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U.S. Embassy and commercial service

7/29/2014

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Pre-Impressions

I am excited to visit Brussels again and to learn about the U.S. Embassy and U.S. Commercial Service. While I know a little bit about these organizations already, it will be a great experience to hear more about their roles in Brussels and throughout Europe by people who work for the organizations. I am hoping that we will be able to tour some of the U.S. Embassy in Brussels, in addition to hearing a presentation about it.

Post-Impressions

I wish that I had learned more about the U.S. Embassy and Commercial Service from the presentation. However, it was still cool learning a little bit about each one, and that led me to do some research on my own about each organization. During the presentation, I learned that the U.S. Embassy has locations throughout the world and that they act as a type of mediator between the U.S. and the country that they are in. They are also available to help U.S. citizens who are visiting, or living in, that country, in case they have any legal problems that they need help with. I also learned that the people who work for the U.S. Embassy or Commercial Service must be willing to move anywhere in the world for their job, which will require them to adapt to many different cultures. This could include cultures that are very different from our own, such as those in China or the Middle East. My favorite part of the presentation was hearing about where these ambassadors have lived and a learning a little bit about their experiences working for the U.S. Embassy or Commercial Service.

The main purpose of the U.S. Commercial Service is to "support American businesses with inherently governmental and trade promotion activities" ("International Trade Administration"). They have over 100 offices in the U.S. and offices in over 75 countries that are located in U.S. Embassies in those countries. They help U.S. businesses with trade and researching markets in other countries. This has helped greatly increase the number of U.S. exports to other countries and also the number of U.S. jobs. Their work has also "leveled the playing field for U.S. companies exporting abroad" ("International Trade Administration"). "Today, an embassy is the nerve center for a country's diplomatic affairs within the borders of another nation, serving as the headquarters of the chief of mission, staff and other agencies" ("What is a U.S. Embassy?). The U.S. Commercial Service is attached to the embassy, because the embassy has relations with the host country and serves other agencies that had operations in that country. The Gold Key Program is a matching service where "the U.S. Commercial Service can help you find potential overseas agents, distributors, sales representatives and business partners" ("The Gold Key Matching Service"). This has many advantages, such as market research, help finding trading partners, and help setting up business meetings with potential distributors or other business partners. A disadvantage of this is that companies may become too reliant on the U.S. Commercial Service for help, instead of training their own employees to do market research or set up business contacts. Companies should try to become more independent instead of relying on the government for assistance.


http://www.trade.gov/cs/about.asp
http://diplomacy.state.gov/discoverdiplomacy/diplomacy101/places/170537.htm
http://www.export.gov/salesandmarketing/eg_main_018195.asp
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The Grand Place in Brussels
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U.S. Embassy
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U.S. Commercial Service
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Antwerp

7/28/2014

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Pre-Impressions

I am excited to visit yet another new city in Belgium! I enjoy visiting new cities and seeing how each one is very different, even though they are all part of the same country. Flemish is spoken in Antwerp so it will be fun communicating with people who speak Flemish, especially since we have become used to practicing our French in the other cities that we have visited. We will be visiting the University of Antwerp and listening to a presentation on business. 

Post-Impressions

I am glad that we were able to visit Antwerp and see what another city in the Flanders region of Belgium was like. I enjoyed being immersed in yet another culture and experiencing the Flemish language while in Antwerp. Visiting different countries, and even different regions of the same country have all helped me to gain a broader understanding of Europe and just how diverse it is. My favorite part of the day was just exploring the city and interacting with people who lived there, such as the people who worked in the stores or restaurants that I visited. While visiting the University of Antwerp, we met with Mr. Venekkens and Ms. Kelly. They spoke to us about their careers and also their experiences with intercultural communication.

The presentation fit in with Hofstede's research that we learned about in IBS 101. Hofstede's research led to the conclusion that there are 5 cultural dimensions. The first dimension is individualism vs. collectivism which looks at "the worth of the individual versus the worth of the groups of which that person is a member" (Gaspar Chapter 5). In the United States people are very individualistic versus in other countries, such as Japan, where people are more collectivistic. The second dimension is power distance which is "egalitarianism (equality) versus authority" (Gaspar Chapter 5). When working at one job, Mr. Venekkens worked with a boss who liked to distance himself from his employees. This is different from in the United States where there is usually a low power distance. The third dimension is masculine vs. feminine, which looks at the traditional attributes in a country. Belgium is a masculine country that is characterized by attributes such as competition and assertiveness, which affects the way the companies do business in Belgium (which is where Mr. Venekkens and Ms. Kelly work). The fourth dimension is uncertainty avoidance, which "examines the extent to which societies tolerate risk or are risk averse" (Gaspar Chapter 5). The levels of risk that a company is willing to take on affects the way that it does business. Finally, the fifth dimension is time orientation. This looks at "short-run or long-run time horizons" (Gaspar Chapter 5). Many Western nations, such as the United States, have short-run time horizons, which affects the way that business is done because they
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University of Antwerp
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restaurants and shops
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Antwerp town hall
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brugge

7/27/2014

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Pre-Impressions

I cannot wait to visit Brugge and see all the old, historical buildings that are located there. While some of the cities that we have visited have buildings that were rebuilt after being destroyed during the war, most, if not all, of the buildings in Brugge are original. After seeing the film "In Bruges," I am looking forward to seeing the city square and hopefully being able to climb up in the tower overlooking the square. I am excited to see the canals that wind throughout the city, and to learn more about its history and historical buildings while on the city tour. 

Post-Impressions

I had a great time visiting Brugge and seeing all of the old buildings and canals. I am really glad that we were able to see some of the more famous sites in Brugge, such as the Belfry and the Basilica with the blood of Jesus inside. We also walked inside the Beguinage and saw where the Beguines live. The only disappointing thing about Brugge was that it was very crowded there with tourists. This made the experience a little less enjoyable, but overall I still really enjoyed our visit to Brugge. Prior to visiting Brugge, we learned about its history from a presentation in class. We learned that its port was involved in international trade since it is connected to many other ports. Brugge was pretty powerful in the 14th century, but this power declined in the 15th century until the 19th century, when it was the poorest city in Belgium. Now, Brugge is a popular tourist destination where people come to see its medieval buildings.

Banking and the stock exchange are two important institutions found in Brugge, that also play a large role in world trade. Banking in general, and in particular, the World Bank, is significant in world trade. The World Bank helps to restructure the economies of member countries.The World Bank promotes globalization and world trade and "sees globalization as an opportunity to reach global solutions to national challenges" (Gaspar Chapter 1). Stock exchanges are also important to world trade because people from different countries can trade on a stock exchange in a particular country. There are also stock exchanges in many different countries, which makes them more global. A letter of credit is "a payment protection to both exporters and importers, as the importer's bank writes a guarantee of credit" (Gaspar). Hedging is defined as "using currency derivatives to reduce potential transaction, translation, and economic risks of currency movements that could lead to losses for a firm or investor" (Gaspar). Both letters of credit and hedging are used to reduce the financial risks involved with trading on stock exchanges or doing business internationally. 

http://www.visitflanders.us/discover/cities/bruges/bruges_history/
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entrance to the Beguinage
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Brugge city hall
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Belfry of Brugge
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manil artisan tobacco

7/27/2014

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Pre-Impressions

I do not know much about tobacco or the tobacco business, so I am interested in learning more about it at the tobacco museum. I expect that we will learn about the process of how tobacco is grown, processed and then eventually sold. We will probably learn about the business strategy of this tobacco shop and whether or not they sell their tobacco internationally. I also expect that we will learn more about how small businesses are run and how they can compete with larger and more well-known companies.

Post-Impressions

I enjoyed the tour of the tobacco museum and learning more about the tobacco business. We began by watching a video about tobacco, from growing it to harvesting and processing it. Then we were able to tour a few small rooms that contained items such as uniquely-shaped pipes, tobacco packaging equipment and other tobacco-related items. Then, we watched the owner's son demonstrate how the tobacco packages were filled. I was a little surprised by the amount of work that goes into selling tobacco, especially at a smaller company like this one. Just the packaging alone takes time as everything is done by hand using old equipment. My favorite part of the tour was seeing the equipment in use and learning about their business and how it is growing internationally.

Vincent Manil has used the entry strategy of exporting to grow his business internationally. This strategy has some advantages, including being low-risk, an easy business to leave, and a business that does not require a lot of capital. However, the disadvantage of this strategy is that it is the one that will result in the least amount of growth in international business, compared to the other types of entry strategies. Another strategy that the company could use is entering into a strategic alliance. This would allow the company to work closely with another company in order to grow both businesses. For example, the tobacco shop could partner with other tobacco companies or with tobacco shops. This way, the company could utilize the other company's resources in order to expand its own business. A disadvantage of this option is that there is the risk that the partner will drop out of the alliance, which would harm the tobacco company and negatively affect its distribution and revenues (Gaspar Chapter 8). The company is ethical in doing business by placing a large warning label on each package of tobacco that they sell that explains the dangers of smoking tobacco to your health. They do not just ignore the fact that their product can cause health problems, but clearly warn their customers about their product's risks. They are not willing to add preservatives because they want to maintain the purity of their products. This seems to be a form of social responsibility because they are keeping their tobacco as natural as they can, which may help reduce some of the health risks that tobacco can cause.

http://www.tabac-semois.com/manufacture.html
 
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tobacco
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Vincent Manil at work
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in front of the tobacco museum
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luxembourg

7/27/2014

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Pre-Impressions

I am excited to visit Luxembourg and see a new country! I have heard that Luxembourg is a wealthier country so I expect that it is cleaner than some of the cities that we have visited with prettier buildings and scenery. We will be visiting a museum of banking so I expect that we will be learning about the banking system in Luxembourg and how it is connected to the economic system of the European Union. 

Post-Impressions

I really enjoyed our visit to Luxembourg and having the opportunity to visit another country. We had the opportunity to visit a bank in Luxembourg and also walk around the Bock Medieval Fort. I was surprised to learn that there was an underground tunnel with a few different stories that connected the 3 different bank buildings together. My favorite part of the day was walking around the fort and getting to see the old walls, as well as the views of Luxembourg from the top of the fort. I learned some interesting things about banking in Luxembourg from the tour of the bank. For example, children are taught to start saving from an early age, as each child is given a small square bank when they enter school. I also had the opportunity to see what some old European coins and bills looked like, and it was interesting to see just how big some of them were.

There are many advantages to the financial services that are located in Luxembourg. The government of Luxembourg is stable and so is the economy, and this political stability has contributed to the growth of financial services in the country. New legislation is constantly being passed that allows new financial products to quickly enter the market. These new financial services are attractive to people and businesses both in Luxembourg and in other countries as well. The financial services labor force in Luxembourg is also very skilled, and this is yet another competitive advantage for the country. It is important to have skilled and knowledgeable staff in order to attract clients. Since Luxembourg is in the center of Europe, it is easily accessible from the majority of European countries, which makes banking in Luxembourg convenient for both private investors and businesses. Luxembourg also boasts having a much lower tax rate than in many other European countries, which makes it more attractive for workers who must pay income taxes. 

http://www.pwc.lu/en/banking/docs/pwc-banking-luxembourg.pdf
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old French currency
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vault at the bank in Luxembourg
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view from the walls of Bock Medieval Fort
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walls of Bock Medieval Fort
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The battle of the bulge museum

7/20/2014

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Pre-Impressions

I am really looking forward to learning more about the Battle of the Bulge, along with other events that occurred during World War II. I have studied WWII in the past, but it will be nice to refresh my memory on many of the events that happened, along with being able to learn about these events from Belgium's point of view. I expect that this will be a guided tour and that we will get a chance to see various exhibits about WWII, and maybe even some artifacts from the war, such as uniforms or weapons.

Post-Impressions

There was a lot of information in this museum and I needed more time to be able to read everything. I enjoyed being able to use the audio devices so that I could tour the museum at my own pace. I was surprised that there were videos for us to watch in addition to looking at the pictures, artifacts and descriptions. My favorite part of the tour was watching the three videos, especially the second one that took place in the forests of Bastogne. I really liked how they set everything up to make us feel as though we were actually in the forest. The setting really complemented the video that we watched and the stories that were told. The museum gave a lot of information about World War II and not just the Battle of the Bulge. This allowed us to learn about, or refresh our memories on, many of the major events that happened during the war.

Just like with all wars, World War II had an impact on the economies of all countries involved in the war, and even on those not directly involved in the war. One economic advantage of war is that the economy can be improved by increased military and government spending on items such as weapons and supplies for soldiers. Some countries, such as the United States, benefited from the war because investors decided to invest in the U.S. because they believed that their investments would be safest there. While this was an advantage for the U.S., it was a disadvantage for other countries such as Germany, where many people stopped investing. War also has many economic disadvantages, such as an increase in taxes, which affects consumer spending and will likely lower it because citizens cannot afford the high taxes. There was also rationing that occurred, and the government also encouraged people to save their money. These actions all harmed the economy because people were not spending money like they used to. War also impacts the political systems in each country because it causes governments to implement new policies, such as monetary and fiscal policies. These are implemented in an attempt to help the economy and return it to a better state. 

http://www.nytimes.com/2011/08/14/business/economy/from-world-war-ii-economic-lessons-for-today.html?_r=0
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small artifacts from WWII
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WWII uniform
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map of the Battle of the Bulge
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memorial to the United States
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newspaper from WWII
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United States memorial in Bastogne
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Defroidmont Artisan Chocolate factory

7/17/2014

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Pre-Impressions

I am very excited to visit the chocolate factory and buy some freshly made Belgian chocolates! We will be learning about the process of how chocolate is made. I expect that we will be able to watch people making chocolate and see step by step the process that they go through. We will also be learning about how the Defroidmont Chocolate Factory was started and what allows it to remain successful to this day. 

Post-Impressions

The Defroidmont Chocolate Company was started in 1984 by Philippe Defroidmont. It is located in the beautiful countryside of Erezee, Belgium. Its chocolates are sold in the store located right next to the workshop in Erezee. They are also sold in other stores around Belgium, and we even saw their chocolates in the gift shop at the Battle of Bastogne Museum. We learned the process of making a few different types of chocolates that they sell. For example, we watched a video that showed how they make hollow chocolate bunnies and then how creme filled chocolates are made. This was my favorite part of the tour (along with getting to try the chocolate) because I always enjoy seeing how things are made. I was surprised to find out how well known this chocolate company is and that people in other European countries such as France and the Netherlands, and even in the United States, have heard of this chocolate company.

The company's unique selling proposition seems to be that it is a "cottage" chocolate factory. It is a small family-run chocolate factory that makes all of its products in the small workshop in Erezee. They chocolates are handmade with love, and this appeals to many customers, since many people like to shop at small, local businesses. The Defroidmont Chocolate Company is definitely involved in global trade. The company imports its cocoa beans from Papua New Guinea and its chocolates are then exported to other countries, such as France, Luxembourg and the United States. The company does not just sell its chocolates in Belgium or source its ingredients from Belgium; instead, it is involved in global trade by both importing and exporting. Defroidmont is using the market penetration strategy of the import-export business. This "is a relatively low-risk operation given the fact that capital is not tied up and it is relatively easy to enter or exit out of this business" (Gaspar Chapter 8). As part of its channels of distribution, Defroidmont uses distributors, such as upscale retail stores, to sell some of its products, in addition to selling the chocolates directly in its own store. In order to promote, or advertise, its chocolates, Defroidmont mainly relies on its website or word-of-mouth. Customers are able to purchase chocolate directly from its website and have it shipped to them in other countries, such as the United States. Currently, Defroidmont has not developed new products for its international markets, since it is a smaller company, and its products seem to be enjoyed by people in other countries, so there is not a need for adaptation to local cultures. 


http://www.chocolatier-defroidmont.be/index.php/en/museum
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outside the chocolate factory
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chocolate creations
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chocolate making stations
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chocolate molds
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Leuven

7/17/2014

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Pre-Impressions

I am looking forward to this tour and am excited to walk around the town hall and city of Leuven while learning about its history. I always enjoy seeing old historical buildings and learning about what life was like in the past. I think that Leuven will be a great place to do so, and I am also excited to see another city in Belgium. I am not exactly sure what places we will be visiting on the tour, but I will be keeping an open mind and will be willing to see and learn about anything.

Post-Impressions

I learned a lot on the tour of Leuven and really enjoyed seeing this beautiful city. I learned that many buildings in Leuven burned down during WWI (in 1914). These buildings were then rebuilt in the 1920's and were made to look like the original buildings. Now, you can tell which buildings are the rebuilt ones because they have a stone on them that has a picture of a burning building along with "1914." We also learned about the begijnhofs who lived in a specific area of Leuven, known as "Groot Begijnhof." This was my favorite part of the tour, because the whole area is so beautiful. They were women who were similar to nuns, but did not take the same vows that nuns did. They lived together in a community until they married, in which case they were allowed to leave. Now, this area is the home of some graduate students who attend the university in Leuven. We also learned about some of the historical figures that are sculpted on the outside of the town hall building. I was surprised by how interesting the tour was and how much I was able to learn about Leuven.

The Stella Artois brewery is located in Leuven, although we were not able to tour it while we were there. Stella Artois has done a lot of advertising in recent decades. Stella Artois has advertised itself to be a more expensive brand, but one that is well worth the price for its high-quality beer. Stella Artois has become a multinational enterprise (MNE) because it is headquartered in Belgium, but also has operations and distributors throughout the world. It has a brewery in its hometown of Leuven, but also brews beers around the world. This would be an example of Stella Artois' international entry strategy. Additionally, the company has decided to use advertising to promote its products. Stella Artois originally advertised using posters, but eventually moved into commercials, or short films as they were known, in order to spread awareness of the brand. Its customers are loyal to the brand and the high-quality that they receive when purchasing Stella Artois beer. 

http://piercebrennandesign.wordpress.com/2014/01/24/brand-identity-the-stella-artois-story/

Gapsar Chapter 8 & 12
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breendonk and kazerne dossin

7/15/2014

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Pre-Impressions

I am really looking forward to these two tours. I am expecting to be very moved by the tours and being in a place where people were kept as prisoners. Visiting Breendonk will be a very powerful experience and I expect to feel sad after hearing about the experiences of the people who were forced to live there. At the Kazerne Dossin Museum, I expect that we will see photographs that were taken at various concentration camps, in Jewish ghettos, or at military forts. I also expect to see other types of exhibits, such as interactive ones where I can learn about people who survived the concentration camps, or even videos explaining the Holocaust.

Post-Impressions

I really enjoyed both of the tours that we took today. The Breendonk tour was very powerful, just as I had expected it to be. I enjoyed reading more about the Holocaust when we were waiting for the tour to start; the pictures and descriptions that they had were very informative and gave me some good background information that helped refresh my memory of what I had learned about the Holocaust in past history classes. I was glad that our tour guide tried to make us feel as if we were actually prisoners at the camp. This was probably my favorite part of the tour because it made the whole experience more realistic. This made everything seem to “come to life” and helped make the tour more powerful. I could just imagine the terror that the prisoners faced every day, along with the horrible conditions that they had to endure. I also enjoyed touring the Kazerne Dossin Museum and learning more about the Holocaust in general. While I have already studied a little bit about the Holocaust in the past, it was great to refresh my memory on it, which helped to reinforce the impact that the tour of the camp had on me. The photographs at this museum helped me to realize just how real all of the events were that took place. I was surprised at some of the things that I saw and learned while on the tour. For example, I was surprised that the conditions at the holding camp were still bad, even though it was not a death camp. The prisoners were kept in close, tight quarters, and endured hard conditions such as showering once a week and then standing outside in the freezing wind to dry, or eating food that was extremely low in calories, which was not good since they had to do hard manual labor all day.

There is a strong connection between the Holocaust and economics. Hitler was in charge of greatly expanding Germany's economy. He felt threatened by many business owners, especially Jews in particular, because their businesses were usually very successful. The economy in Europe was impacted because many people were placed in concentration camps, which took away from the labor force outside of the camps. This also resulted in less consumers in society, because millions of them were locked up or even killed, and could not participate in everyday economic activities. However, there was an increase in economic activity as a result of the concentration camps. Many camps used the prisoners for manual labor and were able to make money from the goods that they produced or labor that they provided. It is clear that economics played a major role in the events surrounding the Holocaust.

Today’s tours tie in well with many of the concepts that we have studied in COM. One concept that immediately comes to my mind is the ethical imperative. This seems like a topic that is always discussed when talking about the Holocaust. Many people will ask how these people could actually do these horrible things to other people, such as imprisoning them, making them endure horrible conditions, and even killing them. It leads many of us to ask if their actions were ethical, or if these ethical principles vary from culture to culture, which could explain why the Nazis were okay with their actions. These tours also tie in with the economic imperative. By imprisoning people in labor camps, the Nazis were able to increase their workforce and force the prisoners to work for them so that they could make money. However, this also took away from the workforce outside of the concentration camps, because many business owners were forced to leave their businesses and homes as they were taken away to the camps. Finally, these tours relate to the demographic imperative. The demographics in many regions throughout Europe changed as Jewish people, among others, were killed off. Additionally, many Jews or others under attack fled to other countries, which would result in the diversification of those countries.

http://www.nazism.net/about/adolf_hitler/#Economics_and_culture
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European union parliament

7/13/2014

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Pre-Impressions

I expect that we will be touring the European Union (EU) Parliament building and learning more about the EU Parliament and the roles that it has. I expect that we will learn a little bit about some of the decisions that the Parliament has to make. I also expect to meet some people who work at the EU Parliament in Brussels and learn more about the role that they have within the Parliament. Finally, I hope that we will be able to see the EU Parliament Assembly Room.

Post-Impressions

I was a little disappointed that we just listened to a presentation for most of the time that we were at the EU Parliament. I had hoped that we would be able to tour around the Parliament building and then learn more about the EU Parliament while on the tour. We learned about the role of the EU Parliament, which includes tasks such as passing laws and adopting the budget for the EU. The EU Parliament has representatives from all 28 countries in the EU, and that there are 751 members of the Parliament. I was a little surprised that there were this many representatives, but it makes sense since there are 28 countries to represent. My favorite part of the tour was seeing the Assembly Room. It was cool to see the setup and imagine how it would look when filled with all of the representatives.

The EU Parliament is a good example of regional integration. "Regional integration includes a multitude of economic and/or political steps that may be taken by member states of a union to increase their global competitiveness—not only preferential trade access" (Gaspar Chapter 3). The EU is an example of an economic and monetary union that coordinates economic policy. It is not yet a political union, however, because all of the countries do not behave as just one country. Regional integration has many benefits including "creating a large pool of consumers, encouraging economies of scale in production, and increasing cooperation and peace among member countries." There are also some disadvantages, however, including "imposing laws and regulations that are uniform, and that at times do not take into account national economic, cultural and social differences, losing sovereignty, and reducing powers of the national government" (Gaspar Chapter 3). The Parliamentarium that we went to was valuable because it told us about some of the history of Belgium and Europe, including many of the major events that took place. It is important to remind EU citizens of their history so that they can learn from the past mistakes, and also repeat things that they did in the past that worked well.

http://europa.eu/about-eu/institutions-bodies/european-parliament/index_en.htm
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    Ashley is a 21 year old accounting student studying abroad in Belgium!

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