International Business in the News by Tzortzinis Angelos - Article Example

International Business in the News Tzortzinis, Angelos. “Greece.” New York Times, November 4, Web. November 5, 2012. http://topics.nytimes.com/top/news/international/countriesandterritories/greece/index.html REASON FOR THE ARTICLE SELECTION This news article was selected on the basis that it explores the Euro Crisis issue and its role in the current economic state in Greece. The author of the article clearly examines how Greece membership to the European Union has contribute the deterioration of the country’s economy as well as how it continues to harbor the country’s attempt to recover from its current rot in its economy. Information provided in this article blends well with the issues covered in class about the EU debt crisis in general. MAIN IDEAS IN THE ARTICLE In this article, Tzortzinis explores the current economic crisis in Greece since its inception, the role played by its ratification to the European Union Agreements and attempts that have been made to rescue the situation including political changes and proposed in the EU agreements. RELATION OF THE ARTICLE’S IDEAS TO MATERIALS DISCUSSED IN CLASS Tzortzinis provides an in-depth analysis of the economic situation in Greece and the actions that have been taken and currently being contemplated in rescuing the country’s economy from the eminent collapse. The author discusses the country’s economic crisis that has brought the Greek’s government down, increased social unrest, and eventually threatened not only the country’s future in the EU but also the future of the euro. This information closely relates to the video entitled “Greek Debt Crisis Adds New Gravity to U.S. Deficit.” Information of particular interest in this article revolves around the current attempts by the new Greece government to re-negotiate the bailout agreements reached by the previous government with the EU economic giants such as German and France. Tzortzinis discusses the debt restructuring deal reached by EU officials in March 2012 in which the private sector lenders are greatly involved. The discussion supports the discussion on the implication of the Greece economic crisis on the U.S. economy because the deal poses significant threat to the U.S. economy due to its economic interest within the Eurozone. It is argued that the debt restructuring deal does not have the potential to solve the country’s economy crisis. This is because the deal exposes opens the journey for the country to languish in a chain of debts with limited economic growth prospects. In the video, “Greek Debt Crisis Adds New Gravity to U.S. Deficit.” Jacob Kirkegaard, one of the respondents to Judy Woodruff’s questions, expresses significant concerns on the restructuring deal reached by the European officials in which he says that it is likely to trigger a situation in the country’s economy similar to that of the U.S. 2008 financial crisis. According to Kirkergaard, the proposed bond issue strategy has far- reaching implications to the global financial system including the U.S. economy. As asserted by the economists in the video discuss, any default experienced in the Greek domestic banking system is likely to be experienced in other countries like Spain, Portugal and Ireland. These views are clearly expressed by Tzortzinis in his article. He expresses views that support the argument presented by Kirkergaard, in which the steps taken by the troika are unlikely to resolve the economic crisis in Greece simply because the country’s debts will continue to grow at the expense of the troika’s interests. Therefore, most of the information presented in the selected article tends to provide a strong background support to the ideas presented in the video watched in class and the class discussions on the potential impact of the Greek debt crisis on the U.S. economy. In the video featuring Professor David Cameron on the EU debt crisis, views similar to those presented by Tzortzinis arise in which the debt crisis faced by EU members such Greece are attributed to failures to address shortcomings in the European Union agreements. Some of the shortcoming presented in this article as the greatest stumbling blocks towards the recovery of the Greek economy include the rates controls; the EU tax increases plan, wage cuts and spending cuts. Some of these actions support Professor David Cameron’s assertion that the EU members must embark on correcting policies that have aggravated the Euro-crisis or risk plugging the entire world into another global crisis. From the comments presented by the professor in the video watched in class, it is clear that the EU debt crisis is no longer the problem of the EU nations to deal with but, a problem that requires the intervention of the United States and other influential economies around the globe. Cameron expresses similar resentments covered in the article in which EU members ought to face the inequities in their agreements and problems triggered by the euro or risk withdrawal of some members like Greece whose economy cannot thrive within the EU trade agreements. The prevailing economic crisis in Greece and the strategies proposed to facilitate recovery of the country’s economy may trigger another deep economy crisis for the country with great global repercussions. The article depicts an extremely volatile economic situation within the Eurozone that threatens the survival of some of the members including Greece and Spain. Based on the information in the article, the future of the EU economy is greatly threatened with most economic strongholds being drawn back to recession. The article raises an important ethical issue in one of the proposed strategies for dealing with the Greek’s economic crisis in which the troika stands to benefit from the lending strategy. Other ethical issues arising from the discussion include tax evasion and breach of banking restrictions as some of the factors contributing to the economic crisis. DOES THE ARTICLE HAVE ANY BIAS, FAULTY REASONING, OR IMPORTANT MISSING INFORMATION? In my view, the discussion by Tzortzinis does not have bias because it covers both sides of the issues. This is particularly evident from the discussion on the possible benefits associated with the debt restructuring deal reached by the EU official. It is clear that the Greek economy can benefit from the deal to some extent while at the same time experience slow growth and progressive growth in its national debt. The article further discusses how the deal stands to benefit the troika at the expense of the Greek government. Tzortzinis also presents the views of the newly elected government and those of the opposition in dealing with the country’s economic crisis. Despite Mr.Samaras’ favor of the bailout strategy in rescuing the country’s economy as opposed to the left-wing Syriza anti-bailout strategy during the campaign period, it is reported that the Mr. Samaras opted to revise the plan afterwards. The article presents the views of both the Greeks and other EU members involved in the attempts to assist the country to enable comparison of interests between the two parties. However, the article would have been more comprehensive if it covered information on the potential effects of EU’s and Greek’s strategies on the global economy. This is because the EU and the Greek economy are directly and indirectly interconnected with the global economy. Therefore, in my view, the information on the impact of the Greek economy and actions taken by the EU to rescue the economic situation on the global economy is the only missing information. However, some of the comments in the article insinuate possible global effects as reported in the video involving David Cameron. On the other hand, Tzortzinis does not use emotionally-charged words to appeal to the readers and remains objective throughout the discussion. The facts covered in the article are obtained from reliable sources, a phenomenon that enhances the validity and dependability of the information presented. LESSONS FROM THE ARTICLE One of the important lessons picked from this article that may influence my life and work is that no decision is too small to have an impact on the entire world. This is evident from the decisions reached by some of the managers in the banking systems and the governments that have eventually led to one of the global economic concerns. From the Greek’s economic experiences and other economic crisis in the past, it is clear that economic decisions should never be underestimated and the repercussions should be evaluated from both the national and the global perspective. Finally, I also learned that economic issues cannot be divorced from political issues as evident in recent Greek’s political change. Work Cited Tzortzinis, Angelos. “Greece.” New York Times, November 4, 2012. Web. November 5, 2012. Read More