PACIFIC UNIVERSITY
FIN 783
CORPORATE MACRO-ENVIRONMENT
FALL 2014
Professor:
Michael J. Miller, Ph.D.
Director, Center for Global Business Studies
College of Business
Class Sessions:
August 22 1pm-6pm/August 23 8am-5pm
Hillsboro campus, HPC2 150
September 5 1pm-6pm/ September 6 8am-5pm
Credits:
3
Contact:
mjmiller@pacificu.edu
(503) 352-2815
Office Hours:
By appointment – by email, in-person, or phone
Materials:
Dicken, Peter. (2011). Global Shift: Mapping the Changing Contours of the
World Economy, 6th Ed. New York: The Guilford Press.
Miller, Michael. (2014). Weathering the Great Recession: Realty Trust and the
LEED Gold Certified Bellevue Towers. Center for Global Business Studies,
College of Business, Pacific University.
Lectures and PowerPoint lecture notes.
COURSE OVERVIEW AND OBJECTIVES
Corporate Macro-Environment examines a firm’s strategy formulation and implementation in a
global context. As such, we will analyze recent and historical trends in the international economic
system. This will take us through a study of international trade, investment, as well as global
environmental issues like climate change, which present organizations with new financial
challenges and opportunities. In the end, this course will provide Master of Science in Finance
students with an international perspective that will be increasingly useful in finance.
By the end of the course, you should be able to:
•
Identify major trends and actors in the global economy, and in the financial sector in
particular
•
Appreciate the complexity, interconnectedness, rapid change, regulatory environment, and
social responsibility associated with finance
•
Carry out qualitative analysis of financial questions
•
Absorb and analyze large quantities of information pertaining to the international
economy, formulate conclusions and recommendations for an organization, and concisely
and clearly communicate these ideas
1
COURSE GRADING
In-class preparation and participation
Individual paper (Due by Sept. 2nd)
Group paper (Due by Sept. 14th)
Total
30%
35%
35%
100%
PAPER REQUIREMENTS
Individual paper: For this paper, you should write an essay that explains your definition of
“globalization.” You should explain what globalization is, whether it is happening, and whether it
is a positive or negative phenomenon (or both). You will need to write this paper individually. It
should be at least 5 double-spaced pages in length not including the title page and any references
pages, but not longer than this. This paper must be turned in by September 2nd. Please email your
completed paper to me at my address in this syllabus. I will provide any further guidelines for this
paper during the course.
Group paper: You will write this paper together with one or two of your classmates. Here you will
choose one business, and write a research paper about how it and especially its financial situation
relates to globalization (or decreased globalization, if you believe this is happening). You will
need to briefly define globalization, discuss how the business and especially its financial situation
relates to this phenomenon, and then provide some concrete recommendations for how the
business can best navigate this international context. This paper should be at least 10 doublespaced pages in length not including the title and references pages, but not longer than this. It
must be turned in by September 14th. Please email your completed paper to me at my address in
this syllabus. I will provide any further guidelines for this paper during the course.
GRADING SCALE
100-98%
97-93%
92-90%
89-88%
87-83%
82-80%
79-78%
77-73%
72-70%
69-68%
67-63%
62-60%
59% and below
A+
A
AB+
B
BC+
C
CD+
D
DF
2
FIN 783 COURSE SCHEDULE (APPROXIMATE – SUBJECT TO ADJUSTMENT)
Dates
Topics
! Course logistics and introduction
! Introduction to globalization
! Trends in trade and investment
Readings and In-Class Activities
! Dicken, chapters 1,2
! Globalization: where do you
fit (if at all) in Dicken’s
categories?
! Noam Chomsky on
globalization
Friday August
22nd
! China and back to the future
! Interconnectedness and
“indirect” investment
! Trends in regional and national
economies
! Global production networks (GPNs)
! Transnational corporations (TNCs)
and other key actors
! When arms-length trade
resembles intra-firm trade: the
Wal-Mart case
! Dicken, chapters 2,3
! Cooking the books in the EU
and then…the recession
! Latin America as a less
powerful player: the case of
Argentina
! The “financialization” of
GPNs: the case of banks
Saturday
August 23rd
! Consumer preferences and the
myth of the melting pot: Coca
Cola
! A new actor to consider:
global civil society
organizations (GCSOs)
Friday
September 5th
! Technological change and its role in
the world economy
! Conflict AND collaboration in
GPNs: companies and
environmental
nongovernmental
organizations (NGOs)
! Dicken, chapters 4,5
! Shrinking space and time
! Communications technology
vs. transportation technology
! Why are there more and more
TNCs?
! Drones: a new step in
transportation
3
! Different types of TNCs and their
characteristics
! Is increased communication
always good for business?
! Transport and communication
of the future
! The transnational corporation:
present and future
Saturday
September 6th
! The nation-state: containing nations,
and regulating and promoting
business
! Dicken, chapters 6,7,12
! Inter-state collaboration on trade
! States vs. nation-states
! Nation-state/TNC conflict and
collaboration
! Deregulation and the 1980s
! The Bellevue Towers Case
! Trends in capitalism
! International efforts to regulate
TNCs
! The growing importance of
“advanced business services”
! Finance: a proliferation of financial
products
! The nation-state as regulator and
provider of advanced business
services
! China, rice and non-tariff
barriers
! Trade liberalization vs.
protectionism
! Latin America and limitations
on FDI
! The nation-state vs.
globalization
! ISI in Brazil
! Chinese state-owned
enterprises
! FTAA blues
! The future of trade
! Major state-TNC
collaboration: the GM case
! Regulatory arbitrage: the
Burger King case
! ABS and prosperity: the
effects of regulation
4
5