INTRODUCTION TO INTERNATIONAL BUSINESS

Dr. Robert C. Moussetis

 

Office: 119 Loomis - Office Hours:             W: 1:00-3:00pm            TTh: 9:15-9:45 and 2:00-3:00pm (and by appointment)

Phone: 630-637-5475                                romousse@noctrl.edu                                   

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Text: International Business by Ball and McCulloch (latest edition)           Prerequisites: None

 

“NCC Vision Statement: … is a community of learners dedicated to preparing informed, involved, principled and productive citizens and leaders over a lifetime”

 

                            Suggested Vision Statement (?): Control Your Destiny or Someone Else Will

 

Course Description: This is an introduction to the study of International Business. The course will expose the student to issues of globalization and business, the nature of international business, the basic understanding of operations of international business, trade, and, the monetary system. An emphasis will be given to the critical importance of culture and political forces relating to international business. The course will explore the physical environment, social, legal, and labor forces associated with international business. A brief introduction will be given of the principles of importing/exporting and strategies of international business. Finally, an overview of functional management as it relates to international business.

 

OUTCOMES-LEARNING PROCESS- ASSESSEMENT TOOLS

 

Intended Outcomes: After completing this course, a student should be able to:

 

1.                    Define, describe and communicate effectively the principles of international business.

2.                    Demonstrate the capability to recognize, analyze and suggest alternatives to issues and problems in international business. Demonstrate the ability to distinguish, explain, estimate, infer and generalize numerical data in international business.

3.                    Demonstrate an understanding of the basic principles of ethical behavior in international business. Relate effectively an understanding of similarities and differences in ethical behavior between cultures and an understanding of ethical behavior because of legal and political settings.

4.                    Demonstrate a cross-cultural understanding of the management/business practices of other cultures and ethnic groups. Comprehend cultural strategies for success when engaging in international business.

5.                    Demonstrate a comprehensive understanding of the nature and environment of international business and how other cultures, countries, and economies treat business.

 

Learning Process

1.           Lectures/Discussions, group discussions, exams and, participation.

2.           Preparation of Homework assignments (individual and group cases-projects)

3.           Reviews on lectures and homework discussions (in-class)

4.           Articles and Issues discussions on Current International Business topics (in-class).

5.           Some presentations will be accompanied with video presentations.

 

Performance and grades will be based on:

1.                    Demonstrated Capability to articulate and effectively communicate the basic principles of the course. This will be achieved through essay exams, class discussions, case analysis and oral presentations.

2.                    Demonstrated Capability to recognize, analyze and solve basic International Business problems. This will be achieved through case discussions, projects, case analysis, article review and, group discussions.

3.                    Demonstrated Capability to work in groups proactively, effectively implementation of group projects and creative process

4.                    Demonstrated a comprehensive understanding of the ethical implications involved the multicultural implications and the scientific methodology applied to international business. This will be achieved with essay exams, oral presentations, class discussions on historical and current topics, lectures, mini case discussions and homework assignments.

 

Mechanics of performance evaluation (known as grading): Congratulations! You were just hired by the Global Consulting Company (GCC). This is the most prestigious and rewarding company on the planet. The competition for a job in this company is highly intense but you managed to get “your foot at the door” based on the potential for success you demonstrated during the interview. Although you have no experience, the company hired you on a trial basis for 10 weeks. Most of your activities will be small projects, analysis and evaluations of international business issues and term projects. Your permanent appointment will be based on the demonstrated capability to analyze and evaluate international issues, in depth of analysis and evaluation of business related issues, communication skills (oral and written), creativity and innovation and demonstrated capability to work in a team. Furthermore, your boss is a tough person (known as an ogre among the employees) requiring intense work, proactive behavior, no excuses, just get it done, get it done right and get it done on time. Knowing the demands of this assignment, you have your work cut out.

 

Performance Criteria                                                 

                                                                               

Project                                                                     200

Cases                                                                      100

Class Exercises                                                       100                                                         

Articles (10)                                                             200                                                                                         

Readings Check                                                      200                                         

Final                                                                        200

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Total                                                                       1000

 

Grade Distribution

 

900-1000 A

800-899                   B

700-799                   C

600-699                   D

000-599                   F

 


Evaluation components

 

Project: Global Awareness: Students will develop a comprehensive knowledge about a particular country or region of the world (to be assigned). The project will contain (minimally) an economic, cultural, political and legal outlook; it will also contain additional information (articles, etc.) to assist the student in determining business feasibility. Final project will be presented in class.  Written projects are due on the 9th week; presentations are delivered on week 10th. This will be a team project. Each group will deliver a mini presentation using power point. Each group member is expected to participate in the presentation.

Objective achieved: Economic, Socio-Political and Legal nature of International Business. This will further achieve the development of capability to function in a team and the capability to deliver a team project (communication, writing, team meetings, etc.).

 

Articles: Considering the rapid development of global events that potentially impact international business, it is imperative to maintain an active reading agenda and remain informed about global trends and developments. Thus, each student will be assigned a geographical area and every week (week 2-9) the student will research the respective geographical area and generate a written report (one page) about the article. Articles may come from magazines, journals, etc. Each article will be (minimally) 2000 words. Readings will involve international developments relating to business. Each week, students will be expected to make a small (informal) presentation (1-2 minutes) about the article. Such presentations will be used to reinforce course principles, develop communication skills and remain informed. Each written report should (minimally) have:

 

1.        A short summary of the article(s)

2.        Why/How is the article related to the course?

3.        Attach the article in the back of the report.

 

Each report should NOT be more than a page. At the end of the term the student will provide an overall assessment of her/his expertise regarding the assigned geographical area.

 

Articles will be evaluated based on the four elements above. If each element is there, student receives full credit.

 

Geographic Areas For Fall 2001

 

Balkans                                   China                      European Union                                      India-Pakistan                                 

Middle East                             Russia                     South & Central America                     Sub Sahara Continent 

 

Objectives Achieved: Informed Individuals –Communication Skills- Reinforcement of principles

 

Cases: Students will be assigned one case. Students will be expected to develop minimally a written report that will include a short analysis of what the case is about, exhaustive identification and analysis of all issues, ranking the issues according to importance and finally providing suggestions and/or alternatives to address the issues. The case will be a representative issue in International Business.

Objectives Achieved:  Analytical Skills and writing capabilities.

 

Class-Team Work: Students also might be assigned to mini-group projects. The purpose of this component is to develop team skills, communication skills, team performance, analytical thinking, and capability to synthesize. At the end of the term, each student will evaluate each member of his or her group

 

Objective Achieved: teamwork skills - Team Performance – Communication Skills

 

Readings Check: Students will be supplied in advance with a list of questions. Those questions comprise the most critical issues, analytical and synthetic thinking, theories and/or points of international business. Each week students should be prepared to demonstrate that they have completed the readings effectively. Responses that do not demonstrate the rigor of the question will receive no partial credit. Students will also receive additional questions not previously assigned as an opportunity to demonstrate comprehensive understanding of the entire subject matter.

 

Objective Achieved: Capability to communicate effectively critical components and principles of the course. Capability to demonstrate a comprehensive understanding of International Business.

 

PLAGIARISM: Please follow the guidelines of the college. Academic integrity is required. Academic dishonesty will not be tolerated. The grade of “F” will be assigned and the recommendation to be expelled from the institution will be given to the Academic Dean, if a student is engaging in academic dishonesty.


 

Reading Check Points

 


Chapter 1

What is International Business? What are a multi-domestic company, a global company and an international company? Why is International Business Different?

Explain the advantages and disadvantages of globalization. What are the Globalization Forces?

 

Chapter 2

 

Explain the different types of foreign investment.

Why Enter Foreign Markets? How to Enter Foreign markets?

Explain the distinct alternatives to become involved in Foreign Manufacturing.

 

Chapter 3

What is the International Product Life Cycle? Please explain.

Explain the arguments for trade restrictions and their rebuttal

Briefly discuss the type of trade restrictions

 

Chapter 4

Explain the nature and purpose of the following institutions:  UN-IMF-BIS-WTO-NAFTA

What is the European Union? Who is a member?  Will the union succeed?

 

Chapter 5 & 6

What is the Balance of Payments? Explain. What is Euro? What is an exchange rate? What is a Spot rate? What is a Forward Rate?

 

Chapter 7

In International Economic Analysis, what are the dimensions of the economy impacting business and businesspeople? Briefly discuss.

In International Economic Analysis, what are the socioeconomic dimensions impacting business and businesspeople? Briefly discuss.

 

Chapter 8

Why Switzerland makes Watches? Explain the Physical and Environmental Forces.

How is the Location of a country impacts its political and trade relationships?

 

Chapter 9

Discuss how Culture Affects All business Functions.

What are the major Sociocultural Components? Briefly discuss each one. Select one and explain in depth.

 

Chapter 10

Why firms are nationalized? How is nationalism affecting International Companies?

Country Risk Assessment (CRA). Discuss types of CRA, Information content for CRA and who does Country Risk Assessment?

 

Chapter 11

Some Specific National Legal Forces affect every business while others involve few firms. Please briefly discuss each one of them.

Discuss U.S. Laws that affect the International Business of U.S. Firms.

 

Chapter 12

Briefly discuss Labor Mobility (i.e. cause of migrations). In Consideration of Employment Policies by International Companies, what needs to be known and understood regarding Gender and Social Status?

 

Chapter 13

If firms, not nations, compete worldwide, how can we speak of national competitiveness? Explain

Why is overly simplistic to consider Japan and the other Asian countries as one trading block? Explain.

What is industrial targeting? Explain the relevance of counterfeiting and piracy to American business.

 

Chapter 15

What is Market Screening? What is Environmental Scanning? How are they related?

Before the Final Selection of a foreign market, what are the five steps that need to be taken? Identify the steps, the sequence with which must be taken and briefly discuss each one of them.

 

Chapter 16

Discuss the concepts of Standardization and Adaptation when considering the marketing mix in International Business.

Provide Examples of Consumer Products and Industrial modifications in Foreign Environments

Identify and briefly describe the six types of Promotional Strategies commonly used. Name at least five of the world’s most valuable brands

Explain How Firms can hide profits with Transfer Pricing.

 

Chapter 17

Who Exports? Why Export?

Discuss the kinds of Payment Terms offered by Exporters to foreign buyers.

What are the Export Documents of any export shipment? Identify and explain.


 

WEEKLY SCHEDULE

 


 

Chapters

Work Due

Quizzes

Week 1

1

Class Exercises

Pre-test

Week 2

2,3

Article, Class Exercises

Readings Check

Week 3

4,5,6

Article, Class Exercises

Readings Check

Week 4

7,8

Article, Class Exercises

Readings Check

Week 5

9

Article, Class Exercises

Readings Check

Week 6

10,11,

Article, Class Exercises

Readings Check

Week 7

12, 13

Individual Case, Article,

Readings Check

Week 8

15, 16

Article, Class Exercises

Readings Check

Week 9

17

Final Written Project, Article, Class Exercises

Readings Check

Week 10

Presentations

 

Post-test

Week 11

 

 

 

Note: Reading Checks will be based on materials covered the previous week

 

Final Questions

1.        Define multidomestic, global and international companies. Identify and discuss the globalization forces. Explain the advantages and disadvantages of globalization. 

2.        Why and how firms enter the foreign markets. Explain the methods and the reasons for business firms to enter the international markets.

3.        Explain and discuss arguments for trade restrictions and their rebuttal. Identify all the types of trade restrictions and briefly discuss the critical trade restrictions. Explain how trade restrictions impact international business.

4.        Identify the nature and purpose of IMF-EU-WTO. How is globalization related to the IMF and the World Bank? What is the spot rate? What is the forward rate?

5.        Discuss the main economic and socioeconomic dimensions relevant to the international businessperson.

6.        Explain and discuss all sociocultural components. How does culture impact business? Explain.

7.        Explain the types of political risk and briefly discuss the methods of managing political risk (lecture)

8.        Explain and discuss US laws that affect international business of US firms.

9.        Explain and discuss all steps in the selection process of foreign markets.

10.     Discuss standardization versus adaptation and foreign environmental forces.  Identify promotional strategies. Explain how a firm will choose a promotional strategy.

11.     Discuss who exports and why. Explain the methods of exporting and briefly discuss advantages and disadvantages of each method.

12.     Discuss the various export payments terms. Identify and explain what are the export procedures and identify the export documents needed.

 

GRADING

 

Standards of Achievement – Grading – General Guidelines

 

A : Students can define, describe, and communicate effectively their understanding of basic international business consistently and exceptionally. Students participate actively in class discussion, case discussion, and offer alternatives and solutions that are based on concrete theoretical information and/or factual information generated from readings and/or cases. Students can integrate consistently basic theoretical concepts, ethical implications and multicultural issues. Students attend all classes and complete all projects consistently and exceptionally.

 

B: Students can define, describe and communicate effectively most of the basic concepts/issues in international business consistently. Students participate most of the time in class discussion, case discussion and offer alternatives and solutions that are based on concrete theoretical information and/or factual information generated from readings and/or cases. Students can integrate most of the basic theoretical concepts, ethical implications and multicultural issues. Students attend most classes and complete all projects consistently and/or exceptionally.     

 

C: Students can define, describe and/or communicate effectively most of their understanding of basic international business. Students participate most of the time in class discussion, case discussion and/or offers alternatives and solutions that are based on concrete theoretical information and/or factual information generated from readings and/or cases. Students can identify some basic theoretical concepts, ethical implications and multicultural issues. Students attend most classes and complete all projects consistently and adequately.

 

D: Students can define or describe or communicate effectively some basic concepts in international business. Students participate sometimes in class discussion, case discussion and/or offers alternatives and solutions that are based on some theoretical foundation and/or factual information generated from readings and/or cases. Students can identify very few of the basic theoretical concepts, ethical implications and multicultural issues. Students attend most classes and complete all projects but poorly.

 

F: Students are unable to define or describe or communicate effectively some basic understanding in international business. Students seldom or never participate in class discussion, case discussion and offer no alternatives and solutions that are based on some theoretical foundation and/or factual information generated from readings and/or cases. Students can identify very few of the basic theoretical concepts, ethical implications and multicultural issues. Students attend most classes and/or complete some/none of the projects poorly.

 

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THE ABOVE SYLLABUS IS SUBJECT TO CHANGE.

 

Changes are mainly contingent to the

progress of the class