BUSI-1475

Political conflicts in the Covid-19 context

AstraZeneca in EU – Global implication, issues

25TH OF MARCH , 2021

UNIVERSITY OF GREENWICH
Table of Contents
Introduction ................................................................................................................................ 2
Globalization .............................................................................................................................. 2
Technology and networks........................................................................................................... 4
Conflict and co-operation ........................................................................................................... 6
Discussion and Conclusion......................................................................................................... 8
References .................................................................................................................................. 8
Appendix 1 – Pro forma ........................................................................................................... 11
Introduction
The drug firm AstraZeneca is responsible for producing Covid vaccine and distribute them in
the EU bloc (BBC, 2021). However, upon signing the contract, the company seemingly
distribute to the recently Brexit Britain more doses than the EU. To put on pressure, the EU
bloc put forth a restriction on export controls coronavirus vaccines made inside the EU to try
to protect its supplies (BBC, 2021). Thus, given rise to many controversies regarding whether
or not such action is acceptable. Not to mention, as the case appealed itself on the global
scale, many problems, and aspects of globalization can be explored. This report will therefore
focus on explaining, and exploring the concepts of globalization, and the aspects that the story
of AstraZeneca touched upon.

Globalization
Ever since the advancement of transportation, and technology in the 18 th century and
forward to the temporary present, globalization has become the ever increasingly used term
to describe the worldwide interaction across many different cultures, nations, economy, and
individuals (Kevin & Jeffrey, 2002). In addition, as human’s technology becomes better and
better, more innovative as time goes, many inventions and innovations has been created, and
made that changed the state of nations where interdependence across the globe is a must for
the said nations to thrive in today’s globalized economic situation. Economical wise,
globalization has given many corporations, and smaller businesses that work abroad, or even
locally wings through the free trade that is being fostered across nations (Babones, 2008). As
more markets are interconnected, costs of products could be reduced as businesses are able
to export their manufacturing abroad, choose the cheaper raw material suppliers at the local
market; not to mention, one of the biggest advantages that globalization brought about in the
economic context is the expanse of customers, and potential markets to invade (Albrow &
King, 1990). However, as good as globalization may sounds to many, everything has a
downside that must be taken noticed of, and globalization is of no exception.

Not fully understanding the effects that globalization brought about into one’s culture,
and nation, many has easily become a proponents of the process. In essence, globalization
brought about the progressively interconnected world. However, as nations become
interconnected to each other, so will their political situations, and economy, etc. be tied down.
For example, during the 2008 financial crisis, many members from the same EU blocs such as
Spain, Greece, and Portugal, etc. had been severely affected (Górniewicz, 2016). This
happened as when the EU launched the new monetary policy in the early 20s where its
members can borrow capital at a low interest rates, which directly lead to the aggressive
borrowing of many nations members; later on, during the financial crisis, these said members
were rendered almost unable to pay back their debts. To make matter worse, as they were
from the European Union, they had been banned from independently enacting monetary
policies, in turn, could not turn their economic situation around. This comes to show that
globalization is not always a good thing, governments when being tied down to each other
can brought about the negative domino effects (Fasenfest, 2010).

During the contemporary present, or more specifically, during the COVID-19 pandemic
context, the darker side, or the consequences as being phrased by many, of globalization has
become more apparent to many. As the covid-19 outbreak destroys lives of many, nations
across the globe has been working hard on producing vaccines of the disease to stabilize the
lives of their citizens, and also their economy (YD, et al., 2020). In the EU bloc, one of the main
producers of the covid-19 vaccine, AztraZeneca, has been pressured to give favoritised
contract to the bloc itself, at the same time, be imposed upon a limit of supplies being given
to the now no longer a member of the bloc, the UK (BBC, 2021). This action by the EU raised
a controversy regarding both the matter at hand that was the policy morally acceptable or
not, and the oppression aspect of a more powerful entity within the globalization context.
Although businesslike AztraZeneca gains favorable trade as being contracted by the European
Union, however, by existing within a powerful bloc, they are also under the rule of such bloc
and may face unfavorable trade being forced on by the said bloc. In addition, as the story
concerns, the company has been pressured to give an ethically questionable actions a to limit
their export of vaccines to the UK. Not to mention, from this story, a question has given rised
that if a powerful entity like the EU can oppress a nation is that not their member, then to
what extent will other similarly, or even more powerful entity, for example, the UN, or USA
oppress nations that are weaker, or not a member of them. Clearly, the down side of
globalization is not at all smaller than its good side.

Objectively, advocates of globalization would point to the significant reduction in

suffering that has occurred across the world in recent decades, which many economists credit
in part to expanded international trade and investment (Abramovitz, 1986). Similarly, they
would contend that globalization has facilitated the widespread distribution of goods and
services such as cellphones, airplanes, and information technology. Critics of globalization, on
the other hand, would point to the detrimental effect it has had on particular markets in
specific countries, which could face intensified competition from multinational companies.
Economic growth, industrialization, and foreign travel will also have detrimental
environmental consequences as a result of globalization (Richmond, 2004). In summary,
determining whether globalization is beneficial or harmful is a difficult task; there are several
factors and variables to consider; at the same time.

In a wider context, a massive integration of labor markets and rebalancing of relative

wages is taking place on a global scale. The world's productive labor force has doubled since
China, India, and the former Soviet economies joined the global market system (Altenburg, et
al., 2006). Increased trade in goods and services has resulted from lower shipping,
connectivity, and information processing costs (Irani & Noruzi, 2011). Globalisation's changes
in manufacturing areas and redeployment of capital, along with rapid technical transition, are
triggering large adjustment stresses. There is a chance of a reaction towards globalisation,
which might lead to a return to protectionist trading regimes. Since Western Europe is more
rigid than the United States, this is likely to begin in Western Europe, although it could extend
to the United States (Hrynyshyn, 2002). For developed countries that have been shut behind,
globalisation would be a controversial problem. Consider the leftward shift in Latin America,
which seems to be fueled by a belief that the Washington Consensus changes have stalled
(Fasenfest, 2010). Both developed and emerging countries must fight the urge to return to
protectionism if the environment is to remain stable. Instead, developed countries should
concentrate on increasing the ability of their markets to adapt to shifting competitive
advantages, concentrating on labor retraining, strengthening social safety nets, and
encouraging ingenuity and innovation. Developing countries must strive to improve their
human resources, physical structures, and skills in order to benefit from the two unbundlings
(Albrow & King, 1990). Finally, the economic environment is becoming more fractious. The
global laws of the game, as well as the allocation of income and wealth, are highly asymmetric
(Babones, 2008). Least developed countries continue to lag behind. The global economy does
not help everybody in the same way. More measures are needed to provide opportunities for
the disenfranchised.

Technology and networks

One of the many aspect that makes globalization a trend across the globe is its
technologies, and network (Hrynyshyn, 2002). As many parts of the world becomes
interconnected, knowledge can be easily shared, and therefore, gives rise to the increasingly
fast appearance of new technology, inventions, and innovations. Competitiveness used to be
founded on static comparative advantage (to a larger extent). Today, productivity is no longer
solely determined by the cost of manufacturing considerations or a technical superiority.
Continuous creativity, high-level expertise and learning, an effective communications and
transportation system, and a welcoming supporting atmosphere are instead needed (Keser &
Semerci, 2019). This means that firms would have to bring in more effort to keep up with
emerging technology, as well as new ways of market organization, development, and network
of distributing goods. This necessitates a greater commitment in their technical capabilities to
find, obtain, and adapt technologies to their needs, as well as in manufacturing and delivery
systems management.

In addition, Science advancements, along with the information revolution (which is

itself a result of these advancements), are speeding up the development and dissemination of
knowledge (Blinder, 2006). Many of science's ultimate interpretation can now be codified and
digitalized. This allows for modeling and simulation, which speeds up scientific understanding
and the creation of new products and services (Hrynyshyn, 2002). The time it takes to go from
pure science research to commercial use is getting shorter (Modelski, et al., 2007). This is
particularly true in biotechnology. Many processed goods' commodity life cycles are
decreasing by the day, and more and more diseases cures are being discovered. For example,
vaccinations a few decades, or centuries before present day has to go through a long period
of testing, and experiments, which may take up to a few year if fast, or a few decades as per
the average required time. In the contemporary present, due to the existence of various
advance technologies, vaccinations for diseases, in this case, the Covid-19 vaccines can be
made faster, and more reliable. As the name suggested, the Covid-19 disease appeared since
2019, and only after 2 years, various nations across the globe has been able to produce its
vaccinations (YD, et al., 2020). However, as technology advances, this has in turn, given rise to
a new problem, a problem called technology dictation.

In today’s age, technology is often what dictates the ability, and power of one’s nation
(Palmisano, 2006). For example, most developing countries do not have the pre-requisites to
compete successfully in the more demanding global system. As developing countries are
lagging behind the developed countries, they have fallen short in their technological
advancement, and their general skills required to operate the said technologies (Altenburg, et
al., 2006). Not to mention, as developing countries do not possess the necessary logistics and
infrastructures, therefore, transportation become a major problem, and unnecessary costs
have to be put in. Furthermore, as the global market become ever faster, not possessing the
economies required to build up the economies of scale for various important piece of
technology like sea shipping, or air travel, transportation, automation, AI, etc. this create a
potential exploit for other more developed countries to jump in and taken advantage of
(Kochler, 2000). The more developed economies will ensured that they will get the bigger bite
of the cake by invading local market with cutting edge automation manufacturing which
ensure extensive, and standardized products value chain, while the developing countries only
get the left over (Palmisano, 2006). Back to the story at hand, by ensuring that the member of
their own blocs will have more vaccines, in one way or another, the EU has been able to
dictated a portion of precious sample. By forcing the limit of export out of the bloc, it can
easily be seen that the technology though belongs to the company, but are being controlled
by the more powerful government. In contrast to the dark side of globalization, however,
from a different perspective, it can be said in the age of globalization, the network of one is
essential for one’s survival. By existing EU, the UK has cut off its own important network.
Therefore, damaging its own very survival in the covid-19 context.

Conflict and co-operation

There still appears to be battles and problems in the world we live in. Looking back
over 100 years, history is littered with big conflicts such as the two World Wars, the Cold War's
relentless possibility of escalation, and, most recently, the Afghan and Iraq Wars (Fotopoulos,
2001). Despite the fact that everyone talks about how important peace is, the world is fraught
with terror and persistent security threats. Many philosophers and political scientists have
attempted, but failed, to come up with a plan on how to establish a stable international system
after the First World War (Jervis, 1991). As a result, it's only rational to conclude that such
barriers exist that keep states from cooperating. To do so, it's important to examine some
current hypotheses that claim to provide the solution to why collaboration is so difficult to
achieve. The realism theory is one of these ideas.

Realists claim they have the best reason for why achieving collaboration is so difficult.
At the conclusion of the Second World War, realism has become the most influential ideology
(Jervis, 1991). And if it has been widely criticized in recent years for failing to justify some
problems in foreign affairs, such as the diplomatic end to the Cold War, it nevertheless offers
a comprehensive theory. Classical realism, neo-realism, and neo-classical realism are the three
types of realism. Classical realists are more concerned with human nature than other types of
realists. They assume that humans are narcissistic and malicious in general. This guides the
key players in the diplomatic community, the nations, and conflict is ultimately unavoidable.
There is plenty of documentation to back this up, such as Hitler's Nazi Germany or Saddam
Hussein's Iraq (Kochler, 2000). The distribution of authority and the international community
are more relevant to neo-realists. There is no independent power in the international
community who can make and implement legal arrangements. Without such jurisdiction,
states are free to do as they want, making it impossible for them to trust and negotiate with
one another (Jervis, 1991). The realist belief that the state's key objective is power
maximization and protection enhances this statement even further. It's no wonder that
realists see foreign politics as a relentless challenge and a fight for survival when there is no
global authority to keep an eye on those power-hungry nations. And if certain states do not
seek to expand their influence and are content with the status quo, they cannot trust other
states to share their viewpoint and if the other state unexpectedly decides not to comply, the
first state's existence is jeopardized. Since both states are aware of this, they are all attempting
to defend themselves by gaining power, expanding their military forces, and forming alliances
with other states. This is particularly relevant in the light of the Covid-19 agreement between
the UK and the EU. Fearing repercussions for abandoning the United Kingdom, the EU
attempts to establish its legitimacy by enacting undesirable trading measures, such as
restricting vaccine imports beyond its borders. Simply stated, neither the United Kingdom nor
the European Union had enough confidence in one another to collaborate. The UK has
developed a perception that they are competing against the EU's scheme by existing in the EU
bloc, and this has created a challenge for the EU as to what solution to take. On the one hand,
the EU is chastised for its actions in imposing many adverse laws and regulations on the United
Kingdom. If, on the other hand, the EU decides not to act and instead opts for a diplomatic
solution, it may raise the issue of whether the EU's legitimacy and influence have diminished.
As a result, members of the bloc may be perplexed and may seek to follow the UK's footstep.
It was appropriate for the EU to do what it is doing now, i.e., dangling the carrot and the stick.
Nations that are members will benefit, while those that are not or have attempted to leave
will face retaliation. It's difficult to determine whether the EU's decision was correct or
incorrect because, in the EU's view, it's doing all it can to defend its own interests, and in this
situation, its own citizens. Though it is ethically problematic since the UK has its own citizens
to defend, it is just not possible to appease everyone in the global sense.

Discussion and Conclusion

Globalization, in practice, has resulted in a society that is becoming increasingly linked.
However, as countries grow more intertwined, their diplomatic circumstances, economies,
and other aspects of their lives can become more entangled. It is worth noting, however, that
globalization is important because it is one of the most dominant forces influencing the
western world, to the point that interpreting globalization can be challenging. Many of the
world's biggest and most profitable companies, for example, are genuinely global enterprises
with headquarters and supply chains across the globe. These businesses will not be able to
survive without the globalization-enabled dynamic network of trading lines, international legal
arrangements, and telecommunications networks. Globalization is also closely linked to
important diplomatic events, such as the recent trade war between the United States and
China. Objectively, proponents of globalization would point to a substantial decline in global
poverty in recent decades, something many economists attribute in part to increased foreign
trade and investment. They will also argue that globalization has aided the mass delivery of
products and services like cellphones, airplanes, and information technology. In the other
hand, critics of globalization would point to the negative impact it has had on specific
economies in specific nations, which could see increased competition from multinational
corporations. Economic growth, industrialization, and foreign travel will also have detrimental
environmental consequences as a result of globalization. In summary, determining whether
globalization is beneficial or harmful is a difficult task as there are several factors and variables
to consider, however, depends on one’s intention, and good, the scale of goodness and bad
will be changed acoordingly.

References
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Albrow, M. & King, E., 1990. Globalization, Knowledge and Society. SAGE.
Altenburg, T., H., S. & A., S., 2006. Building Knowledge-based Competitive Advantages in
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at Workshop of Asian Drivers of Global Change, St. Petersburg, Russia.
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Available at: https://www.bbc.com/news/world-europe-55879345
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 Appendix 1 – Pro forma
BUSI 1475 Management in a Critical Context
Assignment proposal pro forma

Proposed title Political conflicts in the covid-19 context

of your
ESSAY (NOT AztraZeneca in EU - global implication/issues
the online
article)
URL from https://www.bbc.co.uk/news/world-europe-55879345
BBC News
Website
Summary of The drug firm AstraZeneca is responsible for producing Covid vaccine
online article and distribute them in the EU bloc. However, upon signing the contract,
the company seemingly distribute to the recently Brexit Britain more
doses than the EU. The EU was angry that Britain was getting its UK-
made contracted supplies from AstraZeneca while it suffered a shortfall.
To safeguard its supplies, the EU declared it will impose export limits on
coronavirus vaccines produced within the EU. The Brexit agreement
guarantees that trade between the Republic of Ireland and Northern
Ireland is unhindered. Also on Friday, the EU revealed its so-called
transparency mechanism, which grants EU countries the right to withhold
vaccine export authorization if the business producing them has failed to
honor current contracts with the EU. The EU's effort to impose sanctions
on the Irish border was widely condemned, and business leaders from
across the UK and Europe warned against export bans.
Relationship 1. Globalisation
to course - A UK-Swedish drug firm AstraZeneca signed contract with the EU bloc,
content and the recently exit Britain.
stating how - The EU bloc wanted to enact an ethically questionable export ban
the article regarding the export of the EstraZeneca vaccines.
relates to each - Using the power that EU possess, it tried to oppress the no longer a
theme, in member of its bloc, the UK.
relation to the - Global wise, this gave rise to a concern of precedents of where a more
key ideas powerful entity oppressing the weaker one.
considered
within this 2. Technology
module. - The story does not concerning much about the technology aspect.
However, it concerns more about whose the piece of technology belongs
to, here is the covid-19 implementation, and manufacturing.
- Though manufacturing, and technology belongs to the company
EstraZeneca, the one who truly implement, and control its manufacturing
is the government as can be seen by the exaction of the new export policy.

3. Conflict and Collaboration

- Putting controls on the border with Northern Ireland to prevent vaccines

manufactured in the EU from reaching the UK. After the UK's departure
from the EU, the border was one of the most difficult problems to solve in
the recently negotiated Brexit agreement. The EU was furious that,
 although experiencing a shortage, Britain was getting its UK-made
contracted supplies from AstraZeneca. The bloc therefore declared that it
was implementing export controls for coronavirus vaccines produced
within the EU in an effort to secure its supplies. The Brexit agreement
guarantees that no trade barriers exist between the Republic of Ireland and
Northern Ireland.

4. Employment relations/human resource management

- The story does not involve much of the HRM aspect.
Student Huynh Hoang Kim
Name
Signature of Kim
student
Tutor Name Alelie C. Zaragoza
Signature of
tutor
Date 02/01/2021