Go Global with Smith!

Doing Business in the Euro Zone

One-credit spring term BUSI788E & Two-credit spring term BUSI798E

Cities	Koblenz and Frankfurt, Germany; Madrid, Spain
Faculty	Dr. Charles Olson
Dates Abroad	Depart May 18 (Saturday) to arrive Frankfurt May 19. Depart Madrid May 28 to arrive back May 28. Summer 1 term classes start May 29.
Anticipated Costs	Program Fee is $3,000. There is an additional $250 and approx. $20 for mandatory insurance, both of which go directly to the Education Abroad Office to maintain the Emergency Coverage plan.
Pre-departure Meetings	Sunday, April 14 and Sunday, April 28 from Noon to 6 p.m. VMH1511, College Park, MD
Syllabus	Download the syllabus

Please Note: Education Abroad’s new withdrawal and refund policy is now in effect. More info

The Smith School is committed to growing global citizens, and both the Smith School and the University of Maryland are committed to engagement with the EU and understanding the world region whose economy impacts us the most. This course will provide a compare/contrast of the stronger and weaker economies in the euro zone, and the solutions and sentiments proposed to strengthen the entire region.

As worries continue as to whether the Euro zone can last, the world watches bailouts and associated austerity measures for troubled countries – and intense local citizen protests and complaints in response. The stronger economies, in particular Germany, face their own protests in bailing out weaker economies to the south - and resentment after suffering through their own austerity measures a few years ago. And amidst all the difficulties, many recall acts of war and war crimes in the 1940’s against family and friends, and struggle with feelings of being controlled and overpowered once more.

This class will examine austerity measures and whether they are an effective tool in improving economies. We will also look at labor laws and labor force flexibility, as well as the impact of unemployment on euro zone countries. Rigid labor market legislation has been identified by the World Bank and others as one of the main reasons why Spain’s jobless rate has soared since the onset of the world financial crisis.

Spain and Italy experienced record unemployment rates at the end of 2011 – Spain ended 2011 at a 17-year high and suffers the highest unemployment in the euro zone, double the rate of other countries (Italy at 8.9% vs Spain at 25% for example).

In the meantime, German jobless rates have fallen to historic lows — further engendering the belief that Germany must lead the region back to recovery.

However, as we see while abroad many people in Spain are in fact employed – but in the gray and black markets. New laws designed to make the labor market more flexible were met with protests and anger among young Spaniards. This class will look at the effect of the new legislation.

Related Reading:

• NYT: Spain Approves Changes to Labor Policy
• NYT Opinion Article: Pain Without Gain
• NPR: Portugal Plays By The Rules, But Economy Slumps
• NPR: Spain's Businesses Face Credit Shortage
• NPR: Labor Law Change May Offer Relief For Spain's Youth
• NPR: Spaniards Hold Mass Protests Against Labor Reforms