International Businesses and Management英国essay：“退出欧盟”的影响The

1.0 Introduction介绍

正确理解国际关系应从“国际关系”的概念入手。关于国际关系的定义，人们有许多想法和看法。根据权威观点，汉斯·摩根索认为，国际关系是国家间的权力斗争关系，其本质是政治权力（威廉斯引用，2004）。因此，研究国际关系具有重要意义，这是世界体系中的重要关系。本文以英国最近发生的“欧盟转移”事件为研究对象，探讨其对个人、国际关系、国际贸易和国际发展的影响。

The correct understanding of international relations should start with the concept of "international relations". There are a great number of thought and opinions about the definition of international relations. And according to authoritative ideas, Hans Morgenthau thinks that the international relations are the relationship among nations in the struggle for power, and the essence of which is the political power (cited in Williams, 2004). Therefore, the study of international relations is important, which is pointed to be the important relationship in the world system. The article focuses on the recent event of “moving from EU” of Britain and discusses its effects on the individual, international relationships and international trade and international development.  

2.0 Literature Review文献综述

2.1 Basic theories基本理论

现实主义是指我们对事物的理解和感知，而事物独立于我们内心之外事物的实际存在，它也与事物相同。一般说来，现实主义关心现实，实际上反对唯心主义。杰克·唐纳利（1993，第85页）指出，现实主义不仅不能提供一般的理论，而且它基本上是不一致的，现实主义者在对同一事件的解释上往往是不一致的。由于同一问题的现实性正在发生变化，当然，这种解释与现实主义是不一样的，否则就不是现实主义。现实主义在一般理论假设中建立起来，有点松散地联系着不一致的理论模型（Donnelly，2000年）。

制度主义是另一种关于国际关系的理论（Walt，1998）。它试图用理性的思维来解释事情。最后的结果是主体偏好与制度规则之间的互动。换言之，制度主义是理性选择的产物。此外，还有一个关于制度主义的学派，它涉及政治结果。该机构有追求权力的动机。

Realism refers to our understanding and perception about objects, and the objects are independent of actual existence of things outside our hearts, and it is also the same as thr thing. Generally speaking, realism cares about reality and rejects idealism actually. Jack Donnelly (1993, pp.85) pointed out that the realism is not only unable to provide a general theory, and it basically is inconsistent, the realists are often inconsistent in the interpretation of the same event. Due to the fact that the reality of the same issue is changing, of course, the explanation is not the same as the realism, otherwise it is not realism. Realism became established in the common theory assumption, a bit of a loose connection of inconsistent theory model (Donnelly, 2000).

And the Institutionalism is another theory about international relations (Walt, 1998). It tries to explain the things with rational mind. And the final result is the interactions between preferences of subject and the rule in the institution. In other words, the institutionalism is the product of rational choice. In addition, there is another school about institutionalism, which involves the political outcomes. The institution has incentive of pursuing power.

Jean Piaget is the first one who proposed the concept of constructivism, and he is the one of the most famous psychologist in the field of cognitive development (Smith et al, 1994). First of all, the theory is applicable in the Children's cognitive development, which was known as the Geneva school. Piaget insisted on materialistic dialectics when explaining his theory and he studied the Children's cognitive development from the interaction between internal factors and external factors (Tudge and Winterhoff, 1993). The constructivism theory can be also used to study the international relation as a reference, Emile Durkheim and Max Weber contributed a lot to the constructivism theory (Palan, 2000). About the concept, and Durkheim and Weber believed that the Kantianism separate the spirit of the world and the whole world, which will be far from the scientific approach. But the pragmatic think that the spiritual life is meaningless, the scientist's mission is to uncover the surface of the material and dig deep into the core of the object. Durkheim also proposed the other ideas, they believed that the concepts have their own characteristics, and it is also a whole, which cannot be reduced to other factors. At the same time, the concept is "natural" which the same as physical reality is. The constructivism is interest in the concept.

2.2 Similarity and difference

In terms of ontology, realism, institutionalism belongs to rationalism. In the realism, the country is defined as a selfish with the method of microeconomics, which mainly defined individual and company. And in the realism, the unicity of rational behavior in international relations, national interests and identity are all the internal factors, which has nothing to do with activities in the international community. Keohane (1989) focused on the position of multiple international actors, and then admitted the existence of rationalism assumption about state actors. However, the constructivism is anti-rationalism. And the constructivism believes that the social structure of international political does not only influence the behavior of the actor, what is more important is that it also influence the identity of the actors and interests (Johnston, 2001).

From the aspect of the world view, realism, institutionalism all accept materialism theory, and both of them does not recognize substantive significance of the concept. The basic concept of realism is the international system structure, which refers to the distribution of national material power in the international system. Although the system in the realism is not material, its function depends on whether the system can provide the material reward or not. Constructivists do not deny the objective existence of materials, but they against the view point that the existence of the substance could explain the behavior and acts as the only and the main reason (Adler, 1997). Constructivism is an idea that the power is mainly constructed by the concept and the cultural context. The significance of the distribution of power is constructed by the distribution of interests to a large extent,extent; what is more, the content of the benefits is constructed by the concept to a large extent. That is to say, the reason that the power and the benefit have the function which they actually have isthat the role of the idea of creating the power and the interest.

Their theories are all adopting scientific positivism epistemology, but the interpretation of these models are different, the realism and institutionalism are the inductive pattern, and the latter one is personalization mode. Inductive pattern means that the researchers will regard event as an example of one kind of things, it is an inevitable thing in an accident. For example, Jack Snyder made the explanations for why the cold war ended in peace. He said that a country's foreign policy is formed by the idea of how to secure their own country.Expansionism doesn't work in a democracy, but it is prevailed easily in the highly centralized political entity; a country's domestic political structure is formed from its schedule of modernization. These are summarized, and explain to them the peaceful evolution of the Soviet Union at the end of the cold war.

3.0 Case study

3.1 Background of the case

It is hot topic that the Britain falls out of the EU. Since the late nineteenth Century, the Britain has been pursuing a policy of non-intervention on Europe, which is called "glorious isolation". And this policy is formed due to some historical and geographical reasons. Britain is not the euro zone countries, and it can issue their own currency. So it is easier for Britain to maintain its export competitiveness with independent financial policy. But it makes it difficult to really participant in the European. Especially in the critical period when there is debt crisis in BU. Due to the different interests, the Britain is gradually losing its status and participation in the EU.

And at the same time, the people of other European Union countries also have growing discontent to British, and believe that the British people are "not reliable" as a member of the European Union, they are negative and always play a role of foot-dragging in the process of European integration. it not only rejects the policy of Euro, but also not to participate in the EU crisis rescue plan, and they do not contribute to alleviate the crisis and against all the financial regulatory policy, so the "out" may be good for the development of the European Union.

3.2 PEST analysis

PEST analysis is a tool for strategic consultants to help enterprises review the concept of external macro environment. Factors of the macro environment are affecting all kinds of industries and enterprises. And the macro environment analysis is different according to their own characteristics and management needs, the basic content of analysis includes Political, Economic, Social and Technological. #p#分页标题#e#

(1) Political

After the vote in public, British politics reshuffle and David Cameron's (the British prime minister) resignation leads the major political parties to involve in internal strife. So there appears much chaos; The Scotland has said that it will consider to hold a referendum on the independence so as to maintain close contact and the European Union; Northern Ireland has also called for a vote to decide the future of the region. Therefore, the political risks increased due to the vote. 

(2) Economic

"Moving from EU" will produce adverse effect to the Britain economy, especially in the short term. The British economy will suffer a heavy blow. After the announcement of referendum results, the stock market suffers a lot as soon as its opening. The British economy was recovering from the financial crisis and it is not enough to be stable. So, moving from EU may lead to the further economic shock. 

(3) Social

Socially, the event also contributes the turmoil. In recent years, the acceleration regional integration has promoted economic recovery, and the company constantly hit a record high. But it is difficult to give the sense of security to people with low degree of education and even further exacerbated their sense of urgency. Advance of globalization and the rapid development of the Internet can make the enterprises in Britain have more and more convenience to construct their own industrial chain in the whole world. In general, the public opinion was controlled by elite and the young, because their views are widely spread. The poor or the old cannot express their opinions in the vote. So, there is huge gap between various status in the society. However, in the vote of “moving from EU”, the disadvantaged group wins. It is a question whether the final decision is good or not.

(4) Technology

According to a report in the British car manufacture and dealers association, there is a single market access restrictions after moving from EU, the country's auto industry will face a shortage of technology. British car manufacturers rely on hiring workers from other European countries in order to make up domestic technology gap, especially the shortage of engineers. And in the commercial trade, the single market access is obviously important. 

Therefore, it is obvious that the risks of Britain increased due to the policy of moving from EU.

3.3 Holistic review of the case 

(1) Individuals

For common people, their lives will be affected. For example, the employment situation will be changed and reset due to the chaos in the market. And for the companies, according to the survey of the British association of financial innovation, there are many FinTech companies that have expressed the hope that London can stay in the European Union. London has been trying to be a "global FinTech center". There has beenworld's first Zopa; and the first raised platform Crowd cube; and the most potential company TransferWise (the P2P international remittance service company). And the overall revenue of London FinTech industry is 6.6 billion pounds, and ranks first all over the world (Thomas and Reuters, 2016). 

Companies in Britain expressed their concerns about moving from EU. First of all, Britain will lose the status of business center which they win it hardly, at the same time, moving from EU also has negative influence on financial innovation and the environment motivation. What is more, European customers will reconsider the cooperation with Britain companies, the loss of technical talents and funds will happen soon.

(2) States

In fact, many other countries in EU do not want Britain to leave EU. The European Union countries have comment in succession. Germany's foreign minister wants Britain to stay in the European Union in a positive way and EU needs to continue to strengthen integration, not divided. The French government also said that they hope Britain to stay in EU, but he also pointed out that Britain needs to fulfill its obligations to its members if it wants to stay and the principle of unity is a must.

If the Britain moved from EU, there would be many problems. For example, the Britain government may cut the costs and increase the income tax and fuel tax so as to be balance in finance. In addition, the rating institution may lower the ranks of Britain, which used to be 3A. And the interest rate of loans will also increase. Therefore, the British cabinet prepares for the “30 billion emergency fund” plan, which is used to response to the "black hole" effect which will be triggered by moving from EU.

So, it is clear that other countries in EU hope that the Britain could stay in EU in positive way and support the agreement of EU. However, the Britain itself would like to move from EU more. The conflict has huge damage to the concept of “increasing tightened alliance”, and this would also do harm to the relationship among countries in EU and Britain.

As for trade, country members in EU have unified market, and there are no trade barriers among them. Before this event, Britain could enjoy the free flow of goods in other EU member states. Although this convenience would not disappear immediately, the British still need to negotiate with the other countries in EU on trade about the relevant provisions. Negotiating theme of the trade between Britain and the EU member states will continue to be whether they can trade under the exemption clause, however, the uncertainty of the final result of a series of complex negotiations may affect the investment spending of Britain. And the other countries which are not in EU, China, for example, the effect is indirect. Due to the changes in pound and the euro, moving from EU has an impact on international trade. The British government adopted the same trade policy as other countries in EU. And now Britain has itsown trade policies. Thus, the promises that made with EU may not apply to Britain. But the overall effect is not too big.

(3) International cooperation and international development

After the referendum, Britain needs a period of time to reestablish the relations with the European Union and other parts of the world. And in this process, some market and economic fluctuation is inevitable. The bank of England listed a series of risks that may happen in the future, including the current account deficit with large amount and high household debt, weak financial markets, and the sluggish world economic growth.

It is in the interests of all parties that Europe is prosperous and stable. Moving from the EU can be regarded as the return of Westphalia system, and it is a continuation of reflecting protectionism and rampant and closed ideological since 2008 global financial crisis. Britain and other European countries are lack of culture which is the same as the" melting pot " in the United States, and combined with the welfare system and the unsustainable economic development model and an expansion of the European Union, the EU will inevitably step into divided. Moreover, the event would profoundly change the geopolitical landscape, and then leads to a new world order.

4.0 Conclusion

In the short and medium term, moving from EU may rise it up in the structure of the global geopolitical and economic potential, and has greater strategic activity space between main countries such as countries in the European Union, the United States, China, Russia, India and other regions. And international trade would benefit from the event. However, in the long run, moving from EU would do harm to the relationship with other countries. 

 

Reference:

Adler, E. (1997). Seizing the middle ground: constructivism in world politics.European journal of international relations, 3(3), 319-363.

Thomas, E.& Reuters (2016). EUROPOL: 'The fasted growing criminal market in Europe' netted $6.6 billion in 2015 [Online]. 

Last accessed at July 9th 2016

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