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Rajiv Gandhi Indian Institute of Management, Shillong
Post Graduate Program in Management
Global Business Environment; SPRING 2013
Course Number:TBA
Course Title:Global Business Environment
Instructor Name:from USA : New York
Office: TBA
Office Hours: TBA
Office Phone: TBA
E-mail:
Text Books
Anant K. Sundaram & J. Stewart Black, "The International Business Environment: Text and Cases", Prentice Hall.
J Daniels, L H Radebaugh & D P Sullivan, "International Business: Environments and Operations", Pearson Education.
G Jones, "Multinationals and Global Capitalism", Oxford University Press.
Course Objective
In the past couple of decades, the phenomenon of globalization has progressed from buzzword to reality. The notion of a purely domestic firm has almost become a fiction even in a country like India which embarked on the path of liberalization in the early 1990s. Thus understanding the forces of globalization and reaction of the firms to this changed environment is of utmost importance for today's managers. In this course we would make use of the macroeconomic and other tools and then try to conceptualize the process of globalization and try to learn how the firms can measure the business environment.
The course aims at providing the students with tools to understand the process of globalization and its effect on business. Information available about various aspects of an economy would be analyzed to reach at decisions regarding internationalization of firms. An attempt would also be made to understand the effects of domestic policy, policy in target countries and policies of supranational institutions like WTO and RTAs on business.
Reading (This is a tentative schedule and it is subjected to change):
Session 1: Introduction & Macroeconomic Preliminaries (1 Class)
Objective of this session is to introduce the course to the students and test their awareness of the basic concepts of Macroeconomic models.
-Introduction
-Macroeconomic Concepts
-Macroeconomic Models
Session 2: Concept of Cross-Border Business (1 Class)
The objective of this session is to understand what constitutes cross-border business, its meaning, players and need. Difference between domestic and international business would also be discussed in the session.
-International Business
-Key concepts in International Trade and Investment
-Difference between International and Domestic Business
-Participants in International Business
-Reasons for firms engaging in International Business
Reference: Chapter 1, Tamer, Knight and John, "International Business: Strategy, Management and the New Realities".
Session 3: Globalization: Concept and Process (2 Class)
Objective of this Session is to understand the concept of Globalization and the role of Multi-National Enterprises (MNEs) in bringing the world closer.
-Concept of Globalization
-MNEs and Globalization
-A brief history of Globalization
-Trends in Global Trade and Business
References: Chapters 1 & 2 Sundaram & Black, Chapter 1 John, Lee & Daniel, Chapter 2 Jones, International Trade Statistics and WTO.
Session 4: Assessment of Domestic & Foreign Business Environment (2 Classes)
Objective of this session is to understand how the domestic and the foreign environment can be assessed.
-Macroeconomic Issues effecting Business Strategy
-Country Risk Analysis
References: Chapter 4 John, Lee & Daniel and Chapter 10 Sundaram & Black.
Session 5: Assessment of MNEs by Countries (3 Classes)
In continuation with the earlier session, the objective of this session is to understand how the foreign environment can be assessed and how the countries on their part assess the MNEs.
-Political Risk Analysis
-Economic Cost-Benefit Analysis of MNEs
References: Chapters 11 & 12 Sundaram & Black.
Session 6: The Trading Environment of International Business ( 2 Classes)
The objective of this session is to understand how trading agreements affect firms.
-WTO
-RTAs
-Impact of Trading Agreements on Business
-Common Currency Zone
References: Chapters 6, "The Changing Landscape of RTAs", WTO and "The Value of the ASEAN FTA to Australian Business: A Strategic Assessment", Alan Oxley, APEC Study Centre.
Session 7: Foreign Direct Investment & International Business (3 Classes)
Objective of this session is to understand how FDI may get affected by regulatory environments and the attitudes of the host government.
-FDI & Control
-Resources & Methods for FDI
-Evaluating the impact of FDI
-Economic impact of a MNE
References: Chapters 8 & 11 John, Lee & Daniel
Session 8: International Expansion in Emerging Markets (2 Classes)
The objective of this session is to understand the differences between developed and emerging markets.
-Distinction between Advanced, Developing and Emerging Markets
-Attractiveness of Emerging Markets for International Business
-Estimating the true potential of Emerging Markets
-Risks and Challenges in Emerging Markets
-Strategy for Business in Emerging Markets
Reference: Chapter 9, Tamer, Knight and John, "International Business: Strategy, Management and the
Session 9: Dunning's OLI Paradigm and Chinese MNCs
Objective of this session is to understand Internationalization strategies of new MNCs.
-OLI Paradigm
-Internationalization of Chinese MNCs
References: Dunning, "The Eclectic (OLI) Paradigm of International Production-The Past, Present and the Future".
Session 10: De-Globalization and Firm Strategies (1 Class)
The objective of this session is to understand the concept of De-globalization and the strategies that the firms need to adopt in such circumstances.
- Consequences of Globalization
- Signs of De-globalization
- Potential impact of De-globalization
- Possible strategies for firms to tackle De-globalization
References: "Preparing for new global business environment: divided and dis-orderly or integrated and harmonious", Dwight Allen and Michael E. Raynor, Journal of Business Strategy, 2004.
Examination and Grading Policy
I. There will be in-class quiz every second week. The quiz will cover the lectures of the previous two weeks. These quizzes will account 25% of your grade. These quizzes are going to help you to understand the course better.
II. There will be three homework assignments. This will account 25% of the grade.
The assignment submission Policy:
While submitting the assignment the student should
1. Write his/her name in the first page of the assignment
2. Write his/her Banner/Person ID in the first page of the assignment
3. Staple all the pages together (Please do not give any lose page).
If a student fails to follow the above instructions, then his/her assignment will not be corrected and it will be considered for evaluation. The method of evaluating the assignment will be explained in the class.
III. There will be one final exam.
During any exam or quiz, it is the responsibility of the students to write their name and person ID on the first page of the answer sheet. If a student does not write his/her name and ID then his/her answer paper will not to be corrected.
The Grading Policy: The final letter grade will be allocated by curving the overall performance of the class.
Letter GradesPercentage of the Class
In As (A, A-)33
In Bs(B+, B, B-)44
In Cs(C+, C, C-)18
In Ds or F5
Policy for the Make-up exam:
1.Makeup exam will be allowed only under medical grounds. The student is also required to provide proper written documents to the instructor within 24 hours of his/her return to the class. Failure to provide the requisite documents will result in making the grades of the makeup exam null and void.
2.Makeup exam will not be allowed under any other circumstances (such as break down of the car while coming to the exam, fire in the apartment in the day of the exam etc.).
Cheating:
If a student is caught cheating he/she will not be given a passing grade for the entire course. Furthermore, additional sanctions may also occur beyond that has already been noted. Cheating includes (but is not limited to) plagiarism, forgery, cheat sheets, etc.