International Business for an emerging economy
Lecturer
Dr Gaston Fornes (gaston.fornes@gmail.com)
Gaston Fornes received a PhD in Management from the University of Bath (UK), an MBA from Universidad Adolfo
Ibañez (Chile) and his first degree in Management from Universidad Nacional de Cuyo (Argentina). He was also an
MBA Exchange Student at Marshall School of Business, University of Southern California (US). Before starting his
career in academia, he worked in industry for around ten years in the US, Argentina and Chile. Dr Fornes received
the Liupan Mountain Friendship Award from the Ningxia Government (China) in 2010 and is Fellow of the UK
Higher Education Academy. Dr Fornes has reached summits in the Andes and runs marathons. He has published a
number of journal papers and books in the field of International Business and he is currently finishing a book on
the business relations between China and Latin America that will be published by Palgrave.
1. Objectives
The objectives of the unit are twofold. On the one hand, it will present the current environment where
international companies operate. On the other hand, it will study the sources of competitiveness for multinational
enterprises.
2. Structure and contents
Lecture 1
Introduction. Globalisation, foreign investments, and international trade. History, recent developments,
and current trends. The Triad and the extended Triad. Trade as an engine of wealth creation. The impact of
globalisation on companies’ performance.
Lecture 2
The BRIC and emerging countries. Why are they emerging? History, recent developments, and
current trends. Trade and investments among emerging markets. The relationship between China and Latin
America.
Lecture 3
Strategic management and multinational enterprises – Characteristics, the internationalisation process,
why firms become international –– Comparison between companies from developed economies and from
emerging markets. A framework for the analysis of international expansion.
Lecture 4
International financial management - Exchange rate risk management – FOREX exposures – Transaction
exposure – Economic exposure – Translation exposure – FOREX rate risk in emerging markets – What can
companies do?
Lecture 5
The international expansion of Chinese SMEs- Main export markets, the USA and the EU – Conclusions
3. Methodology
TBC
4. Assessment
TBC
Page 1 of 4
5. Bibliography by main topics (alphabetic order)
Introduction. Globalisation and international trade. History, recent developments, and current trends.
The Triad and the extended Triad.
Chapters 1 and 2: Rugman, A., Collinson, S. and Hodgetts, R. (2006) International Business. Harlow: Pearson
Trade as an engine of wealth creation. The impact of globalisation on companies’ performance. The
BRIC countries. The relationship between China and Latin America.
Chapter 3 and 6: Rugman, A., Collinson, S. and Hodgetts, R. (2006) International Business. Harlow: Pearson
Fornes, G. and Butt-Philip, A. (2011) “Chinese MNCs in Latin America. A review” International Journal of Emerging
Markets 6/2.
Strategic management and multinational enterprises – Characteristics, the internationalisation
process, why firms become international ––
Chapter 2. Fornes, G. (2009). Foreign Exchange Exposure in Emerging Markets. How companies can minimize it.
Basingstoke: Palgrave Macmillan.
Chapter 2: Rugman, A., Collinson, S. and Hodgetts, R. (2006) International Business. Harlow: Pearson
International financial management - Exchange rate risk management – FOREX exposures –
Transaction exposure – Economic exposure – Translation exposure – FOREX rate risk in emerging
markets – What can companies do?
Chapters 20 and 28. Brealey, R., Myers, S., Allen, F. (2006). Corporate Finance. New York: McGraw-Hill.
8th
edition
Chapters 7 and 8. Fornes, G. (2009). Foreign Exchange Exposure in Emerging Markets. How companies can
minimize it. Basingstoke: Palgrave Macmillan.
Also recommended
Chapter 21 Brealey et al.; Chapter 13 Pilbeam, K. (2006). International Finance (3rd ed.). Basingstoke and New
York: Palgrave Macmillan., and Chapter 7 Rugman et al.
Faff, R. and Marshall, A. (2005). International evidence on the determinants of foreign exchange rate exposure of
multinational corporations, Journal of International Business Studies, 5/36, 539-558.
Fornes, G. and Cardoza, G. (2009). Foreign Exchange Exposure in Emerging Markets. A study of the largest
Spanish investors in Latin America, International Journal of Emerging Markets. Vol 4, Issue 1.
The international expansion of Chinese SMEs
Fornes, G. & Cardoza, G. 2010. Barriers and Factors Affecting the Internationalisation of Chinese SMEs. In Y. Wang
& P. Ramburuth (Eds.), Thirty Years of China’s Economic Reform: Institutions, Management Organizations and
Foreign Investment. Hauppauge: Nova Science.
Cardoza, G. & Fornes, G. 2009. The Internationalisation of SMEs from China: the Case of Ningxia Hui Autonomous
Region. Asia Pacific Journal of Management, DOI: 10.1007/s10490-009-9174-z.
Cardoza, G. & Fornes, G. 2011. National and International Expansion of Chinese SMEs. A Different Story? In X. Fu
& W. Wu (Eds.), China's Role in Global Economic Recovery. London: Routledge.
Xu, N., Fornes, G., & Cardoza, G. 2010. The Internationalisation of Emerging Markets-based SMEs: Evidence from
China's Jiangsu Province. Paper presented at the Academy of Management Conference, Montreal.
Xu, S., Fornes, G., & Cardoza, G. 2010. The Internationalisation of Emerging Markets-based SMEs: Evidence from
China's Anhui Province. Paper presented at the Chinese Economic Association Conference, Oxford.
Page 2 of 4
6. Bibliography for other topics of possible interest related to international management but not
covered in this unit.
International culture – The importance of culture in different business contexts – Key dimensions of
culture – Cross cultural management – National institutions.
Meyer, K (2008) Strategies for emerging economy markets. Perspective March 08
Chapter 5: Rugman, A., Collinson, S. and Hodgetts, R. (2006) International Business. Harlow: Pearson
Multinational strategy – Internal and external environmental assessment – Control and evaluation –
Organisational structures – Production Strategy – Global sourcing – International logistics – Global
production systems – Strategic management and production strategy.
Chapters 9 and 10: Rugman, A., Collinson, S. and Hodgetts, R. (2006) International Business. Harlow: Pearson
International Marketing strategy – International market assessment – Product strategies –
Promotion – Pricing – Place – Strategic management and marketing strategy – International Human
Resource management – Selection and repatriation – Training and development – Compensation –
Labour relations – Strategic management and international human resource management strategies
Chapters 11 and 12: Rugman, A., Collinson, S. and Hodgetts, R. (2006) International Business. Harlow: Pearson
Major Economic systems. Market structures. Social market capitalism. Asian capitalism. The planned
economy. Transition economies. Society and business. Changing populations. Urbanism. Labour
relations.
Chapters 4 and 7: Morrison, J. (2006) The International Business Environment. Global and Local Marketplaces in a
Changing World. Basingstoke: Palgrave Macmillan. 2nd Ed.
International Financial Markets. International capital markets. International monetary systems.
Foreign exchange. Financial environment in emerging markets.
Chapter 12: Morrison, J. (2006) The International Business Environment. Global and Local Marketplaces in a
Changing World. Basingstoke: Palgrave Macmillan. 2nd Ed.
Chapter 7: Rugman, A., Collinson, S. and Hodgetts, R. (2006) International Business. Harlow: Pearson
Challenges. Environmental degradation. Climate change. Transboundary pollution. International
legal frameworks. Social responsibility of the firm.
Chapters 13 and 14: Morrison, J. (2006) The International Business Environment. Global and Local Marketplaces in
a Changing World. Basingstoke: Palgrave Macmillan. 2nd Ed.
7. Additional Bibliography
Allayannis, G., Ihrig, J. and Weston, J. (2001). Exchange-rate hedging: financial versus operational strategies,
American Economic Review, 91, 391-395.
Bailey, R. (2007). The Economics of Financial Markets, New York: Cambridge University Press.
Bartov, E. and Bodnar, G. (1994). Firm valuation, earnings expectations and the exchange-rate exposure effect,
Journal of Finance, 49, 1755-1785.
Baz, J. & Chacko, G. (2004). Financial Derivatives. Pricing, Applications, and Mathematics, Cambridge: Cambridge
University Press.
Bierman, H. & Smidt, S. (2007). The capital budgeting decision. Economic analysis of investment projects (9th ed.).
New York: Routledge.
Page 3 of 4
Buckley, P. and Casson, M. (1976) The future of the multinational enterprise. London: Macmillan
Casson, M. (2000) Economics of international business. Cheltenham: Edward Elgar
Isard, P. (2005). Globalization and the International Financial System, Cambridge: Cambridge University Press.
McDonald, F. and Burton, F. (2002) International Business. London: Thomson
Rugman, A. (2005) The Regional Multinationals. Cambridge: Cambridge University Press
Verbeke, A. (2009) International Business Strategy. Cambridge: Cambridge University Press
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