International Business Fundamentals (IBS 9600):
1.5 Credits
Professor Rajeev J. Sawant
Aaronson Department of Marketing & International Business
Tel. 646 312 3410
E-mail:
Office VC-13 249
Course Description
The global macro-economic environment of business, and strategic responses to its challenges; foreign trade and investment: problems, patterns, and opportunities; the language of international business.
Course Objectives
Managers of all companies, regardless of the geographic scope of their own activities, are exposed to the impact of developments in the global environment, on which they usually have no control. Environmental influences like politics, economics, social trends, technology, environment and laws affect business strategies. Companies operating internationally are directly affected by such developments, which shape the environment in which they operate. Examples include rapidly changing economic and institutional environments, monetary and fiscal government policies, currency fluctuations, trade agreements, stock market booms and busts, activities of international organizations and NGOs, and social and labor unrest. These phenomena often confront firms with formidable challenges, and at the same time, also create business opportunities. Because these influences occur on a large, global scale, their impacts can be difficult to assess, predict and handle. Effective managers need to develop tools and techniques to analyze their business environment. Appreciation of these complexities of national institutions and multiple stakeholders helps managers allocate resources efficiently to sustain and grow their businesses.
This course will enable you to better evaluate the associated risks and opportunities of such global phenomena, and will deepen your understanding of the strategic consequences of global macro-economic, political and social developments. It will equip you with tools and frameworks to make informed managerial choices in response to these challenges and opportunities, and to adopt sustainable and profitable strategies. You will learn how to respond effectively to these external developments, not controlled by firms, and turn them into proprietary competitive advantage. Firms that possess an understanding of these developments, and have the tools and means to analyze their strategic consequences perform better in global markets.
Cases of multinational companies, drawn from a wide set of geographic regions and industrial backgrounds, will be used to illustrate the strategic importance of explicitly incorporating the macroeconomic environment in strategy of firms operating internationally. We will also incorporate in our discussions contemporary developments taking place at the intersection of the macroeconomic environment and international strategy. We will discuss these issues with a combination of data and lingo. Don’t be put off by these. They are the primers you need to know in order to follow markets and economies.
What you will get from the course depends on what you put in. Come prepared so you can get the most out of the course. As a start, avoid absentees from class to the extent possible. Your presence in class is essential to your ability to understand and apply the material covered in this course. And please note that excessive absences are perceived indicative of a lack of commitment and will be reflected in your course evaluation. Your presence in class alone will not be sufficient. It is essential that you thoroughly read the reading material and articulate your views of the issues of the day prior to the class. I also expect you to effectively contribute to class discussions. The ability to present one's ideas concisely and persuasively, and to respond effectively to those of others, are key success factors in any managerial position. One of the goals of this course is to help you sharpen these abilities. I encourage you to regularly follow the business press – as a matter of habit that goes beyond the course – and share relevant news articles and company examples with the class.
By the end of the course, you can expect to:
- Understand the macro environment within which international business activity takes place and gain tools to analyse the strategic and managerial consequences of changes in this environment.
- Understand the impact of government policies on the economic and financial environments confronting firms operating internationally, and their impact on the range of strategic alternatives available for these firms.
- Deepen your understanding of the relationships between firms and foreign governments, and the drivers of government policies towards foreign firms.
- Gain an understanding of the major modes of cross-border activity, including capital (portfolio investment), goods (trade), and companies (FDI), and the managerial challenges and opportunities associated with them.
MBA Learning Goals:
This course will address the following MBA learning goals:
- Global Awareness: You will develop understanding of differences in political, economic, legal and institutional environments in different countries, which will assist you operating effectively in a global economy.
- Knowledge Integration: You will gain knowledge of how the different functional areas in business are applied to create and implement effective solutions to international business problems.
- Ethical Awareness: You will develop sensitivity to ethical issues across countries, and an understanding of ethical conflicts across countries and the challenges they represent for companies that operate internationally.
Course Material
Textbook: Charles Hill, Global Business Today. McGraw-Hill, 7th edition, 2013. A few copies are on reserve in the Newman Library.
Course Structure and underlying Principles
We will use the Socratic method which is a Q and A format and requires intensive class participation. Class overheads are posted on Blackboard before classes. Please read the chapter and the slides before coming to class. I follow the slide structure in general but do not conduct the class through slides. Please note the class participation grade.
Make sure that you have full access to Blackboard, and you are accessible via Blackboard (so you receive my e-mails). Any difficulties with Blackboard should be addressed to Blackboard helpdesk:
Prerequisites
There are no prerequisites for this course.
Performance Evaluation:
First exam – 40%
Final exam – 40%
Both exams are multiple-choice exams. You are allowed one sheet of notes for the exam. They cover all the course material, including the readings, cases and class discussions. Samples questions will be distributed in advance.
Class participation – 20%
Grades will be posted on Blackboard a few days after the exams. The final grades will be posted on Blackboard shortly after finals week, and before being submitted to the Registrar Office.
Other Administrative Issues
Try to avoid missing classes. It is understandable that there might be circumstances that are beyond your control, but please try to keep these to a minimum. Given the nature of this course, where learning is largely based on class discussions, it is difficult, if not impossible, to complete the course successfully without attending classes regularly.
Zicklin School of Business students are requested to read the Written and Oral Communication Assessment Criteria. Students are additionally expected to adhere to writing standards described in of The Little, Brown Writing Handbook, (10th edition) by Fowler and Aaron.
Academic Integrity:
Plagiarism is not tolerated and our school has a very strict policy for such behaviour, which I fully endorse. Baruch College's policy on Academic Honesty is outlines in
http://www.baruch.cuny.edu/academic/academic_honesty.html).
I trust there will be no need for such actions in our class.
Meeting outside class: According to a previously agreed appointment. I encourage you to get in touch so that I can help you get the most out of this course and reach your highest possible achievements. The best way to reach me is via e-mail. The worst is showing up in my office without notice. Please try to avoid it.
Course Plan
Class / Date / Topics Covered / Textbook Chapter1 / Thu, Aug 28 / Introduction: Firms in a global world / 1
2 / Tue, Sep 2 / National differences in political economy / 2
3 / Thu, Sep 4 / Differences in culture
Ethics in international business / 3
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4 / Tue, Sep 9 / International trade theory / 5
5 / Thu, Sep 11 / The political economy of international trade / 6
6 / Tue, Sep 16 / Foreign Direct Investment / 7
7 / Thu, Sep 18 / The foreign exchange market / 9
8 / Tue, Sep 30 / International monetary system / 10
9 / Thu, Oct 2 / First exam / 1,2,3,4,5,6,7,9,10
10 / Tue, Oct 7 / The strategy of international business / 11
11 / Thu, Oct 9 / Entering foreign markets / 12
12 / Tue, Oct 14 / Global production, outsourcing and logistics / 14
13 / Thu, Oct 16 / MNEs versus governments: The political economy of international business / 15
14 / Tue, Oct 21 / Review
Exam week / Tue, Oct 23 / Final exam / 9,10,11,12,14,15
(*) A few copies of the textbook are on reserve in the Newman Library for students taking this course.
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