International Business Chapter 12 1 Identify Some Issues Causing Conflicts Between And National Interests How Are These

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CHAPTER 12

THE FRAGMENTATION OF THE EUROPEAN UNION: THE CROSSROADS REDUX

Overview

Peter Bergen’s statement at the beginning of the chapter says it all! Since the last edition of

the text, at least three crises—two connected to developments outside the EU and one endemic

to it—have contributed to increasingly skeptical and negative opinions about the European

Union. As in the past, the EU appears to be at a crossroads where its inability to resolve

critical problems is undermining its institutions and authority.

The first crisis we cover in some detail began in the United States in 2007 and contributed to

major debt problems in Europe—especially in the Mediterranean states—and raised many

questions about the stability of the euro. The second crisis is the flood of migrants and asylum

seekers who initially arrived in Greece and Italy and who were escaping wars in the Middle

The chapter begins with a brief history of the EU and traces some transformations in its major

institutions. Integration was relatively popular in the 1950s and 1960s, with some of the

founding fathers envisioning a “United State of Europe” with a federalist political system.

Key Terms

•

European Union

•

Brexit

•

European Economic Community

•

Functionalism

•

Intergovernmentalism

Teaching Tips

• The European Union is usually a popular topic with students. Many of them have traveled

there with their families or high school groups, and many will choose to study abroad there.

The crisis issues covered in the chapter still receive a good deal of coverage in major

newspapers and journals. There are many YouTube videos available on issues discussed in

this chapter.

• Use the map and the chronology in the chapter as much as possible at first.

• In the past many academics focused on explaining why integration moved forward in fits

and starts based on its limited successes in cooperation that “spilled over” from one policy

area to another. Anti-communism during the Cold War also provided political and

economic motives that led officials to sign the Treaty of Rome in 1956. Integration slowed

in the 1960s but then picked up again in the 1970s. Globalization and the end of the Cold

• Discuss where the EU fits into a world order that is becoming more multipolar and less

dominated by the United States.

• Make sure to highlight the bold terms in the text and mention that they may be possible

multiple choice and essay questions on an exam (see below). Also mention to students

certain topics that would make good essay questions. Urge students to know the names of

• One issue not covered extensively in this chapter is the EU relationship with Russia. Some

students are interested in the relationship of the Baltics nations, Hungary, and Poland with

Russia, especially as President Putin seeks to re-establish Russia as a major player in global

political-economic relations.

1. Encourage students to use some of the IPE tools identified in Chapter 1 to help describe

and explain terms and arguments. These include the levels of analysis, 4 IPE perspectives,

and 5 international structures.

2. Assert that the EU has been going through a transformation that is fundamentally changing

the role of some of its institutions. Identify 3 or 4 EU institutions and write an essay in

which you defend this argument and explain arguments against it.

Sample Multiple-Choice Questions

1) Who suggested after World War II that western Europe should forge a “United States” of

Europe?

a) Queen Elizabeth

2) In which city did six countries sign the Treaty establishing the EEC?

a) Berlin

3) The concept of “spillover” is most closely associated with

d) the ECSC.

4) Which British Prime Minister put the damper on EU integration in the early 1980s by

emphasizing neoliberal economic policies?

5) Which treaty formally established the “European Union,” the European Central Bank,

and the Economic and Monetary Union in 1992?

a) Treaty of Lisbon

6) Most economic experts argue that the fundamental problem with the EMU is

a) lack of authority by the head of the ECB.

7) Which of the following institutions is not a member of the Troika?

a) The IMF

8) Which Troika policy generated massive protests and demonstrations in Greece and other

European countries because it imposed economic hardship on ordinary people?

d) Détente

9) Which candidate for prime minister of Greece promised not to agree to Troika conditions

for a third Greek loan, but then did agree to those conditions once he was elected?

a) Yanis Varoufakis

d) refugees

11) In Europe, what does “The Jungle” refer to?

a) a district in Paris where terrorists are known to strike

12) Which of the following was required of the UK before negotiations could begin with the

UK for terms related to its future relationship to the EU?

13) Which of the following statements is incorrect?

a) The European Council is composed of a single representative from each member

nation and is the main lawmaking body of the EU.

14) A top government minister in which country said that Greece should leave the EU?

d) Belgium

15) Balaam and Dillman conclude that which of the following states must assume more

hegemonic responsibilities if European states are to continue to cooperate to solve

common problems?

a) the UK