The outsider
Article Abstract:
UK Prime Minister Margaret Thatcher has shown little ability to compromise on issues connected with European unification since the June 1989 European Council of Ministers' summit in Madrid. She has: vetoed a withholding tax on investment interests; implied in Paris that the French Revolution was insignificant; and removed Sir Geoffrey Howe from his post. As she tries to slow down European momentum toward unification rather than adapt, her colleagues elsewhere in Europe are growing disgruntled, and there is a risk that unification may occur without the participation of the UK. Some feel that without the UK in the European Monetary Union (EMU), Europe's financial center could change from London to Paris or Frankfurt, causing the UK to lose its dominance in financial services which accounts for 10% of the UK's gross national product. The UK is also struggling with its exports markets and in manufacturing, both of which would be affected by not participating in the EMU. However, the rest of Europe would also be hurt by the UK's absence because the EMU would not able to take advantage of the UK's expertise in the aerospace industry, or of Margaret Thatcher's long experience serving in the European Community.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1989
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Balance of power
Article Abstract:
The European Community (EC) has committed itself to establishing a central bank, which has been christened the Eurofed by the European Commission, that will coordinate fiscal policy and serve to bind the EC closer together economically and politically. The dynamism behind the formation of the Eurofed is based in a desire to contain the economic power of the reunited Germany within a strong economic union. Observers believe that the Eurofed will be in place and operating as early as 1995. The Eurofed will affect a monetary union of most member states' currencies and will herald the introduction of a single European currency. A single European currency will be a significant boon to businesses, reducing the costs of currency management and financial hedging by eliminating uncertainty.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1990
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Biting the bullet
Article Abstract:
The end of the Cold War and the dismantling of the Iron Curtain have diminished the dynamics underlying the $900 billion arms market, a situation that the Gulf Crisis is unlikely to alleviate unless it develops into a prolonged and bloody war. Defense contractors are facing a future in which arms purchases are likely to be scaled back 25% by 1995, according to Center for Defense Information (Washington, DC) project analyst Ron Fraser. Many defense contractors are looking at ways to convert their production processes to producing consumer goods. However, changeovers in production to civilian goods will be a long-term process.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1990
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