GLOBAL DIMENSIONS OF BUSINESS

’ÄúNowadays the reality is increasingly that we are obliged as leaders to think, work and act internationally’ĶWe all talk of interdependence being the defining characteristic of the modern world’ĶIt means we have a clear self interest in what happens the world over.’Äù (Tony Blair, former British prime minister)

Business l87 - Fall 2008 ’Äì Edfelt                                                                   

 

Course Description: Overview of economic, social and political factors influencing crossborder business; introduction to the international dimension of business disciplines; a foundation for other international courses and further self-directed learning. See also course objectives.

Textbook: J. Wild, K. Wild & Han, International Business: The Challenges of Globalization, Prentice Hall, Fourth Edition (2008) ISBN 0131747436

Reader: Includes supplementary readings, cases, handouts and sample exam questions (Bus. 187 ’Äì Fall 2008 - Edfelt); contains three bluesheet lists (Studysheets #1, #2, #3) of topics, terms, concepts and questions to guide preparation for class and exams

Recommended Reading (daily): Wall Street Journal and/or Financial Times’ĶClass discussion will include current news coverage related to course topics (discount subscription sign-up lists will circulate at the first class meeting)


Handouts: These refer to numbered yellowsheets in the Reader (bring to class on the date assigned in the syllabus); others (not numbered, any color) will be distributed in class

Written Assignments: For most class meetings, students will submit a one-page written discussion of an assigned case or exercise (preferably word-processed); these must be prepared prior to the meeting for which assigned and are turned in when class starts; these are not individually graded, but are read/retained/evaluated as a packet by the instructor and count toward the class participation component of the overall course grade. See Guidelines for Written Assignments

Examinations: Two mid-terms plus a comprehensive final exam (sample exam questions)

Grading: 20% mid-term exam #1 (Studysheet #1); 20% mid-term exam #2 (Studysheet #2); 40% - final exam (half of the points on the final exam are from Studysheet #3 and one-fourth each from Studysheets #1 & #2; 20% - class participation (includes the number and quality of written case/exercise submissions); course grades conform with grading criteria proposed by the CSU Academic Senate.  [Note: All business students in the Mgt., HRM and IB concentrations must earn a minimum grade of C- in required concentration courses; for students in other concentrations, consult your academic advisor]


 

 

Schedule of Topics

Aug 27 Introduction; Conceptual/Historical Overview

Sep 03 Explaining Trade and Investment

Sep 10 International Trade Relations

Sep 17 International Monetary Relations

Sep 24 Issues in Economic Growth & Development

Oct 01 Exam #1; Sociocultural Environment

Oct 08 Sociocultural Environment

Oct 15 Political/Legal Environment

Oct 22 Country Evaluation and Selection; Modes of Operating Abroad

Oct 29 Exporting; Transportation; Communication

Nov 05 Exam #2

Nov 12 Management; Manufacturing

Nov 19 Marketing; Finance

Nov 26 Thanksgiving Break (no classes after 5 PM, Wed., Nov. 26)

Dec 03 Finance, cont.; Accounting; Taxation

Dec 10 Human Resource Issues

Dec 17 Final Examination

 


Syllabus

Note: Items below listed as Text are from the textbook J. Wild, K. Wild & Han, International Business: The Challenges of Globalization (Fourth Edition); items listed as Reader are in the Reader (Business 187 ’Äì Fall 2008 ’Äì Edfelt). Items listed as Web are accessible on the internet, several of them via the SJSU library Electronic Journals Index. For that you will need a library pin-code ’Ķ For obtaining/using a pin-code go to: https://mill1.sjlibrary.org:443/patroninfo~S1/. Items below listed as Handouts are numbered yellow inserts in the Reader; other handouts (not numbered, any color) will be distributed in class; cases/exercises are either in the textbook or the Reader, and are so indicated below


 

Aug 27 Intro to the Course; Conceptual/Historical Overview

 

Text: Ch.1 ’Äì Globalization, and pp. 154-55, 204-07


Sep 03 Explaining Trade and Investment

 

Text: Ch. 5 - International Trade; Ch. 7 ’ÄìForeign Direct Investment; and pp. 422-25 (make-or-buy decision)

 

Case: Pedal Away (in Reader, p. 1, and on back of Day 1 Bluesheet #1 distributed in class); see also Handout #3 in Reader (Addendum to the Pedal Away case)

 

Handouts: #1, #2, #3


 

Sep 10 International Trade Relations

 

Text: Ch. 6 ’Äì Business-Government Trade Relations; Ch. 8 - Regional Economic Integration

 

Reader: Anne McGuirk, ’ÄúThe Doha Development Agenda,’Äù Finance & Development, September 2002; Steven Weisman, ’ÄúAfter Six Years, the Global Trade Talks Are Just That: Talk,’Äù New York Times, July 21, 2007; Ben Stein, ’ÄúThe Tale of the Toaster, or How Trade Deficits Are Good,’Äù New York Times, April 25, 2004; Herb Stein, "Leave the Trade Deficit Alone," Wall Street Journal, March 11, 1987

 

Web: William Poole, ’ÄúA Perspective on U.S. International Trade,’Äù Review - Federal Reserve Bank of St. Louis, March/April, 2004 ’Ķ http://research.stlouisfed.org/publications/review/04/03/Poole.pdf; ’ÄúIn the Shadow of Prosperity ’Äì Trade’Äôs Victims,’Äù The Economist, January 20, 2007 http://www.sjlibrary.org/research/ejournals/index.htm

 

Cases: Tomato Tussle (in Reader, p. 7, to be written up and turned in);  and Unfair Protection or Valid Defense? (text, p. 201, read only; not a written assignment)

 

Handouts: #4, #5, #6


 

Sep 17  International Monetary Relations

 

Text: Ch. 10 - International Monetary System plus pp. 265-80 (Foreign Exchange Market) and pp. 264-65 (Eurocurrency Market)

                                                                                                                                      

Reader: Francesco Caramazza and Jahangir Aziz, "Fixed or Flexible? Getting the Exchange Rate Right in the 1990's," Economic Issues 13, Washington, DC, International Monetary Fund, 1998; Hal Varian, ’ÄúEconomic Scene; Exchange Rates Matter’Äù New York Times, June 3, 2004; Mark Landler, ’ÄúAs Exchange Rates Swing, Carmakers Try to Duck,’Äù New York Times, January 17, 2004

 

Web: "Managing the World's Money," The Economist, Schools Brief, May 24, l975 ’Ķ http://www.sjlibrary.org/research/ejournals/index.htm

 

Cases: The Dollar and the Euro (in Reader, p. 16); and Argentina: Back From the Abyss? (text, pp. 282-283, Qn. #1); write up either case

 

Handouts: #7, #8


 

Sep 24  Issues in Economic Growth and Development

 

Text: Ch. 4 - Economic Systems and Development, and p. 260 (microcredit), 302-05 (recent financial crises), 238-52 (regional economic integration in the Americas, ’Ķ)

 

Reader: Horst Kohler, ’ÄúKohler Lauds Mexico’Äôs Economic Turnaround,’Äù IMF Survey, June 30, 2003; Mary Anastasia O'Grady, "The Poor Get Richer," Wall Street Journal, January 16, 2007

 

Case: Banking on Forgiveness (text, p. 311, read only, not a written case)

 

Handout: #9

 


Oct 01 Exam #1; and Sociocultural Environment


 

Oct 08 Sociocultural Environment, cont.

 

Text: Ch. 2 ’Äì Cross-Cultural Business, and pp. 446-48 (culture shock)

 

Reader: Edward Hall, "How Cultures Collide," Psychology Today, July l976; Andrew Singer, "Ethics: Are Standards Lower Overseas?," Across the Board, September 1991; Paul Finney, ’ÄúShaking Hands, Greasing Palms,’Äù New York Times, May 17, 2005

 

Web: Edward Hall, "The Silent Language in Overseas Business," Harvard Business Review, May-June l960 ’Ķ http://www.sjlibrary.org/research/ejournals/index.htm

 

Exercise: American (U.S.) Values, Attitudes, Beliefs and Behavior (p. 26 in Reader)

 

Case: Congo Conundrum (p. 32 in Reader) ’Ķ write up either this case or the Exercise on p. 26)


 

Oct 15 Political/Legal Environment

 

Text: Ch. 3 ’Äì Politics, Law and Business Ethics, and pp. 214-21 (Government Intervention in FDI) and p. 193 (Agreement on Intellectual Property)

 

Reader: Nikki Tait, ’ÄúIs Protection the Mother of Invention?,’Äù Financial Times, June 8, 2005

 

Web: "Business Ethics; Doing Well By Doing Good," The Economist, April 22, 2000 http://www.sjlibrary.org/research/ejournals/index.htm

 

Websites: See Organization for International Investment (OFII)

 

Exercise (written assignment): Should foreign investors in the U.S. receive national treatment, that is, each treated as if a national (a citizen) in a legal/regulatory sense, or should they face special restrictions? Discuss.

 

Case:  Caveat Emptor (text pp. 118-19, read only, not a written assignment))


 

Oct 22 Country Evaluation and Selection

 

Text: Ch. 12 ’Äì Analyzing International Opportunities

                       

Handouts: #10, #11 

 

Case: Petro-Nigeria (p. 34 in Reader)

 

’Ķ’Ķ’ĶModes of Operating Abroad

 

Text: Ch. 13 ’Äì Selecting and Analyzing Entry Modes, pp. 372-88

                                                                                                                   

Reader: John Markoff, "Ignore the Label, It's Flextronics Inside," New York Times, February 15, 2001; Peter Marsh, "Caterpillar and Cummins; Engine Makers Take Different Routes," Financial Times, July 14, 1998

 

Case: Telecom Ventures (text, p. 391, read only, not a written case)


 

Oct 29 Exporting

 

Text: Ch. 13,  pp. 364-72 and pp. 184-85

 

Reader: Peter Loftus, ’ÄúInternet Turns Firms Into Overseas Businesses,’Äù Wall Street Journal, December 16, 2003; Gabriel Kahn, ’ÄúFinancing Goes Just-in-Time,’Äù Wall Street Journal, June 4, 2004; Doreen Hemlock, "Import Business Isn't As Easy As It Might Look," San Jose Mercury News, November 5, 2000 (from the South Florida Sun-Sentinel)

 

Case: Opportunity Knocks (p. 41 in Reader)

’Ķ’ĶTransportation & Communication

 

Text:   p. 370 (bill of lading)

                                                                                                                                                                                                                                                                                   

Reader: ’ÄúAirlines, A Way Out of the Wilderness,’Äù The Economist, May 3, 2003

 

Web: ’ÄúA Moving Story,’Äù The Economist, December 7, 2002 ’Ķ http://www.sjlibrary.org/research/ejournals/index.htm

 

Case: First in Asia and the World (DHL Worldwide Express), text, p. 175, read only, not a written case 


 

Nov 05 Exam #2


 

Nov 12 Management

 

Text: Ch. 11 ’Äì International Strategy and Organization

 

’Ķ’Ķ’ĶManufacturing

 

Text: Pp. 418-28 (Production Strategy)

                                                                                                                   

Reader: Todd Zaun, et. al., "Two-Way Street; Auto Makers Get Even More Mileage From Third World," Wall Street Journal, July 31, 2002

 

Cases: Indo-Mina (p. 45 in Reader); Bottling Blues (pp. 46-47 in Reader) ’Ķ write up either case

 

Handout: #13


 

Nov 19  Marketing

 

Text: Ch. 14 ’Äì Developing and Marketing Products

 

Reader: Ken Belson, ’ÄúWal-Mart Hopes It Won’Äôt be Lost in Translation, ’ÄúNew York Times, December 14, 2003

 

Case: Fast Food Fixings (Reader, p. 49, to be written up)

 

Film: The Colonel Comes to Japan (C335; 25 min.)

 

’Ķ’Ķ’ĶFinance

 

Text: Pp. 258-65 (International Capital Markets) and pp. 428-34 (Financing Business Operations)

 

Reader: "Offshore Banking," Federal Reserve Bank of St. Louis, n.d.

 

Case: IKEA (text, p. 335, read only, not a written case)


 

Nov 26 Thanksgiving Recess (no class; no classes meet after 5 PM, Wed., Nov. 26)


 

Dec 03 Finance , cont.

 

Text: Pp. 277-78 (currency inconvertibility) and p. 191 (currency controls)

 

Cases: Orinoco Leather (p. 51 in Reader, a written assignment)

 

’Ķ’ĶAccounting

 

Web: "Special Report; Company Accounts Badly in Need of Repair" The Economist, May 4, 2002 ’Ķ http://www.sjlibrary.org/research/ejournals/index.htm;  and ’ÄúOverview of FASB’Äôs International Activities’Äù ’Ķ http://www.fasb.org/intl/index.shtml ; ’ÄúConvergence with the International Accounting Standards Board (IASB)’Äù ... http://www.fasb.org/intl/convergence_iasb.shtml

 

’Ķ’ĶTaxation                                                                                                                

                                                                                                                                                                 

Text:  Pp. 107-08 and 451 (bonus and tax incentives)                                                                           

                                                                                                                                                                 

Reader: Vito Tanzi, ’ÄúGlobalization and the Work of Fiscal Termites,’Äù Finance & Development, March 2001; Grace Weinstein, ’ÄúThe Good and Bad of Moving Overseas,’Äù Financial Times, May 24, 2008 (U.S. taxation of expatriates)

 

Handout: #14


 

Dec 10 Human Resource Issues

 

Text: Ch. 16 ’Äì Hiring and Managing Employees

 

Web: ’ÄúTraveling More Lightly,’Äù The Economist, June 24, 2006 (Special Report: Staffing Globalization) ’Ķ http://www.sjlibrary.org/research/ejournals/index.htm

 

Case: Managing Director (Reader, pp. 57-58, a written assignment)


 

Dec 17 Final Exam (5:15-7:30 PM)