Dr. Jung-Ho KIM, International Studies Hall (GSIS) Room # 536 Office Hours: Tues. 13:00-14:00, Thurs. 13:00-14:00 or by appointment ([email protected]
Course Objectives A fundamental shift has occurred in the world economy. We no longer live in a world in which national economies are relatively self-contained entities. We live in a world in which national economies are merging into an interdependent global economic system. In this interdependent global economy, business operations have become increasingly multinational in nature. Not only are the suppliers, consumers and competitors more multinational in nature, the whole business environment has become multinational. For businesses, this creates a whole array of new opportunities. At the same time, going multinational leads to unique challenges. Since the rules of the game such as laws, customs, and business practices are different from country to country, business people must consider additional parameters when they develop their business strategy. The goal of this course is to help the student achieve an understanding of the international environment in which Korean business competes and managers manage. It also aims to help the student develop skills in analyzing competitive forces in global industries and global markets, and in understanding the basis for successful foreign investment decisions.
Course Materials The text for International Business is John Daniels, Lee Radebaugh and Daniel Sullivan's International Business 15th edition (Pearson: 2014). Additional readings are listed below in the Class Schedule section. Some business cases will be assigned for class discussion. They will be kept on reserve in the GSIS library. Students will be expected to have read and analyzed the cases assigned before class so that class discussions are focused and productive. It is also recommended that the student read a good business publication on a regular basis. Recommended are Fortune, Business Week, Economist, Forbes, Far Eastern Economic Review, The Financial Times and the Asian Wall Street Journal.
Learning and Teaching Course delivery includes lectures, class discussions, and case analyses. This combination of teaching methods will introduce the theoretical concepts and illustrate how they are applied to international business. The lectures define the broad issues to be studied. It is assumed that the background text will provide detailed understanding of the concepts and issues at hand. As such, it is expected that the students read all reading assignments prior to the lectures. Several Harvard Business School cases on International Business will be utilized during class. The students will be expected to have read and analyzed the cases assigned carefully before class so that the discussions are focused and productive. In summary, students are expected to be fully prepared for each class and contribute actively to the learning process.
Grading (Total 100 points) 1. Examinations:
There will be two (2) in-class closed-book examinations for the course.
Each exam is 120 minutes long and non-cumulative. (30 points each, sub-total 60 points) The purpose of the exams is to make sure that the students have read and understood the course materials that have been assigned. Questions will be based on the contents of the assigned materials and lectures. More details will be announced in class prior to the exams. 2. Group Presentation: To research and present in-class (25 points) about one of the following topics: (1)
A successful entry strategy of a Korean company in a specific country. The selection of a particular case is subject to approval from the professor. Presentation on the findings on this topic will take place on May 19th
FDI inducement strategies of a specific country. Presentation on the findings on this topic will take place on April 28th.
3. Level of preparation for case discussions, professional behavior and good attendance. (15 points)
Class Schedule (subject to minor changes) Class 1. Introduction to International Business: An Overview D&R, Chapter 1-2. S. El Kahal, “Disciplining the Tigers: Globalization and the Crisis in Asia-Pacific” in Business in Asia Pacific: Text and Cases, Oxford University Press, 2001, pp.32-49. Class 2. The Political and Legal Environments Facing Business D&R, Chapter 3-4. Class 3. The Socio-Cultural and Economic Environments Facing Business Case #1 Y. Peng, O. Shenkar, et. al., “Cultural Differences, MNE Learning Abilities, and the Effect of Experience on Subsidiary Mortality in a Dissimilar Culture: Evidence from Korean MNEs,” Journal of International Business Studies 44, 2013, pp.42-65. Class 4. Analysis of Industry Environments D&R, Chapter 12. F. Root, “Designing Entry Strategies for International Markets” in Entry Strategies for International Markets, John Wiley & Sons, 1994, pp.1-23. Class 5. Strategies for International Business Case #2 O. Gadiesh and T. Vestring, “The Consequences of China’s Rising Global Heavyweights,” MIT Sloan Management Review 49:3, 2008, pp.10-11. Class 6. Foreign Direct Investment and International Business Negotiations I D&R, Chapter 5-6. Class 7.
Foreign Direct Investment and International Business Negotiations II
Case #3 Class 8. In-class Examination #1 Class 9. Student Presentations #1 Class 10. Country Evaluation and Selection D&R, Chapter 13. Class 11. Student Presentations #2 Class 12. Export and Import Strategies
D&R, Chapter 14. Joseph Stiglitz, “Social Justice and Global Trade,” Far Eastern Economic Review, 2006. Class 13. Collaborative Strategies D&R, Chapter 15. M. Chen, “Unlocking Joint Venture Potentials in China,” in Asian Management Systems, Routledge, 1995, pp.279-292. Class 14. International Marketing and Global Production D&R, Chapter 17, 18 Class 15. In-class Examination #2
(2015. 01. 25. version)