BBB4M – International Business RESEARCH PROJECTS Project # Team Size Title Description World Trade Activity STUDENT 1: 1. Bilateral/Multilateral trade agreements (Not including NAFTA) 2. Proposed trade agreements (ex. FTAA, Canada-India, Canada – E.U., etc. What about other countries besides Canada?) 3. Major Trading Blocs (3 largest) / Common Markets STUDENT 2: 4. Emerging economies and their current impact on world trade 5. Free Trade Zones – also called Free Trade Areas (within a country) 6. Canadian Trade Missions STARTING POINTS Locate content related to your project in the text. Summarize the main points. You may notice that some of the information and data is out of date. One of the objectives of this project to present relevant and timely information. 1 The use of statistics is important for this project. 2 Several countries are now making an impact on global trade whereas only a decade ago they were not (ex. Brazil). These are categorized as emerging economies. (What is the definition of a merging economy?) Who are these countries and why must we pay attention to their new positions in global trade and business? Provide a description of the different types of trade agreements that can be created between countries, including at least three examples. What is the motivation behind creating trade deals between countries? What trade agreements are in the works or planned for the near and distant future. What trade deals have been completed in the past year? (Some have occurred just recently. Include all those involving Canada.) Why has the U.S. – south Korea trade deal taken so long? Are there issues? Look at the recent Canada – E.U. trade deal. Look at the rationale for creating trade blocs (European Union, for example) and the advantages and disadvantages that bloc members are confronted with. Your lesson should make use of statistics wherever possible to illustrate the effect trade bloc participation can have on a country’s economy. Outline and describe the benefits countries expect to gain? Is there a downside to trade bloc participation? If so, what are the negative aspects? Specific examples are needed from different parts of the world. What do free trade zones/areas and in-bond industries offer international companies? The use of up-to-date examples wherever possible is important in this topic. Information on each of these topics is plentiful, however. Use media clips if they are available. Page 1 What are free trade zones (also called Free Trade Areas) (FTZ) that have been established in countries? What benefits and disadvantages do FTZs offer global companies and the countries that operate them? Provide at least 2 examples of FTZs operating in different parts of the world. What are the objectives of a trade missions? When were the last two Canadian trade missions? Is there a new trade mission being planned for the near future? Give details. What do Canadian companies hope to accomplish by participating in a trade mission. Find examples of Canadian companies that have benefited directly from a trade mission. Page 2 Project # Team Size Title Description Globalization: Pros and Cons STUDENT 1: PRO – Overall, globalization has had a POSITIVE effect on the economies of the world and it has improved the prosperity of the citizens living within these economies. STUDENT 2: CON - Overall, globalization has had a NEGATIVE effect on the economies of the world and it has NOT improved the prosperity of the citizens living within these economies. This debate continues to rage. There is a great deal of information available on this topic and students who choose this topic will be challenged to sift through it all to create PRO and CON sides to the debate with supporting arguments. STARTING POINTS Locate content related to your project in the text. Summarize the main points. You may notice that some of the information and data is out of date. One of the objectives of this project to present relevant and timely information. First, how is globalization defined? What evidence is there to suggest that we live in a globalized world? 2 2 There is ample evidence to support both sides of the debate. Suspicion and ignorance is evident on both sides. It is important to investigate the topic from the perspectives of various stakeholders: business, government, farmers, workers, NGOs, and indigenous people, among others, and incorporate the key points of their arguments. Note that the media is a good place to start; specifically, the editorials from newspapers from various parts of the world. Editorials reveal the position taken by pro/con teams in various parts of the world and they assess globalization’s impact on those most affected by its activities. The use of statistical information will add weight to arguments on both sides. Non-government organizations (NGOs) that are positioned against globalization have web sites with a .org suffix. These can be located easily and they offer a great deal of information about their side of the debate. There are many authors, academics, and researchers that are in support of globalization and argue that it has been a good thing, overall, for developing countries. Two students will research this topic and prepare arguments for both sides of the debate: One PRO, one CON. It is important to look at globalization’s effects in different parts of the world. Media clips might of benefit for this topic. There are many web sites dedicated to this topic so gathering relevant and timely information should not be difficult. It is important to find unbiased sources that give the facts as they really are. Pro and con sides in the debate will often alter details of the facts to fashion them in a way that will favour their positions. www.globalization.org is a good starting point. Page 3 Project # Team Size Title Description International Business and Trade Organizations | Bonds | Canadian Export Support STUDENT 1: 1. WTO 2. WORLD BANK STUDENT 2: 3. IMF 4. OECD STUDENT 3: 5. BONDS & BOND RATING AGENCIES 6. CDN EXPORT AGENCIES & CORPORATIONS (EDC, Business Development Bank, CIDA, are examples of federal agencies) STARTING POINTS 3 3 Locate content related to your project in the text. Summarize the main points. You may notice that some of the information and data is out of date. One of the objectives of this project to present relevant and timely information. STUDENTS 1 & 2: Provide a brief historical account of the development of the WTO, IMF, WORLD BANK, and the OECD. Include the rationale for their creation. Describe their roles in today’s global economy and discuss their effectiveness in that role. Providing examples of how these organizations make a contribution, or not, is important. There are supporters and critics for each of these institutions. The IMF and the World Bank in particular have had their share of successes and failures depending on whose point of view you take. At least two examples (case studies) of how these institutions are needed to discuss this part of the project adequately: An example of how they benefited countries they were involved in, and how their involvement was detrimental, are needed. What role does the OECD play towards improving the economic and political situation in countries within its organization? How does it achieve its objectives? Are there examples that show how the OECD has been effective promoting or advancing international trade and business? STUDENT 3: Page 4 What are bonds? Who issues them? Why are bonds issued? How do investors make money by investing in bonds? Bond agencies accumulate and analyze economic, fiscal, and political information to help investors assess the risk in investing in countries, corporations, and other political jurisdictions (provinces, states, cities, etc.). Identify these bond agencies and their ranking systems and explain what criteria are used to define those rankings. The Canadian and Ontario governments have created a number of agencies and corporations that play an important role in assisting Canadian companies in their exporting efforts, and also to promote Canadian products abroad. Research these government agencies and corporations to give a brief description of their roles and examples of how they play out that role. Find at least 1 case study to show how these agencies were of help to Canadian companies. You can start with Export Development Canada www.edc.ca. On this site you can research how EDC operates and retrieve case studies as to how EDC played a role in helping Canadian companies export their goods or services successfully. Page 5 Project # Team Size Title Description As the textbook reveals, Canada and the United States have had a long economic history with one another – the relationship has not always been congenial. As with any relationship between countries, Canada and the U.S. have had differences in their views in the areas of trade and economics over the years, but both have always managed to find enough common ground to prosper. This lesson gives a detailed account of this dynamic, on-going relationship, and a description of the significant events that were responsible for the kind of relationship that exists to this day. STARTING POINTS Locate content related to your project in the text. Summarize the main points. You may notice that some of the information and data is out of date. One of the objectives of this project to present relevant and timely information. STUDENT 1: 1. Historical Evolution – Timeline of key events. 2. Economic impact of trade activity on its stakeholders after the deal was signed. NAFTA 4 2 STUDENT 2: 3. Challenges and issues: There is talk that the U.S. wants to renegotiate the deal, and all three members have claimed that they have not been dealt with fairly by one or more of the other members. Find some specific examples of these. There have been lawsuits filed by companies against governments. Give examples of these. 4. Briefly describe how the dispute resolution process works under the agreement. The use of trade statistics and other economic indicators (GDP, employment) is needed to deal with this topic adequately. An assessment of the success of the trade deal should be discussed by making reference to statistical evidence that clearly illustrates how the trade deal has altered trade between the three partners, and the effect it has had on each. Finding data for this part should not be overly difficult. For example, has the lowering of tariffs among a variety of goods and services had an effect on trade volumes? Are there untouchable goods and services when it comes to tariff removal? In the last U.S. election, NAFTA was a key campaign issue for both Democrats and Republicans. There were critics who argued that NAFTA is no longer relevant and that it should be reviewed and re-negotiated. While others argue that NAFTA only needs some fine tuning? What are the key points on both sides of this debate? Is Canada’s trade future with the U.S. threatened? As with any trade agreement, disputes are inevitable. How does the NAFTA dispute resolution process work? Has it been successful? Are there examples? Are there disputes not yet resolved? What are they? The U.S. is the big elephant in the relationship. What are the current views of various stakeholders (farmers, manufacturers, citizen teams, NGOs, on both sides of its borders – Canada and Mexico – as to whether or not they have benefited from the agreement? Page 6 Mexico, for example, has complained that the US has not been abiding by the agreement and it has suffered economically as a result. What specifically are Mexico’s concerns? What are Canada’s concerns? What specific economic hardships has it experienced due to the actions of the U.S.? Ample information is available on this topic, but good research skills are needed here. Page 7 Project # Team Size Title Description Global Corporate Activities STUDENT 1: International | Global Companies STUDENT 2: 1. Mergers & Acquisitions (M&A) 2. Joint Ventures (JV) STUDENT 3: 3. Partnerships 4. Alliances STARTING POINTS Locate content related to your project in the text. Summarize the main points. You may notice that some of the information and data is out of date. One of the objectives of this project to present relevant and timely information. 5 STUDENT 1: 3 Articles in the media abound about the activities connected with multinational and global companies. Is there a difference between the two? Are their different types of multinational companies? (See text) What makes them different? What are the ten largest corporations in the world? Choose three of these from different industries and look at total revenue, sales, number of employees, and the different countries they operate in. Who are the dominate firms worldwide in mining, energy, entertainment, transportation, telecommunications, internet technologies, health care, pharmaceuticals, etc. Give examples for each taken from different countries, and different industries. For example, Land’s End is an American clothing company that does a great deal of business on the Internet. Visit its site and look through one of its mail catalogues. Why is this company a very good example of a company that has been able to operate internationally with success? Globalization, and the competitiveness that goes with it, has forced domestic and international firms to re-think how they will compete while still growing their businesses. STUDENTS 2 and 3: What motivates companies to participate in M&As, JVs, alliances and partnerships? How are these entities different? Page 8 What are the advantages and disadvantages for each? What circumstances lead companies to choose one over the other? Are they always successful? If not, why not? Many multinational companies use one or more of these corporate relationships to enter foreign markets. Why? Finding a case study that illustrates this fact would be useful. At least one example is needed for each of these corporate activities from 2 different business sectors. Include examples from around the world. Several M&As and acquisitions have occurred in the past year in various business sectors, some involving Canadian companies. Who was involved? What were some of the outcomes? The same is true for partnerships and alliances. Foreign takeovers also fall under this topic. Page 9 Project # Team Size Title Description Criminal Activities in Global Business and Trade. STUDNETS 1 & 2: 1. 2. 3. 4. 5. 6. Bribery Corruption Intellectual Property Theft (Copyright and Patent Infringement) Counterfeit Goods (includes access through the internet) Cyber-crime & Internet Terrorism Piracy STARTING POINTS Locate content related to your project in the text. Summarize the main points. You may notice that some of the information and data is out of date. One of the objectives of this project to present relevant and timely information. Each of these subtopics has been covered extensively in the media. They all have an impact on international business and trade and the economies of the countries where they take place. Each will have to be defined, investigated, and illustrated with several examples from different parts of the world. 6 STUDENTS 1 & 2: FOCUS Russia, Mexico, China, India, Africa 4 What is the root cause of each of these? How big of a problem are they? What are the realities for firms doing business in countries where bribery and corruption are common place? What are companies doing about it? What domestic laws are in place in the US, Canada, and Europe that prohibit firms from participating in bribery and corruption? Identify/describe high profile cases involving international firms being punished for their role in activities involving bribery/corruption. (Siemens, a German firm, is a recent example. Get details.) In which regions of the world are these activities most prevalent? What role does culture and customs play in the occurrence of these practices? For example, offering persons money may be considered a gift in one country but a bribe in another, and yet a normal “cost” of doing business, in another. Provide examples of this and other circumstances that may not be well known to people in North America. What challenges do affected countries face while coping with the effects of these activities? Which countries have been successful at removing these practices, and what steps were taken to be successful? What is Transparency International and what services does it provide? What is the Transparency Index? What criteria are used to rank countries on the index? Who is at the top and bottom of the list? Does a high ranking on the CPI Index give a country a competitive advantage? Why/Why not? Where is Canada on the list? How has Canada’s position on the list changed over the past 5 years? Page 10 STUDENT 3: Intellectual property and copyright infringements are a serious matter to international businesses costing them hundreds of millions of dollars. Included in this topic is industrial spying where competing governments or businesses in other countries try to steal the next big idea or the design plans of a product yet to be released. China has been accused of industrial espionage several times using internet technologies. But there are others who also make efforts to acquire trade secrets from elsewhere. Downloading music, books, entertainment, etc. is illegal in most countries but it continues in many parts of the world because of weak enforcement and its connection to criminal organizations. Find facts and figures to show how serious the problem is and who the most serious offenders are. Use current examples from the media. Counterfeit goods, and the problems connected with them, go beyond the street person selling fake watches and DVDs. Public safety is at risk. People die because of it in many parts of the world. Find examples/case studies to quantify the extent of the problem, and to illustrate the risks faced by innocent consumers in all parts of the world. The media has looked at the problem of distributing counterfeit goods on the internet. Consumers order and pay for what they think is a genuine good but what they receive is not. There a great deal of information on this topic. STUDENT 4: Cyber-crime and internet terrorism is growing rapidly and is not limited by geographical boundaries. Telecommunication technology has enabled criminal organizations to extend the reach of their activities across the globe with schemes that have ruined people’s lives and disrupted business and trade. This new age, global criminal activity is to be investigated and discussed. Examples should be taken from various international locations. Check out the web sites of the RCMP and Interpol to see if resources are available. Piracy on the open seas has been a problem throughout history. But more recently it has become a major threat to companies moving goods through international waters. Despite cooperative efforts to curtail the problem, it continues. Provide data that measures the severity of this problem. Where does it occur? What seems to motivate participants in this criminal activity? Describe the efforts being made to stop piracy. Have they been effective? If not, why not? Provide several examples of its occurrence and describe what occurred and the outcome. Page 11 Project # Team Size Title Description Corporate Responsibility, Fair Trade Networks, Questionable Labour Practices STARTING POINTS STUDENT 1: What is corporate responsibility and why do most global companies consider CSR to be an essential part of their business strategy? Find the facts behind the need for better corporate citizenship and look at what some high profile global companies in different industries are doing to become better global citizens. Why is being viewed as “green” in the eyes of consumers so important? What is the connection between CSR and competitiveness and the hiring of new employees? At least 3 company profiles are needed here – be sure to acquire sufficient detail to deal with each substantively. Many environmental critics argue that many large, global firms claim to be green or good corporate citizens but the facts connected with their behaviour would say otherwise. Is there any validity to this claim? Are there examples? STUDENT 2: 7 What are the objectives of the Fair Trade initiative? What countries are involved? What companies have decided to participate (local, national, global examples)? Is it working to effectively improve the lives of farmers and workers? How so? Put a particular focus on coffee and cocoa. What are some of the most critical issues associated with the supply of these commodities? What global companies are the big players in controlling the supply of these? How is the collective behaviour of these players affecting people in the countries where these two popular and profitable commodities are grown? Provide statistics and examples wherever possible. You may want to view the documentary BLACK GOLD. What are companies like Second Cup and Star Bucks doing to improve the situation for coffee farmers? Provide specifics and evidence of their latest efforts. How do these companies get the message out to consumers that they are serious about improving conditions for farmers? (Public relations) How has the adoption of a free trade philosophy account for the rapid success of the Bridgehead Coffee bistros? How are workers’ rights being violated or ignored – the right to strike, the right to a decent wage, a safe workplace – in some of the world’s emerging economies? Which countries are the worst violators (start with China)? How can trade be used, or how has trade been used, to initiate change where these human violations are occurring? Find specific examples and detail them. (At least three.) 3 Page 12 STUDENT 3: Most people have never heard of the mineral COLTRAN know what it is used for, but the acquisition and sale of it is connected to the deaths of millions of people in Africa, more specifically The Democratic Republic of Congo. Research the issues surrounding this strategic mineral and report on your findings. Lancet, a highly regarded journal of medicine has accused Canada of hypocrisy because it exports asbestos, which is classified as a carcinogenic substance, to nations that allow its use despite the health risks posed to those who work with it. Many in the Canadian medical community say the sale of asbestos is unethical. Research this issue and the debate that rages around it and report your findings. Page 13 Project # Team Size Title Quality & Competitiveness Description STUDENT 1: 1. Quality (TQM) 2. ISO Certification 3. International Standards STUDENT 2: 4. Kaizen 5. Six Sigma STARTING POINTS 8 The global environment is becoming very competitive. The geographical reach of goods and services today is unprecedented. The driving force behind competition is the ability of firms to produce goods and services of high quality at affordable prices. Hence quality becomes a competitive factor for success. The automobile industry is an obvious example of this. This is a broad topic but a starting point is the text’s discussion of Deming’s 14 principles. What happens to companies who fail to live up to consumer expectations for quality? Look at the problems faced by Toyota, Honda, Maple Leaf foods, and others and the long and expensive process of winning back customer loyalty. 2 STUDENT 1: What is meant by the term quality? Does is vary with the industry that is being examined? What is the connection between quality and competitiveness? Why must the research and development divisions pay close attention to international standards, or standards in general? Why must trading countries be cognizant of standards in foreign markets to become successful? Why is the adoption of universal standards in industries like telecommunications, entertainment technologies, aviation, fashion (sizes), transportation, etc. , worth pursuing? What happens if they are not adopted? Take day-light savings time, for example. When the U.S. decided to extend it, Ontario and other jurisdictions followed right after. Why? ISO certification has become and important ingredient for establishing a company’s strategic position in a particular industry. The benefits of ISO certification and the process to attain it must be investigated and discussed. Many companies operating in Ottawa have attained one or more ISO certifications; they could serve as a starting point for acquiring examples. STUDENT 2: Kaizen and Six Sigma are programs industries can adopt to improve efficiencies and productivity, both necessary for competitive pricing and quality control. But what are these programs and how do these programs help industries achieve these efficiencies? What happens if companies don’t adopt these programs? Several examples/case studies are Page 14 needed. There is ample information available on these topics. This student must find examples that show how these systems have had a positive effect on business in dollar terms, improved competitiveness, increased market share, expanded markets, etc. The best evidence shows a before and after scenario – using a t able would be best. Page 15