DR. DAVID M. HOPKINS
Office: BA #459
Phone: 871-2210
E-Mail: dhopkins@du.edu
FALL, 1998
1:00 - 2:50 A.M.
Monday/Wednesday
BA #456
I. COURSE DESCRIPTION:
This course is intended to acquaint the student with the field of
international business. As such, it deals with the management of organizations
which operate, directly or indirectly, in more than one country. While
the major focus will be the multinational corporation, management of smaller
firms which only export will also be considered. The primary emphasis will
be on the special management problems which are unique to multi-national
operations. As such, the course deals with the management of products,
capital, and human resources. The course also explores the various types
of conflicts which the multi-national enterprise encounters in dealing
with the various constituencies which affect, and are affected by, its
operations. We will also examine how the management task is performed in
different cultures.
II. COURSE REQUIREMENTS:
The following will be required of the student in this course:
A. To do an extensive amount of assigned and independent reading in
order to actively and usefully participate in class discussions.
B. To take a mid-term and a final examination composed of both objective
and essay questions over the assigned reading and material discussed in
class.
C. To participate in class exercises and group assignments.
COURSE EVALUATION:
The student's grade in the course will be determined by the performance
on the following components; the weighting of each component is shown in
parentheses.
A. The student's conceptual understanding of the material as demonstrated
by their participation in class discussions and exercises. Poor attendance
will adversely affect this portion of the grade. (30%)
B. The score on the midterm exam. (35%)
C. The score on the final exam. (35%)
IV. COURSE OBJECTIVES:
A. To acquaint the student with the relevant theories and concepts
associated with international management and international business.
B. To increase the student's awareness of the growth, diversity, and
complexity of multi-national operations.
C. To increase the student's understanding of the intricate and important
linkages between international economics and politics and the resulting
impact on the multinational enterprises.
D. To introduce the student to management tools and techniques which
are particularly suited to managing multinational enterprises.
E. To instill in the student an appreciation of diverse cultures and
the resulting difficulties which such diversity presents to the multinational
firm.
F. To inform the student of the various types of conflicts facing the
multinational corporation as it deals with a variety of different constituencies.
V. REQUIRED TEXT:
Michael Czinkota, et.al. GLOBAL BUSINESS, Second Edition.
New York: The Dryden Press, 1998.
VI. CREDITS AND PREREQUISITES:
This is a 4 quarter hour course. Students taking the course will normally
be undergraduate juniors or seniors. As a minimum, the student must have
completed the introductory course in management (i.e. MGMT2000 in the old
curriculum, or BSBA1300 in the new business core).
VII. CHEATING:
Please be aware that a new Honor Code is in effect beginning with the
Fall Quarter. Excerpts from that code state:
Code of Academic
Integrity of the Daniels College of Business
Beginning with Fall quarter 1998, the Code of Academic Integrity (Code)
of the Daniels College of Business is binding on all students, staff, faculty
and administrators. The Code recognizes that the Daniels College's culture
is anchored in two linked concepts, the learning community and the just
community.
Our learning community seeks to foster a healthy spirit of competition
and cooperation and recognizes that one complements the other. … [T]he
just community …work[s] in concert to develop humanity in the individuals
and to preserve and nurture the culture of the community.
At the core of our community are certain bedrock principles. The Code
… is the written expression of those shared ethical norms, standards and
principles. … [A]ll assume the obligation to protect the community and
to not tolerate conduct which is inimical to the goals of the community.
Deeply shared virtues that serve as guideposts for right action are prudence,
courage, trust, honesty, integrity, beneficence, civility, dependability
and tolerance. …
The Academic Integrity of the Daniels College of Business is violated
when any member of the community appropriates the work of another as his/her
own without attribution. Whether in testing, research, case studies, written
reports or other academic assignments, using that which is the product
of another's intellectual effort and representing it as one's own is a
violation intolerable to the integrity of the community of the College.
The academic integrity of the College is also violated when any member
of the community takes unfair advantage of his/her colleagues or gives
assistance to such conduct whether in testing or in the development of
other academic assignments.
VIII. IMPORTANT DATES:
September 18th Last day to
register for credit
October 23rd Last day for automatic withdrawal
ASSIGNMENTS
I. MONDAY, SEPTEMBER 14:
A. TOPIC: THE SCOPE OF INTERNATIONAL
BUSINESS
B. ASSIGNMENT:
Chapter 1, "The Global Business Imperative"
C. KEY CONCEPTS:
1. International Business
2. First-Fourth Worlds
3. North, South, East, West (Relations & Issues)
4. Merchandise Imports & Exports
5. Service Imports & Exports
6. Foreign Direct Investment (FDI)
7. Multinational Corporations (MNC’s) & Enterprises
(MNE’s)
8. Developed Countries
9. Developing Countries
II. WEDNESDAY, SEPTEMBER 16:
A. TOPIC: THEORIES OF TRADE AND INVESTMENT
B. ASSIGNMENT: Chapter 2, "The Theory of Global Trade
& Investment"
C. KEY CONCEPTS:
1. Mercantilism
2. Absolute Advantage
3. Comparative Advantage
4. Natural Advantage
5. Acquired Advantage
6. Product Life Cycle
7. Purchasing Power Parity
8. Factor Proportions Theory
9. Leontief Paradox
III. MONDAY, SEPTEMBER 21:
A. TOPIC: THE ECONOMIC ENVIRONMENT OF INTERNATIONAL
BUSINESS
B. ASSIGNMENT:
Chapter 3, "The International Economic Activity
of the Nation:The Balance of Payments"
CASE: "The World Automobile Market," pp. 72-76
C. KEY CONCEPTS:
1. Balance of Payments
9. Market Economies
2. Surplus/Deficit
10. Centrally Planned Economies
3. Current Account
11. Historically Planned Economies
4. Merchandise Trade Account 12. Transitional Economies
5. ServiceTrade Account
13. Developed Economies
6. Unilateral Transfers
14. Developing Economies
7. Capital Account
8. Official Reserves
IV. WEDNESDAY, SEPTEMBER 23:
A. TOPIC: THE POLITICAL ENVIRONMENT OF INTERNATIONAL
BUSINESS
B. ASSIGNMENT:
Chapter 7, " The Legal and Political Environment
of Global Business" [only pages 218-243]
CASE: "The War of the Bananas," pp. 203-206
CASE: "Lobbying in the United States," pp. 212-214
C. KEY CONCEPTS:
1. Sovereignty
14. Common Law
2. Nation – States
15. Civil/ Code Law
3. Domestication
16. Theocratic Law
4. Confiscation
17. Democracy
5. Expropriation
18. Totalitarianism
6. Nationalization
19. Political Rights
7. Extraterritoriality
20. Civil Liberties
8. Import Substitution
21. Infant Industry
9. Export Promotion
22. Essential Industry
10. Terms of Trade
23. Protectionism
11. Political Risk
24. Tariffs/Non-Tariff Barriers
12. International Governmental Organizations (IGO'S)
13. International Non-Governmental Organizations
(NGO'S)
V. MONDAY, SEPTEMBER 28:
A. TOPIC: THE CULTURAL ENVIRONMENT OF INTERNATIONAL
BUSINESS
B. ASSIGNMENT:
Chapter 8: "The Cultural Environment"
CASE: "Old Ways, New Games," pp. 77-79
C. KEY CONCEPTS:
1. Culture
2. Power Distance
3. Uncertainty Avoidance
4. Individualism - Collectivism
5. Masculinity - Femininity
6. Adversarial - Cooperative
7. Egalitarian - Hierarchical
8. Universalist – Particularist
9. Ascribed - Acquired Group Memberships
10. Fatalism or Determinism
11. High Context – Low Context
12. Monochronic - Polychronic
VI. WEDNESDAY, SEPTEMBER 30:
A. TOPIC: COMPARATIVE MANAGEMENT
APPROACHES
B. ASSIGNMENT:
CASE: "The Culture of Commerce,"
pp. 334-336
C. KEY CONCEPTS:
1. Intrinsic vs. Extrinsic Rewards
(Employee Motivation)
2. Ringi (Decision Making)
3. Keiretsu (Organizational Structure & Relationships)
4. Achievement vs. Experience (Employee Promotion)
5. Position vs. Relationship Orientation (Negotiation)
6. Guilt vs. Shame Cultures (Employee Discipline)
VII. MONDAY, SEPTEMBER 29:
A. TOPIC: IMPORTING AND EXPORTING
B. ASSIGNMENT:
Chapter 1, pages 17-27 only;
Chapter 6, "National Trade and Investment Policies;"
Chapter 11, pages 406-411 only;
Chapter 14, pages 516-526 only.
CASE: "Lakewood Forest Products," pp. 485-487
1. INCOTERMS
11. Export Licenses
2. Tariffs
12. CISG
3. Non-Tariff Barriers (NTB’s)
13. Foreign Trade Zone
4. Quotas & Tariff Quotas
14. Duty Drawback
5. Most Favored Nation Status (MFN) 15. Countertrade
6. Dumping
16. GATT/ WTO
7. Generalized System of Preferences 17. Methods
of Payment
8. Intellectual Property Rights (IPR)
18. Sources of Financing
9. Patents, Copyrights, Trademarks
19. Arbitration
10. Buy Local Programs
20. Pricing Considerations
VIII. WEDNESDAY, OCTOBER 7:
A. TOPIC: FOREIGN DIRECT INVESTMENT AND MNE’s
B. ASSIGNMENT:
Chapter 9, pages 301-312 only.
CASE: "A Taste of the West," pp. 510-513
C. KEY CONCEPTS:
1. Foreign Direct Investment
8. Domestication
2. Portfolio Investment
9. Scale Economies
3. Inward Investment
10. Vertical Integration
4. Currency Convertibility
11. Country of Origin
5. Profit Repatriation
12. Home Country
6. Local Content Laws
13. Host Country
7. Technology Transfer
14. Extraterritoriality
15. FCN Treaties/ BIT Treaties
IX. MONDAY, OCTOBER 12:
A. TOPIC: REGIONAL ECONOMIC INTEGRATION
B. ASSIGNMENT:
Chapter 5, "Econ. Integration and Emerging Mkt.
Economies"
CASE: "Hong Kong," pp.64-71
CASE: "North American Free Trade Agreement," pp.
207-208
C. KEY CONCEPTS:
1. Free Trade Areas
9. Regionalism/ Multilateralism
2. Customs Unions
10. Rules of Origin/ Local Content
3. Common Markets
11. Trade Creation/ Trade Diversion
4. Monetary Unions
12. Commodity Agreements
5. The Europe Union (EU) 13. Buffer Stocks
6. PRC/Hong Kong
14. Mutual Recognition
7. NAFTA
15. OPEC [cartels]
8. ASEAN
16. MERCOSUR
X. WEDNESDAY, OCTOBER 14:
MIDTERM EXAM: Covers assigned text pages
and cases, plus class material.
XI. MONDAY, OCTOBER 19:
A. TOPIC: GLOBAL SOURCING AND DISTRIBUTION
B. ASSIGNMENT:
Chapter 13, "Physical Distribution"
CASE: "Int’l. Vendor Relations at Pier 1 Imports,"
pp. 62-63
CASE: "ESPRIT," pp. 339-343
C. KEY CONCEPTS:
1. Offshore production
9. Rationalization
2. Containerization
10. Single vs. Multiple Sourcing
3. Freight Forwarders
11. Facilities Location
4. Certificates of Origin
12. Transportation Models
5. Export Bill of Lading
13. JIT
6. Foreign Trade Zones
14. TQM
7. Labor Intensive Processes
15. ISO9000
8. Capital Intensive Processes
16 Logistics
XII. WEDNESDAY, OCTOBER 21:
A. TOPIC: INTERNATIONAL CURRENCY MARKETS
B. ASSIGNMENT:
Chapter 4, "Foreign Exchange, Global Financial Markets,
and The International Monetary System"
C. KEY CONCEPTS:
1. Bretton Woods System
12. European Monetary System (EMS)
2. Floating Exchange Rates
13. Arbitrage
3. Managed Float System
14. Speculation
4. Convertible Currency
15. Hard Currencies
5. Pegged Currency
16. Soft Currencies
6. Direct/Indirect Quotes
17. Foreign Exchange
7. Spot/Forward Markets
18. Exchange Rate
8. Spot/Forward Rates
19. Options
9. Forward Discount/Premium 20. Derivatives
10. Apreciation/Depreciation 21. Eurocurrency
11. Int’l. Monetary Fund (IMF) 22. Special
Drawing Rights (SDR’s)
XIII. MONDAY, OCTOBER 26:
A. TOPIC: INTERNATIONAL FINANCE
B. ASSIGNMENT: Chapter 14, "Overview
of International Financial Management"[pages 527-549 only].
C. KEY CONCEPTS:
1. Functional/Reporting Currencies
2. Translation Risk
3. Transaction Risk
4. Economic Risk
5. Foreign Exchange Management
6. Hedging
7. Covered/Uncovered Position
8. Long/Short Position
9. LIBOR
10. Exposure Netting
11. Lead/ Lag Strategies
XIV. WEDNESDAY, OCTOBER 28:
A. TOPIC: INTERNATIONAL MARKETING
B. ASSIGNMENT:
Chapter 12, "The Marketing Mix for Products &
Services"
CASE: "Parker Pen Company," pp. 330-333
CASE: "McDonnell Douglas: The F-18 Hornet Offset,"
pp. 502-510
C. KEY CONCEPTS:
1. Japanese Trading Companies
10. Elastic/ Inelastic Demand
2. U.S. Foreign and Commercial Service
11. Gray Markets
3. Trade Missions
12. Selling Services
4. Trade Fairs
13. Intangibility
5. Market Screening
14. Perishability
6. Product Adaptation/Standardization
15. Consistency
7. Advertising Adaptation/Standardization 16. Deregulation
8. Media Availability/Acceptance
17. Transparency
9. Pricing Strategy
18. Countertrade
XV. MONDAY, NOVEMBER 2:
A. TOPIC: SELECTING INTERNATIONAL
MARKETS
B. ASSIGNMENT:
Chapter 10, "Global Business &
Marketing Research"
CASE: "Water From Iceland," pp. 488-494
C. KEY CONCEPTS:
1. Macro Economic Considerations
2. Political Considerations
3. Market Considerations
4. Competitive Considerations
5. Cultural Considerations
6. Need/ Use Considerations
7. Expertise Considerations
8. Resource Considerations
XVI. WEDNESDAY, NOVEMBER 4:
A. TOPIC: INTERNATIONAL ACCOUNTING
AND TAXATION
B. ASSIGNMENT: Chapter 7, pages 244-251 only
C. KEY CONCEPTS:
1. Unitary Taxation
8. GAAP
2. Value Added Taxes
9. Current Rate Method
3. Foreign Tax Credit
10. Temporal Rate Method
4. Tax Havens
11. Foreign Sales Corp. (FSC)
5. Tax Treaties
12. Translation
6. Transfer Pricing
13. Consolidation
7. Controlled Foreign Corp. (CFC)
14. Arm’s Length Pricing
XVII. MONDAY, NOVEMBER 9:
A. TOPIC: INTERNATIONAL HUMAN RESOURCES MANAGEMENT
B. ASSIGNMENT:
Chapter 7, pages 251-252 only;
Chapter 9, pages 312-321 only.
C. KEY CONCEPTS:
1. Expatriates/ Repatriation
8. Codetermination
2. Ethnocentric Staffing
9. Quality Control Circles
3. Polycentric Staffing
10.Employee Participation
4. Regiocentric Staffing
11. Organizational Unions
5. Geocentric Staffing
12. Job Rights
6. Overseas Premiums
13. Compensation Approaches
7. Cost-of-Living Adjustments
XVIII. WEDNESDAY, NOVEMBER 5:
A. TOPIC: LEGAL AND ETHICAL CONSIDERATIONS
B. ASSIGNMENT:
CASE: "The Dolphin Controversy," pp. 209-212
CASE: "The Fridge From Eastern Germany," pp. 336-339
C. KEY CONCEPTS:
1. Bribery/Gift Giving
2. Foreign Corrupt Practices Act
3. Anti-Boycott Legislation
4. Ethical Marketing Tactics (Nestle)
5. Environmental Concerns
6. Intellectual Property
XIX. MONDAY, NOVEMBER 16:
A. TOPIC: INTERNATIONAL ORGANIZATION AND CONTROL
B. ASSIGNMENT: Chapter 9, "Organization, Management
and Control of Global Operations" [pages 286-300 and 322-327 only].
C. KEY CONCEPTS:
1. International Division
6. Matrix Organizations
2. Functional Departmentation
7. Subsidiary Autonomy
3. Regional/ Geographic Departmentation
8. Centralization vs.
4. Product Line Departmentation
Decentralization
5. Mixed Structures
9 .Corporate Culture
XX. WEDNESDAY, NOVEMBER 12:
A. TOPIC: ENTRY STRATEGIES & INTERNATIONAL STRATEGIC
ALLIANCES
B. ASSIGNMENTS:
Chapter 11, "Global Business Entry" [pages 382-406
only];
Chapter 15, "The Future"
CASE: "Toys R Us Japan," pp. 494-501
C. KEY CONCEPTS:
1. Exporting
2. Importing
3. Licensing Agreements
4. Franchising
5. Turn-Key Operations
6. Management Contracts
7. Joint Ventures
8. Foreign Branches
9. New Foreign Subsidiaries
10.Acquisitions
XXI. MONDAY, NOVEMBER 23:
FINAL EXAM: Covers assigned text pages and
cases since the Midterm Exam, plus class material.