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Chapter 09 - Regional Economic Integration
Regional Economic Integration

9
Learning objectives
8
This chapter discusses regional economic integration,
agreements among countries within a geographic region to
achieve economic gains from the free flow of trade and
investment among themselves.
There are five levels of economic integration. In order of

• Describe the different levels of increasing integration, they include free trade area,
regional economic integration. customs union, common market, economic union, and full
political union.
• Understand the economic and
political arguments for regional Integration is not easily achieved or sustained. Although
economic integration. integration brings benefits to the majority, it is never
without costs for the minority. Concerns over sovereignty
• Understand the economic and often slow or stop integration attempts.
political arguments against
regional economic integration. The creation of single markets in the EU and North
America means that many markets that were formerly
• Explain the history, current protected from foreign competition are now more open.
scope, and future prospects of This creates major investment and export opportunities for
the world’s most important firms within and outside these regions.
regional economic agreements.
The free movement of goods across borders, the
• Understand the implications for harmonization of product standards, and the simplification
business that are inherent in of tax regimes make it possible for firms based in a free
regional economic integration trade area to realize potentially enormous cost economies
agreements. by centralizing production in those locations within the
area where the mix of factor costs and skills is optimal.
The opening case explores the implications of a recent

ruling by the European Court of Justice supporting the
principles of the Single Market. The ruling allows
consumers to bypass agreements regarding the exclusive
rights to local broadcasts of Premier League soccer
matches. The closing case explores the implications of
NAFTA for the trucking industry, and in particular the
power of certain parties to limit the implementation of the
agreement.
9-1
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OUTLINE OF CHAPTER 9: REGIONAL ECONOMIC INTEGRATION

Opening Case: I Want My Greek TV
Introduction
Levels of Economic Integration
The Case for Regional Integration

The Economic Case for Integration
The Political Case for Integration
Impediments to Integration
The Case Against Regional Integration.
Regional Economic Integration in Europe

Evolution of the European Union
Political Structure of the European Union
The Single European Act
The Establishment of the Euro
Enlargement of the European Union
Management Focus: The European Commission and Media Industry Mergers

Country Focus: Creating a Single European Market in Financial Services
Country Focus: Sovereign Debt Crisis in the Euro Zone
Regional Economic Integration of the Americas

The North American Free Trade Agreement
The Andean Community
MERCOSUR
Central American Common Market, CAFTA and CARICOM
Free Trade Area of the Americas
Regional Economic Integration Elsewhere

Association of Southeast Asian Nations
Asia Pacific Economic Cooperation
Regional Trade Blocks in Africa
Implications for Managers

Opportunities
Threats
Chapter Summary
Closing Case: NAFTA and Mexican Trucking
9-2
CLASSROOM DISCUSSION POINT

Choose either the European Union or the North American Free Trade Area, and then ask
students to think about what economic integration means for companies inside the bloc.
Then, ask students to consider economic integration from the perspective of a firm
outside the bloc.
Next, ask students to consider economic integration from the perspective of a consumer.
Try to organize student responses in a positive/negative chart on the board, and then at
the end of the discussion, ask students whether they would support economic integration
or not.
OPENING CASE: I Want My Greek TV

The opening case explores the fallout from a recent ruling by the European Court of
Justice on the rights of companies like Sky Broadcasting Corporation to limit local
viewing options for consumers. Prior to the ruling Sky Broadcasting and ESPN had
exclusive rights to show broadcasts of English Premier League soccer matches. Under
the agreements, the companies divided the European market into segments and charged
consumers different prices in each market. The ruling now gives consumers the right to
access cheaper broadcasts being shown in other European Union markets. The Court
defends the ruling arguing that it upholds the basic principles of a single Market system.
Discussion of the case can revolve around the following questions:
1. Explore the implications of the recent ruling by European Court of Justice on the
broadcasts of Premier League matches. What doe the ruling mean for consumers? How
does it affect companies? How might advertisers change their strategies?
2. The recent ruling caught both ESPN and Sky by surprise as well as the soccer clubs
themselves. Consider the decision from the perspective of the European companies.
How should they respond to the decision? What are the long term implications of the
ruling?
3. Reflect on your response to the first two questions, then discuss the benefits and
challenges of economic integration. Is it always beneficial for all parties? Explain your
response.
9-3
LECTURE OUTLINE
This lecture outline follows the Power Point Presentation (PPT) provided along with this
instructor’s manual. The PPT slides include additional notes that can be viewed by
clicking on “view”, then on “notes”. The following provides a brief overview of each
Power Point slide along with teaching tips, and additional perspectives.
Slide 9-3 Introduction

Regional economic integration refers to agreements between countries in a geographic
region to reduce tariff and nontariff barriers to the free flow of goods, services, and
factors of production between each other.
Despite the rapid spread of regional trade agreements designed to promote free trade,
there are those who fear that the world is moving toward a situation in which a number of
regional trade blocks compete against each other. In this scenario of the future, free trade
will exist within each bloc, but each bloc will protect its market from outside competition
with high tariffs.
Slides 9-4-9-7 Levels of Economic Integration

The five levels of economic integration are: free trade area, customs union, common
market, economic union, and political union.
The most enduring free trade area in the world is the European Free Trade Association.
EFTA currently joins four countries-Norway, Iceland, Liechtenstein, and Switzerland.
Other free trade areas include the North American Free Trade Agreement (NAFTA).
Another Perspective: A site with information and additional links on NAFTA is available
at {http://www.fas.usda.gov/itp/Policy/NAFTA/nafta.asp}. The site includes
downloadable power point presentations on the benefits of NAFTA
Another Perspective: To find out more about EFTA, go to {http://www.efta.int/}, and

click on “EFTA AELE”. From here you can click on several icons to get quick facts,
more in- depth reports, information on the European Economic Area, and many other
issues related to EFTA.
Customs unions around the world include the current version of the Andean Pact
(between Bolivia, Columbia, Ecuador and Peru).
Currently, MERCOSUR, the South America grouping that includes Brazil, Argentina,
Paraguay, and Uruguay, is aiming to eventually establish itself as a common market.
The European Union (EU) is an economic union, although an imperfect one since not all
members of the EU have adopted the euro, the currency of the EU, and differences in tax
rates across countries still remain.
9-4
Slide 9-8 The Economic and Political Case for Integration
Regional economic integration can be seen as an attempt to achieve additional gains from
the free flow of trade and investment between countries beyond those attainable under
international agreements such as the WTO.
The political case for integration has two main points: 1) by linking countries together,
making them more dependent on each other, and forming a structure where they regularly
have to interact, the likelihood of violent conflict and war will decrease, and 2) by linking
countries together, they have greater clout and are politically much stronger in dealing
with other nations.
Slide 9-9 Impediments to Integration
There are two main impediments to integration:

• although a nation as a whole may benefit significantly from a regional free trade
agreement, certain groups may lose
• concerns over national sovereignty
Whether regional integration is in the economic interests of the participants depends upon
the extent of trade creation as opposed to trade diversion. Trade creation occurs when
low cost producers within the free trade area replace high cost domestic producers. Trade
diversion occurs when higher cost suppliers within the free trade area replace lower cost
external suppliers. A regional free trade agreement will only make the world better off if
the amount of trade it creates exceeds the amount it diverts.
Slides 9-10-9-11 Regional Economic Integration in Europe
There are two trade blocks in Europe:

• the European Union (EU)
• the European Free Trade Association
The EU is by far the more significant, not just in terms of membership, but also in terms
of economic and political influence in the world economy.
Slides 9-12-9-13 Evolution of the European Union
The EU is the product of two political factors:

• the devastation of two world wars on Western Europe and the desire for a lasting
peace
• the European nations’ desire to hold their own on the world’s political and
economic stage.
The forerunner of the EU was the European Coal and Steel Community, which had the
goal of removing barriers to trade in coal, iron, steel, and scrap metal formed in 1951.
The EEC was formed in 1957 at the Treaty of Rome. While the original goal was for a
common market, progress was generally very slow.
9-5
Another Perspective: The EU web site is {http://europa.eu/index_en.htm}. The site

contains a broad array of information about the historical role and current activities of the
EU in the global economy.
The Single European Act called for the removal of border controls, mutual recognition
of standards, open public procurement, a barrier free financial services industry, no
currency exchange controls, free and open freight transport, and freer and more open
competition.
Slide 8-14 Political Structure of the European Union
The main institutions of the EU are:

• the European Council (ultimate controlling authority within the EU)
• the European Commission (responsible for implementing aspects of EU law and
monitoring member states to ensure they are complying with EU laws)
• the European Parliament (debates legislation proposed by the commission and
forwarded to it by the council)
• the Court of Justice (the supreme appeals court for EU law).
Slides 8-15-8-16 The Establishment of the Euro
The Treaty of Maastricht, signed in 1991, committed the EU to adopt a single currency,
the euro, by January 1, 1999. The euro is used by 17 of the 27 member states. By
adopting the euro, the EU has created the second largest currency zone in the world after
that of the U.S. dollar.
Since its establishment January 1, 1999, the euro has had a volatile trading history with
the U.S. dollar. Initially, the currency fell in value relative to the dollar, but has since
strengthened.
Another Perspective: The European Union has a web page devoted to the euro
{http://ec.europa.eu/economy_finance/euro/index_en.htm}. Students can explore the site
and click on the pages to see pictures of the coins and notes, the advantages of
participating in the euro zone, and frequently asked questions about the euro.
Another Perspective: The European Central Bank maintains a web site with current
information on the euro. The site is available at {http://www.euro.ecb.int/}.
Another Perspective: At one point in time, joining the Euro Zone had been the goal of
many Eastern European countries. Now however, given the recent financial crises that is
threatening the future of the euro, many are rethinking their plans. To learn more, go to
{http://www.businessweek.com/magazine/content/11_27/b4235017725502.htm}.
9-6
Slide 8-17 Enlargement of the European Union
Several countries, particularly from Eastern Europe, have applied for membership in the
EU. In December of 2002, the EU formally agreed to accept the applications of 10
countries, and they joined on May 1, 2004. Today, membership is up to 27 countries.
Slide 9-18-9-19 Regional Economic Integration in the Americas

The North American Free Trade Agreement (NAFTA) is the most significant attempt
at economic integration in the Americas. Other efforts include the Andean group and
MERCOSUR. In addition, there are plans to establish a hemisphere wide Free Trade
Area of the Americas (FTAA.)
Slides 9-20-9-23 The North American Free Trade Agreement
The free trade agreement between the United States, Canada, and Mexico became law
January 1, 1994.
Another Perspective: More on NAFTA can be found at

{http://www.fas.usda.gov/itp/Policy/NAFTA/nafta.asp}.
Following approval of NAFTA by the U.S. Congress a number of other Latin American
countries indicated their desire to eventually join NAFTA. Currently the governments of
both Canada and the U.S. are adopting a wait and see attitude with regard to most
countries.
Another Perspective: Many organizations are anxious to take advantage of the

opportunities offered by NAFTA. The NAFTA Register
{http://www.naftaregister.com/}is a directory of export management companies, export
service providers, and trading companies that want to profit from NAFTA by helping
buyers and selling take advantage of NAFTA related opportunities.
Slide 9-24 The Andean Community
The Andean Pact, originally formed in 1969, was based on the EU model, but was far less
successful in achieving its stated goals. In 1990, the Andean Pact was re-launched, and now
operates as a customs union.
Another Perspective: To see new developments with the Andean Community go to

{http://www.comunidadandina.org/endex.htm}.
Slide 9-25 MERCOSUR
In some industries MERCOSUR is trade diverting rather than trade creating, and local
firms are investing in industries that are not competitive on a worldwide basis.
Another Perspective: MERCOSUR's Homepage, which includes a broad array of useful

information, can be accessed at {http://www.sice.oas.org/trade/mrcsr/mrcsrtoc.asp}.
9-7
Slide 9-26 Central American Trade Agreement Market and CARICOM
There are two other trade pacts in the America, the Central American Trade Market and
CARICOM, although neither has made much progress as yet.
Slide 9-27 Free Trade of the Americas
If the FTAA is established, it will have major implications for cross-border trade and
investment flows within the hemisphere. The FTAA would create a free trade area of 850
million people.
Another Perspective: Additional information on the Free Trade of the Americas can be
found at {http://www.ftaa-alca.org/alca_e.asp}.
Slide 9-28 Regional Economic Integration In Asia
Several efforts have been made to integrate in Asia

One of the most successful is the Association of Southeast Asian Nations (ASEAN)
Slides 9-29-9-30 Association of Southeast Asian Nations
Formed in 1967, ASEAN currently includes Brunei, Indonesia, Malaysia, the Philippines,
Singapore, Thailand, and, most recently, Vietnam, Myanmar, Laos, and Cambodia. The
basic objectives of ASEAN are to foster freer trade between member countries and to
achieve some cooperation in their industrial policies.
Slides 9-31-9-32 Asia Pacific Cooperation
APEC currently has 21 members including such economic powerhouses as the United
States, Japan, and China. The stated aim of APEC is to increase multilateral cooperation
in view of the economic rise of the Pacific nations and the growing interdependence
within the region.
Another Perspective: For more on APEC, go to its web site at {http://www.apec.org/}.
Slide 9-33 Regional Trade Blocks in Africa
There are nine trade blocs on the African continent however progress toward the
establishment of meaningful trade blocs has been slow.
Slide 9-34 Implications for Managers
The EU and NAFTA currently have the most immediate implications for business.
The greatest implication for MNEs is that the free movement of goods across borders, the
harmonization of product standards, and the simplification of tax regimes, makes it
possible for firms to realize potentially enormous cost economies by centralizing
9-8
production in those locations where the mix of factor costs and skills is optimal. Through
specialization and shipping of goods between locations, a much more efficient web of
operations can be created.
Just as the emergence of single markets in the EU and North America creates
opportunities for business, so it also presents a number of threats.
CRITICAL THINKING AND DISCUSSION QUESTIONS
QUESTION 1: NAFTA has produced significant benefits for the Canadian, Mexican and
U.S. economy. Discuss.
ANSWER 1: NAFTA’s proponents argue that the agreement should be viewed as an

opportunity to create an enlarged and more productive base for the U.S., Canada, and
Mexico. As low-income jobs move from Canada and the United States to Mexico, the
Mexican economy should be strengthened giving Mexico the ability to purchase higher-
cost American and Canadian products. The net effect of the lower income jobs moving
to Mexico and Mexico increasing its imports of high quality American and Canadian
goods should be positive for the American and Canadian economies. In addition, the
international competitiveness of U.S. and Canadian firms that move production to
Mexico to take advantage of lower labor costs will be enhanced, enabling them to better
compete with Asian and European rivals.
QUESTION 2: What are the economic and political arguments for regional economic
integration? Given these arguments, why don't we see more integration in the world
economy?
ANSWER 2: The economic case for regional integration is straightforward. As we saw

in Chapter 5, unrestricted free trade allows countries to specialize in the production of
goods and services that they can produce most efficiently. If this happens as the result of
economic integration within a geographic region, the net effect is greater prosperity for
the nations of the region. From a more philosophical perspective, regional economic
integration can be seen as an attempt to achieve additional gains from the free flow of
trade and investment between countries beyond those attainable under international
agreements such as the WTO. The political case for integration is also compelling.
Linking neighboring economies and making them increasingly dependent on each other
creates incentives for political cooperation between neighboring states. Also, the
potential for violent conflict between the states is reduced. In addition, by grouping their
economies together, the countries can enhance their political weight in the world.
Despite the strong economic and political arguments for integration, it has never been
easy to achieve (on a meaningful level). There are two main reasons for this. First,
although economic integration benefits the majority, it has its costs. While a set of
nations as a whole may benefit significantly from a regional free trade agreement, certain
groups may loose. The second impediment to integration arises from concerns over
national sovereignty.
9-9
QUESTION 3: What effect is the creation of a single market and a single currency within the EU
likely to have on competition within the EU? Why?
ANSWER 3: By creating a single market and currency, member countries can expect
significant gains from the free flow of trade and investment. This will result from the
ability of the countries within the EU to specialize in the production of the product that
they manufacture the most efficiently, and the freedom to trade those products with other
EU countries without being encumbered by tariffs and other trade barriers. In terms of
competition, the competition between European firms will increase. Some of the most
inefficient firms may go out of business because they will no longer be protected from
other European companies by high tariffs, quotas, or administrative trade barriers.
Companies from those countries that have not adopted the euro may find that their costs
are higher as they deal with currency exchanges. In addition, because it will be easier to
compare prices across markets, firms in the euro zone will be pushed to lower prices and
become more efficient.
QUESTION 4: Do you think it is correct for the European Commission to restrict

mergers between American companies that do business in Europe? (For example, the
European Commission vetoed the proposed merger between WorldCom and Sprint, both
U.S. companies, and it carefully reviewed the merger between AOL and Time Warner,
again both U.S. companies).
ANSWER 4: Many students will probably suggest that the European Commission has a
right to regulate the European market, even if the regulation involves American
companies. Students taking this perspective will probably suggest that such restrictions
should be made independently of other considerations, even when the parent
governments of the companies have approved the mergers. Other students however, may
argue that the European Commission does not have the right to restrict a merger that has
been approved by parent governments. In doing so, the European Commission is in
effect protecting domestic companies from foreign competition, and violating the spirit of
the WTO.
QUESTION 5: How should a U.S. firm that currently exports to only ASEAN countries
respond to the creation of a single market in this regional grouping?
ANSWER 5: A U.S. business firm that is currently exporting to only ASEAN countries
should seriously consider opening a facility somewhere in this grouping, as the
economics of a common market suggest that outsiders can be at a disadvantage to
insiders. The opening of borders within the ASEAN bloc also has the potential to
increase the size of the market for the firm. Of course it is possible, after careful
consideration, that exporting may still be the most appropriate means of serving the
market.
QUESTION 6: How should a firm with self-sufficient production facilities in several

ASEAN countries respond to the creation of a single market? What are the constraints on
its ability to respond in a manner that minimizes production costs?
9-10
ANSWER 6: The creation of the single market means that it may no longer be efficient
to operate separate duplicative production facilities in each country. Instead, the facilities
could either be linked so that each specializes in the production of only certain items or
several sites should be closed down and production consolidated at the most efficient
locations. Existing differences between countries as well as the need to be located near
important customers may limit a firm’s ability to fully consolidate or relocate production
facilities for production cost reasons. Minimizing production costs is only one of many
objectives. For example, location of production near R&D facilities can be critical for
new product development. The location decision needs to examine long run economic
success, not just cost minimization.
QUESTION 7: After a promising start, MERCOSUR, the major Latin American trade
agreement, has faltered and made little progress since 2000. What problems are hurting
MERCOSUR? What can be done to solve these problems?
ANSWER 7: MERCOSUR originated in 1988 as a free trade pact between Brazil and
Argentina. The pact was expanded in 1990 to include Paraguay and Uruguay with the
goal of becoming a full free trade area by 1994, and a common market sometime after.
While initially considered a success, critics began to question whether the trade diversion
effects of MERCOSUR outweighed it trade creation effects. Then, in 1998 member
states slipped into a recession and in 1999, Brazil’s financial crisis led to a significant
devaluation of its currency creating further turmoil. Finally, in 2001, Argentina beset by
economic stresses asked that the customs union be temporarily suspended, effectively
ending MERCOSUR’s quest to become a fully functioning customs union. However, in
2003, Brazil’s new president announced his support for a revitalized and expanded
MERCOSUR that would be modeled after the EU, but by 2011, little progress had been
made.
Another Perspective: Students can check the current status of the agreement online
{http://www.sice.oas.org/trade/mrcsr/mrcsrtoc.asp}.
To solve the problems of MERCOSUR, the countries should reduce or eliminate high
tariffs on products that can be produced more efficiently in other parts of the world. It
should strive to develop industries in which it has a comparative advantage and direct its
financial resources to those industries. Finally, it should begin to develop an economy
that fosters the free flow of trade and goods throughout the region.
QUESTION 8: Would establishment of a Free Trade Area of the America’s (FTAA) be

good for the two most advanced economies in the hemisphere, the United States and
Canada? How might the establishment of FTAA impact the strategy on North American
firms?
ANSWER 8: In 1994, a Free Trade of the Americas (FTAA) was proposed. If the
agreement comes about, it would effectively create a free trade area of nearly 800 million
people responsible for more than $18 trillion in GDP in 2008. However, the U.S., while
initially a strong advocate of the agreement, has lessened its support for the FTAA
9-11
recently. The question of whether the agreement is good for the U.S. and Canada will
likely produce a lively debate among students.
QUESTION 9: Reread the Management Focus case on the European Commission and
Media Industry Mergers, then answer the following questions:
a) Given that both AOL and Time Warner were U.S. based companies, do you think the
European Commission had a right to review and regulate their planned merger?
b) Were the concessions extracted by the European Commission from AOL and Time
Warner reasonable? Whose interests was the Commission trying to protect?
c) What precedent do the actions of the European Commission in this case set? What are
the implications for managers of foreign enterprises with substantial operations in
Europe?
ANSWER 9: a) This question deals with the delicate issue of just how far a country can
extend the reach of its law, and should set the stage for a good debate. While some
students will argue that the European Commission is overstepping its boundaries by
restricting mergers between American companies doing business in Europe, other
students will recognize that the U.S. might act in a similar fashion if American firms
were being threatened by foreign companies seeking to merge and operate in the U.S.
market.
b) Time Warner and EMI, bowing to pressure from the European Commission, agreed to
drop their joint venture plans after the European Commission raised concerns about the
size of a jointly owned company, which would have been three times that of the next
largest competitor. According to the European Commission, the joint venture would
have too much market power. The European Commission’s goal was to preserve a
competitive market for consumers. A similar situation existed with the Time Warner
AOL deal, which if approved would dominate the emerging market for downloading
music over the Internet. The companies involved had little choice in the matter, if they
wanted to operate in the European market, they had to follow the rules.
c) Some students will argue that the European Commission had no right to become
involved in the business decisions of the companies, especially the ones from the United
States. Others however, will probably note that one of the roles of the European
Commission is to preserve a fair market system that protects consumers. In this
particular case, that meant that the deals had to be blocked.
CLOSING CASE: NAFTA and Mexican Trucking

The closing case explores the implications of regional economic integration for various
groups. Under the North American Free Trade Agreement (NAFTA), Mexican truckers
were to have been allowed to drive their trucks directly into the United States and avoid
the costly and time consuming border unloading and loading that took place prior to the
agreement. However, fearing job losses in the industry, the U.S. Teamsters Union
rigorously opposed the legislation. Although the group ultimately lost its fight, the
United States still did not give Mexican truckers freedom to deliver their goods,
prompting Mexico to institute retaliatory measures affecting $2.4 billion of goods
9-12
exported from the United States. Discussion of the case can revolve around the following
questions:
QUESTION 1: What are the potential economic benefits of the trucking provisions in the
NAFTA treaty? Who benefits?
ANSWER 1: Under the NAFTA agreement trucks from Mexico are no longer required
to unload their goods and reload them onto U.S. trucks. Instead, Mexican trucks can
simply cross the border and continue to their final destination. These changes save time
and also money – efficiencies that can then be passed along to consumers. In addition,
because U.S. truckers must now compete with Mexican truckers, further savings should
be created. Most students will probably suggest that if the NAFTA agreement is
followed, U.S. consumers should benefit as should Mexican truckers. The real losers
appear to be U.S. truckers. Most students will probably recognize that this situation
accounts for the strong stance the Teamsters have taken against the agreement.
QUESTION 2: What do you think motivated the Teamsters to object to the trucking
provisions in NAFTA? Are these objections fair? Why did Congress align itself with the
Teamsters?
ANSWER 2: The Teamsters have rigorously objected to the provisions of NAFTA

allowing Mexican truckers to cross U.S. borders and deliver their goods to their
destination. Prior to NAFTA, Mexican trucks were required to reload their goods onto
U.S. trucks at the border. The Teamsters are worried not only about the loss of this
business, but also the new competition that the Mexican truckers will introduce. Many
students will probably realize the challenges faced by the Teamsters and may sympathize
with them, but will ultimately probably agree that the bloc as a whole is better off if the
provisions outlined in NAFTA are upheld. Students may suggest that it is only because
of the union’s power that the United States delayed implementing the agreement.
QUESTION 3: Does it make economic sense for the United States to bear the costs of
punitive tariffs as allowed for under NAFTA, as opposed to letting Mexican trucks enter
the United States?
ANSWER 3: When the United States initially failed to abide by provisions set forth in
NAFTA regarding trucks, Mexico gave the country a second chance to honor its
commitment. The United States responded with bureaucratic measures designed to block
Mexican trucks from entering the country. Mexico immediately implemented new tariff
policies on various U.S. goods destined for Mexico. Under the new policies, grape
exporters faced 45 percent tariffs and other U.S. exporters faced 20 percent tariffs. Most
students will probably agree that Mexico’s response was justified and suggest that the
effort by the United States to protect the Teamsters simply hurt another group of
Americans. Students may also note that U.S. consumers and companies should benefit
from the efficiencies that the agreement should provide, and that the efforts to protect a
single group are misguided.
9-13
Another Perspective: To learn more about the trucking conflict between the United States
and Mexico go to {http://www.businessweek.com/news/2011-11-08/mexican-trucks-
stay-home-after-17-year-push-to-open-u-s-border.html} and
{http://www.businessweek.com/news/2011-10-14/mexico-to-lift-tariffs-as-u-s-approves-
trucking-permit.html}.
INTEGRATING iGLOBES
There are several iGLOBE video clips that can be integrated with the material presented
in this chapter. In particular, you might consider the following:
Title: ‘No Clear Path Forward” For Eurozone As Economic Woes Continue
Run Time: 9:55
Abstract: This video explores the crisis in the European Union, and specifically within
the Eurozone countries, and what it could mean for the United States if it is not quickly
resolved.
Key Concepts: European Union, euro, Eurozone, global economy, exports, trade,
foreign investment, political economy, globalization, global capital markets, economic
integration, globalization of production, political and economic risk
Notes: The problems in the European Union and specifically in the Eurozone countries
have gone from bad to worse with two previously “strong” countries, France and
Germany, now showing signs of weakness. The bloc’s problems emerged almost two
years ago when the European Union’s poorer countries including Greece, Portugal, Italy,
and Spain began to show signs of trouble. Now, thanks to both general fear and real
problems, it seems that the financial uncertainty has spread to what had been relatively
healthy economies.
Germany, long a dominant force in the Eurozone, relies on other Eurozone countries as
markets for about two-thirds of its exports. As growth in these markets has stalled so too
has demand for German products. In fact, the bloc as a whole grew just two-tenths of
one percent in the second quarter of 2011. Now, in recognition of the fact that a
coordinated policy is necessary if the bloc is to survive, discussions are underway to
create European fiscal union. When the Eurozone was established a decade ago, a
common currency was introduced, but a common fiscal policy was not implemented.
Now, France’s President Nicholas Sarkozy and German Chancellor Angela Merkel are
leading the charge to coordinate the group’s corporate and tax base policy. Even with
this new effort however, there is still concern that it may not be enough. Analysts warn
that bold actions are necessary.
The United States is watching the situation in Europe carefully. The European Union
buys some 25 percent of U.S. exports so it is critical to the health of the U.S. economy
9-14
that Europe’s economy is stable and growing. Already the U.S. Treasury Department,
the Federal Reserve, the European Central Bank, and the European financial authorities
are meeting regularly to assess the situation and consider alternative actions. Perhaps
most alarming however, is that conditions in both the United States and Europe seem to
be getting worse, not better. Furthermore, there is no clear strategy going forward of how
best to address the situation and in doing so, ward off a potential crisis.
Discussion Questions:
1. Explain the various levels of economic integration. What level of integration has the
European Union achieved? How will plans to create fiscal union change the relationship
between member countries?
2. Why is Germany now leading the charge for fiscal coordination? How has Germany’s
reliance on the Eurozone countries contributed to its own economic slowdown?
3. Reflect on the notion of fiscal union within the European Union. Why is it becoming
necessary? Can it be achieved quickly enough to avert financial disaster within the
trading bloc?
4. Consider the crisis in Europe from the perspective of the United States. How would
financial collapse in Europe affect the United States?
INTEGRATING VIDEOS
There are also several longer video clips that can be integrated with the material
presented in this chapter. In particular, you might consider the following from
International Business DVD Volume 6:
Title: Twitter and Haiti
Learning Objectives
The purpose of this video is to help you:
❖ Understand how social media platforms are increasing the pace of globalization.
❖ Examine how new methods of communication are replacing more traditional ones.
❖ Recognize the marketing implications of how people communicate via social media.
❖ Explore how social media platforms may be changing social activism.
Key Words
❖ Globalization
❖ Global economy
❖ Technological change
❖ Cultural change
❖ Levels of economic development
9-15
Synopsis
When the earthquake hit Haiti last year, many people, both within the country and
outside, immediately got on Twitter and Facebook to get information about what was
happening, and to communicate with each other. This crisis was one of the first of its
kind in that rather than using more traditional forms of communication like the telephone
or television, large numbers of people turned to new forms of technology like Twitter and
Facebook. Even news reporters were scanning postings to learn more about the crisis.
This may reflect a global trend in which social media platforms are replacing long
established means of communication.
After the earthquake, many people posted messages to family members indicating that
they had survived and providing information about other friends and families. Some
people also provided details about what had occurred and what they had seen. Some
postings included information about problems that would probably occur as a result of
the earthquake such as shortages of medical supplies and water. People outside Haiti
were able to learn from these accounts of the extent of the devastation, and get a feel for
what was ahead for the Haitian people and the country as a whole.
Twitter and Facebook were also the first choice for many social activists and global
health organizations involved with the crisis. Social activists were able to leverage the
power of the social media platforms to reach out to people for help. Wyclef Jean, a
popular Haitian musician, asked his 1.3 million Twitter followers to donate money to
help for example. Interestingly, the efforts of activists like Jean were made easier
because of the availability of social media platforms and cell phones. People could
respond to their requests simply by sending a text message indicating their willingness to
donate money. Global organizations like the Red Cross were also able to use social
media platforms to raise awareness of the needs of the Haitian people and to organize
contributions.
Discussion Questions
1. Discuss how new technologies emerged as a preferred form of communication after the
earthquake in Haiti. What conclusions might a company targeting consumers in a
developing country like Haiti draw from this phenomenon?
2. What challenges do social network platforms like Twitter and Facebook face in
developing countries? Why might first mover advantages be important in these markets?
3. Reflect on the differences in how people use social networking platforms based on
their geographic location. How can companies capitalize on the growing use of social
media networks in developing countries and emerging markets?
4. Discuss how social media platforms are changing the way social activists raise
awareness and gain support for their causes. How can companies that support social
causes leverage these same opportunities?
9-16
INCORPORATING globalEDGE™ EXERCISES

Use the globalEDGE™ site {http://globalEDGE.msu.edu/} to complete the following
exercises:
Exercise 1
Your company is seeking to expand by opening new customer representative and sales
offices in the European Union (EU). The size of the investment is significant and top
management wishes to have a clearer picture of the current and probable future status of
the EU. A colleague who spent some time living in the EU indicated that Eurostat might
be a comprehensive source to assist in your project. After evaluating the state of the EU
based on the statistics and publications available, prepare an executive summary
describing the features you consider as crucial in completing your report.
Exercise 2
Trade agreements can impact the cultural interactions between countries. In fact, the
establishment of the Free Trade Area of the Americas (FTAA) can be considered a threat
as well as an opportunity for your company. Identify the main negotiating groups a
country must consider when a member. Choose two negotiating groups and justify their
importance to member countries.
Answers to Exercises
Exercise 1
A variety of reports and statistics can be accessed by searching the term “Eurostat” at
http://globaledge.msu.edu/ResourceDesk/. At the bottom of the linked Eurostat webpage
are a series of publications, tables, and data that are useful for completing this exercise. In
addition, the Publications tab found at the top of the webpage can provide considerable
material for an analysis. Be sure to click on the Resource Desk link to search this area of
the globalEDGE website.
Search Phrase: “Eurostat”

Resource Name: EUROPE: Eurostat
Website: http://epp.eurostat.ec.europa.eu/
globalEDGE™ Category: “Research: Statistical Data Sources”
Exercise 2
A variety of reports and statistics can be accessed by searching the term “Eurostat” at
http://globaledge.msu.edu/ResourceDesk/. At the bottom of the linked Eurostat webpage
are a series of publications, tables, and data that are useful for completing this exercise. In
addition, the Publications tab found at the top of the webpage can provide considerable
material for an analysis. Be sure to click on the Resource Desk link to search this area of
the globalEDGE website.
Search Phrase: “Eurostat”
9-17
Resource Name: EUROPE: Eurostat

Website: http://epp.eurostat.ec.europa.eu/
globalEDGE™ Category: “Research: Statistical Data Sources”
End of Part Case Notes

Part Three:
Logitech
1. In a world without trade, what would happen to the costs that American consumers
would have to pay for Logitech’s products?
Answer: Logitech moved its manufacturing to Taiwan and China in an effort to save
money and maintain a competitive advantage. While labor costs were a factor in the
decision to shift its manufacturing, other costs were also considered. The case notes that
Taiwan offered a well-developed supply base for parts, qualified people, and a rapidly
developing local computer industry. In addition, the company was able to secure space
for only $200,000. In China, Logitech is able to employ workers for just $75 per day. If
Logitech were not able to take advantage of opportunities such as these, and export its
product back to the United States, American consumers would pay significantly higher
prices for the company’s products.
2. Explain how trade lowers the costs of making computer peripherals such as mice and
keyboards?
Answer: The theories of Smith, Ricardo, and Hecksher-Ohlin show why it is beneficial
for a country to engage in international trade even for products it is able to produce for
itself. International trade allows a country to specialize in the manufacture and export of
products that can be produced most efficiently in that country, while importing products
that can be produced more efficiently in other countries.
3. Use the theory of comparative advantage to explain the way in which Logitech has
configured its global operations. Why does the company manufacture in China and
Taiwan, undertake basic R&D in Freemont and Switzerland, design products in Ireland,
and coordinate marketing and operations from California?
9-18
Answer: The theory of comparative advantage suggests that it makes sense for a country
to specialize in producing those goods that it can produce most efficiently, while buying
goods that it can produce relatively less efficiently from other countries—even if that
means buying goods from other countries that it could produce more efficiently itself.
Logitech has successfully located the various parts of its value added chain around the
world to take advantage of those attributes that are available in each of the locations in
which it operates.
4. Who creates more value for Logitech, the 650 people it employs in Fremont and
Switzerland, or the 4,000 employees at its Chinese factory? What are the implications of
this observation for the argument that free trade is beneficial?
Answer: Logitech has taken great care in configuring its global value chain to lower
production costs while maintaining the value of those assets that lead to differentiation.
Logitech undertakes basic R&D work in Switzerland, and also in Fremont. Fremont is
also the location for the company’s global marketing, finance, and logistics operations.
Clearly, Logitech is successfully exploiting the benefits of the American and Swiss labor
force, while at the same time taking advantage of the lower costs of production available
in China. Logitech’s operations support the argument that free trade is beneficial.
5. Why do you think the company decided to shift its corporate headquarters from
Switzerland to Fremont?
Answer: Switzerland is still important to Logitech. Indeed the company undertakes basic
R&D work there. However, in an effort to be closer to many of America’s high-
technology enterprises, Logitech moved its headquarters to Freemont, California.
Freemont is now home to the company’s global marketing, finance, and logistics
functions, and is also the location for some additional R&D work.
6. To what extent can Porter’s diamond help explain the choice of Taiwan as a major
manufacturing site for Logitech?
Answer: According to Porter, four broad attributes of a nation shape the environment in
which local firms compete, and these attributes promote or impede the creation of
competitive advantage. The four attributes are factor endowments, demand conditions,
related and supporting industries, and firm strategy, structure, and rivalry. The first
attribute, factor endowments, clearly helps explain the choice of Taiwan as a major
manufacturing site for Logitech. Taiwan has a well-developed supply base for parts, as
well as qualified people. In addition, Taiwan’s rapidly expanding local computer
industry (related and supporting industries) also puts the country in a strong position to be
a major manufacturing site for Logitech.
9-19
7. Why do you think China is now a favored location for so much high technology
manufacturing activity? How will China’s increasing involvement in global trade help
that country? How will it help the world’s developed economies? What potential
problems are associated with moving work to China?
Answer: Foreign companies now account for three-quarters of China’s high tech exports.
Porter’s diamond would suggest that like Taiwan, China has strong factor endowments
and strong related and supporting industries. Together, these attributes make China an
attractive location of high-tech manufacturing. China’s increasing involvement in global
trade should help the country by spurring its economic growth. This in turn, should
create more demand for imports which should be beneficial to the world’s developed
economies.
The Ecuadorian Rose Industry

1. What is the basis of Ecuador’s comparative advantage in the production of roses?
Answer: Ecuador, with its intense sunlight, fertile volcanic soil, equatorial location, and
high altitude provides the perfect conditions for growing roses. In addition, wage rates in
Ecuador are relatively low. The country’s minimum wage is just $120 a month, however,
many workers in the rose industry are paid nearly double rate for six days of work per
week, per month. Perfect growing conditions combined with low wages give Ecuador a
comparative advantage in the production of roses.
2. Most Ecuadorean roses are sold in the United States or Europe. Who in these countries
benefits from the importation of Ecuadorean roses, and how do they benefit? Who loses?
Do you think the benefits outweigh the costs?
Answer: Roses imported from Ecuador have transformed the floral industry in both
Europe and the United States. Prior to the growth of Ecuador’s rose industry, roses were
available only in limited quantities and varieties, and were generally very expensive in
the United States and Europe. Today, however, consumers in both markets have been
able to benefit from the ready supply of high quality flowers available at relatively low
prices. Most students will probably recognize that while consumers have benefited from
the growth of Ecuador’s rose industry, growers in the United States and Europe have not.
However, many students will probably conclude that in this situation, because Ecuador’s
industry benefits not only its own citizens, but also consumers in other markets like the
United States and Europe, the benefits do indeed outweigh the costs. Other students
however, may wonder whether the damage to the environment that may be occurring
because of the growth in the industry is indeed worth it.
3. How does the rose export industry benefit Ecuador? Do these benefits have any
implications for the United States and Europe?
9-20
Answer: Ecuador is now the world’s fourth largest producer of roses. Rose farms in the
country support tens of thousands of jobs. Revenues and taxes from the industry have
been used to help pave roads, build schools, and construct irrigation systems. Many
workers earn more in the industry than they could elsewhere. Some students however,
may note that in rose-growing cities like Cayambe, populations have swelled
significantly putting pressure on the resources within the region. In addition,
environmentalists worry that the industry is not following proper safety precautions with
the chemicals it uses. In then end though, many students will probably argue that indeed
the industry has been beneficial to the country, and that the growth of the industry may in
fact also benefit both the United States and Europe as those markets see their export
opportunities increase as a result of greater prosperity in Ecuador.
4. How should developed nations respond to reports of poor working conditions in this
industry? Should importers in some way certify Ecuadorean producers, only importing
from those who adhere to strict labor and environmental standards?
Answer: The question of whether the working conditions are appropriate in developing
nations strikes an ethical chord with many people. Most students probably agree that it is
vital for developed countries to challenge developing nations to ensure that workers in
their countries are provided safe working conditions. Already, pressure from European
consumer groups have prompted some Ecuadorian growers to voluntarily join programs
designed to ensure worker safety. Many students will probably suggest that programs
like these will put pressure on other growers to implement similar measures. However,
students may also note that some growers may be reluctant to adopt safety measures
because such programs are likely to increase costs. Students may also recognize that
many consumers will continue to buy the cheapest roses available, regardless of how they
were grown, and may be unwilling to support efforts to import only from those growers
who are certified.
Another Perspective: For more information on the rose industry in Ecuador, visit
{http://www.globalpolicy.org/globaliz/cultural/2003/02flowers.htm}.
9-21
The European Energy Market

1. What do you think are the economic benefits of liberalizing the EU energy market?
Who stands to gain the most from liberalization?
Answer: The European Union is hoping to liberalize its energy market. By doing so,
increased competition among energy producers should result in greater efficiencies,
economies of scale, and lower prices for consumers. Indeed, consumers could ultimately
be the biggest winners if the move is successful.
2. What are the implications of liberalization for energy producers in the EU? How will
the environment they face change post liberalization? What actions will they have to
take?
Answer: Efforts to liberalize the energy markets in the European Union have met with
considerable resistance from producers and in some cases from local governments. At
the heart of the issue is the fact that the energy market in the European Union is currently
highly inefficient and nationalistic. Each nation essentially has its own producers, often
formerly owned by the state, that serve the majority of the market. Most producers have
vertically integrated into other areas of the business, and are unwilling to allow foreign
producers to utilize parts of their business to serve local customers. Governments too are
reluctant to allow acquisitions by foreign companies because of the local job losses such
moves could imply. If the efforts at liberalization continue, it is likely that the business
will be split into several areas including generation, transmission, and marketing.
Companies will operate in only one of these areas, for example producing power, rather
than in all of them as is the case with the current business model.
3. Why is the de-integration of large energy companies seen as an important part of any
attempt to liberalize the EU energy market?
Answer: The European Union believes that it is necessary to de-integrate large energy
companies in order to liberalize the energy markets in the bloc. At the moment, most
nations have a single large company that dominates the market, making it very difficult
for new companies to break in. Furthermore, since most companies have vertically
integrated into producing, transmitting, and marketing energy, they have resisted efforts
to allow other companies into even parts of the business. The European Union wants to
de-integrate the business so that independent companies can buy from the cheapest
source, resell to consumers and so on, and create the competition necessary to force
producers to become more efficient.
4. Why do you think progress towards the liberalization of the EU energy market has
been slow so far?
Answer: In 2007, national energy ministers rejected a request from the European
Commission to de-integrate the energy companies. France and Germany have been
9-22
particularly vocal about the request – both countries stand to lose from such a request
because they both have large vertically integrated energy companies. Most students will
probably agree that progress towards the liberalization of the market is likely to continue
to be slow since the major beneficiaries of the market liberalization are consumers, rather
than producers. Many students will probably agree that since producers stand to lose
from liberalization, and nations could individually be hurt, efforts to slow the process will
probably continue.
Another Perspective: Students can learn more about this case at

{http://www.businessweek.com/globalbiz/content/dec2006/gb20061215_392578.htm}.
Global Food Prices

1. Who benefits from government policies to a) promote production of ethanol and b)
place tariff barriers on the imports of sugar cane? Who suffers from these policies?
Answer: Government policies to promote the production of ethanol, like many other
types of market intervention, are designed to help the producer with little regard for the
consumer. In this particular situation, U.S. and EU farmers are receiving subsidies for
growing soy and corn to be used for ethanol production. This has pushed the prices of
both products up, and because some farmers are switching from other types of crops like
wheat to soy in order to take advantage of the subsidies, the policies have also resulted in
an increase in other food prices as well. Most students will probably realize that
consumers are certainly on the losing end of the deal, as they face higher prices in the
grocery store. Moreover, because the United States and the European Union have also
implemented tariffs against an alternative raw material for ethanol production, sugar
cane, producers in sugar producing countries like Brazil have also suffered.
2. One estimate suggests that if food prices rise by one third, they will reduce living
standards in rich countries by about three percent, but in very poor ones by about twenty
percent. According to the International Food Policy Research Institute, unless there is a
change in policies, cereal prices will rise by 10-20 percent by 2015, and the expansion of
bio-fuel production could reduce calorie intake by 2-8 percent by 2020 in many of the
world’s poorest nations. Should rich countries do anything about this? If so, what?
Answer: This is a difficult question that will probably stir some debate. For decades,
consumers have enjoyed the benefits of increased productivity and output in the global
food industry. In 2007, however, everything changed. The price of wheat reached its
highest point ever, and the price of corn rose 60 percent over its 2006 price. Two factors
contributed to this situation. The first was the increased demand for food from China and
India. The second factor involved tariffs and subsidies for bio-fuels. Farmers in the
European Union and in the United States are currently the recipients of subsidies for the
production of crops used in bio-fuels. As a result, land that might be used for growing
food is being converted to bio-fuel crops, pushing up prices on food. While some experts
believe that sugar cane may be a better product for bio-fuel production than corn, tariffs
on imported sugar cane effectively are keeping the crop out of the market. While all
consumers are feeling the pain of higher food prices, the situation is especially dire for
9-23
International Business Hill 9th Edition Solutions Manual
consumers in poor countries where calorie intake could be reduced by as much as 8

percent by 2020. Many students will probably suggest that the world’s richer countries
do indeed have a moral responsibility to ensure that poorer countries have access to food
at affordable prices. While many students will probably agree that it is important to
continue with the initiative to develop viable bio-fuels, they will probably also conclude
that the goal should not be at the expense of the world’s poorer nations. Some students
may suggest that efforts by richer nations focus on providing the necessary support to
poorer nations to allow them to develop their own food sources, while other students may
support a program that focuses more on simply providing assistance through donations of
food to offset the higher priced food that can be purchased on the open market.
3. The argument for giving subsidies to ethanol producers rests upon the assumption that
ethanol results in lower CO2 emissions than gasoline, and therefore benefits the
environment. If we accept that global warming is itself a serious problem, should we not
be encouraging government to increase such subsidies? What are the arguments for and
against doing so? On balance, what do you think is the best policy?
Answer: While most students will probably agree that global warming is a serious
problem that must be addressed, they will probably also conclude that simply providing
subsidies to farmers who produce soy or corn is not a solution. Indeed, most scientists
agree that ethanol produced from sugar cane is superior to that produced from corn or soy
simply because it is produced using the waste portion of the sugar cane. Consequently,
the notion that soy farmers and corn farmer should continue to receive subsidies while
tariffs are maintained against sugar cane imports from Brazil suggests a protectionist
agenda in both the United States and in the European Union. Some students may also
note that ethanol is only part of the solution to the problem of global warming. Other
programs with fewer negative effects should also be considered. Some students for
example, may suggest that the money spent subsidizing farmers might be better spent
installing solar powered panels, or wind turbines.
Another Perspective: There are two iGLOBES that deal directly with the issues in this
case. The first is Supply, Price of Food Increase Hardship for World’s Poor, and the
second is Agricultural Problems Lead to Farmer Suicides in India.
9-24
Visit TestBankBell.com to get complete for all chapters

Another random document with
no related content on Scribd:
— Vraiment ! Qui vous a dit cela ?
— C’est M. Moreau, mademoiselle. Il paraît que c’est la vérité
vraie. Mais, pour en revenir à ce que nous disions, pour sûr qu’à la
Biche-au-Bois on n’en manquera pas avec celui que M. l’Américain a
fait envoyer… Plein les caves ! Et c’est tellement exposé au bon air
et au soleil !
Quand M. l’architecte est venu fin octobre avec M. Richardson, il
a dit : « Dans un mois, les blessés pourront arriver, ce sera sec. »
Un mois après, ils y étaient.
Et maintenant que c’est fini, avec les drapeaux français et
américain sur le toit de la grande bâtisse, c’est si beau à voir que
Victor et moi, quand notre travail est fini, vers le soir, nous
descendons la colline du côté de Vauclair pour avoir le plaisir, quand
nous sommes en bas, de regarder l’effet que fait l’hôpital sur le
plateau, avec les sapins verts tout autour.
Quelquefois, de le regarder, on en a les larmes aux yeux ! Ah !
qui est-ce qui m’aurait dit, à moi qui suis née sur le pavé de Paris,
que je m’en irais vivre dans un pays comme celui-là, où il y a des
fleurs, de l’herbe, des arbres à foison, et que ce serait pour y être si
heureuse !
Ah ! Mademoiselle, c’est à vous…
Rose se retourne, une serviette déchirée à la main.
— En voilà une qui n’est bonne qu’à faire de la charpie !
— Ah ! Mademoiselle ! c’est à vous que je dois tout mon
bonheur !
— Ne parlons plus de cela, Rose, je vous l’ai défendu.
— Oui, mademoiselle, j’obéis. N’empêche que je ne manque pas
un jour de faire une prière avec la sœur des Anges pour que le Bon
Dieu vous en donne autant !… Si j’osais, je demanderais à
mademoiselle quelque chose qui me tourmente ?
— Qu’est-ce donc ?
— Mademoiselle ne pensera pas que je suis indiscrète ?
— Mais non, parlez.
— Je suis curieuse de savoir si mademoiselle a toujours des
nouvelles de M. le lieutenant ?
— Oui, de temps en temps ; ses lettres sont plus rares, répondit
Diane évasivement.
Rose aurait eu bien envie d’en entendre davantage, mais ayant
vu la physionomie de sa maîtresse se refermer subitement, elle se
tut et, bientôt, Diane redescendit chez elle.
Ce quatrième hiver de guerre était devenu pour les malheureux
une terrible épreuve, et pour tous une succession de jours mornes
où l’on vivait dans l’attente d’événements qui tardaient à venir.
Comme Diane rentrait à la fin de l’après-midi, ce jour-là, elle eut
l’idée de s’informer auprès du portier à propos d’un mot de Rose, qui
lui revenait à la mémoire.
— On m’a dit que certaines personnes de la maison parmi nos
locataires manquaient de moyens de chauffage. Est-ce vrai ?
— Oui, mademoiselle, et c’est bien triste. C’est une vieille dame
aveugle qui demeure tout en haut… Sa domestique a cherché
partout du charbon sans en trouver… Elle a dit en secret à ma
femme qu’elle avait fait coucher la pauvre dame depuis deux jours
pour lui éviter de prendre mal.
— Je croyais que la maison avait le chauffage central.
— Jusqu’au quatrième seulement, mademoiselle ; les petits
appartements du cinquième ne sont pas chauffés.
Diane se doutait bien du nom de la vieille dame aveugle qui
demeurait là-haut ; mais, afin d’en être plus sûre, elle demanda :
— Quel est le nom de cette dame ?
— Mme la baronne de Kéravan. Si mademoiselle avait la bonté
de s’y intéresser… Seulement, c’est des personnes très fières. Mlle
Corentine, la bonne, avait fait bien promettre à ma femme de ne le
dire à personne !
Mlle de Trivières était fille de décision. Pourtant, à la pensée de
ce qu’elle allait faire, sa main hésita un peu à ouvrir la porte de
l’ascenseur.
Comment sa démarche serait-elle accueillie ? La vieille dame
avait dû entendre parler d’elle. Elle devait être au courant des
relations qu’ils avaient eues avec son petit-fils.
Aller chez lui alors que personne ne l’en avait priée, c’était une
action hardie.
Mais pouvait-elle, à sa porte, laisser la pauvre aïeule mourir de
froid parce qu’elle-même avait la faiblesse de trop penser à
l’absent ?
Voici l’arrêt du quatrième. L’ascenseur stoppe, il ne va pas plus
haut.
Décidément les locataires du cinquième n’ont pas été gâtés.
Heureusement que l’étage est bas.
Plus on monte, plus les plafonds s’abaissent, plus l’espace a été
mesuré.
Le tapis rouge continue à courir sur les marches à la montée
facile.
Deux portes sur le palier.
Est-ce à droite…, à gauche ?
Diane a oublié de le demander.
Mais elle entend des cris d’enfants sortir de l’appartement de
droite. Ce devait être en face.
Elle sonna.
Un pas ferme, presque masculin, résonna à l’intérieur. On ouvrit
et la jeune fille se trouva en présence d’une domestique. C’était une
femme entre deux âges, en costume breton, au visage renfrogné,
dont les petits yeux noirs se remplirent d’étonnement en voyant sur
le seuil la belle demoiselle de l’hôtel, la fille de la propriétaire.
— Madame de Kéravan. Puis-je lui parler ?
— Madame est malade, elle est au lit ; mais, mademoiselle, si
c’est pour la quittance de loyer que vous venez, je peux certifier que
mon maître a payé ; on ne doit rien.
Diane eut un petit sourire.
— Non, ce n’est pas cela qui m’amène, reprit-elle. Voici : Nous
avons fait rentrer dans les caves de l’hôtel une grande quantité de
charbon au début de l’hiver. Nous en avons plutôt trop. J’ai pensé
que certaines personnes de la maison pourraient en manquer,
surtout celles qui n’ont pas le chauffage central, et je viens vous
proposer de vous en envoyer quelques sacs.
Au mot magique de « charbon », la porte s’était ouverte tout à
fait.
— Entrez donc, entrez, mademoiselle ! Dame ! je peux bien vous
avouer qu’en fait de charbon nous ne sommes pas riches ; et c’est la
misère pour en avoir. Si nous en avions tant soit peu, je pourrais
faire du feu à Mme la baronne, et c’est ça qui lui ferait du bien, ma
doué !
Avec force révérences, la Bretonne, la figure élargie de
contentement, engageait la belle demoiselle à entrer.
Diane refusa : elle était pressée, elle rentrait à l’hôtel et allait faire
monter immédiatement le précieux combustible.
En effet, aussitôt rentrée, la jeune fille donna ses ordres au
domestique, le vieux Pascal, qui s’empressa d’obéir.
Depuis la fondation de l’hôpital, tous les serviteurs de la
marquise professaient une admiration sans bornes pour Mlle Diane.
Pour elle, ils auraient dévalisé leur maîtresse !
Le lendemain matin, Mlle de Trivières était encore à sa toilette
quand on vint lui demander si elle voulait recevoir une personne qui
demandait à lui parler.
— Faites entrer.
Une femme se présenta : c’était Corentine.
Mais une Corentine différente de celle de la veille.
Elle avait revêtu, dès huit heures du matin, son costume de gala :
jupe à bande de velours, fichu à franges et tablier de soie de couleur
éclatante ; les ailes ouvertes de son léger bonnet avaient l’air d’être
la continuation de son large sourire épanoui.
Corentine se tint d’abord immobile au milieu de la chambre, fort
intimidée, et incapable de prononcer le petit discours qu’elle avait
préparé.
Diane lui fit signe d’avancer.
— Avez-vous une commission à me faire ? Parlez.
— Oui, mademoiselle. De la part de Mme la baronne. C’est pour
remercier mademoiselle du charbon et aussi savoir combien on vous
doit.
— Je l’ignore, dit Diane, qui n’avait pas pensé à cette question.
Que votre maîtresse ne s’inquiète pas, le valet de chambre fera le
compte de ce qu’il a porté.
— Ça n’est point tout encore, mademoiselle, fit la servante, qui
reprenait peu à peu ses esprits : Mme la baronne fait dire à
mademoiselle qu’elle serait venue elle-même la remercier si elle
pouvait descendre, mais depuis trois mois elle n’a pas mis les pieds
dehors. Madame dit qu’elle serait très heureuse si la bonne
demoiselle voulait bien se déranger, comme voisine, pour lui faire là-
haut une petite visite.
Ma doué ! ajouta d’elle-même Corentine, elle est toujours seule,
la pauvre dame ; elle n’a pas grandes connaissances à Paris, et elle
s’ennuie. Moi, je suis trop bête pour lui tenir des conversations,
tandis que mademoiselle ! Ah ! oui ! que madame serait contente
d’avoir quelqu’un à qui causer de M. Hervé. Elle s’en dévore, cette
pauvre madame !
Ces dernières paroles étaient de trop. Diane faillit refuser.
Était-il possible après le mouvement de bonté qui l’avait poussée
chez elle la première, de répondre à l’invitation de Mme de Kéravan
par une impolitesse ?
Pourtant, que dirait Hervé s’il apprenait qu’elle avait franchi sa
porte, lui qui avait à un si haut degré la pudeur de sa pauvreté ?
— C’est un acte charitable envers une femme âgée et infirme,
pensa-t-elle, et puis… je saurai ce qu’« il » devient !
Diane se décida :
— A quelle heure Mme de Kéravan pourra-t-elle me recevoir ?
— Tous les jours, quand mademoiselle voudra. Mme la baronne
se lèvera cet après-midi.
— Bien. Prévenez Mme de Kéravan que j’aurai l’honneur d’aller
passer quelques moments auprès d’elle dans l’après-midi.
A l’heure du déjeuner Mlle de Trivières dit à sa mère :
— A propos, maman, j’espère que vous ne me blâmerez pas
d’une petite charité que je me suis permis de prendre sur vos
réserves de charbon.
— Sur le charbon de la maison ! Diane, tu es folle ! Au moment
où le combustible devient introuvable !
Et pour qui t’es-tu permis une telle prodigalité ?
Diane ayant raconté à sa mère l’histoire de la vieille dame
aveugle et alitée, la marquise s’attendrit et refusa même d’entendre
parler du paiement.
— Cette dame n’accepterait pas, maman. Elle m’a déjà envoyé
demander ce qu’elle devait.
Pascal en fera le compte… Vous savez, c’est une parente du
lieutenant de Kéravan dont Jacques vous a parlé l’été dernier ; un
ami de M. de Roysel ?
— Oui, je me souviens. C’est pendant mon voyage en Suisse
que vous avez fait sa connaissance.
Comment est-il ce jeune homme ?
Mlle de Trivières réfléchit avant de répondre :
— Très sérieux…, très intelligent… Nous avons fait ensemble
quelques promenades à cheval. Jacques s’était lié pas mal avec
lui… Il lui donnait de bons conseils ; il lui a aussi prêté des livres
pour son examen… En somme il a été très complaisant. Si vous le
permettiez, maman, j’irais faire une petite visite à cette vieille dame
qui m’a fait dire qu’elle désirait me voir pour me remercier. Elle ne
peut venir elle-même, elle ne sort pas.
— Fais comme tu voudras, répondit la marquise, qui pensait déjà
à autre chose. Viendras-tu à la soirée de bridge de Mme de Saint-
Clair ?
— Mais oui, si cela vous fait plaisir…
Vers deux heures, Mlle de Trivières gravissait le dernier étage de
la maison voisine.
— Où cela me mènera-t-il ? pensait-elle. Lui qui n’a jamais invité
Jacques à entrer chez lui ! Il en sera peut-être furieux.
On eût dit que le destin la poussait à se rapprocher précisément
de celui auquel elle se reprochait de penser trop souvent.
Maintenant qu’elle avait promis, il n’y avait plus à reculer.
Comme la veille, la Bretonne vint lui ouvrir, mais sa large figure
n’était plus renfrognée, bien loin de là !
En traversant l’antichambre en longueur sur laquelle ouvraient
plusieurs portes, la domestique expliqua :
— Excusez, mademoiselle, si je ne vous fais pas entrer dans le
salon. Madame se tient dans sa chambre depuis les grands froids.
Elle ouvrit une porte au fond et introduisit la visiteuse dans une
belle chambre à deux fenêtres.
Devant un feu flamboyant, Diane vit, enfouie à demi dans une
grande bergère, la forme menue d’une charmante vieille qui tendait
à la flamme ses mains aux tons d’ivoire jauni, que rosait le reflet du
feu.
La vieille dame tourna son fin visage encadré de papillotes
blanches en entendant ouvrir, et elle demanda d’une voix fluette
comme toute sa personne :
— On a sonné, Corentine. Ce doit être elle ?
— La voici, madame. Voilà la bonne demoiselle.
— Oh ! qu’elle est gentille de venir ! Je n’osais pas l’espérer.
Approche un fauteuil, Corentine. Donnez-moi votre main,
mademoiselle !
Diane approcha et prit la main de la vieille dame, qui lui souriait
en levant vers elle son visage aux paupières fermées, mais ce
sourire y mettait de la vie, une grâce aimable mélangée de bonté.
— Comme je vous suis reconnaissante, continuait l’aveugle.
Grâce à votre charmante pensée, je puis enfin me chauffer…
— Je suis trop heureuse, madame, de vous avoir rendu ce léger
service.
— C’est que ma pauvre Corentine, toute dévouée qu’elle est,
n’est pas du tout débrouillarde ; elle n’a jamais pu prendre les
habitudes de Paris. Quant à moi… Moi, je ne suis plus bonne qu’à
tricoter pour mon soldat !
L’aveugle montrait une chaussette de laine qu’elle avait posée
sur ses genoux.
— Je vous en prie, madame, continuez ; n’interrompez pas votre
travail pour moi.
— Merci, merci, c’est pressé, c’est pour mon petit-fils, le
lieutenant de Kéravan ; mais, vous le connaissez ? Il m’a dit qu’il
vous avait rencontrée au Bois, l’été dernier, avec monsieur votre
frère. Comment se porte M. de Trivières ? Est-il parti au front ?
Pendant qu’elle répondait aux questions de la vieille dame, Diane
jetait un regard autour d’elle.
N’eussent été les dimensions assez exiguës de la pièce, on se
serait cru transporté en plein moyen âge, dans une chambre de
vieux manoir breton.
Un grand lit de chêne ciré et sculpté du temps de la reine Anne
occupait le fond de la chambre. Il était surmonté d’un immense
baldaquin supporté par quatre colonnes torses. Des courtines de
gros reps bleu de roi à personnages — dames en hennin, pages et
seigneurs empanachés — pendaient autour de ce monument à
l’aspect antique et solennel.
La table massive, l’armoire énorme aux portes pleines dont le
chêne était fouillé délicieusement de naïfs dessins et de gracieux
feuillages ; les chaises incommodes à hauts dossiers avec chacune
leur coussin de reps pareil à celui du lit, les lourds fauteuils
semblables, les portraits de famille à l’aspect sévère, tout contribuait
à donner à cet appartement parisien un caractère d’archaïsme, une
couleur locale qui transportait le visiteur très loin de la capitale
moderne, de ses mœurs et de son temps.
Diane pensa en regardant les portraits des Kéravan alignés le
long des panneaux qu’après avoir toujours vécu dans un pareil
cadre, les façons réservées, les sentiments profonds du descendant
de ces preux austères, n’avaient plus de quoi étonner.
Il avait été façonné degré par degré, par l’atavisme laissé comme
une marque indélébile par la lignée de ses ancêtres, et, s’il ne portait
plus l’armure des anciens âges, son âme n’était pas moins restée,
comme celle des aïeux, couverte d’une enveloppe d’airain, sans
défaut.
Mme de Kéravan disait de sa voix fine qu’il fallait recueillir
comme un souffle :
— Vous regardez peut-être nos portraits, mademoiselle ? Tout le
monde sait en Bretagne que les Kéravan portent l’un des noms les
plus anciens et les plus respectés du Morbihan.
Je suis moi-même une Kéravan par ma mère : vous savez que
dans notre pays on cousine pendant des générations.
Les parentés se conservent aussi pieusement que des reliques ;
c’est ce qui fait la force des liens de famille. Ainsi, je puis bien vous
parler de certain projet que nous avions formé pour mon petit-fils
Hervé.
C’était de lui faire épouser une arrière-petite-cousine qui a reçu,
dans un couvent de Vannes, une éducation en rapport avec nos
idées. Douce, pieuse… et jolie, à ce qu’assurent mes petites-filles…
Pas une de ces évaporées comme on en voit dans les grandes
villes.
Je l’ai rappelé à mon petit-fils dernièrement, pendant son congé.
Annaïk m’avait écrit une lettre si gentille pour s’informer de son
cousin. Bah ! il a à peine écouté.
Autrefois, il en parlait volontiers ; et maintenant… Oui,
maintenant, pourquoi répond-il d’un ton indifférent ?
Pourquoi m’a-t-il affirmé qu’il ne se marierait pas, qu’il voulait
vivre toujours avec sa vieille grand’mère ?
Il n’a pas le droit de parler ainsi !
Il est le dernier des Kéravan de la branche aînée. Il sait que la
vieille souche s’éteindrait avec lui. Et puis, cette petite Le Gallec est
fille unique. Elle aura du bien, de l’argent. Est-ce qu’il veut végéter
toute sa vie, pauvre officier sans fortune ? Quelle figure fera-t-il, lui
un Kéravan de la branche aînée, sans autre argent que sa solde, fier
comme il l’est ?
Est-ce qu’il saura jamais briguer un avancement, une faveur ?
Non, non. Les Kéravan ne doivent rien qu’à leur mérite. Mais la
fortune n’y a jamais nui… au contraire. Pourquoi a-t-il changé ainsi ?
Pourquoi ne veut-il plus épouser Annaïk ? Oui, pourquoi ?
Depuis longtemps, la vieille dame avait oublié la présence d’une
personne étrangère.
Elle parlait en hochant la tête, d’une voix à peine perceptible. Son
visage était tourné vers la flamme à laquelle elle présentait ses
mains transparentes ; elle les frottait l’une contre l’autre comme s’il
lui était impossible de les réchauffer.
La pauvre aveugle vivant dans la réclusion devait avoir pris
l’habitude de ces longs monologues, de ces questions répétées qui
restaient sans réponse. Elle ne paraissait même point en attendre,
enchaînant avec volubilité les questions aux réflexions personnelles.
Elle passait sans transition d’un sujet à un autre, suivait le fil
d’une idée qui s’égarait, y revenait ensuite et continuait ses
questions sans fin…
Mlle de Trivières restait devant elle, gênée, n’osant interrompre
ce flux de paroles et craignant de recevoir des confidences qui ne lui
étaient pas destinées.
A quelques-unes de ces questions, et surtout aux dernières, elle
se disait, à part soi, qu’il lui eût été assez facile de donner des
réponses.
Pourquoi le lieutenant de Kéravan ne voulait-il plus entendre
parler de sa petite-cousine au trente-sixième degré, Mlle Annaïk ?
Mlle de Trivières était peut-être mieux qualifiée que quiconque pour
l’expliquer.
Mais elle garda pour elle ses réflexions et tenta d’attirer
l’attention de la baronne en lui touchant le bras légèrement.
L’aveugle tressaillit. Elle passa sa main sur ses yeux sans
regard.
— Oh ! pardon, mademoiselle. Excusez-moi ! Je vis si retirée ! Il
m’arrive quelquefois d’avoir des absences.
— Je suis obligée de vous quitter, madame, dit Diane en se
levant. J’ai rendez-vous avec ma mère à trois heures pour des
visites. Je regrette de ne pouvoir rester davantage, mais je
craindrais de vous fatiguer.
— Oh ! non, chère demoiselle. Ne dites pas cela, s’écria l’aveugle
en tendant ses mains. Vous m’avez fait tant… tant de plaisir !
Quand mon petit-fils est ici, je ne m’ennuie jamais. C’est un si
bon enfant ! Il me donne presque tout son temps ! Et cependant ma
société n’est pas bien amusante pour un garçon de son âge.
Il me fait la lecture. C’est un plaisir si rare pour moi qui ne lis
plus ! Ma pauvre Corentine arrive à grand’peine à me lire les
communiqués de la guerre. Cela suffit pour me tenir au courant. Je
me dis : Hervé était peut-être ici… ou là. Il a pris part à tel assaut ! Et
quand les nouvelles sont plus terribles, je prie davantage la bonne
sainte Anne, ma patronne, de protéger mon enfant !… Qu’est-ce que
je vous disais ?
Ah ! oui ! je parlais de lectures… Cette pauvre fille lit d’une
manière si insipide qu’elle m’endort. Oui… le croiriez-vous ? elle
m’endort ! répéta l’aveugle avec un petit rire narquois à l’adresse de
sa lectrice ordinaire.
Diane se sentit touchée de tant d’abandon :
— Madame, dit-elle, voulez-vous accepter que je vienne de
temps en temps vous faire la lecture ? J’en serai très heureuse ! J’ai
pris depuis la guerre beaucoup de goût à la lecture et je passerai
près de vous le temps que j’y consacre habituellement.
Une joie véritable illumina le visage de l’aveugle.
— Vraiment ! vous feriez cela ? Oh ! chère demoiselle, soyez
bénie pour cette bonne pensée ! Vous ne pouvez imaginer le plaisir
que vous me ferez. La solitude est ce qu’il y a de plus affreux pour
les vieillards… Je savais déjà que vous étiez belle…
— Madame !
— Oui… oui, on me l’a dit ! Et depuis hier, je sais que vous êtes
bonne… bonne !
A bientôt, ne me faites pas trop attendre !
Fidèle à la promesse qu’elle venait de faire, Diane renouvela
souvent ses visites dans la chambre aux portraits.
Maintenant qu’ils avaient fait connaissance, il semblait à la jeune
fille que ceux-ci l’accueillaient avec condescendance, mais sans
froideur.
Ses toilettes parisiennes à la dernière mode, jupe étroite et
courte, découvrant les bas de soie et les fines bottes à hauts talons,
blouses de soie claire, jaquettes du bon faiseur, les offusquaient
encore, mais il y avait une pitié si douce, de telles inflexions de
caresses dans les yeux et la voix de la visiteuse quand elle abaissait
sa lumineuse beauté sur le pauvre visage éteint, sur le corps émacié
et les mains diaphanes de leur descendante, que les portraits
laissaient fondre leur glace ; ils jetaient à la jolie Parisienne des
regards moins farouches.
Il est vrai de dire que si Mlle de Trivières avait entrepris son
œuvre charitable sans grand enthousiasme, elle fut elle-même
surprise de constater qu’elle y trouvait du plaisir et elle s’accoutuma
sans peine à monter chaque jour avant le dîner jusqu’au cinquième
étage pour passer un moment auprès de la recluse, qui attendait sa
visite en comptant les heures.
Lorsque la lecture fatiguait Mme de Kéravan, elles causaient.
Il arrivait encore, mais de plus en plus rarement, que la causerie
dégénérait en monologues où l’aveugle ressassait les souvenirs de
sa jeunesse ; elle racontait le départ de son fils, le père d’Hervé,
parti un jour sur son brick, la Sainte-Anne, et qu’on n’avait jamais
revu…
Elle parlait de la terrible attente des deux femmes restées au
foyer ; de la disparition de la plus jeune emportée par une maladie
de langueur et laissant à l’aïeule la charge de ses quatre petits. Les
réminiscences de Mme de Kéravan se terminaient toujours par une
histoire commençant par ces mots :
« Quand Hervé était petit… »
Diane connaissait maintenant la vie antérieure du lieutenant
mieux que ne devait la connaître la cousine Annaïk elle-même.
Elle se plaisait à faire répéter à la grand’mère des traits de
délicatesse ou de courage, que celle-ci ne se lassait jamais de
redire.
Et Diane s’imaginait le voir à des âges différents, toujours avec
ce regard bleu si pénétrant qu’il semblait vous fouiller jusqu’au fond
du cœur et laissait rarement deviner ses propres pensées.
La bonne aïeule avait souvent en parlant d’Hervé un mot : « Mon
petit. » Diane souriait en se représentant la haute taille du lieutenant,
sa voix grave, ses épaules larges.
Du reste, pour le revoir tel qu’il était naguère, elle n’avait qu’à
regarder autour d’elle en suivant la direction du doigt de Mme de
Kéravan.
— Ici, sur le guéridon, cette photographie de Vannes, il avait cinq
ans. Si je me souviens toujours il portait son costume marin avec
son col bleu.
Ce costume avait causé toute une discussion entre mon fils et
nous, les femmes.
Son père aimait le voir en marin.
Il rêvait la mer pour son fils unique.
Ah ! la traîtresse !… Nous l’aimons malgré tout. C’est dans le
sang !
Mais ma belle-fille, une de Kérouât, qui avait eu son frère aîné
perdu sur la Marie-Yvonne, résistait à son mari. C’était le seul sujet
sur lequel ils ne n’entendaient point.
Et ce costume marin qui lui allait si bien le petit gredin, c’était son
père qui le lui avait choisi lui-même un jour qu’il l’avait emmené avec
lui.
Ah ! celui-là l’avait aussi la vocation, la passion de la mer ! Mais
sa mère et moi l’en avons détourné de toutes nos forces, et, plus
tard, lorsqu’il a eu compris la peine qu’il m’aurait faite en partant, il y
a renoncé de lui-même, le cher petit, sacrifiant tout à sa vieille
grand’mère !
— Et celui de la tête du lit ! demanda Diane.
— Celui de mon lit, c’est le portrait de l’époque de sa première
communion. Il est un peu maigre, vous voyez ; il avait eu la
scarlatine. Il était si pieux à cette époque… un ange !
« Maintenant, regardez la cheminée. C’est le plus récent.
« J’ai demandé à Hervé de le faire faire quand il est entré à
Saint-Cyr, l’un de ses premiers dimanches de sortie. J’y voyais
encore un peu en ce temps-là. Maintenant… je ne puis plus que me
souvenir…
L’aïeule inclinait tristement la tête et Diane s’empressait alors de
parler d’autre chose.
Un après-midi, Mlle de Trivières était venue de bonne heure,
étant libre tout le jour ; elle proposa à la vieille dame de lui faire une
longue lecture.
— Oh ! bien volontiers, chère enfant, tant que vous ne serez pas
fatiguée. Mais nous avons fini notre dernier roman.
Voulez-vous choisir un livre dans la bibliothèque ?
Elle est dans le bureau de mon petit-fils. Ouvrez la porte à la tête
du lit… c’est là.
Pendant que vous chercherez, moi, je ferai mon petit quart
d’heure de sieste : ne vous pressez pas.
Diane savait que le petit quart d’heure se prolongeait souvent de
trois autres ; elle se dirigea du côté de la pièce voisine où elle n’était
jamais entrée, ayant jusqu’alors apporté de chez elle les éléments
de leurs lectures.
Le cabinet d’Hervé…
Qu’est-ce qui reflète le mieux l’état d’âme, les goûts, le caractère,
que la pièce où l’on vit habituellement et qui reste tout imprégnée
d’un peu de nous-mêmes ?
Le cabinet d’Hervé de Kéravan devait ressembler assez à la
chambrette du village bombardé qu’il avait dépeinte dans sa
première missive à Rose Perrin.
Des murs presque nus. Aucun tapis, point de rideaux, des vitres
claires, d’où, entre deux grandes bâtisses, la vue s’étendait jusqu’à
la petite place du musée Guimet, et, au delà, sur le scintillement du
fleuve où l’on apercevait par éclairs — tache fuyante — la course
rapide d’un bateau-mouche.
La clarté crue du soleil d’hiver mettait en relief les moindres
détails du paysage parisien.
C’était bien là le point de vue choisi par l’homme amoureux des
vastes horizons, que devait faire souffrir l’étroitesse de ces murs…
Ce petit coin de fleuve entrevu de loin lui rappelait, sans doute,
l’Océan breton dont la nostalgie l’oppressait.
D’un regard, Diane embrassa la pièce, simple et ordonnée
comme une chambre de prêtre.
Sur le mur de face, il y avait une carte d’état-major appliquée
avec des punaises.
Au-dessus de la cheminée se dressait un grand crucifix d’ivoire
jauni.
Au milieu, une petite table-bureau chargée de papiers
méthodiquement rangés, une écritoire de bois noir fort simple et une
photographie.
Diane prit le portrait pour l’examiner de plus près.
C’était celui d’un homme de grande taille, à l’air autoritaire et fier,
en costume d’officier de marine, auprès de qui se tenait une jeune
femme blonde dont la physionomie intelligente et douce rappelait
celle d’Hervé.
« Son père, sa mère, pensa-t-elle ; il leur ressemble à tous
deux… »
L’ameublement de la pièce était complété par deux vieilles
chaises bretonnes à paillage de couleur, et une antique bibliothèque
de chêne… C’était tout.
A l’extrémité opposée à celle où elle était entrée, la jeune fille
aperçut une porte grande ouverte qui donnait accès dans le salon.
Elle avança en glissant doucement sur le parquet brillant — la
propreté devait être comptée par Corentine au nombre des vertus
théologales — et jeta un regard sur le petit salon que les persiennes
fermées laissaient dans la pénombre.
Il avait l’aspect antique d’un salon de province avec son meuble
vieillot en acajou et velours grenat fané : aucune fantaisie, pas un
bibelot. Mais, de même que dans la chambre, de superbes portraits
de famille, en ligne serrée, occupaient les murs, excepté au-dessus
du canapé. Le regard de Diane fut attiré par les couleurs vives d’une
tapisserie ancienne qui tenait tout le panneau.
La tapisserie représentait l’entrée du roi Charles VIII dans sa
bonne ville de Rennes.
Les costumes, les personnages, étaient frappants de vérité.
Dans une large rue pavée, c’était un cortège magnifique, le roi
Charles en tête, monté sur un cheval blanc empanaché de plumes.
Le prince, jeune et beau, levait la tête du côté d’une fenêtre
basse, au balcon de laquelle étaient penchées trois jeunes femmes.
L’une d’elles, un peu en avant des autres, petite, gracieuse et fine,
coiffée du hennin à voile retombant, portant une collerette évasée,
un corsage à pointe et une ample jupe à godets, n’était autre que la
princesse Anne, l’héritière du beau duché, envoyant à son royal
fiancé un geste de bienvenue.
Diane examina longuement la superbe tapisserie ; c’était une
œuvre de prix de toute beauté.
Elle comprit par intuition la pensée qui avait poussé Hervé à
apporter dans son appartement de Paris cette grande pièce mieux
faite pour décorer les panneaux d’un salon monumental ; elle y
voyait l’amour profond du jeune homme pour son pays natal, la
petite patrie si chère aux cœurs bretons.
Hervé avait cru emporter avec lui un morceau de sa Bretagne…
Diane se tourna machinalement du côté du piano droit placé de
dos, dans un angle.
Elle remarqua auprès des piles bien rangées de partitions
anciennes : la Norma, la Dame blanche, la Traviata, etc., qui avaient
dû appartenir à la défunte baronne de Kéravan.
Mais, ayant fait le tour du piano, elle vit qu’il était resté ouvert et
qu’une feuille de musique à l’aspect neuf était placée toute dépliée
sur le pupitre.
La jeune fille regarda le titre : la Chanson de Fortunio. Elle rougit
soudain en lisant une date écrite au crayon à l’angle de la feuille : 14
mai 1918.
Elle reconnut la main qui avait écrit cette ligne de cette écriture
ferme et serrée qui ressemblait si étonnamment à celle d’Hubert de
Louvigny.
Diane avait rougi en reconnaissant la date. C’était celle du jour —
le seul jour — où Hervé était venu chez elle, le soir, en sautant sur le
balcon, ainsi qu’il l’avait dit en plaisantant, comme un sauvage ou un
voleur, et venant la complimenter sur son chant. C’était, elle s’en
souvenait bien, précisément cette romance qu’elle avait chantée.
Depuis cette soirée il l’avait faite sienne et elle devinait qu’à cette
même place il avait dû répéter bien des fois lui-même :
Et je veux mourir pour ma mie

Sans la nommer !
Cette musique encore ouverte, cette date précise, n’était-ce pas

l’aveu de l’amour d’Hervé signé de sa main ?
Diane demeura longtemps, le coude appuyé au bord du petit
piano, la tête inclinée sur sa main.
« Jamais, pensait-elle, jamais on ne m’a aimée ainsi… Et je sais
qu’il n’en dira rien ! Faudra-t-il que tant d’amour reste vain ? Et moi-
même oserai-je jamais y faire allusion ?
Elle comprenait qu’elle ne pourrait s’en ouvrir à sa mère. La
marquise jetterait les hauts cris : épouser un officier sans fortune, de
petite noblesse, et qui pouvait la laisser veuve d’un moment à
l’autre, ce serait fou, alors qu’elle avait éloigné les plus beaux partis !
— Quelle impasse ! soupira-t-elle. Que le bonheur est donc une
chose difficile !
Elle ne se doutait pas, qu’en parlant ainsi, elle répétait presque
mot pour mot une phrase de son tuteur…
La voix faible de Mme de Kéravan lui parvint du fond de
l’appartement. L’aveugle appelait, s’étonnait de se trouver seule.
Diane revint au cabinet de travail, elle prit au hasard dans une
rangée un roman de Walter Scott et rejoignit la vieille dame.
Celle-ci lui déclara que son petit quart d’heure — il avait duré
quarante minutes — lui avait fait le plus grand bien, et qu’elle était
toute disposée à entendre ce que la lectrice voudrait bien lui narrer.
Mais la lectrice de la baronne eut, ce jour-là, de fréquentes
distractions ; il lui arriva de tourner deux ou trois pages à la fois sans
qu’elle, ni son auditrice, s’en aperçussent. Vers la fin, cependant,
elle prit un vif intérêt aux aventures de la princesse Isabelle et de
Quentin Durward ; elle lut avec expression le passage où ce dernier
déclare avec douleur à l’objet de sa flamme :
« Je ne puis oublier la distance que le destin a placée entre nous,
et vous exposer à la censure de votre noble famille comme l’objet de
l’amour le plus dévoué d’un homme pauvre.
« Que cette idée passe comme un rêve de la nuit pour tous…
excepté pour un cœur où, tout rêve qu’elle est, elle tiendra la place
de toutes les réalités. »
Et, au lieu de clore l’entretien en disant comme la princesse :
« Adieu, ne m’oubliez pas, Durward, je ne vous oublierai jamais ! »
Diane, se substituant à Isabelle, eût voulu répondre : « Pourquoi
désespérer, Hervé ? Pourquoi tenir ce langage désolant ?
Qu’importent les considérations de fortune ! Ne comprenez-vous pas
que, moi aussi, je… »
Le reste se perdait dans les lamentations de la princesse de
Croye dont Quentin baisait les mains avec une tendresse
passionnée.
Hélas ! le héros de 1918 reviendrait-il vainqueur du gigantesque
tournoi engagé contre les ennemis de sa race ?
Oui, la victoire était certaine ; mais « lui » reviendrait-il pour
recevoir la récompense de ses exploits… et celle de son amour ?
— Comme vous lisez avec expression, chère enfant, dit
l’aveugle. C’est une privation pour moi de ne pouvoir jouir de la vue
de votre beau visage… Car vous êtes charmante, je le sais.
— Qui vous a dit cela, chère madame ?
— Qui voulez-vous que ce soit, petite masque ? C’est Hervé,
naturellement !
Le lendemain de ce jour, Mlle de Trivières arriva au milieu d’une
discussion entre Mme de Kéravan et sa domestique.
Il s’agissait de dresser une liste d’objets dont Hervé pouvait avoir
besoin, afin de la soumettre à l’approbation du lieutenant.
— Vous écrivez si mal, ma pauvre Corentine, disait la baronne en
forçant sa voix, que l’autre jour, le cher petit avait compris
« chandelle » pour « chandail » ; il a répondu qu’il n’avait pas besoin
de chandelles, que sa lampe de poche lui suffisait…
— Hé ! c’est déjà bien beau, madame, répondait Corentine avec
son rude accent, d’écrire comme je fais, quand on a été à l’école à la
queue des vaches ! Ma doué ! ça me coûte tant de les écrire, ces
lettres, c’est une si dure ouvrage, que si c’était point pour notre
Hervé, j’aimerais autant recevoir cent coups de bâton !
Mme de Kéravan renvoya sa servante à sa cuisine et se plaignit
ensuite de la difficulté de correspondre avec son petit-fils, et d’être
obligée de le faire si brièvement qu’elle ne pouvait rien lui dire.
— Si vous étiez bien gentille, mademoiselle Diane, dit-elle, je
vous demanderais de vouloir bien recopier cette liste d’objets que
Corentine a déjà faite, du moins si vous pouvez vous y reconnaître…
Vraiment, j’ai peur d’abuser, mais vous êtes si complaisante !
— Je suis enchantée de vous être utile, répondit la jeune fille. Ce
sera fait en un instant !
Et, de son écriture élégante, droite et haute, Diane recopia
l’informe gribouillage de la Bretonne :
Deux caleçons ;
Quatre paires de chaussettes ;
Un chandail de laine, etc.
… Sans se douter de la perturbation que l’énoncé de ces objets
prosaïques allait jeter dans l’esprit d’Hervé de Kéravan.
N’allait-il point s’imaginer y reconnaître l’écriture de Rose Perrin !
Lorsque ce fut fini, Diane proposa gentiment :
— Je serai très heureuse de vous servir de secrétaire, chère
madame, puisque les talents de Corentine sont insuffisants. M. de
Kéravan me lira plus facilement. Vous lui direz qu’une de vos
voisines vous a offert ses services.
On juge avec quel empressement Mme de Kéravan accepta
l’offre de sa jeune amie. Elle en profita aussitôt et dicta une longue

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Chapter 09 - Regional Economic Integration

Regional Economic Integration

There are five levels of economic integration. In order of

The opening case explores the implications of a recent

Visit TestBankBell.com to get complete for all chapters

OUTLINE OF CHAPTER 9: REGIONAL ECONOMIC INTEGRATION

Levels of Economic Integration

The Case for Regional Integration

The Case Against Regional Integration.

Regional Economic Integration in Europe

Management Focus: The European Commission and Media Industry Mergers

Regional Economic Integration of the Americas

Regional Economic Integration Elsewhere

Implications for Managers

Closing Case: NAFTA and Mexican Trucking

CLASSROOM DISCUSSION POINT

OPENING CASE: I Want My Greek TV

Slide 9-3 Introduction

Slides 9-4-9-7 Levels of Economic Integration

Another Perspective: To find out more about EFTA, go to {http://www.efta.int/}, and

Slide 9-8 The Economic and Political Case for Integration

Slide 9-9 Impediments to Integration

There are two main impediments to integration:

Slides 9-10-9-11 Regional Economic Integration in Europe

There are two trade blocks in Europe:

Slides 9-12-9-13 Evolution of the European Union

The EU is the product of two political factors:

Another Perspective: The EU web site is {http://europa.eu/index_en.htm}. The site

Slide 8-14 Political Structure of the European Union

The main institutions of the EU are:

Slides 8-15-8-16 The Establishment of the Euro

Slide 8-17 Enlargement of the European Union

Slide 9-18-9-19 Regional Economic Integration in the Americas

Slides 9-20-9-23 The North American Free Trade Agreement

Another Perspective: More on NAFTA can be found at

Another Perspective: Many organizations are anxious to take advantage of the

Slide 9-24 The Andean Community

Another Perspective: To see new developments with the Andean Community go to

Slide 9-25 MERCOSUR

Another Perspective: MERCOSUR's Homepage, which includes a broad array of useful

Slide 9-26 Central American Trade Agreement Market and CARICOM

Slide 9-27 Free Trade of the Americas

Slide 9-28 Regional Economic Integration In Asia

Several efforts have been made to integrate in Asia

Slides 9-29-9-30 Association of Southeast Asian Nations

Slides 9-31-9-32 Asia Pacific Cooperation

Another Perspective: For more on APEC, go to its web site at {http://www.apec.org/}.

Slide 9-33 Regional Trade Blocks in Africa

Slide 9-34 Implications for Managers

ANSWER 1: NAFTA’s proponents argue that the agreement should be viewed as an

ANSWER 2: The economic case for regional integration is straightforward. As we saw

QUESTION 4: Do you think it is correct for the European Commission to restrict

QUESTION 6: How should a firm with self-sufficient production facilities in several