BUS 270, Sections A and B, Fall 2013:
BUSINESS IN THE INTERNATIONAL CONTEXT
Andreas Udbye, Ph.D. Cand.
Visiting Assistant Professor
audbye@pugetsound.edu
UPS Office: 253-879-3157
Home office: 253-564-2822
Cell and text: 253-732-5858
Class meeting times and location:
Sec. A: Mondays, Wednesdays and Fridays 10:00 – 10:50 am
Sec. B: Mondays, Wednesdays and Fridays 11:00 – 11:50 am
McIntyre 303
Professor office location and hours:
McIntyre 111A, Mondays and Wednesdays 3:30 – 4:30 pm,
Fridays, noon – 1:00 pm, or by appointment
Course Description from the Bulletin:
As companies and non-profit organizations continue to explore the promise of global markets
and the challenges of operating internationally, it has become essential for students in business
and related fields to have a basic understanding of the international environment and its
impact on organizational activities. The overall purpose of this course is to develop students'
awareness and understanding of the complex international context of which international
organizations are principal actors. In order to gain a multidisciplinary perspective, the course
incorporates concepts from economics, history, politics, sociology, geography, and
organizational theory. Particular emphasis is placed on understanding emerging and developing
economies, assessing ethical and social responsibilities of organizations in the global context,
and cross-cultural understanding. Finally, the course introduces students to key business
concepts related to strategic planning, internationalization strategies, supply chain
management, marketing, entrepreneurship, and human resource management.
Additional Description:
World trade in goods and services now represents a huge share of most nations’ gross domestic
product. In Washington State, for example, it is said that one third of jobs are connected with
international commerce, such as exporting, importing and service activities. Because of the
strength of the Boeing Company, this state also has the highest exports per capita of any state
in the nation. The Puget Sound area, with its favorable location, is a major transit point for
cargoes moving in and out. It is expected that major corporations based in this state, such as
1
Microsoft, Amazon, Starbucks and Costco, will increase their global presence and provide
exciting employment opportunities for thousands of college graduates. This course will help
prepare students for careers in the growing international arena, whether you end up working
for a large corporation or an entrepreneurial start-up.
Course Objectives:







Develop an understanding for why global commerce is so crucial for a healthy national
and world economy
Examine the complex and interconnected nature of the global business environment
Recognize and analyze current global patterns, trends and opportunities, from an
entrepreneurial perspective
Become familiar with functional and technical issues that specifically pertain to
international trade
Gain basic skills in international business, industry and country-specific marketing
research
Appreciate the many opportunities and risks inherent in global trade and investments
Instill a level of confidence that buying and selling internationally are viable options
Teaching Methods:
Becoming an effective international manager and trader involve a variety of skills and talents,
and this course will use a mixture of teaching methods to emphasize this: readings, lectures,
case analyses, written exams, guest presentations, and team activities. The course is not highly
quantitative, although your instructor will stress throughout the course the importance of
clarity and accuracy in how you communicate. In international business, the “devil’s in the
details”, you might say. We will explore many of the dilemmas and contradictions encountered
in doing business abroad, and much time will be spent in discussions and brainstorming about
these issues. We will explore marketing and strategic methods that succeeded, while also look
at unsuccessful efforts as learning opportunities. The assigned textbook is a great resource, and
the instructor will supplement with examples from his own career and experience. The “Travels
of a T-Shirt” book is entertaining and thought provoking.
As in most courses, it is crucial to stay up on the readings so as to be prepared to participate in
the class discussions and dialogue. Deadlines must be observed. 25% of the grade in the course
will be based on a team project and presentation.
2
Required texts (available at the bookstore):
Tamer Cavusgil, Gary Knight, John Riesenberger: “International Business: The New Realities”,
2nd edition, Prentice Hall, 2011. ISBN 978-0-1360-9098-4. $95 at the UPS Bookstore (which is a
good deal, as the newly released 3rd edition costs more than $200)
Pietra Rivoli: “The Travels of a T-Shirt in the Global Economy: An Economist Examines the
Markets, Power, and Politics of World Trade”, 2nd edition, Wiley, 2009. ISBN 978-0-4702-87163. $18.95.
Assessment:
Individual grading
Team grading
Midterm and final exams @
20% each
Country analysis; 10% for the
write-up and 2.5% for the
oral presentation
40%
Product Analysis; 10% for the
write-up and 2.5% for the
oral presentation
12.5%
Participation and attendance
10%
Project: Export or import
business plan. 20% for the
write-up and 5% for the
presentation
25%
+ Extra credit for attending event and writing a summary
12.5%
100%
3%
More details on the assessment items:
Exams: The exams will be in-class, closed book. They consist of some multiple choice questions,
but mostly short essay. The final is not comprehensive, although the material absorbed from
the entire course will help in providing good answers on the essay questions. The midterm will
be held on October 18, and the final during finals’ week (date and time yet TBD)
Country Analysis: You get to choose one country to export to or set up a business in. The
challenge will be to perform research and present a thorough and concise analysis of your
chosen country. More information on this in early September. Half the students in class get to
make oral presentations, followed by questions and discussion of the countries.
3
Product Analysis: You get to choose one product or service (this can include anything from
basic commodities to advanced technological products) and you will write a report on its global
trade patterns. This includes marketing and supply chains aspects of the global flow. More
information on this in September. The other half of the students who did not present the
country analysis will get to present their product plans, followed by questions and discussion.
Participation and Attendance: Attendance is mandatory, and I will do roll. Active and
constructive participation will make the class a lot more interesting and rewarding.
Team Project: Teams of three students (one or two teams may have four students) will work on
and present an international business plan. You get to choose a product and a market for either
importing or exporting a good or service. The challenge is to produce a condensed and succinct
business plan for how to get started with your new line of business. More information on this in
early October.
Extra credit: Up to 3% can be attained by attending one international trade event in the area
and completing a one-page summary report of it. For example, the World Trade Center Tacoma
has several speaker events during the fall semester. Some are free; some cost a few dollars. See
the last page of this syllabus for suggested upcoming events.
Hint: After you have read each textbook chapter, take a look at the “Test Your Comprehension”
and “Apply Your Understanding” questions and spend a few minutes reflecting on them. This
will help you retain the most important material and prepare you for the exams.
Grading Scale
Grade
Percentage
Points
A
AB+
B
BC+
C
CD+
D
DF
92-100%
90-91
88-89
82-87
80-81
78-79
72-77
70-71
68-69
62-67
60-61
Under 60%
920-1000
900-919
880-899
820-879
800-819
780-799
720-779
700-719
680-699
620-679
600-619
under 600
4
Academic Integrity and Honesty
Please carefully read the University policy on academic honesty in The Logger. The following is
a quote from The Logger:
“The University of Puget Sound is a community of faculty, students, and
staff engaged in the exchange of ideas contributing to intellectual growth
and development. Essential to the mission of the academic community is
a shared commitment to scholarly values, intellectual integrity, and
respect for the ideas and work of others. At Puget Sound, we share an
assumption of academic integrity at all levels. Violations of academic
integrity are a serious matter because they threaten the atmosphere of
trust, fairness, and respect essential to learning and the dissemination of
knowledge.”
Academic dishonesty (cheating, plagiarism, etc.) will be taken seriously and pursued in
accordance with University policies and procedures. An interactive online tutorial on Academic
Integrity@ Puget Sound is also available on the Collins Library webpage. You are required to
take that tutorial as a homework assignment.
Accommodations for Students with Disabilities
If you have a physical, psychological, medical or learning disability that may impact your course
work and where you need reasonable accommodation, please notify the professor. You may
also contact Disability Services at 105 Howarth (Ph. 879-3395) for assistance. All information
and documentation are confidential.
Classroom Emergency Response Guidance
Please review university emergency preparedness and response procedures posted at
www.pugetsound.edu/emergency/. There is a link on the university home page. Familiarize
yourself with hall exit doors and the designated gathering area for your class and laboratory
buildings.
If building evacuation becomes necessary (e.g. earthquake), meet your instructor at the
designated gathering area so she/he can account for your presence. Then wait for further
instructions. Do not return to the building or classroom until advised by a university emergency
response representative.
If confronted by an act of violence, be prepared to make quick decisions to protect your
safety. Flee the area by running away from the source of danger if you can safely do so. If this
is not possible, shelter in place by securing classroom or lab doors and windows, closing blinds,
and turning off room lights. Stay low, away from doors and windows, and as close to the
interior hallway walls as possible. Wait for further instructions.
5
Session by Session Schedule and Assignments (the Articles and Discussion Questions are
listed below): SUBJECT TO MINOR CHANGES
Week
Sess.
1
2
3
4
5
Date
Topics and Activities
Read or do before class
1
Sept. 4
Introductions and walk-through of
the syllabus and expectations.
Read this syllabus.
Peruse the preface in Cavusgil.
Read the preface and prologue in
Rivoli.
2
Sept. 6
The importance of trade for the U.S.
and Washington State.
Discussion question #1.
Read:
Cavusgil: Chapter 1
3
Sept. 9
Globalization’s opportunities and
perils.
Discussion question #2.
Read:
Cavusgil: Chapter 2
4
Sept. 11
Who are the actors in international
business?
Remembering 9-11-2001.
Read:
Cavusgil: Chapter 3
5
Sept. 13
Discussion of America’s strongest
export sectors & the Rivoli chapters
Read:
Rivoli: Chapters 1 and 2
6
Sept. 16
Trade and culture, including good
etiquette and protocol.
Read:
Cavusgil: Chapter 4
7
Sept. 18
Business ethics and corporate
responsibility.
Read:
Cavusgil: Chapter 5
8
Sept. 20
Clarification of the Country Analysis
project; assignment of presenters.
Discussion question #3
Read:
Article A (Foreign Corrupt Practices
Act)
9
Sept. 23
Discussion of product safety in
global trade, incl. standards and
consumer protection. Discussion of
subsidies.
Read:
Rivoli: Chapters 3 and 4
10
Sept. 25
International trade theory,
summarized. Competitive
advantage.
Read:
Cavusgil: Chapter 6
11
Sept. 27
Dealing with other political systems
12
Sept. 30
What’s happening in China?
6
Read:
Cavusgil: Chapter 7
Read:
Rivoli: Chapters 5 and 6
6
7
8
9
13
Oct. 2
What’s happening in the BRIC’s?
Read:
Rivoli: Chapters 7 and 8
14
Oct. 4
What’s happening in other emerging
markets?
Discussion question #4
Read:
Article B (Emerging Markets)
15
Oct. 7
What can the government do for
you?
Read:
Cavusgil: Chapter 8
16
Oct. 9
Foreign Trade Agreements (FTA’s)
Read:
Cavusgil: Chapter 9
17
Oct. 11
Market segmentation
Read:
Cavusgil: Chapter 10
18
Oct. 14
COUNTRY ANALYSIS DUE
Student presentations of country
analyses.
Read:
Rivoli: Chapters 9 and 10
19
Oct. 16
Student presentations of country
analyses.
Recap of material for midterm.
Read:
Article C (Free Trade Agreements)
20
Oct. 18
MIDTERM EXAM (covers material
from the class discussions, the first
10 chapters in each book, and
articles A, B and C)
Prepare for exam.
21
Oct. 23
Review of midterm exam.
Discussion question #5
Read:
Rivoli: Chapters 11 and 12
22
Oct. 25
Clarification of the Product Analysis
project; assignment of presenters.
Read:
Rivoli: Chapter 13
23
Oct. 28
Discussion of protectionism and
trade policy. The complete supply
chain.
Read:
Rivoli: Chapters 14 and 15
24
Oct. 30
Talk about the team project and
assign teams.
Discussion question #6
Read:
Article D (Cavusgil article on
destructive regeneration)
25
Nov. 1
Financial and monetary matters
Read:
Cavusgil: Chapter 11
7
10
26
Nov. 4
Global Market Opportunity
Assessment: Be systematic about it.
Read:
Cavusgil: Chapter 13
27
Nov. 6
The Five P’s of Marketing:
1) The product
Read:
Cavusgil: Chapter 18
28
Nov. 8
2) The Price (payments, terms,
hedging)
Read:
Cavusgil: Chapter 15
29
Nov. 11
3) The Placement (distribution
approaches).
a. Where to source it.
Read:
Cavusgil: Chapter 17
30
Nov. 13
31
Nov. 15
4) The Promotion: How to sell
it
Read:
Cavusgil: Chapter 14
32
Nov. 18
5) The People: How to organize
and manage for success
Read:
Cavusgil: Chapter 19
33
Nov. 20
Best practices in organizational
structures
Read:
Cavusgil: Chapter 12
34
Nov. 22
Guest presenter TBN
Read:
Article E (on IFRS adoption)
13
35
Nov. 25
What about the numbers?
Discussion of question #7
Course evaluations
Read:
Cavusgil: Chapter 20
14
36
Dec. 2
PRODUCT ANALYSES DUE
Student presentations of product
analyses.
Finish preparing the product
analysis reports.
37
Dec. 4
Student presentations of product
analyses.
Read:
Article F (U.S. Chamber speech: The
State of World Trade)
38
Dec. 6
Guest presenter: Mr. Anthony
Hemstad, President of the World
Trade Center Tacoma
Read:
Article G (ILO’s World of Work)
39
Dec. 9
3 teams present their business
plans.
Prepare presentation and work on
written report.
11
12
15
b. Who to deal with
8
Read:
Cavusgil: Chapter 16
40
Dec. 11
3 teams present their business
plans.
Prepare presentation and work on
written report.
41
Dec. 13
2 teams present their business
plans.
Recap of material for final exam.
Prepare presentation and work on
written report.
Dec. 18
TEAM PROJECT WRITTEN BUSINESS
PLANS DUE (no class)
Finalize and submit written report.
Dec. 18
FINAL EXAM (Section A: 8:00 –
10:00, Section B: 12:00 – 2:00 pm,
both in McIntyre 303) Covers
material from the class discussions,
the last 10 chapters in Cavusgil, last
5 chapters in Rivoli and articles D,
E, F and G)
Prepare for final exam.
16
Articles:
While you read them, take good notes and be ready to discuss these articles in class.
Article A:
First two chapters (pages 2 -35) of “A Resource Guide to the Foreign Corrupt
Practices Act”: http://www.sec.gov/spotlight/fcpa/fcpa-resource-guide.pdf
Article B:
First 35 pages of “The Emerging Markets Century”:
http://books.google.com/books?hl=en&lr=&id=GLj5hj7xN54C&oi=fnd&pg=PA1&
dq=Exporting+to+Emerging+markets&ots=d7eX9390ay&sig=5GyW2HUorULXyIy
UBpbpXM3EmoA#v=onepage&q=Exporting%20to%20Emerging%20markets&f=f
alse (some pages are missing), and
“BEYOND THE BRICS: A LOOK AT THE NEXT 11”:
http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/bricsbook/brics-chap-13.pdf
Article C:
Professor Udbye’s article on Free Trade Agreements (in Moodle)
Article D:
“Reflections on international marketing: destructive regeneration and
multinational firms” by S. Tamer Cavusgil & Erin Cavusgil:
http://content.ebscohost.com/pdf27_28/pdf/2012/JAK/01Mar12/71672986.pdf
?T=P&P=AN&K=71672986&S=R&D=bth&EbscoContent=dGJyMNLr40SeprE40dvu
OLCmr0uep7FSsqa4SrOWxWXS&ContentCustomer=dGJyMPGusUqzqbZPuePfgey
x44Dt6fIA
9
Article E:
“Does Mandatory IFRS Adoption Improve the Information Environment?” by
Horton, Serafeim & Serafeim:
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=678cf4e6-020545ce-82a8-18c91f361033%40sessionmgr4&vid=8&hid=14
Article F:
“The State of World Trade 2013: The Outlook for American Jobs, Economic
Growth, and Global Leadership”, U.S. Chamber of Commerce:
http://www.uschamber.com/press/speeches/2013/state-world-trade-2013outlook-american-jobs
Article G:
“World of Work”, the magazine of the International Labour Organization:
http://www.ilo.org/wcmsp5/groups/public/---dgreports/--dcomm/documents/publication/wcms_216068.pdf (read all the stories)
Discussion Questions:
#1: Take a look at every piece of clothing in your wardrobe and let us know if you have any
American made items at all. If so, bring them to class to show.
#2: Globalization: What is it, and is it good or bad?
#3: Who is guilty when a factory collapses in Bangla Desh? The factory owner or you and I as
buyers of these products?
#4: How comfortable do you feel with the “race to the bottom”? Is product price everything for
you?
#5: What are externalities?
#6: Do you need to travel to be effective in international business?
#7: Should American firms follow foreign accounting standards?
10
Suggested events you can attend for the extra 3% credit (must submit one page summary):
September:
October:
November:
12th (Thur.), 8:30 – 11:30 am
Import Procedures and Documentation,
World Trade Center Tacoma
(www.wtcta.org)
24th (Tue.), 8:00 – 9:30 am
Opportunities with Vietnam,
Trade Development Alliance of Greater
Seattle, (http://seattletradealliance.com)
8th (Tue.), 4:00 – 7:00 pm
Classroom on the World,
World Affairs Council Tacoma
(www.wactacoma.com)
10th (Thur.), 8:30 – 11:30 am
Import Security and Compliance,
World Trade Center Tacoma
(www.wtcta.org)
10th (Thur.), 5:30 – 8:00 pm
Consular Association Reception,
World Affairs Council Tacoma
(www.wactacoma.com)
25th (Fri.), 11:30 am – 1:30 pm
Trade is Transportation: Future of Bulk
Exports luncheon.
World Trade Center Tacoma
(www.wtcta.org)
12th (Tue.), 4:00 – 7:00 pm
Classroom on the World (on Brazil),
World Affairs Council Tacoma
(www.wactacoma.com)
22nd (Fri.), 11:30 am – 1:30 pm
Economic and Trade Outlook luncheon
World Trade Center Tacoma
(www.wtcta.org)
Most, if not all, of these events offer discounted student pricing.
11