Catalog Description:

A study of the various forces of the foreign and international environments, such as legal, political, financial, sociocultural, and economic. These forces influence on the transferability of business concepts as learned in this country is investigated.

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Required Text:

Ball, Donald A., McCulloch, Wendell H., Jr., Frantz, Paul L., Geringer, J. Michael, Minor, Michael S. International Business: The Challenge of Global Competition, 9th, Irwin/McGraw-Hill, Boston, MA 2002.

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Course Objective:

To have students make significant progress in developing their ability to think and communicate about the diverse and fascinating realm of international business and the role of those corporations capitalizing on the opportunities available in the world marketplace. This is not a course in marketing, management, finance, accounting or any other branch of business. We will examine those subjects only as influenced by operating in the international marketplace. By the end of the course, students will have a global perspective, be aware of the forces that international firms face, and the problems and opportunities challenging the businessperson.
Text and additional readings will serve as an outline for the course material. Key points and concepts will be discussed in class, but not all topics will be covered in class. Students are encouraged to search for relevant material from business and academic journals and periodicals to add to the class discussions.

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Methods:

1) Readings (Chapters and Additional Articles);
2) Lectures
3) Class Discussions;
4) Country Research Project.

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Expectations:

1) Read all assigned material prior to attempting discussion or papers.
2) Observe proper etiquette during threaded discussion.
3) Pay attention, be alert, ask questions, and participate in discussions.
4) Organize your time to meet deadlines.
5) Participation is crucial for success. Regular contributions are expected of all students.

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ADA Policy

In accordance with the Americans with Disabilities Act, students with bona fide disabilities will be afforded reasonable accommodation. The Office of Special Student Services will certify a disability and advise faculty members of reasonable accommodations.

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Statement on Changes in Course Requirements

Since all classes do not progress at the same rate, the instructor may wish to modify the above requirements or their timing as circumstances dictate. For example, the instructor may wish to change the number and frequency of exams, or the number and sequence of assignments. However, the students must be given adequate notification. Moreover, there may be non-typical classes for which these requirements are not strictly applicable in each instance and may need modification. If such modification is needed, it must be in writing and conform to the spirit of this policy statement.

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Grading:

1) Three (3) in-class examinations, (22.5% each, 67.5% of total);
2) Research Project (22.5% of total)
      A) 20 page Country Review;
      B) Executive Summary;
3) Discussion Participation, including outside additions to relevant discussions (10% of total);
      A) Competitive based on Chips Earned in Discussions;
      B) Chips can be earned for:
           1) Insightful Questions, Comments, and Observations;
           2) Adding interesting or particularly relevant topics for discussions;
           3) Integrating relevant topics from previous discussions, other classes, other disciplines
               to present discussion.

Class Participation:
90-100% Outstanding attendance, consistent, high-level involvement in class discussion, leadership in class discussions, consistent group leadership and contributions;
80-90%   Regular attendance, consistent and regular involvement in class discussions, some group leadership and consistent group contributions;
70-80%   Regular attendance, periodic involvement in class discussions, little group leadership and some group contributions;
60-70%   Irregular attendance, little involvement in class discussions, no group leadership and few group contributions;
< 60%     Sporadic attendance, passive or reluctant to join class discussions, no group leadership and no group contributions.

Final Grade Listing:
     A = 90.00 and above;
     B = 80.00 through 89.99;
     C = 70.00 through 79.99;
     D = 60.00 through 69.99;
     F = 59.99 and below.

You will get what you earn!

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Reading and Class Assignments

Week #1 - 1/14
Course Introduction
Chapter 1 - The Rapid Change of Global Business

Week #2 - 1/21
Chapter 1 - continued
Chapter 2 - Trading and Investing in International Business

Week #3 - 1/28
Chapter 3 - Economic Theories of International Business

Week #4 - 2/4
Chapter 4 - The Dynamics of International Organizations

Week #5 - 2/11
Chapter 5 - Understanding the International Monetary System

Week #6 - 2/18
Exam #1

Week #7 - 2/25
Chapter 6 - Financial Forces: Influencing International Business
Chapter 7 - Economic and Socioeconomic Forces

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Week #8 - 3/3
Chapter 8 - Physical and Environmental Forces
Chapter 9 - Sociocultural Forces

Week #9 - 3/10
Chapter 10 - Political Forces
Chapter 11 - Legal Forces

Week #10 - 3/17
Spring Break - No Class

Week #11 - 3/24
Chapter 12 - Labor Forces
Chapter 13 - Competitive Forces

Week #12 - 3/31
Exam #2

Week #13 - 4/7
Chapter 15 - Assessing and Analyzing Markets
Chapter 16 - Marketing Internationally

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Week #14 - 4/14
Chapter 17 - Export and Import Practices
Chapter 18 - Human Resource Management

Week #15 - 4/21
Chapter 19 - Financial Management
Chapter 14 - International Strategy, Organizational Design, and Control

Week #16 - 4/28
Chapter 20 - Global Operations Management: The 3rd Industrial Revolution
Country Project Paper Due

Week #17 - 5/5
Exam Week, Wednesday - 6:00 PM
Exam #3

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Class Discussion Topics

For each chapter we will have a class discussion topic. In class we will discuss the topics and it is up to you to make comments on the topics, and comment on someone else's discussion. Before you come to class think about the issues involved, relevant to the topic, and develop a clear thought pattern to express your point of view. Be ready to defend your position! Bring in outside resources if you can to help form or defend your stance! Insightful discussion is highly valued!

Chapter 2 - Trade and FDI
Does trade lead to FDI or does FDI lead to trade?

Chapter 3 - Export Promotion vs. Import Substitution
Discuss the dilemma facing developing economies. Are there any solutions that can help them overcome or cope with this problem? How do the international trade and FDI theories play into this scenario?

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Chapter 4 - WTO and GATT
Discuss the impact of GATT and now the WTO on world trade, with an examination of their impact on a country's internal policies. Is membership in WTO enough of an incentive to force or get a country to modify its policies or laws?

Chapter 5 - The European Central Bank and the EURO
With the coming of a European Central Bank (ECB) and the EURO as a currency, what are the pros and cons of these events? Why have some countries in the EU opted not to use the EURO as their currency, but to keep their own currency as their primary currency? What does this do to the strength and stability of the ECB and EURO?

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Chapter 6 - Host Country BOP Deficits and Corporate Management
Host country governments have two basic ways to deal with a BOP Deficit, market and non-market methods. Discuss from the point of view of corporate management the impact of the two methods on decision making and what corporate management can do to assist the host country government in the accomplishment of its goals.

Chapter 7 - Complications of Managed Float
The involvement of governments in the monetary exchange market "dirties" the exchange process. What are the complications and ramifications of a government's intervention in the monetary markets? How does this involvement affect corporate and individual exchanges? Is there a lasting effect on currency exchange rates by this governmental involvement?

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Chapter 8 - Physical Forces as Barriers
Physical forces can have a serious impact on the success of any enterprise and impact much of life in general. It could impact culture, it could impact economics, it could impact population issues, and it could impact business success. Physical forces restrict many activities. Comment on the impact of physical forces on business in the past, in the present, and in the future.

Chapter 9 - Religion and Education as Factors Impacting IB
Discuss the impact of both religion and education on three aspects of a firm operating subsidiaries in host nations. The three areas of concern are the marketing manager and department, the production manager and department, and the human resource manager and department. In your discussion, try to include some assessment of different areas of the world on these three aspects of business.

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Chapter 10 - Terrorism and Business
In view of recent events, let's do an assessment of the impact of terrorism on business. Draw in recent news reports to illustrate your contentions on the effects of terrorist acts on business operations. Include specific issues related to political ramifications, but you may include other aspects as well.

Chapter 11 - Anti-trust in the EU and US: Is It a Problem for Business?
In view of several failed mergers, caused by the EU's anti-trust laws (example: GE and Honeywell), what does the lack of common anti-trust thinking between the two largest economic areas mean for large business mergers? What are some of the non-common areas of concern for the two entities, which can cause mergers to be denied? How does this lack of commonality impact businesses in their planning?

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Chapter 12 - Reasons for and Results of Labor Productivity
Discuss the issue of labor productivity from the perspective of several levels of economic development. Include in the discussion topics such as reasons for increased productivity, resulting levels for the different reasons, how it may be different at different economic levels, and how it may be different even at the same level of economic development.

Chapter 13 - Competitiveness and Benchmarking
Discuss the relationship between competitiveness and the use of benchmarking as an improvement tool. Are there issues related to benchmarking that limit its usefulness in increasing a firm's competitive position? Is continuous improvement a form of benchmarking? Why or why not?

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Chapter 14 - Organizational Design and Decision making
It is apparent that some decisions in an international organization should be made by the parent company, and the subsidiary units should make others. Discuss the issues related to the organizational design of the firm and decision making locations. Does the design impact the decision making efficiency of a firm? Depending on the international scope of a firm, will a different design enhance the decision making performance?

Chapter 15 - Market Segments across Borders
We generally view the world with respect to political borders, but in international business we should be thinking in terms of market segments, which extend across political borders. Another area of concern is that these market segments may be subcultures in two or more larger markets. Discuss these related issues and bring in examples of real world situations, which have one or both of these problems.

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Chapter 16 - The Standardization vs. Adaptation Debate
There are obvious benefits to each side of the standardization/adaptation debate. Marketing managers continually struggle with this decision and which position is most beneficial to serving the markets as well as providing competitive advantage. An additional constraint may be organizational structure. Discuss the issues of relevance from the information provided in Chapter 14 on organizational structure and its impact on the standardization/adaptation decision.

Chapter 17 - Free Trade Zones
Many nations have Free Trade Zones (in the US they are called Foreign Trade Zones), which offer a temporary reprieve from customs costs and restrictions. Discuss the establishment of these zones and their impact on international trade from the perspective of nations at differing levels of economic development. Does a Free Trade Zone benefit one level of economic development over another? Can a nation's businesses use these Zones to increase its competitive position?

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Chapter 18 - The Influence of Expatriate Managers
With the internationalization of business and firms, management teams with a broad spectrum of cultural backgrounds now head many firms. Discuss the impact and influence of the cultural backgrounds of this management diversity on the performance of a firm. Does a firm gain or lose competitive advantage due to this diversity? Are there other HR considerations, which impact a firm because of this diversity?

Chapter 19 - Countertrade: How Large Is It Internationally?
The six basic forms of countertrade encompass a significant set of possibilities for encouraging and improving international trade. Discuss the impact of the concept on international trade. Does one form of countertrade have more impact than the others? How is it used to create trade where trade might not exist without it?

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Chapter 20 - Global Sourcing: The Good and the Bad!
Global sourcing has become the common method for firms to operate. Discuss the issues related to regional trading groups and global sourcing, LDCs and global sourcing, and global sourcing's impact on employment.

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Information on Country Research Project

Concept of Project:
To understand the differences between different marketplaces and learn how to investigate, research, and compile relevant information for business people on different markets.

Process for Completion
1) Start early in the semester;
2) Choose a country (not your home country), (instructor must approve your country before
     you begin work on the project);
3) Develop an understanding of the differences between the US market and your chosen
     country's marketplace, but you do not have to detail the information about the US market;
4) Write an approximately 20 page paper concisely detailing the important differences and
     their potential impact on business relationships (remember you do not have to detail the
     US marketplace for me only the differences);
5) Write an executive summary outlining the important differences.
6) Country Project Due on April 28.

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