Eu Case Study Geographic Online

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Political Outcomes

Loss of Sovereignty

 EU

Examine the information in the next two sections [How does the EU erode national Sovereignty & Is the EU good or bad]. What do you think? Discuss and justify your opinion.
How does the EU erode national Sovereignty?
France - National Front
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Multinational/Transnational Corporations

How Powerful are TNCs and MNCs?

Challenge yourself - Further reading

Responses

Create a case study on the National Front - France. Use the information in this section.
[How has the National Front attempted to regain control of the country's resources and culture?]

Nationalism in France

Anti-Globalisation Movement

Does the Anti-Globalisation have a point?

Your task is to prepare for a debate on this issue. You will need to:
  1. Outline what is meant by globalisation and what is the anti-globalisation movement.
  2. Find arguments for and against the anti-globalisation movement.
  3. Justify your arguments with real life facts.
  4. Create a document outlining your main points to be submitted as an overview. You may want to use Coggle to do this.

CONTROLLING Migration

  • Nation-state: an independent state inhabited by all the people of one nation and one nation only.
  • Sovereignty: the exclusive right to exercise, within a specific territory, the functions of a nation-state and be answerable to no higher authority. 
  • Religious fundamentalism: movements favouring strict observance of religious teaching (Christianity, Islam, Hinduism etc.)
  • Trade bloc: a group of countries that share trade agreements between each other.
  • Immobility of labour: the effect of barriers to the movement of workers between jobs and geographical regions.
  • Wealth: the total amount of economically relevant private and public assets including physical (natural), financial, human and 'social' capital. 

Complete the Loss of Sovereignty Worksheet.
Loss of Sovereignty Worksheet
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Read the page above and make some brief bullet points. You will then be asked to give a 1 minute summary of the key points of how the EU works.
ADVANTAGES OF EU MEMBERSHIP

  • Member citizens can travel freely between other members to go on holiday (saves space in your passport too!)
  • The above should increase tourism revenue for all member countries
  • Member citizens can choose to work freely in other countries
  • Within the Eurozone it is not necessary for currency conversions, easing trade and tourism
  • Undeveloped areas of the EU can receive support and assistance from the EU
  • Reduced risk of internal conflict and stronger military bloc to defend external borders
  • Bailouts for poorer countries e.g. Greece from stronger members e.g. Germany
  • Subsidies from the common agricultural policy (CAP) for farmers
  • Voice in the G20 for smaller members of the EU
DISADVANTAGES OF EU MEMBERSHIP

  • Countries in the Eurozone lose control over their monetary policy e.g. interest rates
  • Free movement of members may lead to influxes of workers leading to racial tension e.g. Poles in the UK
  • Economic problems in one country e.g. Greece, Ireland and Portugal can cause Europe wide recessions and the need for bailouts
  • Enforced fishing quotas which may harm fishing industry e.g. Spain and UK
  • Imposition of working regulations e.g. working week
  • Imposition of metric measurements e.g. The UK being forced to use kilograms instead of pounds
  • Growth of independence and nationalist parties e.g. UKIP and BNP in the UK
  • Brain drain from poorer eastern European countries
  • Cost of supporting weaker nations

Using the information in this sections complete the worksheet.
ADVANTAGES OF TNCs IN LEDCs

  • Creates jobs for local people
  • Locals with jobs then spend money in their local economy at local businesses and therefore there is a positive multiplier effect as extra money gets added to the local economy.
  • TNCs will pay local and government taxes and therefore increase the government budget.
  • Jobs at a TNC will be in the formal economy, so hopefully better regulated in terms of safety, pay, etc.
  • Improves workers skill and education level
  • They introduce new technology into the country
  • Infrastructure like roads and ports are often upgraded and benefit the whole economy
  • Diversifies the economy, might move away from the reliance on one industry like farming or tourism
  • The country receives prestige for attracting TNCs and investment into the country.

Adapted from: GreenfieldGeography
DISADVANTAGES OF TNCs IN LEDCs

  • Many of the best paid managerial jobs go to foreigners
  • Local workers often do manual jobs which are poorly paid and often workers suffer exploitation (long shifts, no breaks, etc.)
  • There will be some economic leakage as profits from TNCs go back to their home country
  • Increasingly manufacturing processes are becoming more mechanised so less workers are needed in factories. Many top jobs may go to workers from abroad
  • One of the attractions of LEDCs is cheap labour, but as a country develops labour costs increase and TNCs may move to cheaper locations.
  • Products produced by TNCs maybe too expensive for locals to buy. TNCs may also use local raw materials. Products may not even be intended for local market place.
  • Electricity and water supplies maybe diverted away from local population
  • The increased demand created by TNCs may cause local inflation. Land may also become privatised and unavailable to locals.
  • If the government is building new roads or a port for a TNC it probably means that they can't spend as much money on education or healthcare. New roads, ports, etc. may increase congestion on roads.
  • TNCs may cause environmental damage and pollution e.g. Union Carbide in Bhopal (Transboundary pollution and The effects of transnational manufacturing and services)
  • TNC decision makers are often foreign so policies of TNCs may not always benefit local people.
  • Increased dependency on foreign companies. Local domestic companies may close.
IB Style Question:
To what extent has the sovereignty of Nation states been eroded?
This essay should not only include the information on MNCs and TNCs but also the EU.
  • Anti-globalisation movements: organisations and other groupings of people calling for reform of the global economic system to make it more equitable.
  • Immigration: the migration of people into a country form other countries
  • Privatisation: the transfer of business from the state to the private sector.
  • Resource nationalisation: when a country decides to take part, or all, of one or a number of natural resource sunder state ownership.

Yes they do

Which one are you?

No they don't

Good news! We have already covered this area, take a look at your notes from Economic Interactions and flows and you will find a case study on the USA and Mexico.

Geo-blocking and other geographically-based restrictions undermine online shopping and cross-border sales by limiting the possibility for consumers and businesses to benefit from the advantages of online commerce. In 2015, a Commission survey found that only 37% of websites actually allowed cross-border customers to reach the final step before completing the purchase by entering payment details.

The problem equally affects consumers and businesses as end users of products and services and exists both in the online environment and in real-world situations.

The regulation

The regulation on addressing unjustified geo-blocking and other forms of discrimination based on customers' nationality, place of residence or place of establishment within the internal market defines three specific situations when there can be no justified reasons for geo-blocking or other discriminations based on nationality, residence or location:

  • The sale of goods without physical delivery. Example: A Belgian customer wishes to buy a refrigerator and finds the best deal on a German website. The customer will be entitled to order the product and collect it at the trader's premises or organise delivery himself to his home.
  • The sale of electronically supplied services. Example: A Bulgarian consumer wishes to buy hosting services for her website from a Spanish company. She will now have access to the service, can register and buy this service without having to pay additional fees compared to a Spanish consumer.
  • The sale of services provided in a specific physical location. Example: An Italian family visits a French theme park and wishes to take advantage of a family discount on the price of the entry tickets. The discounted price will be available for the Italian family.

This regulation was part of an e-commerce package together with a legislative proposal on cross-border parcel delivery services and a legislative proposal to strengthen enforcement of consumers' rights.

Other elements of the regulation

Furthermore, the proposal bans blocking of access to websites and the use of automatic re-routing if the customer has not given prior consent.

The regulation also provides for a non-discrimination rule in payments. While traders remain free to offer whatever payment means they want, the regulation includes a specific provision on non-discrimination within those payment means.

The regulation does not impose an obligation to sell and does not harmonise prices. It does however address discrimination in access to goods and services in cases where it cannot be objectively justified (e.g. by VAT obligations or different legal requirements).

Timeline of the regulation

The new rules will start applying on 3rd December 2018, nine months after the publication of the Regulation in the EU Official Journal, to allow in particular small traders to adapt.

Within two years after the entry into force of the new rules, the Commission will carry out a first evaluation of their impact on the internal market. The Commission will also include in its evaluation an assessment of the scope of the Regulation, including of the possible application of the new rules to certain electronically supplied services which offer copyright-protected content such as music, e-books, software and online games, as well as of services in sectors such as transport and audio-visual.

What is geo-blocking?

Companies and online retailers apply barriers and impose restrictions to consumers on the basis of their nationality or place of residence. Some examples are:

  • blocking access to websites across borders;
  • denying the possibility to complete an order, to purchase goods or to download content when accessing a website from abroad;
  • denying delivery or shipment across border;
  • providing different prices and conditions depending on nationality, country of residence or location of the customer.

There might be justified reasons for traders not to sell cross-border, such as the need to register at the tax authority in the country of destination, higher shipping costs or costs arising from the application of foreign consumer law. While outside barriers create additional complications and extra costs for the trader, differences in the treatment of customers are based on objective criteria.

However, discrimination between EU customers based on the desire to segment markets along national borders, in order to increase profits to the detriment of foreign customers, is considered as unjustified geoblocking.

Useful links

  • Press release - Joint statement by Vice-President Ansip, Commissioners Bieńkowska and Gabriel following the European Parliament's vote to end unjustified geoblocking
  • Regulation (EU) 2018/302  on addressing unjustified geo-blocking and other forms of discrimination based on customers' nationality, place of residence or place of establishment within the internal market 

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