The Euro Crisis and its Impact

Abstract The Euro crisis is an economic crisis that not only points at the weaknesses of economic integration, but also points at the consequences of poor economic policies at the state level. The aim of this paper is to synthesise literature on the causes, progression, and impacts of the Euro crisis on the European economy.Advertising We will write a custom coursework sample on The Euro Crisis and its Impact specifically for you for only $16.05 $11/page Learn More The literature shows that the Euro crisis is far from over. The European countries have to rethink about the economic integration strategies that can encourage prudent management of individual economies in the region to avoid such shocks. Introduction The Euro crisis was seen not only as a financial problem in the European Union countries, extending from the global financial crisis, but also as a real test of the essence of economic integration. The European Union has come out as a benchmark o f economic integration in the whole world. The rationale behind the terming of the European Union as a global benchmark when it comes to matters of economic cooperation and unity among states in the region is that it is the only economic union that has managed to realise the workability of a common currency. However, as mentioned in the opening sentence, the Euro crisis, whose genesis lies in the debt crises that mounted in a number of countries that form the monetary union, namely Greece, Spain, Ireland, and Italy, among others, resulted in the replication of the problem across the European Union. A substantial number of economic commentators term the Euro crisis as a problem that denoted the difficulty of integrating individual economies and dealing with economic pressures that come from the attributes of economic management in individual economies. The interesting thing about the crisis is that it serves as an example of how problematic economic integration can become because the faulty actions of other players could pose grave economic consequences requiring major economic decisions and adjustments by the individual states to solve the problem.Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This paper presents a review of literature on the Euro crisis and its impacts on Europe and the entire global economy. The paper contacts three main research databases, namely EBSCOHost, SIRS Researcher, and ProQuest. These three databases play a critical role in presenting sequential information regarding the moulding of the Euro crisis and the consequences of the Euro crisis in terms of economic policy development and the performance of the economy, more so on the affected economies. The selection of articles from EBSCOHost is based on topic search, where preference is given to different articles denoting diverse dimensions of research about the Euro crisis. Most of the articles derived from the SIRS Researcher database point at the fact that the Wall Street Journal receives more attention because most articles in this database are those published by the Wall Street Journal. This is aimed at producing data that is consistent concerning the development of the crisis as understood by the researchers who write for the Wall Street Journal. The articles selected from the ProQuest database depict information about the Euro crisis based on the external views about the effects of the crisis beyond the European Union borders. The genesis of the Euro crisis A substantial number of economic commentators agree with the observation that the Euro crisis, which is also referred to as the sovereign debt crisis, was brought about by the significant deficits in the balance of payments of individual countries due to unsustainable fiscal policies pursued by these countries over a substantial number of years. Higgins and Klitgaard (2014) argue that the Euro crisis beg un from the fiscal problem in Greece due to the accumulation of debt by Greece. Higgins and Klitgaard (2014) further note that Greece and other periphery economies in the European Union relied heavily on external capital. These countries needed the capital to finance housing booms and domestic consumption. The only option that seemed feasible to them was to borrow from other countries, given they could not afford to source the finances locally. Wood (2012) observes that the European countries, especially the countries in south Europe, failed to agree on a common framework on which they could opt for the Euro as a common currency.Advertising We will write a custom coursework sample on The Euro Crisis and its Impact specifically for you for only $16.05 $11/page Learn More At this point, Germany gets a fair share of the blame for failing to exercise a leading role and, instead, taking a fiscal strategy that plunged the other southern Europe economies into debt (Wood 2012). Milios and Sotiropoulos (2010) ascertain the essence of looking at the Euro crisis from the perspective of the cycles of capitalism in the Eurozone, rather than pointing fingers at the debt crisis in Greece. The real value of economic integration lies in the kind of strategies that are taken by countries forming the economic block to offset the deficits in the balance of payments. In this case, the crisis in the Eurozone is a problem that cannot be directed at one country, but the failure should also be associated with the other countries that had a chance to salvage the debt problem in the region. However, they failed to do so due to their own reasons. The high rate of indebtedness in Greece depicts not only the weakness of economic governance in Greece, but also the failure of Germany as a key player in the region to activate some steps that could salvage Greece and the entire region at large (Dinan 2012). Rosenthal (2010) further observes that the deficit limit that was set by the European Union was not only exceeded by Greece, but also other players in the European Union like France. The main concern here is that the European Union did not sanction France because of political malice. The rationale here is that France is a big brother in the European Union; that is why it is favoured even when it breaches the set standards of the EU monetary union (Rosenthal 2012). The figure below could serve as an indicator of the manipulation of the economies of the region by Germany due to the introduction of the Euro as a common currency in 2002. Figure 1.0: Current account balance for Germany from 1999-2010.Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Source: Rosenthal (2012, p. 57). Figure 1.0 denotes a significant rise in Germany’s current account balance after the introduction of the Euro as a common currency in 2002. The non-existence of an exchange-rate buffer prior to the introduction of the Euro as a common currency led other weak economies in the region to lose their competitiveness as Germany took advantage of its manufacturing and export power to deny other countries the opportunity to thrive in the market. This indicates a kind of economic exploitation of other countries, a factor that necessitated the increase in the amount of foreign debt (Rosenthal 2012). Baimbridge, Burkitt and Whyman (2012) ascertained that the deflation that was later experienced in other countries in the Eurozone was as a result of the creation of a boom-bust cycle emanating from the implementation of a similar interest rate for all countries. As the most powerful economy in southern Europe, Germany could easily adjust its taxation regim e to compete at a fairly lower exchange rate. This could play a critical role in reducing the financial burden in other Eurozone countries. For more information about the comparative aspects of foreign current account balance in the European Union, see figure 1 and figure 2 in the appendix. Higgins and Klitgaard (2014) observed that dependence on borrowed money often results in its risks, particularly in situations where the countries from which the money is borrowed are no longer in an economic position to offer credit. Higgins and Klitgaard (2014) base this assumption on the issues of saving and investment at the domestic level. They note that reliance on borrowing and the failure to invest the money in economic segments that can spur local investment and savings, just as in the case of Greece and other countries in the European Union, often results in economic problems. A broader look at the Euro crisis by Wood (2012) reveals a number of causative factors. Among these factors are imprudent banks, errors in economic policy development and implementation, remote technocracy, lack of effective regulation, and turbo-capitalism. These factors are, in one way or another, linked to the mounting of the debts in individual countries across the European Union. However, Wood (2012) further observes that the Euro crisis is an economic crisis that cannot be only linked to the mounting debts in individual economies in Europe, but also a problem that can be understood by incorporating other attributes like history, sociological forces, and other elements of governance across Europe. In other words, Wood (2012) moves away from the dominant view supported by a substantial number of researchers, who synthesise the Euro crisis only based on the debt question while failing to open up to other forces that might have resulted in the worsened economic situation in Europe. Hall (2012) raises similar sentiments by noting that the Euro crisis presents a number of puzzles, as people seek for answers about the real causes of the crisis in what was earlier on applauded as a benchmark as far as economic integration in the world is concerned. Hall also paints the picture of how the two hemispheres in Europe seem divided over the crisis, where the northern European countries blame the south by pointing at the fiscal faults inherent in the economic policies of southern Europe governments. Hall presents an important statistic about the Euro crisis. Figure 1.1: Percentage growth of domestic demand in individual economies from 1999 – 2009. Source: Hall (2012), p. 360. The figure indicates significant variations in demand for growth, which means that the countries with a high percentage of domestic demand were under pressure to develop and enforce growth-oriented reforms. As the country with the highest domestic demand, Greece had no other option that to be proactive in developing strategies that could help meet its skyrocketing domestic demand. Borrowing from th e other countries with limited domestic demand was necessary to meet the domestic demand in Greece (Hall 2012). Progression of the Euro crisis A deeper look at the Euro crisis shows that the crisis moved from the debt problem in individual economies to the subsequent currency war. Rosenthal (2012) observes that the crisis in the Eurozone is best reflected in the difficulties that transpired in the operation of the monetary union. The functioning of the union was threatened as it became apparent that the local currencies in individual economies were becoming weaker and the affected countries had little to do to limit the deficits in their balance of payments. A series of actions were taken as a way of seeking for a solution to the plummeting currency problem in the Eurozone. Among these actions were the numerous currency devaluations to strike a balance between supply and demand. The setting in of the monetary union created a tough situation for currency speculation in the region. Th e extreme downward adjustment in the exchange rate meant that a further downward adjustment of the exchange rate would not be achieved (Rosenthal 2012). Baimbridge, Burkitt and Whyman (2012) present another dimension to the Euro crisis, in which they focus on the creation of the Eurozone and the effects that come with its creation. Fiscal discipline is vital in the sustenance of a monetary union. The free-rider and spill-over effects as noted in the Euro crisis are perfect examples of the faults of fiscal policy in the management of a monetary union. Thus, Baimbridge, Burkitt and Whyman (2012) summarize the Euro crisis by pointing at the prevalence of a number of structural weaknesses in the Eurozone. It is the structural weaknesses in the European Union that resulted in the escalation of the debt crisis from Greece to other countries in the Eurozone. In their assessment of the mounting debt crisis in the Eurozone, Higgins and Klitgaard (2011) noted that the rates of borrowing in th e Eurozone rose amidst the introduction of the common currency and the inability of individual countries to finance their domestic expenditures. Higgins and Klitgaard (2011) also note the creation of an economic cycle of dependency in the European Union, where a number of countries in the region were left to become dependent on borrowed money. Higgins and Klitgaard (2011) also acknowledge the countermeasures taken by the affected countries, most of which entail the consolidation measures. These measures are aimed at attaining a significant reduction in fiscal deficits in the required set standard of below 3 per cent. The measures to bring down the fiscal policies that are being implemented now could have been put in place earlier to prevent these countries from entering into debt crises, such as the one that culminated into the Euro crisis (Higgins Klitgaard 2011). A focus on the impacts of the Euro crisis based on the functioning of markets in the European Union and other countrie s that fall outside the European monetary and economic unions by Melander (2011) shows the heightened effects of the crisis beyond the assumptions made by the European Union. This is notable in the observation made by Zuckerman (2011) and Francis (2012), who ascertain the essence of the countries beyond the European region to develop and implement economic measures that can cushion them from the crisis. Malander (2011) paints the picture of the distress in countries where the Greek financial institutions were operating prior to the Euro crisis through the entire build-up of the crisis as shown in the figure below. Figure 1.2: Impacts of the distress in Greece of the periphery sovereigns. Source: Malander (2011, p. 356). The common denominator of the figure is that the weaknesses portrayed in the economic systems of Greece were replicated in the financial institutions from Greece. The deepening of the distress in Greece over the years resulted in the deepening of the distress in oth er economies that had close links with Greece through the operation of Greek institutions in these countries. It is also apparent that the exposure of the Greek economy in line with the weaknesses in other economies like the Irish economy also acted as an aggravating factor for the Euro crisis (Malander 2011). The same can also be said about the mounting of the debt crisis in Ireland as indicated in the figure below. Figure 1.3: Distress in Western Europe countries following the distress in Ireland. Source: Malander (2011, p. 357). This expands on the reason why the Euro crisis comes is an intertwined economic problem that cannot not be sorted out easily by implementing unitary strategies. The approach taken by each individual country has a lot of effects on other countries in the European Union. Zuckerman (2011) reports about the currency defaults across the European Union as a result of the low lending rates by the European Central Bank to countries in the European Union. Most ba nks were left with no option because of the growth in the amount of unnegotiated currency defaults. There is no room for underestimation as the debt that has been accumulated by countries in the region, including Italy as the 8th largest economy in the world, is too huge. Italy is also ranked as a third largest bond market, but it remains unclear whether the $2.6 trillion sovereign debt accumulated by the country can be cleared any soon. Zuckerman (2011) justifies the worry of the United States by observing that most of the affected countries in Europe continue to come up with austerity programs. However, these programs are risks in themselves as they deepen the recession in most cases, thereby making it even harder for the affected countries to service the huge debts. The more these debts prevail, the more difficult it is to establish sustainable economic relations between the affected countries and other economies in the world. Also, the Euro as a common currency in the European U nion faces major challenges, especially from people who link the crisis to the introduction of the Euro as a common currency in the Eurozone (Zuckerman 2011). However, Brittan (2010) defends the Euro by observing that the Euro is not a problem per se. The problem in the Eurozone lies with the inconsistent and fragmented economic policies and strategies adopted by the countries in the Eurozone. Saving the Euro is the priority of the European Union. Nonetheless, a look at individual countries, especially the economic powerhouses in the European Union like Britain, France and Germany, shows that these countries are committed to saving their financial institutions like banks from the risks associated with the Euro crisis (Farrell Quiggin 2011). Farrell and Quiggin (2011) further note that some countries like Germany have gone as far as developing laws to help induce debt brakes. Other countries in the Eurozone, totalling to sixteen, also followed a similar road. However, most of the ef forts initiated by players in the Euro crisis are short-term, raising questions about the possibility of developing long-term economic measures to prevent a debt problem from occurring again in the future. Farrell and Quiggin (2011) see the short-term strategies as necessary for limiting expenditure and ensuring that the bond markets across the Eurozone calm down. After laying blame on Greece for the Euro crisis, most of the European countries agree that saving Greece is a key step in easing the economic pressure in the region. The budget crisis in Greece was a subject of most European leaders in the onset of the Euro crisis, more so when the countries in the region realized that the budget problem in Greece was not only a problem of Greece, but also a problem of all other countries in the region (Forelle, Walker Galloni 2010). Impacts of the Euro crisis and the lessons learnt Mà ¼nchau (2013) observed that the Euro crisis is an example of smouldering crises that are born out of t he lack of prudent systems of economic management in economic integration. Mà ¼nchau cites what he refers to as the inflexible fiscal rules and compliance procedures that impeded the creation of incentives. What happened is that the system of economic management that came immediately and after the introduction of a monetary union subjected the smaller economies in the region to tough economic measures, most of which could not be upheld by these states. The application of the principles of economic management like the no bailout principle enshrined in Article 125 of the European Union Treaty is a justification of how difficult it is to solve problems of insolvency in individual economies that form the European Union. Other cited difficulties include the â€Å"no default† and â€Å"no exit† principles, which limit the level at which liquidity support can be offered to European Union member countries in times of crises (Mà ¼nchau 2013). To this effect, Mà ¼nchau reiter ates the essence of intense coordination of policy, monetary, fiscal, national sovereignty, and regional and global policy to avoid a situation where the players in economic integration read from different pages. Melander (2011) is quite pessimistic about the application of the principles of economic liberalization by states in the quest of states to conform to economic integration. Melander uses Ireland, one of the countries that exhibited the problem of mounting debt in the progression of the Euro crisis, by noting the fact that Ireland was applauded as a benchmark for flexibility and liberalization in the realms of economic integration. The situation later changed when Ireland later plunged into a debt amidst the mounting economic pressure in the Eurozone. The progression of the crisis resulted in a situation where the benchmark countries in terms of economic liberalization like Ireland and the worst performing economies in the region like Greece ending up in the same capsizing b oat (Melander 2011). The other issue that comes out in Melander’s (2011) analysis of the Euro crisis is the fact that economic networks are potentially harmful, irrespective of the minute nature of the economic problems that occur in an individual country. Together, Greece and Ireland do not even amount to 5 percent of the GDP of the Eurozone, yet the debt crisis in the two countries posed a threat to the entire European Union economy. Capital flow in trade and finance between member states in an economic union is an issue that warrants attention by individual states because individual states remain with the responsibility of supporting its institutions in times of economic downturn. However, a look at the response to the debt crisis in Greek and other countries proved the inability of governments to support their financial institutions. Consequently, these financial institutions were rendered helpless in terms of boosting the domestic financial status of the economy of count ries where they base their operations (Melander 2011). Xafa (2010) explores the unavoidable questions about the role of the global financial institutions like the International Monetary Fund (IMF) in cushioning countries from the effects of the Euro crisis. The International Monetary Fund served as a key institution in raising alarm about the global financial crisis. Nonetheless, such an alarm could not easily work with the Euro crisis. The Euro crisis required more than policy advice, especially for the countries that were already facing the economic effects of a huge foreign debt now that these emerging European economies could not access the externally funded credit from other countries. Irrespective of this, Xafa applauds the International Monetary Fund for its proactive steps of continuous surveillance of the global economy. Failures that resulted in the worsening of the economic situation in the European Union are linked to the rigid commitments of individual countries, which make them stiff when it comes to matters of economic support and adjustment for the common good of other states (Xafa 2010). Besides the issue of economic and financial regulation by international bodies like the International Monetary Fund is the issue of willingness of countries to go to the deeper ends in salvaging a monetary union. Karras (2011) contends with the fact that the introduction of the Euro as a common currency triggered the credit problem in the Eurozone, thus necessitating credit pressures across the Eurozone. However, Karras also agrees with the findings made by a substantial number of economic researchers pointing at the fact that the economic decisions taken by individual countries at the early stages of the Euro crisis were highly disintegrated and could not promote a common solution. The observation here can be linked to the opinions raised by a substantial number of economic commentators, who argue that the Euro crisis would result in losers and winners. Heisb ourg (2012) indicates that the winners and losers in the economic turmoil depended on the economic and political paths pursued by individual countries. The Euro crisis is a lesson to countries in the European Union, most of which have had to review their strategic economic choices. An example given here is the reliance of Germany on exports and the difficulty to sustain exports when the destiny countries face severe economic problems that inhibit their potential to import goods from Germany (Heisbourg 2012). Since the beginning of the European sovereign debt crisis, the United States as one of the largest traders with the European Union has remained active in terms of making adjustments in its economy. Most, if not all the adjustments, are aimed at cushioning the country from the shrinks in trade and securing its financial system from fallout like the financial system of Europe (Francis 2012). In the real sense, a direct exposure of the United States markets to the crisis in the Eur opean Union has not been established. However, a substantial number of investors in the United States share the sentiment that the United States’ market is vulnerable to the crisis in the Eurozone, especially when long-term solutions do not come from the European countries (Heisbourg 2012). In his research about the export strength of Germany in the European Union amidst the crisis in the Eurozone, Foroohar (2011) found out that Germany export capacity depends on the internal economic strengths of a number of countries in the European Union, like Spain and Italy. The reason why Germany finds itself at the centre of the Euro crisis is that it depends on the Eurozone for approximately half of its net exports (Foroohar 2011). The financial woes in the Eurozone present a new basis on which the issue of regional economic integration should be reassessed. Walker and Galloni (2013) report on the thoughts raised about the benefits and risks associated with leaving and remaining in th e European Union for countries that have been severely affected by the Euro crisis. The opinion about leaving the Euro vary across Italy, where 74 per cent of the Italians feel that it is prudent for Italy to remain in the Euro while 20 per cent of Italians feel that leaving the Euro is an economic reprieve for Italy. However, most governments in the Eurozone remain consistent in support of the Euro, which makes Walker and Galloni (2013) to conclude that the Euro is meant to stay put. Governments, on the other hand, are charged with the responsibility of ensuring that they keep implementing austerity measures even amidst opposition from a section of the European population. In other words, European countries face an economic situation that is a true test of whether they can maintain their solidarity and fight for the survival of the European economic bloc. Most people remain keen to see the steps taken by individual economies in the Eurozone. Nonetheless, there is no window for disi ntegration even amidst what is seen as divergent tactics by individual countries as they develop mechanisms of preventing further shocks in their economies (â€Å"European union: Solidarity is under threat from crises† 2011). The financial woes in the Eurozone, according to Dadush (2013), are quite far from being over because the risk of collapse of the bond markets in the Eurozone remains active. The question of unemployment in the Eurozone rose to eighteen million unemployed people, even as more commentators predicted light at the end of the seeming endless tunnel for the countries in the Eurozone. However, Dadush (2013) faults the proclamation by European governments that the crisis in the European Union is nearing the end. It would be illogical to explore the Euro crisis without mentioning the effects of the crisis on the industries in the affected countries. In their presentation of the effects of the crisis on the European economy, Walker and Galloni (2013) reported fea rs among a substantial number of workers, especially in plants that are directly affected by the major shrinks in the economy. The example provided here is Mirafiori car-assembly plant, which has shed almost half of its employees since the beginning of the crisis. An assessment of the Greece economy by Kalafati (2012) revealed that the Greece economy was worst hit by the Euro crisis. A focus on the health care sector of Greece depicts massive cuts in expenditure on health care. Even amidst the increase in tax to finance health care, the government of Greece still has not managed to prevent the layoffs in the sector (Kalafati 2012). Salin (2012) is one of the commentators who are looking at the conflict in the Eurozone not only from the economic perspective, but also from the political perspective. Salin identifies some of the politically-inclined sentiments raised by governments in his assessment of the actions taken by governments to tackle the Euro crisis. Among these sentiments i s that the monetary system of the Euro ought to be unified with the national policies. This is termed as the centralization of the European Union. This is a political move that can be used for maintaining a single currency use by the countries for economic benefits by ensuring that states do not only see the European Union as an economic stepping stone, but also maintain a system of checks and balances in their economic operations (Salin 2012). Farrell and Quiggin (2011) note the European Central Bank has now gained more powers as a key institution of monitoring the monetary policy in the European Union. This implies the control of monetary policies in the region, thus countries in the region cannot merely rush to monetary policy options whenever they face tough economic situations like the increase in the size of sovereign debts. Though opposed by a number of countries, a strong European Central Bank is necessary for supervising the big banks across the European economic bloc, besi des ensuring that there is stability in the bond markets across the bloc (Walker Steinhauser 2013). Walker and Steinhauser (2013) assess the possibility of embracing a political union by the European Union countries. The authors ascertain the need for the political union to ensure desirable coordination of the economic policies. The signs inherent in the sentiments from a number of stakeholders show that a political union of the European Union countries is far from being realized. As it is now, the European governments seem to be preoccupied with bolstering the currency union to prevent fiscal profligacy. The European countries have realized that the monetary union that they entered into is far from being accomplished as notable in the debt crisis that almost tore the Union apart (Walker Steinhauser 2013). Conclusion and recommendation The review of the literature conducted in this paper shows that the Eurozone countries are subjected to a test on whether they can act in a manner that is consistent with the desire to keep the European Union intact. According to most researchers, there are a lot of gaps in the integration of the European Union. These can be summed into one question: Does the answer to the Euro crisis lie with integration or disintegration? A substantial number of the opinions raised by economic commentators and political economists point at the fact that countries in the region have been contemplating on whether to embrace the Euro as a single currency or whether to shun the Euro and stick to their national currencies. Even as the debate rages on whether to stick to the Euro or whether to shun the Euro, it is apparent that the countries are put between a rock and a hard place as the option to abandon the Euro could be more disastrous to economies in the region. Moving forward, the European countries should review the framework under which the rules and policies of economic integration are developed and implemented. The vital thing here is tha t the European Union members should put their heads straight when developing these policies and rules. This is aimed at making all the countries of the Union to abide by the rules because the failure to stick to the economic policies and rules is one reason why the Euro crisis came into being. European solidarity is important and should be reflected in the development of economic cooperation among countries in the Eurozone. The issue of spendthrift governments cannot arise if each of the government remains committed to the rules and policies and if other governments in the European Union remain committed to supporting a worthy economic cause for all other partners in the European Union. Prudent economic management is a vital element for each country in the European Union. As such, there is a need to look into this attribute. The Euro crisis finds its roots in the attributes of irresponsible fiscal and monetary policies by individual countries. Whether the level of irresponsibility i s promoted by the fact that these countries believe that they have a backing from other economies is something that ought to be investigated, even as the support for the implementation of austerity measures in the countries severely affected continues. The functioning of the Euro system depends on the efficient national budgets, which means that the economic construction of each country is a vital element for the survival of other countries. The political rhetoric should be eliminated from the debate, considering the fact that these countries can hardly abandon the Euro. In addition, the stakeholders have to devise a system of checks and balances for each country to avoid such a crisis in the future. Appendices Figure 1: Current account balance for the intensely affected EU countries Figure 2: A comparison of current account balances with Germany Reference List Baimbridge, M, Burkitt, B, Whyman, P 2012, ‘The Eurozone as a flawed currency area’, Political Quarterly, v ol. 83, no. 1, pp. 96-107. Brittan, S 2010, ‘The euro? Will it still be around five years from now?’, International Economy, vol. 24, no. 2, pp, 6-10. Dadush, U 2013, ‘Who says the euro crisis is over?’, Wall Street Journal Asia. Web. Dinan, D 2012, ‘Governance and Institutions: impact of the escalating crisis’, JCMS: Journal of Common Market Studies, vol. 50 no. 2, pp. 85-98. ‘European union: Solidarity is under threat from crises’ 2011, OxResearch Daily Brief Service, p. 1. Web. Farrell, H, Quiggin, J 2011, ‘How to save the euro–and the EU’, Foreign Affairs, vol. 90, no.3, pp. 96-97. Forelle, C, Walker, M, Galloni, A 2010, ‘Europe vows to save Greece’, Wall Street Journal. Web. Foroohar, R 2013, How Germany can save the Euro, Time Incorporated, New York, NY. Francis, D 2012, How to protect your investments from the Euro crisis, U.S. News and World Report, Washington. Hall, PA 2012, ‘The ec onomics and politics of the Euro crisis’, German Politics, vol. 21 no. 4, pp. 355-371. Heisbourg, F 2012, ‘In the shadow of the Euro crisis’, Survival (00396338), vol. 54 no. 4, pp. 25-32. Higgins, M, Klitgaard, T 2011, ‘Saving imbalances and the Euro area sovereign debt crisis’, Current Issues In Economics Finance, vol. 17, no. 5, pp. 1-11. Higgins, M, Klitgaard, T 2014, ‘The balance of payments crisis in the Euro area periphery’, Current Issues In Economics Finance, vol. 20 no. 2, pp. 1-8. Kalafati, M 2012, ‘How Greek healthcare services are affected by the Euro crisis’, Emergency Nurse, vol. 20, no. 3, pp. 26-7. Karras, G 2011, ‘From hero to zero? The role of the Euro in the current crisis: Theory and some empirical evidence’, International Advances in Economic Research, vol. 17 no. 3, pp. 300-314. Melander, O 2011, ‘Dancing spreads: Market assessment of contagion from the crisis in the Euro periphe ry based on distress dependence analysis’, International Advances In Economic Research, vol. 17 no. 3, pp. 347-363. Milios, J, Sotiropoulos, D 2010, ‘Crisis of Greece or crisis of the euro? A view from the European ‘periphery†, Journal of Balkan Near Eastern Studies, vol. 12, no. 3, pp. 223-240. Mà ¼nchau, W 2013, ‘The Euro at a crossroads’, CATO Journal, vol. 33, no. 3, pp. 535-540. Rosenthal, J 2012, ‘Germany and the Euro crisis’, World Affairs, vol. 175, no. 1, pp. 53-61. Salin, P 2012, ‘There is no euro crisis’, Wall Street Journal. Web. Walker, M, Galloni, A 2013, ‘Embattled countries cling to euro’, Wall Street Journal. Web. Walker, M, Steinhauser, G 2013, ‘Control issues: Plans for political union unravel in Europe’, Wall Street Journal. Web. Wood, S 2012, ‘The Euro crisis’, Policy, vol. 28 no. 1, pp. 32-37. Xafa, M 2010, ‘Role of the IMF in the global financial c risis’, Cato Journal, vol. 30, no. 4, pp. 475-489. Zuckerman, MB 2011, Mort Zuckerman: Why America should worry about the Euro crisis, U.S. News and World Report, Washington, D.C. This coursework on The Euro Crisis and its Impact was written and submitted by user Vicente Mayo to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Converting an Access 2010 Database to SQL Server

Converting an Access 2010 Database to SQL Server In time, most databases grow in size and complexity. If  your Access 2010 database is growing too large or unwieldy, you may need to allow more robust multiuser access to the database. Converting your Access database to Microsoft SQL Server database might be the solution you need. Fortunately, Microsoft provides an Upsizing Wizard in Access 2010 that makes it easy to convert your database. This tutorial  walks through the process of converting your database. Its important to note that if youre looking for a SQL Server tool that offers a similar migration path, you need to look at the SQL Server Migration Assistant.   What You Need Microsoft Access 2010Microsoft SQL ServerRelational DatabaseSQL Server administrative account  with permission to create a database Preparations for Upsizing an Access Database Before you begin the tutorial to convert your database to a SQL Server database, you need to do a few things: Back up the databaseMake sure you have plenty of disk  space on the device that will contain the upsized databaseAssign yourself permissions on the SQL Server databaseAdd a unique index  to each Access table that doesnt have one before you upsize it Converting an Access 2010 Database to SQL Server Open the database in Microsoft Access.Choose the Database Tools tab in the Ribbon.Click the SQL Server button located in the Move Data section. This opens the Upsizing Wizard.Select whether you want to import the data into an existing database or create a new database for the data. For this tutorial, assume that youre trying to create a new SQL Server database using the data in your Access database. Click Next to continue.Provide the connection information for the SQL Server installation. Youll need to provide the name of the server, credentials for an administrator with permission to create a database and the name of the database you want to connect. Click Next after providing this information.Use the arrow buttons to move the tables you want to transfer to the list labeled Export to SQL Server. Click the Next button to continue.Review the default attributes that will be transferred and make any changes desired. You have the option to preserve settings for table indexes, validation rules, and relationships, among other settings. When done, click the Next button to continue. Decide how you want to handle your Access application. You may choose to create a new Access client/server application that accesses the SQL Server database, modify your existing application to reference the data stored on SQL Server, or copy the data without making any changes to your Access database.Click Finish and wait for the upsizing process to complete. When you are finished, review the upsizing report for important information about the database migration. Tips This tutorial was written for Access 2010 users. The Upsizing Wizard first appeared in Access 97 but the specific process for using it varies in other versions.

Database Design and Implementation Assignment Example | Topics and Well Written Essays - 5000 words

Database Design and Implementation - Assignment Example A major downside of this site is that it is very slow. The seller is not required to pay any fee for posting an item for sale. The sites has strong measures and applications installed that ensures that it is fraud proof and the sellers can list as many items as they want as opposed to most online purchasing sites. E-bay is one of the leading online shopping market place where buyers and sellers transact a wide variety of goods and services worldwide. It has become a multi-billion dollar company after it was founded back in 1995. It has included buy-it-now as a standard shopping, an expansion from its original auction format. A number of items, from cars to antiques, are listed by a seller who then chooses to only accept bids for the item thus enabling the buyer to purchase the item immediately. The first buyer eager to pay the sellers stated price gets the item on a buy-it-now option. All the three sites have five major entities that is; the auction, product, payment, seller and the buyer. Of the four entities only three are actively involved at any given time, mostly, the auction, product and the buyer. The three entities have major common attributes across the three sites most of which were identified as the generic attributes. The product id, seller/.buyer id and the product id alongside other attributes formed the major attributes across the three sites. The other attributes that were rejected were either irrelevant or less important and could be retrieved through the major attributes such as the auction, seller/buyer or product ids. Normalizing the possible tables consisting of the entities alongside their attributes led to the rejection or dropping off of some attributes to avoid data redundancy. The product name, product description, product prices and product image from the auction table can be compressed into a different table named product with a primary key being product id. The auction table therefore will be normalized

Søren Kierkegaard Essay Example | Topics and Well Written Essays - 1500 words

SÃ ¸ren Kierkegaard - Essay Example He notably only traveled abroad five times, four times to Berlin and once to Sweden. Despite this fact, he still managed to take from his studies and many experiences to form a universal model for understanding the different stages and aspect of living. His many works garnered him acclaim among fellow scholars and mathematicians of his era, and like many of the greatest philosophers his works have been heralded as timeless. One of Kierkegaard's most notable works is his theory of the spheres of existence. For the philosopher, existence meant to become progressively more individualistic (Kierkegaard, 175). Keirkegaard believed this individualistic existence caused everyone to travel along a path toward self-realization and this process, he noted, had three stages. These stages being, Ethical, Religious and Aesthetic, as "All human beings are currently at one of this stages, depending on the extent to which they have achieved their life-project (Kierkegaard, 175)." By more individualistic, Kiekegaard means that through each stage individual gain a higher understanding of self than they had before and it is through the privileged perspective provided by the assessment of and graduation from the previous stage that allows the person to attain this new form of self. Kiekegaard goes on to further note that, "Each stage is a way of seeing life, a way of understanding the world. They are different ways of livi ng out one's existence, independent spheres of life, situations which embody a certain stability. Living fully in the aesthetic sphere will never lead to the ethical one, and the upholding of ethics will never open the door to religion." He closes by pointing out that no one stage can completely dominate and individual's life and if one were to allows this to happen they would stay stagnant and not progress through the stages. Aesthetics The first stage of Kierkegaard's progression of existential stages is aesthetics recognized as the 'immersion in sensuous experience; valorization of possibility over actuality; egotism; fragmentation of the subject of experience; nihilistic wielding of irony and skepticism; and flight from boredom (Stanford, p1)." This stage of existence is a very selfish one that involves excessive self-indulgence. Kierkegaard refers to temptation and the appreciation and distraction of beauty a lot in this section.Ethics Ethics in Kierkegard's work has more than one meaning, "It is used to denote both: (i) a limited existential sphere, or stage, which is superseded by the higher stage of the religious life; and (ii) an aspect of life which is retained even within the religious life (Stanford, p1)." This is basically the stage where one starts to asses their life and view themselves objectively. It is recognized as the stage of reasoning this stage is 'limited' in that it is the stage that comes before the religious stage, but it is retained within the religious stage in that the traits used in the ethical stage must also be used to make the valuable choices in the religious stage. Ultimately the final obligation to transition from Ethics into the religious stage is to completely relinquish one's reliance on reason for one's trust in faith. Religion The final stage of existence that Kierkegaard recognizes is the stage of Religion, and specifically Christianity. Kierkegaard

DQ Essay Example | Topics and Well Written Essays - 500 words - 1

DQ - Essay Example The manager must then supervise them closely and let them know that they are under constant observation in order for them to be productive. The research undertaken shows this to be false. Managers spend much of their time not only directing their subordinates but interacting likewise with â€Å"peers, superiors, and people outside the organization.† It highlights the role of planner, which is often relegated by common notion to the background. Secondly, it is generally taken for granted that a manager’s work is easy and light considering they do not do the â€Å"hands-on† job their subordinates do. They stay in the office at their desks and just wait for results. However, as the study shows, a manager’s job is rarely an idle one. Managers are constantly bombarded with problems, requests, and contingencies to address, often and requiring quick decision-making. Sometimes the elevated position the manager has over a single unit tasked with a single function lends one to believe that he is an expert in his field and thus his tasks is specialized. The study proves the contrary, however, that the typical manage is a generalist, called to address issues and demands of varied and fragmented nature, requiring multifaceted skills – technical, financial, and human relations included. The manager is often seen as a â€Å"navigator† of sorts whose principal task is to plan the details of his unit. It is often thought that the more carefully the plans are prepared and forward-looking activities such as training are undertaken, the less time and effort he spends doing â€Å"repair† management. That just is not so, according to the research. Much of the manager’s activities are described by the study as â€Å"reactive rather than proactive in nature†, pertaining more to adjustments, adaptations, and damage control. This causes

Forming Strategic Alliances Business Essay

Forming Strategic Alliances Business Essay During the globalization, managers are confronted with a rapid changing competitive landscape. In order to overcome this difficulty, firms try to make alliances. Making strategic alliances is the relevant choice for managers to search for ways for how to compete effectively and create the successful future. Recently, collaboration between companies became fashionable .Strategic alliances is a cooperative agreements between companies. It involves all kinds of companies such as large, medium and small. In strategic alliances, partner companies join forces for common goals without losing their strategic autonomy. Representation of an alliance: Goals and interests Goals and interests specific to A specific to B Source: Dussauge and Bern (1999), Cooperative Strategy, ch.1, p. 3 The Advantages of Strategic Alliances There are several advantages of forming alliances: It may facilitate entry into a foreign market Many firms who want to enter foreign market, they need local partner who will understand business conditions and who has good relations with local government and organizations. For example, in 2004 Warner Brothers entered into a joint venture with two Chinese partners to produce and distribute films in China. Through the partnership with local firms, Warner Brothers succeeded to distribute any films it produces It allows firms to share cost and risks for developing new products or process For example, an alliance between Boeing and Mitsubishi share 8billion U.S Dollar among the partners for building a new aircraft such as 7E7. It stimulates to develop skills and assets which are difficult to do alone For example, in 2003 Microsoft and Toshiba established an alliance for developing a new microprocessor for entertainment for automobiles. Microsoft brought its software engineering skills and Toshiba its hardware engineering skills. It helps companies to establish technological standards For example, in 1999 Palm Computer formed an alliance with Sony under which Sony agreed to license and use Palms operating system in Sony PDAs. The motivation was to establish Palms operating system as the industry standard for PDAs against Windows-based operating system from Microsoft. The Disadvantages of Strategic Alliances Establishing alliances can be risky. Unless a firm is careful, it can give away more than it receives. It means that, if the partner reckless of managing its know-how, it can be leaked to other partner. Main drivers of formation of alliances: The recent and rapid growth in the number of strategic alliances can be explained by various changes in the international business environment. Globalization of trade and acceleration of technological progress seem to be major driving forces that have led firms to enter into significant numbers of cooperative agreements. Strategic Alliance drivers: Globalization Technical changeDisenchantment with M A Source: Tayeb, M. H. (2001), International Business Partnership, ch.2, p.35. Globalization The Globalization is the process which includes the objectives relating to the need to establish a large global presence, to gain knowledge and size, ensure competitive defence and deal with regulatory and political barriers to new market entry. One of the main drivers of globalization is the fact that customer needs and preferences throughout the world are rapidly converging. This makes firms to produce so-called global products suited to all consumers, irrespective of their nationality. International alliances can offer an effective way to globalize more rapidly and therefore enhance a companys competitiveness. While making international acquisitions is both costly and risky; setting up a network of wholly foreign subsidiaries is long, expensive and hazardous; licensing gives little control. Global alliances can allow the partner companies to pool resources produce global product and distribute it worldwide: British Telecom, MCI and ATT for World Partners; Alliance of Sambuca and Nemiroff; Alliance of Philips and Whirlpool. Technical Change: The cost and complexity of new technology are increasing extremely rapidly. Between 1970 and 1990, RD expenditures rose three times as fast as spending on fixed assets (Collins and Doorley, 1991). With the increase in the diversity and complexity of technology know-how, the range of possible innovations based on this expertise is growing wider. While the range of possibilities offered by new research has been increasing tremendously, individual RD programs are growing ever more expensive and the chance of achieving technically successful and commercially profitable results have become more and more uncertain. This is why cooperation is viewed as unavoidable in many high-tech industries: by dividing up the RD work between the partner firms, it enables them to share costs, pool their expertise, and explore a greater number of avenues (Dussauge, Hart and Ramanantsoa, 1992). For example: The Peugeot/Renault JV, Alliance of PRV V6 Engine Disenchantment with MA The disenchantment that has followed many mergers and acquisitions seems to be one of the reasons behind the recent development of strategic alliances. Alliances make it possible to avoid the culture and organizational shock coming in the wake of a merger by proceeding step by step, and by gradually adapting the content and structure of the agreement. Formation of Strategic Alliances Formation process: Source: Schaan, J (2007), Cases in Alliance Management, ch. 1, p. 7 Strategy development The rationale for a strategic alliance needs to be firmly in a clear strategic understanding of a companys current capabilities and those it will need to be successful in the future. First of all, managers need to establish the strategic goals of their companys and then evaluate their resources and capabilities to see if they are capable of executing on their own. The process starts by developing a realistic appraisal of what resources are required to meet a companys long-term strategic objectives. The objectives are for increasing competitive advantage. The manager must state that what capabilities the firm has and searching for. With this undertaking, managers begin to establish their criteria for rating partnership opportunities if this is an option they choose. Before making the mind to go for the alliance, the potential costs involved need to be considered such as technology transfer, coordination and management costs, which is high indeed. (Tayeb, H. M 2001). Managers need to take into account of, if the firm has an experience on building alliance. If this is first alliance, a company should look carefully at its internal policies and practices and evaluate to what degree they will help or hinder an alliance. For example, if a company has difficulties on managing its internal communication, then there will be strain on the alliance relationship. It is best to modify internal practices as necessary before introducing a third party. The process of strategy development is as following: Strategy Development: Source: Schaan, J (2007), Cases in Alliance Management, ch. 1, p. 7 Selecting the right partner It should come as no surprise that choosing the right partner is a major determinant of how successful an alliance will ultimately be. Inexperienced companies should not hurry up to do a deal-choosing partner. Poor partner selection ranks high among the reasons for alliance failure. It invariably takes longer than anticipated to find the right partner. Managers should spend time and resources to thoroughly analyze the potential opportunity. Depending on the scope and complexity of the alliance, it takes from several months to a couple of years to find the right partner. Small companies looking for alliance partners are often tempted to look for shortcuts as they find themselves facing time and financial pressures. They may succumb to the temptation to partner with any company, whether or not it meets their strategic needs. This is the mistake that companies make, because a partner must fit a companys strategic needs. Small companies mostly keen on forming partnership with large companies. The reputation and image of the large company can often cause the small firm to ignore its own strategic objectives. After the strategic objectives were defined, managers should decide how many partners to approach. The search process starts by formalizing partner profile screening criteria, developing a list of prospects, ranking the list against the criteria and then focusing on a manageable number of the best prospects. Complementary assets and capabilities is the core characteristic of partners for evaluation the strategic fit. Having identical strategic assets is not a good basis for a partnership because the possibility of competitive conflict can be high over the long term. It is necessary to evaluate partners according to their strategic, cultural and operational fit. Concerning to strategic fit, managers should take into the balance of need between the partners. If the needs of other partner are to get more profit, then this will not be long-term alliances. The nature and durability of the strategic fit is also a critical consideration. It is important that the long-term objectives of the partner are not in conflict and that the intended benefits can be sustained. During analyzing strategic fit, firms need to choose a partner who has a potential strategic network. In high-tech industries, most of the firms have cooperative network with each other. As it said above, building an alliance with large firms is risky. Companies should choose a partner who is almost the same size. Research indicates that choosing substantial size of partner can decrease successful collaborative activity. It can lead Merger and Acquisition. Cultural fit is core of choosing partner. It can affect business logic, competitive behaviour, time orientation, and decision making. It directly impacts the ability of partners to work together to meet their common objectives. Research of KPMG shows that, the reason of 70 % of strategic alliances failure is cultural contradiction among the partners. Culture of companies has profound effect on organizations operational practices such as management and organizational structure, decision-making practices and employment policies. Negotiation The major part of long-term collaboration is established at the negotiation stage. Negotiation should be as first and foremost as a means of building the linkages that will support effective collaboration between the partner companies. The negotiation process is perfect way for developing some unique insights into how the other party does business. In negotiation process, several areas require particular attention such as: collecting negotiation team, negotiation preparations, the process of negotiation itself and forming a negotiation agreement. Negotiation can be stressful and managers need to be sure that his team members can have contribution. Besides, legal and tax professionals have a very important role to play in putting a partnership together, but during the negotiation it is best to avoid them to attend the process. Well preparation can make the negotiation process easy and smooth. Advanced preparation should also help assess bargaining power, understand the concessions to be made and forecast issues that might arise. Good negotiations are characterized by honesty and an open flow of information between the partners. The agreement should be well written and set out the purpose, term, duration, warranties, obligations. Implementation Making the right decision about strategy, partner and structure is only the beginning. The real work starts when companies implement their alliance. While the chosen structure and scope of an alliance will significantly influence the kind of implementation required, the material covered in this section presents principles for creating winning conditions that are applicable to all. The main problems of forming strategic alliances There are different problems of forming strategic alliances. As it is obvious that strategic alliances in most cases are managed by two or more parents makes them inherently risky. The problems in forming alliances stem from one cause: there is more than one parent. The owners of parent firms are powerful. They can and will disagree on just about nothing (Killing, 1982). Such as Queensland Minerals alliance, owners of both parts parent companies were disagree. Amcon Corporation wanted to expand to Queensland, but the CEO of Victoria Heavy Industries did not want to. As a result Amcon renegotiated the alliance agreement. Organizational culture, a companys ways of doing things, refers to basic assumptions and beliefs that are share by members of an organization. These operate unconsciously and define an organizations view and its environment. Organizational culture can cause problems where companies with distinctive cultures merge or form a strategic alliance. Employees from the parent firms tend to use their home-company culture. In this connection, Datta and Rasheed (1993) mentioned that, a lack of cultural sensitivity can easily lead to misunderstandings in strategic alliances. Main Problems of Forming Strategic Alliances Unsuccessful rate of alliances are high. The success of an alliance seems to be a function of three main factors: Partner selection Alliance structure Managing alliances

The Age Of Reason Essay -- Romanticism Essays

The eighteenth century saw unprecedented growth of literature and the arts in Europe and America. Britain during this time period also enjoyed prolonged periods of civil peace that stood in sharp contrast to the bloody and protracted civil and international conflicts that lasted throughout the 17th century. Furthermore, as the rising middle classes increasingly sought both education and leisure entertainment, the marketplace for artistic production swelled dramatically. One of the most critical elements of the 18th century was the increasing availability of printed material, both for readers and authors. The period was markedly more generally educated than the centuries before. Education was less confined to the upper classes than it had been in centuries, and consequently contributions to science, philosophy, economics, and literature came from all parts of the newly United Kingdom. It was the first time when literacy and a library were all that stood between a person and education . The first half of the century has often been aptly described as the Age of Reason, the Augustan Age and the Neo-classical Age. The very description of this period as Augustan throws light on the prosperity and growth of this period, drawing a direct parallel to the affluent era of Latin literature during the reign of Augustus and in the process, claiming a similar Golden Age of English literature and arts. It was an "age of reason" in that it was an age that accepted clear, rational methods as superior to tradition. The period saw the development and growth of a new attitude towards life and more importantly towards the role of nature around us. Rationalism, as an ideology, gained importance and influenced literary works to a large extent. Rationalism as a philosophical doctrine, asserts that reason and factual analysis, rather than faith, dogma or religious teaching should determine the truth. Such a philosophy provided stability and order to the society and was hence considered as a welcoming change from the chaos that Europe had recently experienced. The Age of Reason, hence, emphasized on the importance to perceive life in a scientific and detached manner. It rejected emotion or fashionable belief and stressed on a more rational, logical and scientific attitude towards life. The discoveries of Isaac Newton, the rationalism of Rà ©nà © Descartes, the skepticism of Pierre Bay... ...ight be taken to include the rise of individualism, as seen by the cult of the artistic genius that was a prominent feature in the Romantic worship of Shakespeare and in the poetry of Wordsworth, to take only two examples; a new emphasis on common language and the depiction of apparently everyday experiences; and experimentation with new, non-classical artistic forms. Romanticism also strongly valued the past. Old forms were valued, ruins were sentimentalized as iconic of the action of Nature on the works of man, and mythic and legendary material which would previously have been seen as "low" culture became a common basis for works of "high" art and literature. Romanticism played an essential role in the national awakening of many Central European peoples lacking their own national states, particularly in Poland, which had recently lost its independence. Revival of ancient myths, customs and traditions by Romanticist poets and painters helped to distinguish their indigenous cultures from those of the dominant nations (Russians, Germans, Austrians, Turks, etc.). Patriotism, revolution and armed struggle for independence also became popular themes in the arts of this period.