Honors International Business
Offered By
North Allegheny School District
Business Department
Instructor: Mrs. Cynthia A.Yingling
E-Mail: cyingling@northallegheny.org
Business Department Website: http://www.northallegheny.org
 Academics
 Business
Class Website: http://teachers.northallegheny.org/cyingling/intl/index.html
Course Description:
HONORS INTERNATIONAL BUSINESS
No. 7508
Semester/Full Time
Honors Wt.
Grades 11, 12
Credit .5
Any student planning further study in International Business or Business in general or who is just interested in
the topic will benefit greatly from this course. Honors International Business will provide an up-to-date and
complete exploration of international business issues and practice. With a strong foundation of international
business theory, this course will include current examples, cases and insights showing how global businesses apply
these concepts. Controversies in international business will be reflected upon, as will the impact of international
business practices on countries, corporations and individuals. The course will examine the role and impact of
culture and also includes the exploration of numerous current world maps; helping students develop and refine a
global perspective. This course adopts a truly global approach with attention given to topics that are critical to the
international manager in the global business environment.
Criteria for Selection ‘B’ or better in prior Social Studies Course.
Course Outline:
I. Globalizing Business
• International Business and Global Business
• Why Study Global Business?
• A Unified Framework
 One Fundamental Question
 An Institution-Based View
 A Resource-Based View
• What Is Globalization?
 Three Views of Globalization
 The Pendulum View of Globalization
 Semiglobalization
• Global Business and Globalization at a Crossroads
 A Glance of the World Economy (GDP, GNP/GNI)
 The Globalization Debate and You
II. Understanding Formal Institutions: Politics, Laws, and Economics
• Formal and Information Institutions
• What do Institutions Do
• An Institution-based View of Global Buisness
• Two Political Systems
 Democracy
 Totalitarianism
 Political Risk
• Three Legal Systems
 Civil Law, Common Law, and Theocratic Law
 Property Rights
 Intellectual Property Rights
• Three Economic Systems
• Debates and Extensions
• Management Savvy
III. Emphasizing Informal Institutions: Cultures, Ethics, and Norms
• Where Do Informal Institutions Come From?
• Culture
 Definition of Culture
 Language
 Religion
• Classifying Cultural Differences
 The Context Approach
 The Cluster Approach
 The Dimension Approach
 Culture and Global Business
• Ethics
 Definition and Impact of Ethics
 Managing Ethics Overseas
 Ethics and Corruption
• Norms and Ethical Challenges
• Debates and Extensions/Management Savvy
•
IV. Leveraging Resources and Capabilities
• Understanding Resources and Capabilities
• Analyzing the Value Chain: In-house versus Outsource
• Analyzing Resources and Capabilities with a VRIO Framework
 The Question of Value
 The Question of Rarity
 The Question of Imitability
 The Question of Organization
• Debates and Extensions/Management Savvy
V. Trading Internationally
• Why Do Nations Trade?
• Theories of International Trade
 Mercantilism
 Absolute Advantage
 Comparative Advantage
 Product Life Cycle
 Strategic Trade
 National Competitive Advantage of Industries
 Evaluating Theories of International Trade
• Realities of International Trade
 Tariff Barriers
 Nontariff Barriers (NTBs)
 Economic Arguments against Free Trade
 Political Arguments against Free Trade
• Debates and Extensions/Management Savvy
VI. Investing Abroad Directly
• Understanding the FDI Vocabulary
 The Key Word is D
 Horizontal and Vertical FDI
 FDI Flow and Stock
 MNE versus non-MNE
• Why Do Firms Become MNEs By Engaging in FDI?
• Ownership Advantages
 The Benefits of Direct Ownership
 FDI versus Licensing
• Location Advantages
 Acquiring and Neutralizing Location Advantages
• Internalization Advantages
 Market Failure/Overcoming Market Failure through FDI
• Realities of FDI
 Political Views on FDI
 Benefits and Costs of FDI to Host/Home Countries
• How MNEs and Host Governments Bargain
• Debates and Extensions/Management Savvy
VII. Dealing with Foreign Exchange
• Factors Behind Foreign Exchange Rates
 Basic Supply and Demand
 Relative Price Differences and Purchasing Power Parity
 Interest Rates and Money Supply
 Productivity and Balance of Payments
 Exchange Rate Policies
 Investor Psychology
• Evolution of the International Monetary System
 The Gold Standard (1870-1914)
 The Bretton Woods System (1944-1973)
 The Post-Bretton Woods System (1972-present)
 The International Monetary Fund (IMF)
• Strategic Responses to Foreign Exchange Movements
 Strategies for Financial/Non-Financial Companies
• Debates and Extensions/Management Savvy
VIII. Capitalizing on Global and Regional Integration
• Global Economic Integration
 Political/Economic Benefits for Global Economic Integration
• General Agreement on Tariffs and Trade: 1948-1994
• World Trade Organization: 1995-present
 Trade Dispute Settlement
 The Doha Round: The “Doha Development Agenda”
• Five Types of Regional Economic Integration
 Pros and Cons for Regional Economic Integration
• Regional Economic Integration in Europe
 Origin and Evolution
 The EU Today
 The EU’s Challenges
• Regional Economic Integration in the Americas
 North American Free Trade Agreement (NAFTA)
 Andean Community, Mercosur, FTAA, and CAFTA
• Regional Economic Integration in Asia Pacific
 Australia-Ne Zealand Closer Economic Relations Trade Agreement
(ANZCERTA or CER)
 Association of Southeastern Asian Nations (ASEAN)
 Asia-Pacific Economic Cooperation (APEC)
• Regional Economic Integration in Africa
• Debates and Extensions/Management Savvy