University of Hartford

Barney School of Business & Public Administration

International Business and Global Financial Markets

MBA760

 

 

 

Class Days

Monday

CRN25792

Class Hours

7:30-9:40P.M.

 

Fall, 2001

Class Location

A326

   

Instructor

Dr. D. Giannaros

Office

Location:

A412G

Office Phone:

860-768-4799

 

*Email:

giannaros@mail.hartford.edu

Fax Number:

860-768-4911

 

Web site:

http://uhaweb.hartford.edu/giannaros

   

*Office Hours: M 2:30-5:00; W 1-2 or by appointment or right after class by request.

*Note: Please use my E-mail to send me a message for a timely response!!

Texts: REQUIRED TEXT:

John Daniels and Lee Radebaugh, International Business: Environments

and Operations, Ninth Edition, Addison Wasley publishing, 2001

RECOMMENDED Supllemental:

Jeff Madura, International Financial Management, 6th Edition,

South-Western publishing, 2000

David A. Ricks, Blunders in International Business, 3rd Edition, Blackwell

Business publishing, 1999

HANDOUTS: A number of handouts relating to current issues, statistics, cases and supplemental theoretical discussion will be provided. Please consider these as part of the required course material.

INTERNET : The main text is structured in a way that it requires extensive student use of the internet. Through the web-site, the book provides updated information, business headlines, a web-tutor, career information, relevant web links and downloadable PowerPoints, videos and spreadsheets. Note: Some class discussion will be internet based.

The book’s web-site is: www.prenhall.com/daniels

Additional LINKS are listed on my web page: UHAVAX.HARTFORD.EDU/~GIANNAROS

Course Description:

Course explores the complexities, conflicts, and opportunities facing firms operating in an international/global environment. Some emphasis is placed on the components and complexities of the global financial markets and international trade. Topics covered include effects of culture, law, ethics, politics, economics and financial environments on production, human resources, marketing, management, technology and business strategies. Prerequisites: MBA core courses.

Dr. Giannaros, MBA760, p2

Course Objectives:

The primary objective of this course is to instill the notion that management of enterprises requires full understanding of the world economic environment and the global forces that influence international business decisions. The objective of the course, thus, is to expose the student to the fundamental concepts and issues relating to the global economic, financial and overall business environment confronting international businesses. Upon completion of the course students should be able to understand better the:

- complexity in operating in multiple cultural, political, legal, ethical,

economic and financial environments,

- principles of international trade and international investments,

- components and complexities of the global financial system,

- value of assessing cultural, legal and political risks,

- complexities in marketing and managing multinational or global enterprises, and

- importance of alternative strategies required for multi-country/culture operations in

comparison to single country/culture operations.

 

Evaluation and course grading:

Students will be assigned pertinent cases to analyze using most up-to-date information that can be obtained via the internet and other sources. Students are expected to analyze assigned cases for class discussion. Everyone is expected to contribute to such discussion and questioning. Final grade will reflect your input. Instructor will assign cases for presentation by students or special projects. Students are expected to keep up with international events through the internet, appropriate newspapers and/or journals/magazines.

Grading: --Midterm exam (M 10/15 or 10/22) 25%

--Preparation and

presentation of case(s) or projects 25%

--In-class discussion and participation 20%

--Final exam (M, 12/17, 5:00- 7:20P.M.) 30%

 

**NOTE: SYLLABUS MAY BE CHANGED THROUGH AN IN CLASS OR E-MAIL ANNOUNCEMENT. PLEASE ASK IF ANY CHANGES HAVE TAKEN PLACE. ASSIGNED PROJECTS/CASES MUST BE COMPLETED ON DATES DUE.

 

Contextual Coverage:

Ethics: Some coverage

Global: Substantial coverage throughout the course

Political, social, legal, regulatory and environmental: Significant coverage

Technological: Use of the internet and discussion of the impact of modern telecommunications systems.

Demographic diversity: Some coverage of ethnic, religious, racial and gender based diversity.

Communication skills: Written case(s) analysis and exams.

Dr Giannaros, MBA760, p. 3

SEMESTER OUTLINE--Topics and Readings

*Cases to be studied

**Cases to be prepared analyzed and to answer cases’ questions.

I. The Complex Global Environment and Business Decision Making An Introduction.

Daniels: Ch. 1

Cases: - Star Wars Quartet* (The international dimensions of the most

commercially successful movie sequence).

- Euro Disney** (Problems company encountered in setting parks abroad)

II. The Effects of Culture, Law and Ethics on International Business

Daniels: Ch. 2 & 3

Cases: - Parris-Rogers International* (How deep-seated cultural values British company’s operations in Middle East).

- John Higgin’s** (Adaptation/issues of U.S. manager to Japanese ways).

- The Taipan’s Dilemma* (Hong Kong’s change & its effect on business. - Bata Ltd.**(Ethical dilemmas of Canadian firm in S. Africa & E. Europe)

III. The International Economic

Daniels: Ch. 4

Cases: McDonald’s Corp.* (Setting up process: a joint venture in Russia)

- The Daewoo Group and the Asian Financial Crisis** (Asian Financial

Crisis its impact on Daewoo Group and, through it, on Korea).

IV. The Trade Environment: Defining the Firm’s International Competitive Advantage vs. Comparative Advantage and the Role of Government in trade.

Daniels: Ch. 5 & 6

Cases - Sri Lankan Trade* (Trade theories and Sri Lankan govt. policies).

- The Cashew** (Changing global markets and Indian producer options).

-The Banana War* (U.S./European Union trade dispute over bananas)

- U.S.-Cuban Trade** (Business/economic impact of political conflicts).

- EXIM Company: Comparative Advantage in Intn’l Trade (handout).

    1. Regional Economic Integration and the Global Foreign Direct
    2. Investment Environment

      Daniels: Ch. 7 & 8

      Cases: - Ford in Europe* (Ford’s strategy to take advantage of E.Union).

      - Crystal Lake Manufacturing—A NAFTA Dilemma** (A firm’s problems resulting from regional trade agreements; U.S./Mexico).

      - Bridgestone Tire Company* (Analysis of motivation of Japanese tire company to takeover of U.S. firm; Firestone).

      - Cran Chile** (Cranberry S&D cause U.S. foreign investment in Chile).

      Dr. Giannaros, MBA760, p. 4

    3. Global Financial Markets: International Financial Institutions, Systems and Foreign Exchange Rates.
    4. Daniels: Ch. 9

      Cases: - Foreign Travels, Foreign Exchange Travail: Excerpts from the Travel Journal of Lee Radenbaugh * (Transaction difficulties with exchange rate calculations and conversions).

      - The Japanese Yen** (Nissan’s strategies in dealing with fluctuating Yen)

      Readings: (Ch. 2) Butler, Kirt, "World Trade and the International Monetary System", Multinational Finance, 2nd Edition, South-Western Publishing, 2000

      (Available on reserve at Department of Economics and Finance, A412; tel. 768-4581)

       

    5. Global Financial Markets: International Financial Markets,

Determination of Exchange Rates and Flow of Funds

Daniels: Ch. 10

Cases- The Chinese Renminbi* (Describes renminbi’s change from a controlled to a floating currency).

Readings: - Madura, Jeff, "International Flow of Funds" (Ch. 2) and "International Financial Markets" and Appendix 3: "Investing in International Financial Markets" (Ch. 3), International Financial Management, South-Western Publishing, 2000

(Available on reserve in department of economics and finance, A412;

ask Alison at tel. # 768-4581)

 

VIII. Global Financial Markets: Multinational Financial Management and Risk Analysis

Daniels: Ch. 20

Cases: - LSI Logic Corp. and Global Financial Markets*, (Hi-Tech

Firm’s Strategies to access funds in global financial markets)

- 3M and its Foreign-Exchange Risk-Management Strategy** (3-M’s

approaches to hedge foreign exchange risk).

Readings: Madura, Jeff, "Multinational Financial Management: An Overview" (Ch. 1), International Financial Management, South-Western Publishing., 2000

(on reserve in department of economics and finance, A412;

tel. 768-4581)

Dr. Giannaros, MBA760, p. 5

  1. IX. Impact of the Multinational Enterprise Investment, Negotiations and Ethical Dilemmas: Home-Host Country Evaluation and Business-Government Relations

Daniels, Ch. 11, 12, 13

Cases: - Foreign Direct Investment in China* (Restrictive direct investment policies).

- Foreign Direct Investment in South Africa** (S.A.’s policies to attract

foreign investments in the post-apartheid Era).

- Saudi Aramco* (Shift in oil company power with political/economic changes). - PepsiCo in India** (Bargaining process for a new venture in India).

- Blockbuster Video*, (Reasons for international expansion in video services).

- Royal Dutch Shell/Nigeria** (Risks in a turbulent environment and corporate

policy change for future expansion in Nigeria).

 

    1. Global Strategies, Organizational Structure and Marketing: A global

Perspective

Daniels: 14, 15, 16

Cases: - Grupo Industrial Alfa* (Collaboration with foreign business to

improve competitive advantage).

- International Airline Alliances** (International Airline Alliances).

    • Nestle* (Control of personnel strategies of a multinational).
    • GE’s Tungsram Acquisition** (G.E.’s attempt to bring its new acquisition under in its control in Hungary).
    • Avon* (Global expansion, standardization and responsible practices).
    • Dental News and Hotresponse** (How internet and e-commerce has helped a dental magazine).

 

XI. Multinational’s Export/Import and Resource Strategies and Technology Management***

Daniels: Ch. 17-19, 21

Cases:

- Sunset Flowers of New Zealand, Ltd.** (Problems facing an exporter).

    • DENSCO Corp. and Global Supplies Relations ** (Japanese part

company’s supplier relationships).

    • Coca Cola and its Global Challenges** (How it developed global

accounting challenges resulting in an accounting procedures manual).

    • Office Equipment Company** (Evaluates U.S. company’s criteria for

ranking potential multi-national managers).

***Extent of in class coverage depends on time limitations. Student is expected to study

all chapters and cases listed.

 

Dr. D. Giannaros, MBA760, p. 6

Disability Guidelines

If you have been diagnosed with a disability and you require reasonable accommodations, you must make an appointment with the Director of Student Services at 768-4260. Documentation must be presented so that you may be referred to the appropriate office for these accommodations. All information is kept strictly confidential.

Academic Honesty Statement from The Source and Manual of Academic Policies and Procedures:

B. All students are expected to observe generally accepted principles of scholarly writing in all examinations, compositions, papers, essays, tests, quizzes, reports and dissertations whether written in the classroom or outside. Sources of information used by a student in the preparation of work submitted as a basis for credit, or for a grade, or to satisfy graduate or undergraduate thesis requirements shall be clearly indicated in some conventional manner, such as by the use of quotation marks, footnotes, and bibliography.

C. Students are forbidden to submit as their own any project, paper, or creative work which is in whole or part the work of another.

D. The use of a term paper writing service, such services being prohibited by Connecticut law, is academically dishonest and violate rules of scholarship.

E. All examinations and quizzes are to be completed without reference to books or notes, except when the instructor of a course shall have given explicit authorization for an "open-book examination" or some other specified sort of assistance. Except as authorized by the instructor, no student is to give or receive assistance in the completion of an examination or a quiz.

Action to be taken in event of an alleged act of academic dishonesty

L. 2. to report that the student is considered to be guilty of the alleged violation beyond a reasonable doubt, and to recommend one or more of the following:

(a) that the student be dropped from the course and/or a grade of "F" be assigned.

(b) that the student be suspended (i) for the remainder of the current semester, losing credit for their current academic program, or (ii) for the following semester or year;

(c) that the student be dismissed from the university.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guidelines on Student Conduct

In an effort to create an environment that is conducive to learning, the following guidelines are presented to make explicit expectations that the Barney School has for students in its classes. Students are expected to

  1. Follow the Academic Honesty Policy without fail.
  2. Respect differing views on campus and to engage in responsible discussion with others with whom you do not agree.
  3. Regularly attend classes and submit assignments on or before specified deadlines.
  4. Prepare for each class by completing reading assignments, homework and/or case preparation.
  5. Not bring food and drink into the classroom unless instructor approval is given.
  6. Raise a hand if you wish to speak or be excused from the classroom. Students are not permitted to get up and leave at will.
  7. Act in a reasonable manner in the classroom and halls so as not to disrupt others.
  8. Dispose of gum, trash and paper in designated receptacles. Do not leave trash in the stairwells, classrooms, desktops or any other non-designated receptacle.
  9. See professors during their regularly scheduled office hours or by appointment. Office hours are posted on each professor’s door.
  10. Take exams when they are scheduled unless you have been excused on official university business, such as participation in athletic events, or medical emergency (notifying your professor prior to the exam).
  11. Immediately contact professors if you will miss or have missed a class or exam and also to make up what you have missed.

The Source also specifies the following acts as punishable misconduct and subject to Judicial Review.

  1. Damage, destruction or theft of University property;
  2. Deliberate interference with any class or University function;
  3. Refusal to vacate a building;
  4. Tampering with fire alarms or fire-fighting equipment;
  5. Possession or use of a dangerous article;
  6. Illegal or unauthorized entry or presence in a facility;
  7. Alcohol – no possession or use in class;
  8. Noise and general disorderliness;
  9. Providing false information to a University office;
  10. Acting with violence;
  11. Failure to respond to a reasonable request and to produce identification;
  12. Possession, use or storage of drugs and drug paraphernalia;
  13. Abuse of computer access – incl. copying software;
  14. Visitors – you are responsible for the actions of your visitors
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