Does the use of social media within universities promote employability?

This blog discusses whether the inclusion of social media within university courses is supportive of higher education’s employability agenda, and if so how can it be assessed?

The Department for Education forecasts a professional and technical skill gap which will rank the UK in the lowest quartile of Organisation for Economic Cooperation and Development countries by 2020.  The demand for graduates in the workplace remains high and is forecast to increase in the professional sector despite employers being dissatisfied with graduate employability skills, particularly in literacy, problem solving and work experience. The issues of graduate employability are further pronounced within the financial professional sector with nearly a third of employers requiring subject specific degrees. Conversely one fifth of graduates remain in long term nonprofessional employment.

So if the skill gap presents the largest challenge for Higher Education, how does the integration of social media within teaching help our students?

The increasing use of social media in all walks of life has clearly also impacted on the lives of academics and  students alike. The term ‘social media’ is often used to describe the variety of technology based platforms (online and offline) used to communicate and collaborate.  It is sometimes also used when discussing technology in general terms.

There is an assumed duty within higher education that students should be exposed to the technology which is in use in the workplace but this presents problems in that such technologies are cyclical and often become unpopular over time.  Given the planning timescale for course and module design within universities, it is therefore important that the teaching and assessment of social media should be generic in nature with the focus on the functionality and benefits of such technology.

In order to make an informed decision as to the arguments for the inclusion of social media for the assessment of students from an employability perspective, we need to understand the value of this medium to industry.  Communication, Collaboration, Problem Solving, Social interaction and networking are often regarded as work based competences which are highly valued by employers and therefore it is important that these are incorporated into the design of social media teaching and assessment, methods of testing, regardless of what technology is used.  In the modern workplace, the practical use and familiarly with technologies such as online conferencing and collaboration, webinars and Microsoft and Google packages is equally important and there is a case for assessing these skills alongside academic competences.

Although often impractical in large universities, a flexible course design to accommodate a variety of industry sectors will unquestionably benefit the student.  For example the successful launch of the BA (Hons) Esports degree at Staffordshire University has resulted in a tailored programme of study specifically including the use of social media for marketing and event design in the gaming sector

The Chartered Institute of Management Accountants (CIMA) adapts a real time problem based approach to their assessment to ensure that students have sufficient depth of knowledge to apply to real industry problems. The technology itself is inherently part of the assessed activity in that if students are not familiar with the technology then they will be unable to complete the assessment. This has the potential to be expanded through the use of social media itself as a method of assessment.

So the ultimate question is whether the use of technology is appropriate and beneficial both to the student and the employer.

Mark Wordley is Lecturer and Course Leader for the Accounting & Finance Courses at Staffordshire University and is responsible for work placements within the Business School.

Free training for over 50’s!

Have you got to that point in your life where you feel its time for a change, a new direction, new job or new career? Well self-employment can offer a more flexible form of working, that may allow older people to stay in work for longer. Age UK says that older workers are more likely to have a higher chance of success with over 70 per cent of these businesses lasting over five years.

Still not convinced, well one of our Silver Worker trainees is a lady who through illness had been unable to work for the latter part of last year. She says it made her think about where she was “after over 60 years on life`s highway” and where she wanted the next part of her journey to take her.

She signed up for the Silver Workers free business start up training and has now taken the next steps in achieving her goal. She said:

The Silver Workers project has been catalytic and came at just the right time to help me to look at what transferable skills and talents I have.  It started my development of ideas that could become a new business and build on my previous work and experience”.

 “I have been to three sessions so far and I have started to answer my own question, `who am I` by listening to other people in the group, speaking about my ideas and using the Silver Workers platform.  Even today I am still working with my ideas and as with any creative process there is a developing sense of where I am going but I don’t think I am fully there yet.”

 “this also helped me to understand not only my strengths but also areas that I need to work on.  My confidence is not always so good with networking and talking to people about myself and what I do, so albeit I shy away from this I know it is an area for development as I journey on with my business”

 “Thank you, Hazel, Tom and Marzena for helping me to understand that even being over 60 I can be creative and have something valuable to offer”

Staffordshire Business School have developed this project which includes face to face sessions and on-line support allowing people to work at the pace that suits them. This course will suit anyone looking to develop skills to either set up a business or looking to get back in to work The course can help to develop both the confidence, mind-set and skills in this area.

If you would like to participate in this free training, then please contact Hazel Squire at h.squire@staffs.ac.uk  or Marzena Rezska at Marzena.Rezska2@staffs.ac.uk

 

Work and well-being for the over 50s – Silver workers event 5th July

We have a free event on 5th July at Staffordshire University as part of the Silver Workers project to support over 50s looking to get back into work or start their own enterprise. There is still time to join the project.

A programme and registration can be found on this link

Speaker bios

Debbie Assinder – West Midlands Enterprise Champion

Debbie is a SFEDI/ILM Gold Accredited Business Adviser.  She has delivered business startup advice for 20 years +across the region becoming the Enterprise Champion for the West Midlands in 2015.

Debbie Assinder

Debbie Assinder

Highlights in her career include working on Birmingham City Council’s £4.2 million Enterprise Catalyst Programme, delivering on the PRIME (Prince’s Initiative for Mature Enterprise) startup support programme for the 50+, working as an Associate for Birmingham Chamber of Commerce on their national Start and Grow programme and delivering on behalf of Barclay’s Bank their “Get Ready for Business” and “Let’s Start a Business”.

Currently contracted by Innovation Birmingham on their Serendip Digital Incubation programme. Also working with Enterprise Nation, extending early-stage support to the growing number of new owner/operated businesses across the UK. Delivering workshops and events as well as providing a much-needed campaigning voice for the startup business community.

Austin Knott – Walk the Moorlands

Austin Knott; after 32 years in local government and building on his experience as a local walk leader and hillwalking representative for the British Mountaineering Council, Austin has set up ‘Walk the Moorlands’ to share his love of the hills and moors in the south west Peak District and Staffordshire Moorlands.

Participant in the Silver Worker project and who is starting his own business Walk the Moorlands.

Participant in the Silver Worker project and who is starting his own business Walk the Moorlands.

Lesley Foulkes

Lesley Foulkes studied at Staffordshire University as a mature student.  Following successfully completing her post graduate diploma in Psychotherapeutic Counselling she worked as a Specialist Mentor at the university until December 2017 and is an accredited member of the British Association for Counsellors and Psychotherapists.

Lesley Foulkes is a participant in the Silver Workers project and is in the process of setting up her own business Counselling without Walls

Lesley Foulkes is a participant in the Silver Workers project and is in the process of setting up her own business Counselling without Walls

Rebecca Loo and Fiona Uschmann  – Catch the Dream

Rebecca Loo works as an NHS Occupational Therapist with children with disabilities in North Staffs. She is also a health activist, running local and national Orthotics Campaigns (www.orthoticscampaign.org.uk) which press for improvements in the provision of braces and specialist footwear for people with disabilities.

Rebecca Loo of Catch the Dream

Rebecca Loo of Catch the Dream

The daughter of a local business man and having seen the effects of the 1980’s and 1990’s recessions, she vowed never to enter business herself. That was until she heard of how Ebola had shattered the lives of villagers in Lungi Village in West Africa. In May 2017 she and Fiona Uschmann incorporated “Catch the Dream Community Interest Company” (www.catch-the-dream.co.uk). They have been on a steep learning curve ever since as they work with the villagers to help them regain their livelihoods and dignity.

Fiona Uschmann is a PA and HR Manager at a local secondary school in Stoke on Trent. She has been involved in the yearly immersion programmes to Sierra Leone over the past 11 years with groups of sixth formers.

Fiona Uschmann of Catch the Dream

Fiona Uschmann of Catch the Dream

When immersion was unable to take place because of the catastrophic effects of Ebola in West Africa, she decided that she wanted to do more. In May 2017, Fiona and Rebecca Loo started a Community Interest Company called Catch the Dream.  Catch the Dream CIC has been working in partnership with a rural community in Bo, Sierra Leone to help them recover from the loss of their agricultural livelihood by kickstarting their farms again after they were devastated from the Ebola outbreak.

Sandra Butterworth – Business Innovation Centre

Sandra Butterworth is Director of Innovation at the Business Innovation Centre in Staffordshire which was set up in 1995 to encourage and promote Innovation in the region.

Sandra Butterworth

Sandra Butterworth will be taking about support and funding for start up businesses

During her 20 years at the BIC, she has been the Champion for Innovation encouraging everyone connected with the BIC to embrace Innovation which she believes is the way forward for local businesses as statistics show that Innovative businesses outperform their competitors.

Sandra is a SFEDI qualified Business Advisor, Member of the Institute of Business Counselling and Institute of Leadership & Management and helps companies to identify, research, develop and market their innovations. Sandra organises and delivers the BICs Self Development workshops and events on Innovation.

Tony Bickley – Staffordshire University

Tony Is a Chartered Accountant who has been a Senior Lecturer at Staffordshire University since 2016.  He has an MBA and is a Senior Fellow of the Higher Education Academy.

Tony Bickley

Tony Bickley

Prior to working at the University he previously held several managerial roles in the Financial Services industry following his early career in the Accounting profession.

His areas of teaching speciality are Financial Accounting, Taxation and Financial Services.He is a Silver worked himself – has a wife, four children, 3 grandchildren and 3 dogs!

Patricia Roberts 

Patricia has been working for North Staffordshire based Aspire Housing since 2016.  She has played a prevalent role in the development of a new Community Living Service and challenging the way people think, act and talk about Dementia. Patricia’s career spans some fifteen years in both the private and third sector which makes her well placed to meet challenges presented by current welfare reforms and an ageing population.

Patricia Roberts - Older Persons Strategy lead for Aspire Housing

Patricia Roberts – Older Persons Strategy lead for Aspire Housing

Caring by nature she is passionate about collaborating with partner organisations to ensure vulnerable customers are acknowledged and listened to. Volunteering for the Alzheimers Society as a Dementia Champion, she has helped over 500 people become dementia friends and is currently developing a network of champions within we are aspire.

Born and bred in Cambridge Patricia has a keen interest in local faith groups and encouraging people to fulfil their full potential. Patricia lives with her husband in Hill Ridware, and takes great delight in exploring the great outdoors especially if it raises money for the Alzheimer Society.

Hazel Squire

Hazel Squire is a senior lecturer at Staffordshire Business School. She is the award leader for undergraduate business courses and delivers on the `Silver worker` business start up training.

Hazel Squire

Hazel Squire

Having worked in the retail sector Hazel set up and ran her own business before returning to university as a mature student. She is currently undertaking a PHD looking to identify the barriers faced by older people thinking of  setting up their own business.

Contact details: h.squire@staffs.ac.uk Tel: 01782294985 Twitter @hazelsquire

Prof Jon Fairburn – Staffordshire University

Jon Fairburn is Professor of Sustainable Development at Staffordshire University. He teaches on the MSc Digital Marketing Management award and established the Business School twitter account @BusinessStaffs which has twice won best Business School account from Edurank.

Prof Jon Fairburn

Prof Jon Fairburn

He has previously worked on the SEE GREEN project (with senior citizens) as well as delivering on the Silver Workers project.

Sign up to the event for free on this link 

Follow the project on this twitter account @silver_workers

 

EU Strategic Partnership project

The Meghan Markle Effect

Some of us will view the nuptials of Prince Harry & Meghan Markle as an excuse to celebrate a royal event and share the day either watching on television, online or with friends & family. Others will prefer to save their energies for the FA Cup Final later in the afternoon. Whatever your views on the Royal Family, Meghan Markle is not only entering one of the most famous families in the world but also one of the most successful global brands. The Royal brand generates annually upwards of £1.8bn to the U.K. economy (Brand Finance 2017) and Meghan herself is expected to generate £150m for British fashion brands over the next year (Ibisworld 2018).

St George’s Chapel, Windsor Castle, the venue for the Royal Wedding

Yet the Royal brand is not just a twenty-first century invention. Previous generations of royals have used their brand to leverage value in some less orthodox ways. Queen Victoria is hailed as championing the Scottish Highlands as the romantic tourist destination of well-heeled Victorians of the nineteenth century. Prior to that George III, raised the profile of Brighton as the Regency destination of the eighteenth century. More recently the current Royal brand has adopted a more overtly commercial stance extending their franchise to include multiple product lines from tea towels & cushions, celebration china & visitor experiences to the royal palaces. However, it is the secondary brand associations that generate the most income. When the Duchess of Cambridge steps out in a new outfit, within minutes the product line can be sold out, due to the speed and interest on social media.

So what value will Meghan bring to this hugely successful global brand? Interestingly she brings to the brand something that many commentators of the wedding of the year have overlooked. Unlike her contemporaries & predecessors, past Duchesses and Princesses, she brings a highly successful acting career. With the ageing population in the UK, the Royal Family needs to reconnect with Generation Z (16-25 year olds), and Meghan may be the person to do this. A quick chat with members of this generation shows the chasm in comparison between Meghan and her royal contemporaries. Views such as Meghan’s successful career and her broader life experiences, her ethnicity and her obvious contemporary beauty connects her with this generation more strongly perhaps than her future sister-in-law. So this is her brand strength. She is strong articulate and intelligent. Unique and authentic.

So what are the dangers this Royal brand could face? One is over-exposure, which always devalues a premium brand. The other is over extension into excessive product lines and mass commercialisation and linked with this a lack of exclusivity and authenticity. If Meghan wants to become more than a fashion icon she will need to navigate these brand waters carefully.

Official Engagement Photo https://twitter.com/kensingtonroyal/status/943813005770395648

On Saturday Meghan will enter this world. She will step out in a wedding dress worth thousands of pounds and instantly Instagram, Twitter, WhatsApp & Facebook will go into overdrive. Images of the first glimpse of the dress will go global across the digital stratosphere and Meghan will become one of the most talked about human beings on the planet. Whatever your view on the Royal Family, the firm is now a brand. Managing this Royal brand online and off will be a challenge, but with her experience in the commercial world of TV and media Meghan should be better placed than most to deal with this – we wish her and her future husband well, health and happiness and a full & meaningful life growing the Royal brand.

 

Vicky Roberts, Senior Lecturer in Staffordshire Business School

Consent to using cookies is “baked” in the GDPR

Recently, you may have noticed when you log onto a company’s website or an Application (App) like Google or Twitter, there are alerts that their terms and conditions have been revised, or their privacy policy has been updated. You might also be inundated with requests for your consent to the use of cookies when visiting their site (refer to the examples below).

Example 1: ”Cookies on JohnLewis.com

Source: www.johnlewis.com accessed 3 May 2018

These types of notices are likely due to the fact that the General Data Protection Regulation (GDRP), which was passed by the European Union in 2016 and is coming into effect on May 25, 2018.

Example 2 of www.Barbour.com/uk request for consent to using of cookies on their website

Source: https://www.barbour.com/uk accessed 3 May 2018

The GDPR is a new digital privacy regulation which standardizes different privacy legislation across the EU. It is a legally binding regulation. Ignoring it could lead to fines of 4% of a company’s global turnover, or fines up to £17.6 million (20 million Euros) whichever is higher.

Explicit and informed consent is now required if a company wants to collect any personal data about a European citizen. This is not just having individuals check a consent box on the company’s website. A company will have to inform individuals exactly where their data is going. As well, individuals always have the right to say “NO” to their data being collected, that is, a company can’t stop an individual from using its website just because the individual does not consent to the company’s collection of his or her personal data. In the past, individuals would likely agree to a trade-off, that is, you can collect my data if I can use your site or use your app. That has now changed.

The GDPR provides individuals with the right to access their own data that the company has collected and individuals also have the ability to request that their data be deleted. Companies will be limited in the amount of personal data they can collect to that which is actually needed for specified and legitimate purposes.

Example 3: www.Cadbury.co.uk’s “Accept the use of cookies”

Source: https://www.cadbury.co.uk accessed 3 May 2018

Interestingly, even if a company is based in Australia, for example, the rules of the GDPR apply to them if a European citizen visits the company’s website or uses the company’s apps. So companies will need to be compliant with the GDPR even if they are based outside of Europe.

There is also special protection for children’s personal data. Companies who offer online services to children may need to obtain a parent’s or guardian’s consent in order to collect the child’s data, unless the child is 16 or over (although this may be lowered to 13 years old in the U.K.).

GDPR Basics for Marketers:

  • Ask for consent every time you collect data from someone, including tracking cookies – if you do not get consent you cannot track or collect it. Develop a way to track consent.
  • If people supply personal data on your website, then you need to make sure you have a way to provide this data back to people if they ask for it.
  • You will need a way to delete data, if requested to do so.
  • You may need to put systems in place that can verify individuals’ ages and a method to obtain parental or guardian consent, if required.

*For more information on the GDPR, please see Information Commissioner’s Office website at: https://ico.org.uk/

*Be sure to obtain legal advice. This content is meant only for educational purposes

Fatimah Moran, Senior Lecturer at Staffordshire Business School

Undergraduate courses

Postgraduate courses

A trip to Iceland for Tourism and Events students!

Staffordshire Business School lecturers Paul Dobson and Carol Southall took the Level 5 Tourism and Event Management students to Reykjavik for 4 days as part of their Tourism and Events Service Operations Management module.


The students visited the Blue Lagoon, took a trip to see the Northern Lights and a city tour. They also attended a presentation by María Björk Gunnarsdóttir at Promote Iceland’s head office in Reykjavik, exploring the exponential growth in tourism in Iceland over the past 10 years and the marketing campaigns undertaken to facilitate this growth.

Additionally, both events and tourism students were tasked with analysing Harpa Concert Hall and Conference Centre, following a fascinating tour and presentation by Edda Austmann, Harpa’s Marketing Manager.

www.staffs.ac.uk

Click here for more information on Tourism and Event Management degrees

 

Sarah Willingham visits Staffordshire Business School

As a lecturer, nothing gives you more pleasure than to see your students shine. On Monday 19th March I could not have been prouder of our students, as we welcomed honorary doctor of Staffordshire University, Sarah Willingham to the Business School, as one of the judges of our Willingham’s Winners competition. Sarah has a string of accolades for her contributions to business and in 2016 was named one of the Sunday Times 500 most influential people in Britain. She is probably best known for her appearance on Dragon’s Den, but there is nothing dragon-like about her – a “Stokie” born and bred, Sarah is down-to-earth, full of good advice and a business role model for students.

Six teams were shortlisted to present their business ideas in the finals, pitching to a panel of four judges; Sarah Willingham, Ben Dyer from the Ryman National Enterprise Challenge, Mark Blackhurst CEO of DigitalNext and Professor Liz Boath from the School of Social Work, Allied and Public Health. The panel commended all students on the professionalism of their pitches, giving constructive feedback to support student development.

Following an enlightening conversation and Q&A session with Professor Rune By, Sarah announced the winners of the competition as Crafted. The winning team presented a business idea described by Sarah as “absolutely on trend”, with a flawless, professional pitch, offering a range of delicious cakes catering for the health and wellbeing needs of people with gluten intolerance.

It is not often that undergraduates have the opportunity to gain the advice of such an influential panel of judges and despite nerves, I’m proud to say that all the finalist teams represented Staffordshire Business School superbly – they most definitely did shine.

Angela Lawrence, Senior Lecturer
Staffordshire Business School

http://www.staffs.ac.uk/news/dragons-den-star-puts-business-students-through-their-paces-tcm4296104.jsp

Success in Accounting and Finance!

Rose Dawson, a level 6 student due to graduate, has been awarded the Association of Fraud Examiners (ACFE) Martin Grieves Memorial Scholarship. There is only one awarded each year. Rose got £9000 towards here final year and after graduating her first year is supported to gain the CPA qualification. She applied after a recommendation sent out from her award leader. Rose has also secured a job with Hawsons Chartered Accountants.
 

Dr Syed Zaidi, lecturer in Staffordshire Business School,  has had a paper submission to a three star journal and completed his VIVA
 

Dr Souad Moufty, lecturer in Staffordshire Business School,  is part of a successful ERASMUS project KA2 Strategic Partnerships funding. With a successful bid for work on Adoption of Sustainable Accounting Practices for Reporting. The project receives a share of € 293,650.00.

Our Masters students have secured some great jobs highlights include:

  • Andrew Holder – BurtonBeavan  (Accountancy Firm) Chartered Accountant training position
  • Anamaria Bobos – Burberry Financial Analyst
  • Precious Atienza – Coop Bank
  • Conor Howard – Bank of America, Merrill Lynch Investment

 Mark Wordley, lecturer in Staffordshire Business School, has had an article published in the Innovative Practice in Higher Education Journal. Mark has also been taken on as an external examiner for the University of Sussex 

 

The accounting department received Charter Institute of Public Finance and Accountancy (CIPFA) accreditation, resulting in 7 exemptions. This now makes the award triple accredited.

Karl McCormack, lecturer in Staffordshire Business School, has been awarded the Personal tutor of the year, proud to be staffs award 2017. He has also received the Commitment to excellence award at the Business, Leadership and Economics Pride awards. Karl had an article published in the Innovative Practice in Higher Education Journal. Karl also presented at the staff conference in September 2017.

The Accounting Accelerated award received 100% satisfaction and out of 27 metrics 20 of them were 100%. The three year degree has 92% satisfaction with 16 of the 27 metrics in the top 20 accounting courses and 10 in the top 10.

86% of the Accounting and Finance Accelerated students achieved a 2:1 or first.

Business School Research News April 2018

Recent papers

Adnan Efendic and Geoff Pugh (2018). The effect of ethnic diversity on income – an empirical investigation using survey data from a post-conflict environment. Economics: The Open-Access, Open-Assessment E-Journal, 12(2018-17): 1-34. http://dx.doi.org/10.5018/economics-ejournal.ja.2018-17

This paper was picked up and promoted on twitter by Lars-Gunnar Wigemark (@LarsGWigemark ) who is the EU Ambassador to Bosnia and Herzegovina.

Vishwas MaheshwariPriya GuneshGeorge LodorfosAnastasia Konstantopoulou, (2017) “Exploring HR practitioners’ perspective on employer branding and its role in organisational attractiveness and talent management“, International Journal of Organizational Analysis, Vol. 25 Issue: 5, pp.742-761, https://doi.org/10.1108/IJOA-03-2017-1136

Vishwas Maheswari & Priya Gunesh (accepted for publication 2018 ) ‘Role of Organisational career websites for employer brand development’ in International Journal of  Organizational Analysis

Olarewaju, Tolulope (2017) Organising Household Consumption and Occupational Proportions: Evidence from Nigeria. International Journal of Organizational Analysis, 26 (4). ISSN 1934-8835

Almond K and Power J (2018) Breaking the tile in pattern cutting: An interdisciplinary approach. Journal of Art, Design and Communication in Higher Education, 17 (1) pp 33-50 ISSN 1474273X

Book chapters

Carol Southall has a chapter on Family Tourism in a new book – Special Interest Tourism: Concepts, Contexts and Cases (2018) eds Agarwal S, Busby G and Huang R.

https://www.cabi.org/bookshop/book/9781780645667

Carol Southall with the new book

Carol Southall with the new book

 

Jess Power has a chapter  Embedding interdisciplinary and challenge-led learning into the student experience. In: Experiential Learning for Entrepreneurship (2018) eds Hyams-SSekasi D & Caldwell E Palgrave, UK. https://www.palgrave.com/gb/book/9783319900049

Conference papers

Vicky Roberts will present her paper Understanding the role of Value Co-creation in Building New Luxury Brands: A Social Network Analysis Approach (Vicky Roberts, Stuart Roper & Sabrina Thornton). At the 13th Global Brand Conference 2-4th May Northumbria University

Angela Lawrence will present her paper Adopting Social Media For Stakeholder Engagement: A Case Of UK HEI at the Academy of Marketing Conference 2018 2nd to 5th July, University of Stirling

Tolu Olarewaju will present a paper Corruption, The Great Value Destroyer: The Role of Generalised Trust in Social Networks, Social Media Participation and Legal Institutional Quality for Corruption”. At the First Global Conference on Creating Value; at Leicester Castle Business School, De Montfort University from 23rd May, 2018 – 24th May, 2018. 

Carol Southall jointly delivered a paper with Dr Maren Viol (British University Vietnam) ‘Western-centrism in Internationalised HE Tourism Curricula: Perspectives from Vietnam’. at International Conference of Critical Tourism Studies – Asia Pacific. Held 3-6 March at University Gadjah Mada, Yogyakarta, Indonesia.

Upcoming events at the University

5th July Silver Workersover 50s conference at Staffordshire University – save the date more details to follow, please register on the link. Organised by Hazel Squire and Prof Jon Fairburn

https://www.eventbrite.co.uk/e/silver-workers-free-interactive-conference-registration-44791156555

International Erasmus Week 12-16th November

Wendy Pollard and Jon Fairburn are organising an international week on the themes Enterprise, Employability and Entrepreneurship. Please let your international partners know.

Full details and how to register on the link

http://staffmobility.eu/staffweek/erasmus-enterprise-employability-and

Funded by the ERASMUS + PROGRAMME

THE BIGGER PICTURE: BREXIT SPEECH VS DONALD TRUMP’S TARIFFS

On Friday, 2 March 2018, at the Mansion House in London, Theresa May delivered her most comprehensive Brexit speech to date. It was a speech designed to bridge the divide between Remain and Leave voters as she tried to explain Britain’s future relationship with the EU.

To international business economists like myself, this was a welcome speech, with very insightful details into how Britain was looking to trade with the EU and other countries after D-day a.k.a. “Transition Period“. The Prime Minister spoke about approaching a crucial moment in the negotiations and specified that existing models like the Norway model would not work because that would mean having to implement new EU legislation automatically and, in its entirety and would also mean continued free movement.

A Canada model would also not be suitable on World Trade Organisation terms because that would mean customs and regulatory checks at the border and damage the integrated supply chains of both EU and British firms – inconsistent with the commitments that both Britain and the EU have made in respect of Northern Ireland.

The most positive thing about the speech however was its tone. It was in many ways a call to partnership and not protectionist mantra. Mrs May is right in many aspects but in one key detail in particular.

 

When other countries seek to become part of the EU, they have to make their laws, regulations and standards align with those of the EU. In this case however, Britain is already aligned with the EU. What Britain wants is some leeway to be different in certain respects. When Britain leaves the EU, the Withdrawal Bill will bring EU law into UK law.

In the future, Parliament might choose to pass an identical law to EU law in some cases – when businesses who export to the EU indicate that it is in their interest to have a single set of regulatory standards that mean they can sell into the UK and EU markets. If Parliament on the other hand decides not to achieve the same outcomes as EU law, it would be in the knowledge that there may be consequences for British market access.

 

 

TRUMP’S PROTECTIONIST TARIFFS 

A few days after the British Prime Minister’s speech, the US President, Mr Trump signed an order for a 25% tariff on imports of steel and a 10% tariff on aluminium into the US, saying some exceptions will be made for Canada and Mexico, prompting fears of trade war. While the US steel industry is obviously happy about the plans, it seems everyone else is upset.

Recall that Mr Trump campaigned on saving US steel and aluminium jobs, which have been lost to cheap foreign imports. But these tariffs threaten to undermine decades of agreement in international trade and have split the Republican party. There was no congressional member of his own party present for the White House announcement.

The US President is planning tariffs on $60bn worth of Chinese goods, in part because of alleged Chinese theft of intellectual property – which means design and product ideas. The White House said it has a list of more than 1,000 products that could be targeted by the tariffs of 25%. Companies will get a chance to comment before they are put into effect. Mr Trump wants to cut the trade deficit with China – a country he has accused of unfair trade practices since before he become president.

Officials from China and Europe have threatened retaliation. Richard Warren, head of policy at UK Steel, said the US was a significant export market for British producers, accounting for around 15% of UK steel exports. “This really does throw a spanner in the works” he said. The European Union has indicated it could retaliate, potentially starting a trade war with the US.

 

 

European Commission President Jean-Claude Juncker said: “We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk.” “I had the occasion to say that the EU would react adequately and that’s what we will do.” “The EU will react firmly and commensurately to defend our interests. The Commission will bring forward in the next few days a proposal for WTO-compatible counter-measures against the US to re-balance the situation.”

It’s not just Europe and the UK that have voiced concern, Australia’s trade minister said it will distort global trade and cost jobs. He also highlighted the risk of retaliatory measures as Asian exporters sought more detail on the plans.

 

 

AN OVERVIEW

trade war is when countries try to attack each other’s trade with taxes and quotas. One country will raise tariffs, a type of tax, causing the other to respond, in a tit-for-tat escalation. This can hurt other nations’ economies and lead to rising political tensions between them. This is a form of protectionism. Protectionism is trying to use tariffs to boost your country’s industry and shield it from foreign competition.

trade war will be bad in this scenario, but Mr Donald Trump does have a point. China has been flouting international property rules and will have more to lose in a trade war. This flouting of international property rules has also resulted in a huge US trade deficit with China.

No party wants a trade war. Britain’s tone on Brexit is much softer and open to compromise. The US tone on trade seems to indicate a much tougher stance. Analysts might argue that this is because one side has more to lose than the other. Maybe what all sides need however is a more reconciliatory tone. Partnership will be better than conflict.

On Monday, 2nd of April 2018, China imposed tariffs of up to 25% on 128 US imports, including pork and wine, affecting some $3bn (£2.1bn) of imports. Beijing said the move was to safeguard China’s interests and balance losses caused by new US tariffs. The markets fell as a result, International Business Economists continue to monitor the situation.

Dr Tolu Olarewaju is a lecturer in Economics at Staffordshire University. For more information on International Business and Business Strategy courses at Staffordshire University, please visit www.staffs.ac.uk.