Transcript שקופית 1 - Bar-Ilan University

Factors driven
Investment Driven
Innovation Driven
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BASIC MODELS OF DEVELOPMENT
The Free Economic Zone (FEZ) is “a geographic
economic area in which goods enter duty free for processing and
export, and in which investors are offered a variety of incentives
(WEPZA)”.
Industrial District: Firms consciously network with each
other and active trade associations provide shared infrastructure.
Firms merge with Community
Porter’s cluster is a “geographic concentration of an array of
linked, competitive firms that either have close buy-sell
relationships,
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QUALIFIED INDUSTRIAL ZONE
(QIZ)
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Emilia-Romagna at a glance
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Area: 22,120 km2
Population: 4,000,000
Per capita GP: 25,733 €
Municipalities: 341
Enterprises: 415.000
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•Cooperatives make up over 40% of the GDP of the ER region
•In Bologna two out of three citizens are members of a
cooperative
•In Bologna over 85% of the city's social services are provided
by social co-ops
•Per capita income in ER has risen from 17th to second among
Italy's 20 regions
•Per capital income is 50% higher than the national average
•Of the European regions, ER is number 11 of 122 regions in
terms of GNP per inhabitant
•Bologna has the highest disposable income of any of Italy's
103 provinces
•Bologna has the highest per capita expenditure on the arts of
any city in Italy
•The unemployment rate of 4% is virtually full employment
•70%
of Bologna's households have home ownership
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Models of Industrial Development
Strong
Industrial
District
Community
Industry
Synergy
Hybrid ID-FEZ
Free Economic
Zone
Hybrid Industrial
District Cluster
Porter’s Cluster
Hybrid FEZ-C
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Weak
Clustering Specialization Process
Strong
COMPETITIVE ADVANTAGE IN THE
MIDDLE EAST
Factor Conditions & Government
• Egypt lowest labor cost
• PA highest labor cost
• Jordanian universities not adapted to
needs.
• Israeli high skilled labor,
• Knowledge sharing (QIZ)
Strategy, Structure & Rivalry
• Competition between
Jordan, Egypt and PA on
Israeli contracts
• Israeli new specializations,
product differentiation
Demand Conditions
• Mutual impact of demand
sophistication (irrigation)
• Economies of scale for Israeli
producers
• Arab
software
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Related & Supporting Industries
• Textiles (Egyptian upper level)
• Mining ,Chemicals(Phosphates)
• Tourism
SOCIAL AND CULTURAL
ENVIRONMENTS
Culture = Way of Living
Culture universals: George P. Murdock, common
denominator of culture: global not uniform
Athletic sports, body adornment, cooking, rituals,
religion, family feasting, medicine, meal time.
Edward T. Hall: Low context culture (paper work,
US), High context culture (persons’ value, JapanSaudi Arabia)
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CONTEXT ORIENTATION IN MAJOR
CULTURES
High Context
Japan
China
Arab
United States
Scandinavia
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Germany
Low Context
THE CULTURE ENVIRONMENT
ESSENCE OF
THE CULTURE
Artifacts
hearm smell,
taste, touch
Human
Nature
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Values
Rules
Assumptions
Roots
Relationship
Environment
Activity
Truth
Lazy
Rights
Dominate
Create Plan
Objective
Value
Obligations
Submissive
React
Social
IMPACTS OF CULTURE ON
MANAGERIAL BEHAVIORS
Culture Context
Explicit
Implicit
Negotiations
Planning
Non Task Time
Time, Location
Short Formal
Long Informal
Participants
Decision Making
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Same Level Large
Position
Relevant level
Small
Consensus
HOFSTEDE’S CULTURAL
TYPOLOGY
Power
Distance
Equal
Power
Distance
Unequal
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Individual
Masculinit Uncertainty
y
Collectivist Femininity Predictabilit
y
HOFSTEDE INDEX
Power Individualism Masculinit Uncertainty
Distanc
y
Avoidance
e
Germany
U.K.
France
Japan
USA
Arab
Countrie
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s
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35
68
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89
71
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66
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95
65
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92
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80
91
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EMERGING CULTURAL PROFILES
Uncertainty Avoidance
Low(Formalization)
Village Market(AngloNordic)
Decentralized,
Entrepreneurial,
Flexibility, Delegation,
Output Control
Well-oiled Machine
(German)
Decentralized, Narrow
Control, Compartmentalized,
HighRoutines & Rules
Low
Hierarchy
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Family (Asian)
Centralized, Paternalistic,
Loyalty, Personal relations
“Pyramid of People”(Latin)
Centralized, Elitist, Less
Delegation, Input Control
High
HOFSTEDE’S MAPS
Uncertainty Avoidance
Low
DEN
SEW
IRE GBR
NZL NOR
USA CAN
AUT SWI FIN
GER, ISR
SIN
HOK
IND MAL PHI
IRA THA PAK
JAP SPA KOR
TUR FRA MEX POR
High
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Small
Power Distance
Large
CULTURE & BUSINESS PROCESSES
Policy & Procedures:
US, low u.a., high formal
reporting
UK, low u.a., detailed jobs
description
Germany, high u.a., well
internalized
Systems & Controls:
French = control(hierarchy),
British=coordinate)
US-UK reporting procedures
French: hiring elites
German operational planning
Planning
strategic(UK)
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Information &
Communication:
French: Compartmentalized
Sweden: Communication
open informal, transparency
Decision Making:
Participation in decision
making (Sweden, Germanyless hierarchy)
PDG in France –Italy
(Zanussi)
CUSTOMS IMPACTS
TAX
LOCAL
MANUFACTURER
PROTECTION
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LOCAL CUSTOMER
PURSHASING
POWER
INCOME
ALLOCATION
CHANGE
PARTIAL EQUILIBRIUM ANALYSIS
OF A TARIFF
Price
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S
D
Pw1
Sw1
Pw2
Sw2
Q2
Q4
Q4
Q1
Quantity
IMPACT OF CUSTOMS UNION
AGREEMENTS
Product
Local
Country
Foreign
Partner
Country
Foreign
Third
Country
A Cost
Prior CU
After CU
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B Cost
Prior CU
After CU
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14
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Trade
Flow
Results
Import
Source
Change
Trade
Diversion
Import
Trade
Creation
INTERNATIONAL ECONOMIC INTEGRATION
FREE TRADE AGREEMENT
Abolition of Tariifs & Quota
CUSTOM UNION
Abolition of Tariffs & Quotas
Common External Tariffs
COMMON MARKET
Removal of Restrictions
on Factors Movements
ECONOMIC UNION
Harmonization of
Economic Policy
MONETARY UNION
Common Monetary
Policy
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THE EUROPEAN UNION MILSTONES
• 1945 Two Super Powers
• 1948-52 Marshall Plan
• 1951 Schuman
Declaration
• 1951 Paris Agreement
ECSC
• 1957 Roma Agreement
EC
• 1968 Custom Union
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• 1985 Cockfield’s White
Paper
• 1987 Single European Act
• 1991 Maastricht Treaty
• 1992 SEA Implementation
• 1997 Amsterdam Treaty
• 1999 Monetary Union
• 1999 Nice Treaty
• 2002 Euro
• December 2007 Lisbon
Treaty
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ENLARGEMENT OF THE
EUROPEAN UNION
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1956: Germany, France, Benelux, Italy
1971: UK, Ireland, Denmark
1981: Greece
1986: Spain, Portugal
1995: Sweden, Austria, Finland
2004: Poland, Hungary, Czeck Republic,
Cyprus, Slovakia, Malta, Slovenia, Lithuania,
Latvia, Estonia
 2007: Romania, Bulgaria
THE INSTITUTION OF THE
EUROPEAN UNION
THE COUNCIL
• Commission Proposals
• Legislative Power
• Co-decision with the
Parliament
• Foreign & Security
• Ministers
• The European Council
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THE COMMISSION
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Executive Power
Proposes Amendments
Manages Policies
Controls Policies
Implementation
President Barrosso+ 26
Ministers, 24 DG
From 1 November 2004, a qualified majority will be
reached if the following two conditions are met:
1. if a majority of member states approve in some
cases a two-thirds majority);a minimum of 232
votes is cast in favour of the proposal, i.e. 72 % of
the total (roughly the same share as under the
previous system).
2. In addition, a member state may ask for
confirmation that the votes in favour represent at
least 62% of the total population of the Union. If
this is found not to be the case, the decision will
not be adopted.
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Treaty of Lisbon
• Effective and efficient decision-making: From 2014 a
decision is taken by 55% of the Member States representing at
least 65% of the Union’s population.
• President of the European Council elected for two and a half
years,
• Direct link between the election of the Commission President
and the results of the European elections,
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the Treaty of Lisbon improves the EU's ability to act in several
policy areas of major priority for today's Union and its citizens.
This is the case in particular for the policy areas of freedom,
security and justice, such as combating terrorism or tackling crime
new High Representative for the Union in Foreign Affairs and
Security Policy, also Vice-President of the Commission, will
increase the impact, the coherence and the visibility of the EU's
external action.
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Greater powers for the European Parliament
• Co-decision procedure' (renamed 'ordinary legislative
procedure') has been extended to legal immigration, penal
judicial cooperation (Eurojust, crime prevention, alignment of
prison standards, offences and penalties), police cooperation
(Europol) and some aspects of trade policy and agriculture.
• The Parliament and the Council will determine all expenditure
together.
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Greater role for national parliaments
enforce subsidiarity means that – except in the areas where it
has exclusive powers – the EU acts only where action will be
more effective at EU-level than at national level. Any national
parliament may flag a proposal for EU action which it believes
does not respect this principle. This triggers a two-stage
procedure:
Transparency in the Council of Ministers
Citizens’ participation
citizens' initiative, whereby one million citizens, from any
number of member countries, will be able to ask the
Commission to present a proposal in any of the EU's areas of
responsibility.
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Distribution of votes for each member
state (from 01/11/2004)
Germany, France, Italy, United Kingdom
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Spain, Poland
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Netherlands
13
Belgium, Czech Republic, Greece, Hungary,
Portugal
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Austria, Sweden
10
Denmark, Ireland, Lithuania, Slovakia, Finland
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Cyprus, Estonia, Latvia, Luxembourg, Slovenia
4
Malta
3
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TOTAL
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POLICIES
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•
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Agriculture & Food
Business
Cross cutting policies
Economic & Finance and
Taxes
Education, Culture & Youth
Employment and Social
right
Energy and Natural
resources
Environment, consumer
and, health
• External relations and foreign
affairs
• Justice and citizen rights
• Regional and local
development
• Science and technology
• EU explained
•Transport & travel
DG’s
• Agriculture & Rural
Development
• Competition
• Economic & Financial
Affairs
• Education & Culture
• Employment, Social Affairs
and Equal Opportunities
• Enterprise and Industry
• Environment
• Fisheries and Maritime
Affairs
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• Health & Consumer
Protection
• Information Society & Media
• Internal Market & Services
• Joint Research Centre
• Justice Freedom & Security
• Regional Policy
• Research
• Taxation & Custom Union
•Transport & Energy
• External Relations
Development, Enlargement,
EuroAid, External Relations
Humanitarian Aid ofice, Trade
• General Services
European anti fraud office,
Eurostat, Press &
Communication, Publication
Office, Secretariat General
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• Internal Services
Budget, Bureau of European
Policy Advisers, Informatics,
Infrastructure & Logistics,,
Internal Audit service,
Interpretation, Legal service,
Personnel and Administration,
Translation,
Vice President
Institutional
Relations and
Communication
Strategy
Vice President
Administrative
Affairs, Audit and
Anti-Fraud
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Vice President
Enterprise and
Industry
Vice President
Transport
Vice President
Justice, Freedom and
Security
Information Society
and Media
President
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THE PARLIAMENT
• Legislative Power co
decision with the Council
• Assent Procedure(int.)
• Adoption of the Budget
• Approval of the
Commission
• Participation to the
European Council
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THE COURT OF
JUSTICE
• 13 Judges for 6 years
• Request from Private,
Country, Firm
• Unique Legal Power
POLITICAL GROUPS IN THE E.U. PARLIAMENT
-DEPPE Group of the European People's Party
and European Democrats
PSE
Group of the Party of European Socialists
ELDR
Group of the European Liberal, Democrat and
Reform Party
Verts / Group of the Greens/European Free Alliance
ALE
GUE Confederal Group of the European United Left/Nordic
NGL
Green Left
UEN
Union for Europe of the Nations Group
EDD
Group for a Europe of Democracies and Diversities
NI
Non Attached
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THE EUROPEAN UNION PARLIAMENT 2005-2009
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THE ECONOMIC &
SOCIAL COMMITTEE
• Representative of
Economic Forces
• 222 Representatives
• Sectorial Commissions
• Social & Economic
Commissions
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THE COMMITTEE
OF REGIONS
• Consultative Power
• 222 members
• Trans European Network,
public, Health, Education,
Economic Cohesion
Court of Justice
President
(6 chambers each comprising 3 or 5 juges)
•Action for failure Treaty obligations
(Commission against a Member State or Member State against
another Member State)
•Actions for annulment
(judicial review of the legality of Community acts)
•Actions for failure to act
(against the Parliament, Council or Commission
•Actions for damages
(against Community institutions or servants)
•Preliminary rulings on the interpretation or validity of
Communitylaw
(references from national courts)
•Appeals
against judgments of the Court of First Instance
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