Loyola University Chicago

John Felice Rome Center

IBUS 201 Introduction to International Business

Spring 2016

LOYOLA UNIVERSITY

Rome Center

Quinlan School of Business

 

 

Introduction to International Business (IBUS 201)

M 9:30am-12:00pm

Spring 2016 Syllabus

 

I. GENERAL INFORMATION

 

Instructor:      Marshall Langer

Office hours:  By appointment (convenient times: TR 5:00 – 6:00pm)

Telephone:     +39 347.1763096

Email:             mlanger11@gmail.com

Background:      Wall Street; international corporate/financial management, strategic planning.  Wharton MBA.

 

II. COURSE INFORMATION

 

1. Course Description. The course provides an introduction to international business. Topics include: 1) the effects on international business decisions of cultural, political, legal, and economic forces; 2) a presentation of international business basics such as trade, tariffs, exchange rate regimes, capital markets; 3) a study of the comparative theoretical frameworks for establishing international business enterprises, including trade and investment theory; 4) effects of government intervention and aid. The role of social and economic aid organizations such as the UN, EU, IMF and World Bank will also be discussed.

 

The course is divided into the following 3 parts:

 

1. Assessing the International Business Environment

2. International Strategy

3. Investment and Development

 

2. Learning Outcomes.

 

At the end of the course, students will be able to:

 

  1. Successfully assess and advise on business operations and relationships (with JV partners, government agencies) in complex international business environments.

 

  1. Successfully apply the principal theories of international trade and investment (exchange rate regimes, global stock and bond markets).

 

  1. Effectively 1) integrate in international business endeavors critical intracompany departments such as marketing, manufacturing, accounting, finance, and human resources; and 2) position supply, production, sales functions.

 

  1. Speak knowledgeably on the important role played by multinational economic and social aid organizations such as the UN, EU, IMF and World Bank in facilitating international trade and business.

 

  1. Act ethically, diplomatically, and with emotional sensitivity in international business environments.


III. LEARNING ACTIVITIES

 

1. Active student participation in seminar-style class lecture. Classes are highly interactive.  Instructor prompts students for response to questions posed and solicits his/her thoughts on issues discussed.  Format is probing and direct.  Additionally, instructor provides concrete, real-world examples to illustrate concepts.  Lecture format reinforces by example appropriate methods for asking questions, gaining relevant insights, and making appropriate recommendation. (Contributes to LO A, B, C, D, E)

 

2. In class presentation and discussion of readings by professor and students. Textbook and other assigned readings (assigned according to the schedule in section VIII of this syllabus) present relevant topics, which are covered more depthfully in class lecture.  In class discussion of readings, instructor highlights most relevant reading topics, showing by example how to present data in a stimulating way, consistent with achieving course objectives. (Contributes to LO A, B, C, D)

 

3. Case Study and/or Article Presentation.  Case studies and articles are used to further illustrate real-world examples of subject topics.  For all assigned cases/articles, students should be prepared to answer questions about the case/article and be able to illustrate its subtler aspects. For select cases/articles students will be selected to make a presentation. In class discussion of case studies/articles serves to highlight analytical methods, indicating specifically, ways to discern the most relevant focal points. (Contributes to Learning Objectives A, B, C, D)

 

IV. ASSESSMENT

 

37%     Midterm exam

43%     Final exam

5%       Case study and/or article assignment/presentation

15%     Quizzes and class participation

 

1. Exams. Exams will be composed of essay questions that test your ability to apply concepts discussed through the exam date. (Measures Learning Objectives A, B, C, D)

 

2. Case/Article Analyses and Presentation.  All cases/articles should be prepared for class.  For select cases/articles, where indicated, an individual written submission is due and is assigned based on the schedule in section VIII of this syllabus.  Additionally, for select cases/articles students will be selected to make a presentation.  Your grade for the presentation will reflect much new insight you teach the class (rather than repeat the facts).  Use section VII of this syllabus as a further guide for all written submissions. (Measures Learning Objectives A, B, C, D)

 

3. Quizzes. Short, in-class quizzes will test your comprehension of course materials to date. (Measures Learning Objectives A, B, C, D)

 

4. Class Participation. You will be graded on the quality of, and demonstrated insight of, your in-class comments, including comments related to answers to assigned problems. (Measures Learning Objectives A, B, C, D, E)

 

5. Attendance.  Attendance is mandatory, however a student may miss up to 4 classes without penalty or explanation.  Absences of more than 4 must be approved by the instructor.  More than 4 unapproved absences will result in a reduced grade.


V. REQUIRED COURSE MATERIALS

 

1. Required reading:

 

Online coursepack of required readings consisting of excepts from the following texts.  Other select readings are also posted on the course website.

 

Code

Title

CA

Huijser, Cultural Advantage, Succeeding with Global Teams, International Press, 2006

CC

Greiner, Poulfelt, The Contemporary Consultant, Thomson, 2005

DRS

Daniels, Radebaugh, Sullivan, International Business, 11th Edition, Pearson Prentice Hall, 2007

EB

Maddux, Maddux, Ethics in Business: Manage with Authority and Fairness, Axzo, 2010

 

EM

Hooke, Emerging Markets, A Practical Guide,Wiley, 2001

EU

Bishop, European Union Law for International Business, Cambridge Press, 2009

 

GB

Hill, Global Business Today, 6th Edition, McGraw-Hill Companies, 2008

GM

Keegan, Green, Global Marketing 5th Edition, Prentice Hall, 2007

GP

Freud, Group Psychology and the Analysis of the Ego, Norton, 1974

GS

Inkpen, Ramaswamy, Global Strategy: Creating and Sustaining Advantage, Oxford U. Press, 2005

IA

Kohls, Knight, Developing Intercultural Awareness, 2nd Edition, Intercultural Press, 1994

IB

Woods, International Business: An Introduction, Palgrave Macmillan, 2002

IF

Madura, International Financial Management, Thomson South-Western, 2003

IM

Rodrigues, International Management, 3rd Edition, Sage, 2009

IO

Adler, International Dimensions of Organizational Behavior, 4th Edition, Wadsworth, 1992

KR

Krugman, Obstfeld, International Economics: Theory and Policy, Seventh Edition, Pearson, 2006

MB

Bahrami, Leavitt, Managerial Psychology: Managing Behavior in Organizations, 5th Ed., U. Chicago, 1988

MG

Hill, International Business, Managing Globalization, Sage, 2009

MP

Leavitt, Pondy, Boje, Readings in Managerial Psychology, 4th edition, University of Chicago, 1988

OB

Robbins, Essentials of Organizational Behavior, Prentice Hall, 2004

SM

Lasserre, Global Strategic Management, Macmillan, 2002

 


VI. SUGGESTED OPTIONAL READINGS

 

1. Books.

 

George Stonehouse, David Campbell, Jim Hamill, Tony Purdie, Global Transnational Business: Strategy and Management, Wiley, 2004

Debraj Ray, Development Economics, Princeton University Press, 1998

Napoleon Hill, Think and Grow Rich, St. Martin’s Press, 2001

Diamond, Guns, Germs, and Steel: The Fates of Human Societies, Norton, 2005

Luce, In Spite of the Gods: The Strange Rise of Modern India, Doubleday, 2007

Kynge, China Shakes the World: A Titan's Rise and Troubled Future and the Challenge for America,

Mariner Books, 2007

Hill, International Business, McGraw-Hill, 7th Edition, 2008

Cavusgil, International Business: The New Realities, Pearson Prentice Hall, 2008

 

2. Internet Sites.

 

https://www.csis.org/ for globalization think tank

http://www.earthinstitute.columbia.edu/ for the Earth Institute

http://www.transparency.org/policy_research/surveys_indices/cpi/2005 for data on corruption.

https://www.weforum.org/reports/the-global-competitiveness-report-2016-2017-1 for global competitiveness report and business competitiveness report

http://www.doingbusiness.org/ for Doing Business Survey which provides cost estimates

 

3. Periodicals. Business Week, Harvard Business Review, The Economist.


VIII. CLASS SCHEDULE

 

Please note: Reading should be completed prior to class.

 

 

Week

#

 

 

Date

 

Instruction /

Activity

 

 

Topic

Reading Assignment

(Read for class)

-INTRODUCTION-

1

M 01/18

Lecture

Course introduction and overview of business.

- - - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Current international business opportunities.

- - - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Corporate governance issues in international management.

  Stakeholders.

  Responsibilities of directors, managers.

  Protectionism.

  Legal claims incurred around the world.

- - - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Globalization: political, legal, economic, influences.

--

 

 

- - - - - - - - - - - -

GS: p187-190            

       p196-p198

 

 

 

- - - - - - - - - - - -

GM: C5 excerpt

IB: Chapter 1 (skim)

-ASSESSING THE INTERNATIONAL BUSINESS ENVIRONMENT-

-Culture-

2

M 01/25

Lecture

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - -

Films

Society and culture.

 

 

 

 

 

 

- - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Culturally diverse expressions of personality, emotions.

 

 

- - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Deng Xiaoping

Walmart: The High Cost of Low Price (part)

IO: p42-57

IB: C4 p79-85

IA: Case pages

 

Optional reading

GB: Religious systems

- - - - - - - - - - - -

Pharos (posted)

CA: p66-67, p72

CA: p76-84

IO: Chapter 3 (skim)

-Macroeconomic factors influencing trade-

3

M 02/01

Lecture

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - -

Case Studies

 

 

- - - - - - - - - -

Article

- - - - - - - - - -

Film Clip

Global macroeconomics.

 

- - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Analyzing exchange rates, market indices, GDP, productivity. 

 

Emerging market economics; and currency crisis.

- - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

The international monetary system (optional)

 

 

- - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Weight Watchers in Mexico

Brazil economically vs. Latin American competitors

 

- - - - - - - - - - - - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

The Global Flow of Funds (optional)

- - - - - - - - - - - - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - -

Life and Debt (Globalization and the Jamaican Economy)

KR: C12 p279-280,

                p283-288

- - - - - - - - - - - - 

IF: C4 p111-114

IF: C6 p174 (bot)-176

KR: C22 p616-618

 

Optional reading

GB: C10

IB: Chapter 3

KR: C14 p346-353

- - - - - - - - - - - - 

p7-10 + Exhibit 1 & 7

MG: Case 5.2 (with notes)

- - - - - - - - - - - - 

Posted online

 

 

 

Week

#

 

 

Date

 

Instruction /

Activity

 

 

Topic

Reading Assignment

(Read for class)

-Political Economy, Trade and Government Influence-

4

M 02/08

Lecture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - -

Film Clip

International trade theory and foreign direct investment.

 

 

Government influence.

Tariffs, subsidies.

 

 

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Role of financial aid organizations.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

 

Exporting and importing. (optional)

Economic unions. (optional)

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Battle in Seattle (WTO)

IB: C2 p32-p37

GB: FDI reading

 

DRS: C7 p243-248 (mid)

p253 (mid)-256 (mid)

 

Optional reading

KR: C8 p176-191

- - - - - - - - - - - - 

IMF, WB article

- - - - - - - - - - - - 

Optional reading

IF: C19 with notes

GB: Economic unions

GM: C8 excerpts

DRS: Chapter 13

 

-INTERNATIONAL STRATEGY-

-HR Management Strategy-

5

M 02/15

Lecture

Characteristics of good international manager: initiative, decisiveness, judgment.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

International human resource management.

 

See: http://www.worldwideconsulting.com/hr_law.htm

MP: Chapter 9

 

- - - - - - - - - - - -

IB: C10 p252-267

 

6

M 02/22

Lecture

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - -

Film Clip

Managing foreign nationals.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Sexual harassment (and other safety issues)

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Managing multinational teams.

 

 

 

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

The multinational team

IM: C7 p241-249 (top)

          p255-259

- - - - - - - - - - - -

See sexual harassment reading and notes

- - - - - - - - - - - -

IO: p126-141

 

Optional readings

GP: Group psych

OB: C7 p112-118

MB: C15-18

7

M 02/29

Exam

Globalization consulting

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Midterm exam.

CC: Global Consulting

--

M 03/07

No Class

--

--

 

 

 

Week

#

 

 

Date

 

Instruction /

Activity

 

 

Topic

Reading Assignment

(Read for class)

-Leadership in International Context-

8

M 03/14

Lecture

 

 

 

 

 

 

- - - - - - - - - -

Case Study

Leadership of an international workforce.

 

 

 

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Ethical business behaviors in an international context

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Bernabe’ at ENI

OB: C10 p166-175

CA: p58-p61

 

Optional reading

HR: Int’l HR

- - - - - - - - - - - -

EB: Chapter 5

- - - - - - - - - - - -

p85-94

-Company Analysis, Valuation and Negotiation-

9

F 03/18

Lecture

Analyzing/valuing multinational companies.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

International negotiations.

EM: C4 p59-67

- - - - - - - - - - - -

IO: Int’l negotiations

MG: Int’l negotiations

 

Optional reading

EU: EU laws and dispute resolution

-Strategy Development-

10

M 03/21

Lecture

 

 

 

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - -

Case Studies

 

- - - - - - - - - -

Film Clip

International strategy alternatives.

 

- - - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Country evaluation.

Country analysis (ISTAT)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      -            

Global corporate strategies.

 

See re strategy:

http://www.mckinsey.com/client_service/strategy/expertise/corporate_strategy

 

http://www.mckinsey.com/client_service/strategy/expertise/business_unit_strategy

- - - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Amazon Europe

IMG

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -                     

Cola Wars (business expansion in the Middle East)

IB: C5 p105-113

SM: C7 p195-207

- - - - - - - - - - - -

DRS: C12 p8-13, p20-23

 

- - - - - - - - - - - -

See websites

 

 

 

 

 

 

 

- - - - - - - - - - - -

p7-14

p1-2, p7-11

--

M 03/28

No Class

--

--

-Marketing-

11

M 04/04

Lecture

 

 

 

- - - - - - - - - -

Film

International marketing

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Advertising and marketing communications.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Inside Saatchi Marketing Communications

IB: C8 p183-186,

            p190-195

- - - - - - - - - - - -

GM: Advertising

p445-447, p450-454

 

 

 

 

 

 

12

M 04/11

Lecture

 

 

 

- - - - - - - - - -

Case Study

Consumer behavior internationally

 

 

Branding

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Local Memoirs of a Global Manager

See article:

p430-437, p445

 

See Manchester United case p614-625

 

 

 

Week

#

 

 

Date

 

Instruction /

Activity

 

 

Topic

Reading Assignment

(Read for class)

-INVESTMENT AND DEVELOPMENT-

-International Finance-

-Emerging markets-

13

M 04/18

Lecture

 

 

 

 

 

 

 

 

 

 

 

 

 

- - - - - - - - - -

Case Studies

Financial statement analysis.

 

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

International financial markets.

Foreign exchange risk management.

Hedging tools.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Emerging market opportunities

Characteristics of emerging markets.

 Infrastructure issues: physical, institutional, financial, legal

 Property rights (including intellectual property)

 Capital markets

 Taxation and expropriation issues.

- - - - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Banco Solidario (microfinance)

 

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

The International Investor: Islamic Finance and the Equate Project

FA: Sections 3-6

Notes and excel file posted online

- - - - - - - - - - - -

IF: C3 p67-81, p83-87

IF: C6 p172-174

IF: C5 p133-140

- - - - - - - - - - - -

 

EM: p26-54 (skim)

 

 

 

 

- - - - - - - - - - - -

Focus on p6 (Strategy) -13, Exhibits 2, 3

- - - - - - - - - - - -

p1, p4-9

 

-CAREER OPPORTUNITIES IN INTERNATIONAL BUSINESS-

-EXAM-

14

TBD

Activity

- - - - - - - - - -

Exam

Career opportunities

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -      

Final exam

Interviewing, CV’s

- - - - - - - - - - - -