastern Europe, Middle East, Northern Africa). Munich, Germany Germany is one of the world's most advanced market economies. It is the world's third largest economy in USD -‐ exchange rate terms, the fifth largest by purchasing power parity (PPP) and the largest economy in Europe. 2 Compared to other German cities, Munich has the strongest economy and also boasts of the lowest unemployment rate (5.6 %). It is the economic centre of southern Germany and is considered a global city. Hardly surprising that it is home to of the headquarters Siemens AG (electronics), BMW (car), MAN AG (truck manufacturer, engineering), Linde (gases), Allianz (insurance) and Munich -‐ Re (re insurance). Among German cities with more than 500,000 inhabitants purchasing power is highest in Munich (26.648 Euros per inhabitant) as of 2007. Munich is also a centre for biotechnology, software and other service industries. Aircraft engine manufacturer MTU Aero Engines, the space and defence contractor EADS, the injection molding machine manufacturer Krauss-‐Maffei, the camera and lighting manufacturer Arri, the semiconductor firm Infineon Technologies, the DRAM company Qimonda, as well many foreign companies like Precision Plus, McDonald’s and Microsoft have their German or European headquarters in Munich. In the finance sector, Munich is home to Hypo Vereinsbank, Bayerische Landesbank and insurance companies like Allianz and Munich Re. Munich has earned itself the reputation of being Europe’s publishing capital. It is home to the Süddeutsche Zeitung, one of Germany's largest daily newspapers. It also plays host to Germany's largest public broadcasting network, ARD, and its largest commercial network, Pro7-‐ Sat1 Media AG and the Burda publishing group. One of Europe's biggest and most famous movie production studios, the Bavaria Film Studios is also located in the suburb of Grunwald. Lufthansa has opened a second hub at Munich's Franz Josef Strauss International Airport, the second-‐largest airport in Germany, after Frankfurt International Airport (from Wikipedia). During the five day stay in Germany, the group will visit Munich where the participants will study and analyze the German and EU business strategies and practices through lectures, company visits, visits to key historical and cultural research sites, market and exchanges of views with German businessmen and government officials. Istanbul, Turkey Istanbul is one of the world’s most vibrant and dynamic cities. Spanning Europe and Asia, the city’s history stretches back to Ancient Greece. serves Istanbul pre and honors its legacy as the former capital of three successive -‐-‐ empires Roman, Byzantine and Ottoman. Today’s Istanbul is a key cultural center where modern Islam meets Western Europe. Students will have an opportunity to experience the realities of today’s Turkey in cultural and historical context. Turkey's economy is no longer dominated by traditional agricultural activities in the rural areas, but more so by a highly dynamic industrial complex in the major cities, mostly concentrated in the western provinces of the country, along with a developed services sector. In 2007, the agricultural sector accounted for 8.9% of the GDP, while the industrial sector accounted for 30.8% and the services sector accounted for 59.3%. Tourism has experienced rapid growth in the last twenty years, and constitutes an important 3 part of the economy. In 2008, there were 30,929,192 visitors to the country, who contributed $21.9 billion to Turkey's revenues. Other key sectors of the Turkish economy are automotive, banking, construction, home appliances, consumer electronics, textiles, oil refining, petrochemical products, food, mining, iron and steel and machine industry. Turkey has a large and growing automotive industry, which produced 1,024,987 motor vehicles in 2006, ranking as the 6th largest automotive producer in Europe behind Germany, France, Spain, the United Kingdom, and Italy, respectively. Turkey is also one of the leading shipbuilding nations; in 2007 the country ranked 4th in the world (behind China, South Korea and in Japan) terms of the number ships of ordered . (from Wikipedia). The course examines Turkish business strategies and practices from the cultural and historical perspectives. It involves a ten-‐day study tour Mun to ich, Germany (EU) and Istanbul Turkey, preceded by one -‐ pre departure seminar and one trip orientation meeting at Bentley University. The course will enable students to observe manufacturing in the the EU and on-‐going socio-‐ economic transformation of Turkey and the challenges of globalization with the EU, Russia, China and the US. During the ten day visit top Munich and , Istanbul the group will study and German analyze the and Turkish business strategies and practices through lectures, company visits, visits to key historical and cultural sites, market research and exchanges German of views with and Turkish businessmen and government officials. GRADING/PERFORMACE EVALUATION 1. Attendance in the pre-‐trip seminars/meeting (25%). There will be two pre-‐trip meetings offered on campus before the trip: the first seminar will be on German the and Turkish economies, history and culture and background on the European Union (4 hours); the second meeting will cover the trip overview, logistics and assignments. Students are required both to attend sessions (2 hours). 2. Attendance in all Group Activities in Munich and Istanbul (15%). Students are required to participate in all the arranged group activities in Turkey, including attending lectures and visiting companies. 3. Student Journal of Company Visits (20%) Students are required to keep a journal of their thoughts and reactions to all of the company visits Munich in and Istanbul and describe the central issue or problem facing each company. 4. Industry Analysis Research Paper (25 pages) (40%) After the trip, students are required to hand in a research paper of 25 pages on one 4 Germany or Turkey’s key industries: automobiles, tourism, shipbuilding, banking, construction, home appliances, electronics, textiles, oil refining, petrochemical products, food, mining, iron and steel and machine industry. COST: $5,200. The program includes accommodation in double occupancy/shared rooms at 4 star hotels and coach class airfare. Credit for Removing International Air: $ 1400 – through December 1, 2011 Summary of Inclusions: INTERNATIONAL AIR TRANSPORTATION Roundtrip, economy class ticket on Lufthansa airlines via Boston TRANSFERS, TOURING & MEALS Arrival and departure transfer with English speaking assistant 4.5 days coach & guide at disposal for business visits Surface transportation – via private coach in Munich and Istanbul Tourism activities & entrance fees included for Istanbul as listed (Blue Mosque, Topkapi Palace, Grand Bazaar,