MBA 595
Competing in a Global Environment
Spring 2014
Steven Globerman
PH 342
Office: 650-7708
Email: steven.globerman@wwu.edu
Office hours: By appointment
Objectives:
1. To deepen students’ understanding of the “globalization” process and how managing an
international business differs from managing a domestic business;
2. To increase students’ knowledge of the institutions and institutional arrangements that
govern and condition contemporary international business.
Readings:
There is no required text. Links to the readings are provided below. Class discussion questions can be
found at the end of Globerman, Chapter 1 and Chapter 2, corresponding to Modules 1 and 2. Discussion
questions for Modules 3 and 4 will be posted under the corresponding Module in Canvas as soon as
possible. If you have difficulties accessing the readings, please email my assistant, Carrie Cooper at
Carrie.Cooper@wwu.edu.
Assessment:
Assessment will be accomplished through two written papers, one classroom presentation and
attendance and participation in class discussions. To help facilitate class discussions, specific questions
for each topic covered are provided as outlined above. Please be prepared to discuss the questions
suggested for each topic.
Grading:
The following percentages have been assigned to the various assessment instruments:
Fist paper
Second Paper
Presentation
Participation
30%
30%
25%
15%
Date
Topic and Readings
Module 1: April 1/3/8
Introduction to International Business Management
1. Globerman, Chapter 1: Overview of IB Management,
http://testweb.cbe.wwu.edu/cib/documents/Chapter%201%20Overvie
w%20of%20International%20Business%20Management.pdf
2. Ferguson, “Globalization,” (video)
http://www.hbs.edu/centennial/businesssummit/globalization/globaliz
ation.html
3. Leamer, “A Flat World, a Level Playing Field, a Small World After All or
None of the Above?” Journal of Economic Literature, Vol. XLV, March
2007, pp. 83-126.
4. Rugman and Oh, “Friedman’s Follies: Insights on the
Globalization/Regionalization Debate,“ Business and Politics, Vol. 10,
2008, pp. 1-14.
5. Ghemawat, “Semiglobalization and International Business Strategy,”
Journal of International Business Studies, Vol 34,2003, pp 138-152.
6. Grosse and Behrman (1992), “Theory in International Business,”
Transnational Corporations, Vol. 1, pp. 93-126.
http://unctad.org/en/Docs/iteiitv1n1a6_en.pdf
Module 2: April 10/15/17
Expanding Abroad: Motives, Modes and Timing
1. Globerman, Chapter 2: Expanding Abroad- Motives, Modes and Timing,
http://testweb.cbe.wwu.edu/cib/documents/Chapter%202International
%20Expansion-%20Motives%20and%20Modes.pdf
2. Porter (2008), “The Five Competitive Forces that Shape Strategy”,
(video) http://www.youtube.com/watch?v=mYF2_FBCvXw
3. Buckley and Casson, “The Internalization Theory of the Multinational
Enterprise,” http://www.jstor.org/stable/27752467
4. Dunning, “Location and the Multinational Enterprise: A Neglected
Factor,” Journal of International Business Studies, Vol. 29, 1998, pp. 4566.
5. Rugman and Verbeke, “Extending the Theory of the Multinational
Enterprise,” http://www.jstor.org/stable/3557148
6. Petersen and Pedersen, “Fast and Slow Resource Commitment to
Foreign Markets,”
http://www.sciencedirect.com/science/article/pii/S1075425399000071
Module 3: April 22/24/29
Economic Attributes of Locations: Convergence or Divergence
1. Rodrik, “The Future of Economic Convergence,”
http://www.nber.org/papers/w17400.pdf
2. Eberstadt, “World Population Prospects and the Global Economic
Outlook,”
http://www.aei.org/files/2011/02/28/EberstadtAEIDevelopmentPolicy
WorkingPaperFINAL.pdf
3. King, “Nominal and Real Exchange Rates,” video,
http://www.youtube.com/watch?v=4TBiBKNbM0g
4. Kowalski, “Comparative Advantage and Trade Performance,”
http://search.oecd.org/officialdocuments/displaydocumentpdf/?cote=T
AD/TC/WP(2010)38/FINAL&docLanguage=En
5. Congress of the United States, “Corporate Income Tax Rates:
International Comparison,”
http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/69xx/doc6902/
11-28-corporatetax.pdf
Module 4: May 1/6/8
Cultural Attributes of Locations
1. “Cultural Essence,” http://www.youtube.com/watch?v=wxrp7u86SG
2. Ghemewat and Reiche, “National Cultural Differences and Multinational
Business,”
http://www.aacsb.edu/resources/globalization/globecourse/contents/r
eadings/national-cultural-differences-and-multinational-business.pdf
3. Triandis, “The Many Dimensions of Culture,”
http://home.sandiego.edu/~pavett/docs/msgl_503/dim_of_cult.pdf
4. Jones, “Hofstede – Culturally questionable?”
http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1389&context=comm
papers
5. Siegel, Licht and Schwartz, “Egalitarianism, Cultural Distance, and
Foreign Direct Investment: A New Approach,”
http://pubsonline.informs.org/doi/full/10.1287/orsc.1120.0776
Module 5: May 13/15/20
Standardizing versus Localizing: Given Imperfect Convergence
1. Porter, “Changing Patterns of International Competition,”
2. Yip, “Global Strategy…In a World of Nations” Sloan Management
Review, Fall, 1989, pp. 29-41.
http://www.business.illinois.edu/aguilera/Teaching/YIP%201989%20SM
R.pdf
3. Pudelko and Harzing, “The Golden Triangle for MNCs,”
http://www.sciencedirect.com/science/article/pii/S0090261608000600
Module 6: May 22/27/29
Organizing and Coordinating International Business
1. Hamel and Prahalad, “Managing strategic responsibility in the MNC,”
Strategic Management Journal, 1983.
2. Kale and Singh, “Managing strategic alliances: What do we know now,
and where do we go from here?” Academy of Management
Perspectives, 2009.
3. Birkinshaw, Braunerhjelm, Holm and Terjesen, “Why do some
multinational corporations relocate their headquarters overseas?”
Strategic Management Journal, 2006.
Module 7: June 3/15
Presentations
First Paper
For this paper, as well as for the second paper and the in-class presentation, you should
choose a “real-world” company as the focus for the assignments.
Q1. What do you think are the main environmental factors (e.g. economic, political,
socio-cultural) that are making location (or re-location) of value-chain activities outside the
company’s home country more or less advantageous for your company? In answering this
question, please be specific about the relevant changes in the environmental factors, as well as
the value chain activities impacted by those changes.
Q2. Which specific locations are becoming more attractive from an
efficiency/profitability perspective and which are becoming less attractive? Be specific as to the
value-chain activities that are relevant.
In-Class Presentation Topic
You should plan on presenting for approximately 15 minutes (including questions from
the audience). Please focus on the following questions:
Q1. For a relatively recent and economically significant geographical diversification
undertaken by your company, explain whether and how the company localized the relevant
value chain activity/activities that were the focus of the diversification?
Q2. What are the advantages and disadvantages of localizing the relevant value chain
activities in your view?
Q3. Do you agree with the localization initiative(s) undertaken by the company?
* Localization can involve the mode chosen for geographic diversification, as well as changes or
modifications to how the company carries out specific value chain activities in the home
country.
Second Paper
Identify a country or region where your company is currently not marketing its products.
Q1. Would you advise management to begin marketing in that country/region? Explain
why or why not.
Q2. What specific international business mode would you recommend that the company
employ to undertake the diversification, if it chose to enter that country/region? Explain your
recommendation.
Q3. How quickly should the company expand in that country/region presuming it chose
to enter? Explain your answer.
Note: for both papers and the in-class presentation, you should work with a partner.