BUSINESS IN THE CANADIAN CONTEXT—ADMS 1010 CALENDAR DESCRIPTION We will look at key issues and companies in Canadian business. How has Canada achieved prosperity? How might we maintain it in a globalized economy? We will examine how our geography, our people and our legal and political institutions have shaped business and business has shaped government. We will use business case studies to look at political, economic and legal issues in the Canadian context. IMPORTANT INFORMATION: Please BE AWARE: Students CANNOT write exams or submit any work for sections that they are not registered in. Students must confirm the correct section within the first two weeks of class. The instructor/course director has NO AUTHORITY to enroll students into the course. Please direct all registration questions to the main office of the Administrative Studies (http://www.yorku.ca/laps/sas/index.asp ). DO NOT contact the instructor/course director in these matters. COURSE OBJECTIVE: You will know how Canada’s business culture and laws have evolved, how Canadian business has failed and succeeded, and you will know better where business in Canada is going. T HIS SECTION IS GOING TO BE MANAGED THROUGH M OODLE . ADMS 1010B,F Fall 2013 REQUIRED COURSE TEXT / READINGS Joe Martin. Relentless Change: A History of Canadian Business. University of Toronto Press, 2010. Geoffrey Hale. Uneasy Partnership: The Politics of Business and Government in Canada. University of Toronto Press, 2006. Students will be expected to read and discuss current Canadian business issues and events. These can be found in sources such as The Globe and Mail’s Report on Business, the Toronto Star, the National Post, CBC.ca, CTV.ca and Canadian Business magazine. Links to good sources for global business and economic news can be found in the Business Section of Google News. Also, the following is a great primer on Canadian history and while not a required textbook, it’s available as an e-book and worth purchasing. http://canadachannel.ca/HCO/index.php/Welcome_to_the_History_of_Canada_Online EVALUATING YOUR PERFORMANCE 1. FINAL EXAM 40% 2. TWO MIDTERM EXAMS (WEEK 5 AND WEEK 9) 25% EACH 3. TWO IN-CLASS GROUP PROJECTS (WEEK 3 AND WEEK 7) 5% EACH INSTRUCTOR: JOEL MARCUS EMAIL: MARCUS@YORKU.CA OFFICE HOURS: MONDAY NOON-2PM [205 ATKINSON] 2 ADMS 1010B,F Fall 2013 EXPANDED COURSE DESCRIPTION WEEK 1 (SEPTEMBER 13): INTRODUCTION WHAT ARE WE GOING TO DO FOR 12 WEEKS ? CANADA –THE COUNTRY FOUNDED AS A PLACE OF BUSINESS: o Government support of business o Business and financial institutions in Canada o Trade, business ownership and foreign countries Overview of Canadian History The relationship between business and government Learning Objectives: You will know how I will manage the course, what the expectations are for students and how to succeed in the course. You will also know the topics and theories we will cover in greater depth later in the course. We will discuss the key features of the Canadian Economy. You will know the early history of Canada and how the country was founded to supply greater resources to European nations. You will begin to consider the roles that government and business play in the Canadian economy. R EADINGS ( TO BE DONE PRIOR TO CLASS ): Relentless Change – Part One: Laying the foundations, 1850-1905 (pp. 1-14) Uneasy Partnership – Introduction, and Chapter 1: Business and government: The politics of mutual dependence (pp. 3-31) http://www.cic.gc.ca/english/resources/publications/discover/index.asp Make sure to read the section on Canada’s history WEEK 2 (SEPTEMBER 20): THE FOUNDATIONS OF CANADA’S ECONOMY Regionalism and Federalism Banking in Canada Theoretical Models: Stern School “growth diamond” 3 ADMS 1010B,F Fall 2013 Learning Objectives: You will understand the context for Canada’s government and the nature of the Canadian Confederation and the economic powers of the Canadian state. You will understand how Canada’s financial systems were formed and what role they play in our economy. You will also learn the Stern School “growth diamond” theory of economic development and how to apply it. R EADINGS : Relentless Change – Case 1: Origins of financial stability in Canada: The Bank Act of 1871 (pp. 21 – 37) Uneasy Partnership – Chapter 7: Federalism, regionalism, and the context for businessgovernment relations (pp. 213-243) http://www.bankofcanada.ca/wp-content/uploads/2010/07/1841-71.pdf (12 pp long with pictures) Stern School “growth diamond”: http://www.webbooks.com/eLibrary/NC/B0/B56/146MB56.html (1 page) WEEK 3 (SEPTEMBER 27): CANADA EXPANDS —AGRICULTURE AND MANUFACTURING International trade policies, Protectionism and Canadian business LEARNING OBJECTIVES: You will understand the importance of the rise of two industries: agriculture and manufacturing in 19th and 20th century Canada. You will understand the roles of business and of government in creating a national identity. You will understand how protectionism and free trade influence industries. R EADINGS Relentless Change – Case 3: Canada’s first great manufacturing enterprise: The story of Massey Harris (pp. 60-78) Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140) FIRST IN-CLASS GROUP ASSIGNMENT (5%) 4 ADMS 1010B,F Fall 2013 WEEK 4 (OCTOBER 4): MANUFACTURING AND THE AUTOMOBILE INDUSTRY History of the Auto Sector in Canada Manufacturing and FDI Protectionism and the Auto Sector The Auto Pact Globalization and International Trade Canada’s Restrictions on International Trade Globalization’s Impact on the Canadian Auto Sector Learning Objectives: You will understand the importance of the auto industry in Canada. You will be able to identify the positive and negative potential of Foreign Direct Investment in Canada. You will understand the advantages and disadvantages of open trade policies. R EADINGS : Relentless Change – Case 5: The role of trade policy in the rise of the Canadian automobile industry (pp. 120-136) Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140) WEEK 5 (OCTOBER 11): MIDTERM #1 (25%) CLOSED BOOK, IN-CLASS 2 HOUR EXAM WEEK 6 (OCTOBER 18): GOVERNMENT BUSINESS ENTERPRISES – CNR o Crown Corporations o Privatization and Nationalization Learning Objectives: You will understand the ways in which the Canadian government traditionally intervenes in markets and its reasons for doing so. You will understand the importance of infrastructure (e.g. railroads) in the Canadian economy. You will be able to describe a crown corporation, its purposes and its limitations. You will able to describe the pressures and potential advantages to creating and privatizing crown corporations 5 ADMS 1010B,F Fall 2013 R EADINGS : Relentless Change – Case 4: ‘Irrational exuberance’: The creation of the CNR (pp. 100-117) Uneasy Partnership – Chapter 9: Government business enterprises: The state sector in transition (pp. 271-302) WEEK 7 (OCTOBER 25): THE RISE OF THE CANADIAN CONSUMER AND CANADIAN RETAIL H ISTORY OF C ANADIAN R ETAIL T HE EMERGENCE OF A CONSUMER ECONOMY AFTER WW2 THE R ISE OF THE D EPARTMENT S TORE W OMEN IN THE WORK FORCE T HE US R ETAIL I NVASION , GLOBALIZATION AND THEIR IMPACT ON C ANADIAN R ETAIL P ORTER ’ S 5 FORCES —A MODEL OF COMPETITION WITHIN AN INDUSTRY L EARNING O BJECTIVES : You will understand the role of the retail industry in Canada. You will understand the transition of the Canadian economy post WW2 to a consumer driven economy. You will be able to discuss the rise of women as economic agents in Canada. You will be able to understand and comment on issues related to the globalization of retail in Canada. You will understand the dominant models of competition within an industry and analyze them based on Porter’s 5-Forces model. R EADINGS : Relentless Change – Case 6: Eaton’s and Simpsons-Sears (pp. 140-157) Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212) SECOND IN-CLASS GROUP ASSIGNMENT (5%) WEEK 8 (NOVEMBER 8): NATURAL RESOURCES — OIL o o o o H ISTORY OF EXTRACTION IN C ANADA P ETROLEUM AND THE A THABASCA O IL S ANDS NAFTA AND O IL F OREIGN D IRECT I NVESTMENT (FDI) o F OREIGN O WNERSHIP I N C ANADA o B ENEFITS AND C HALLENGES OF F OREIGN O WNERSHIP 6 ADMS 1010B,F Fall 2013 o R EGIONAL E CONOMIC D ISPARITY IN C ANADA o T HE N ATIONAL E NERGY P ROGRAM o E AST -W EST M ARKETS o T HE FUTURE OF MANUFACTURING IN C ANADA o C ANADIAN PROSPERITY AND INNOVATION o T HE C ANADIAN DOLLAR Learning Objectives: You will understand the importance of FDI in the natural resource industry. You will understand the forces which are moving Canada’s economic centre to the West and its meaning for the rest of Canada. Readings: Relentless Change – Case 9: Canada’s black gold: From the Leduc discovery to the National Energy Program (pp. 221-239); Case 13: Canada the next oil superpower? (pp. 319-339) Uneasy Partnership – Chapter 5: Business, government, and the politics of economic upheaval: 1970 to present (pp. 141-171) WEEK 9 (NOVEMBER 15): MIDTERM #2 (25%) CLOSED BOOK, IN-CLASS 2 HOUR EXAM WEEK 10 (NOVEMBER 22): NAFTA - WINE IN CANADA History of the Wine Industry in Canada o VQA o The LCBO International Wine Trade NAFTA, Wine and National Treatment Key Stumbling Blocks to Global Free Trade L EARNING O BJECTIVES : You will understand the importance of free trade and the transition to a globalized economy in Canada. You will be familiar with the topics of free trade, NAFTA, protectionism, (WTO/GATT, World Bank, IMF), trade wars, comparative advantage (Ricardo, Smith and Hume) and supply management in Canada 7 ADMS 1010B,F Fall 2013 R EADINGS : Relentless Change – Case 10: The free trade agreement and the Canadian wine industry (pp. 265-283) Uneasy Partnership – Chapter 8: Business, government, and the North American and global economies (pp. 245-369) WEEK 11 (NOVEMBER 29): CANADIAN FINANCIAL INSTITUTIONS: THE LAST 50 YEARS o o o o o o Profile of the Financial Services Industry in Canada Financial Regulation and Oversight Key Differences between US and Canadian Banking Systems How Canadian Banks Avoided the Mortgage Crisis The Collapse of Confederation Life RBC, Bank Mergers and “Too Big to Fail” L EARNING O BJECTIVES : You will understand the financial services industry, one of the key industries of any country. You will understand the complex relationship between ‘non predatory government’ and the financial system. You will understand the role of regulation in Canadian financial industries and ultimately, in the whole economy. R EADINGS : Relentless Change – Case 11: The collapse of Confederation Life (pp. 286-301) and Case 12: RBC yesterday, today, and tomorrow (pp. 303-317) Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212) What Toronto Can Teach New York and London, Chrystia Freeland in the Financial Times WEEK 12 (DECEMBER 6): WRAP-UP AND FINAL EXAM REVIEW 8 ADMS 1010B,F Fall 2013 ADDITIONAL INFORMATION See the new procedures for Deferred Standing on the School of Admin Studies website IMPORTANT COURSE INFORMATION York University has policies relevant to all students. They can be http://calendars.registrar.yorku.ca/2012-2013/policies/index.htm . These include: • York's Academic Honesty Policy and Procedures / Academic Integrity Web site • Access/Disability • Religious Observance Accommodation • Student Code of Conduct • Academic Accommodation for Students with Disabilities found at Additional information: • Alternate Exam and Test Scheduling, http://www.yorku.ca/altexams/ • Grading Scheme and Feedback Policy The Senate Grading Scheme and Feedback Policy stipulates that (a) the grading scheme (i.e. kinds and weights of assignments, essays, exams, etc.) be announced, and be available in writing, within the first two weeks of class, and that, (b) under normal circumstances, graded feedback worth at least 15% of the final grade for Fall, Winter or Summer Term, and 30% for ‘full year’ courses offered in the Fall/Winter Term be received by students in all courses prior to the final withdrawal date from a course without receiving a grade. • Important University Sessional Dates (you will find classes and exams start/end dates, reading/co-curricular week, add/drop deadlines, holidays, University closings and more. http://www.registrar.yorku.ca/importantdates/index.htm • "20% Rule" No examinations or tests collectively worth more than 20% of the final grade in a course will be given during the final 14 calendar days of classes in a term. The exceptions to the rule are 9 ADMS 1010B,F Fall 2013 classes which regularly meet Friday evenings or on Saturday and/or Sunday at any time, and courses offered in the compressed summer terms. • Final course grades may be adjusted to conform to Program or Faculty grades distribution profiles. • Services for Mature and Part-time Students The Atkinson Centre for Mature and Part-time Students (ACMAPS) maintains and strengthens York University’s ongoing commitment to welcome and to serve the needs of mature and parttime students. For further information and assistance visit: http://www.yorku.ca/acmaps Guidelines For Technology Use During Class And During Course Assessments: The use of technology in this course is at the discretion of individual instructors and may vary between sections. Mobile devices of any kind may not be permitted in this course except for accessibility reasons or extenuating situations to be assessed on a case-by-case basis. Failure to comply with this policy could result in you being asked to leave the classroom for all or part of the course. Last modified: September 3, 2013 10 ADMS 1010B,F Fall 2013 COURSE CALENDAR Week 1 (Sep. 13) Week 2 (Sep. 20) `Week 3 (Sep. 27) Week 4 (Oct. 4) Week 5 (Oct. 11) Week 6 (Oct. 18) Week 7 (Oct. 25) Week 8 (Nov. 8) Week 9 (Nov. 15) Week 10 (Nov. 22) Introduction: Relentless Change – Part One: Laying the foundations, 1850-1905 (pp. 1-14) Uneasy Partnership – Introduction, and Chapter 1: Business and government: The politics of mutual dependence (pp. 3-31) http://www.cic.gc.ca/english/resources/publications/discover/index.asp Make sure to read the section on Canada’s history The foundations of Canada’s economy: Relentless Change – Case 1: Origins of financial stability in Canada: The Bank Act of 1871 (pp. 21 – 37) Uneasy Partnership – Chapter 7: Federalism, regionalism, and the context for business-government relations (pp. 213-243) http://www.bankofcanada.ca/wp-content/uploads/2010/07/1841-71.pdf (12 pp long with pictures) Stern School “growth diamond”: http://www.web-books.com/eLibrary/NC/B0/B56/146MB56.html (1 page) Canada expands – Agriculture and manufacturing: Relentless Change – Case 3: Canada’s first great manufacturing enterprise: The story of Massey Harris (pp. 60-78) Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140) FIRST IN-CLASS GROUP ASSIGNMENT (5%) Manufacturing and the automobile industry Relentless Change – Case 5: The role of trade policy in the rise of the Canadian automobile industry (pp. 120-136) Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140) IN-CLASS MIDTERM #1 Government business enterprises – CNR Relentless Change – Case 4: ‘Irrational exuberance’: The creation of the CNR (pp. 100-117) Uneasy Partnership – Chapter 9: Government business enterprises: The state sector in transition (pp. 271-302) The rise of the Canadian consumer and Canadian retail Relentless Change – Case 6: Eaton’s and Simpsons-Sears (pp. 140-157) Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212) SECOND IN-CLASS GROUP ASSIGNMENT (5%) Natural resources – Oil Relentless Change – Case 9: Canada’s black gold: From the Leduc discovery to the National Energy Program (pp. 221-239); Case 13: Canada the next oil superpower? (pp. 319-339) Uneasy Partnership – Chapter 5: Business, government, and the politics of economic upheaval: 1970 to present (pp. 141-171) IN-CLASS MIDTERM #2 Week 11 (Nov. 29) NAFTA – Wine in Canada Relentless Change – Case 10: The free trade agreement and the Canadian wine industry (pp. 265-283) Uneasy Partnership – Chapter 8: Business, government, and the North American and global economies (pp. 245-369) Canadian financial institutions: The last 50 years Relentless Change – Case 11: The collapse of Confederation Life (pp. 286-301) and Case 12: RBC yesterday, today, and tomorrow (pp. 303-317) Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212) What Toronto Can Teach New York and London, Chrystia Freeland in the Financial Times Week 12 (Dec. 6) WRAP-UP AND FINAL EXAM REVIEW 11