NORTHEASTERN UNIVERSITY
College of Business Administration
International Business
MGT4446
Professor Michael J. Cote, C.P.M.
Course Schedule:
Monday 8:10 – 10:10 p.m.
Office:
Office Hours:
Phone:
Email:
319E Hayden Hall
Thurs. 3:00 – 4:30 or by appointment
617-373-7998
mi.cote@neu.edu
COURSE MATERIALS:
INTERNATIONAL BUSINESS – COMPETING IN THE GLOBAL MARKET PLACE
Charles W. Hill, Fifth Edition, McGraw-Hill
Articles
Articles will be current and provided for discussion in class. Students are encouraged to contribute articles and
current publications in business strategy.
Written Case
Racal and Eltech Electronics
Mini-Cases for Discussion
Guanxi – Ties that Bind (pg 89)
Ford & General Motors in Russia (pg 237)
Artais Weather Check (pg 552)
Video-Cases for Discussion
Chrysler & Mercedes; Cannondale
APL
Course Goals:
Today, more than ever, the average individual can feel the interdependence of countries within the global
economy and the impact on our daily lives. The clothes we wear, the cars we drive, the price we pay for a
gallon of gasoline are daily reminders that we live in a global economy. What is also apparent is the direct link
between business and politics and the impact one has on the other. In this course, we will focus on political,
cultural, strategic, and structural issues in conducting global business in both developed and developing
economies.
The course will combine both theoretical concepts and practical applications of operating in a global
environment. And, because issues in this environment change rapidly, we will focus on current events through
use of publications such as the Wall Street Journal, The New York Times, Fortune, Business Week, and other
reputable international business publications
This is a practice-oriented course designed to help students achieve an understanding of how commerce is
conducted in an increasingly global supply chain. We will utilize case study, discussion of current events,
student research and class discourse to understand the key mechanisms of international trade. By the end of the
course, you will walk away with a clear knowledge of how business is conducted in the international forum,
and have further developed basic analytical skills essential to good business case analysis. It is my hope that
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you will gain not just the knowledge, but also a practical understanding of the issues and solutions leading to
success in international business.
Course Objectives:
In class, the instructor will act as a moderator, questioner, and lecturer to help you gain a better understanding
of the strategic decision making process. The primary focus of the course is to understand how business is
conducted on an international scale. This course will:
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Introduce the student to the contemporary issues in international business that illustrates the unique
challenges of international business.
Outline and critically evaluate the major theories that attempt to explain 1) why nations should engage
in international trade and 2) the patterns of international trade.
Explore ways firms position themselves to compete in the global marketplace: by developing global
strategies, entering foreign markets, and developing global marketing plans
Provide you with a deeper understanding of what it’s like to do business overseas by requiring you to
become a resident “country expert”
Keep you abreast of current events as they relate to understanding the world of international business
Develop your written and oral skills in analyzing business issues through research, writing, and
discussion of current events
In order to facilitate this learning, I will utilize current news articles, comprehensive case studies, text readings,
and class participation, each reflecting the high degree of diversity in business today.
Learning Approach:
Your learning is the primary objective of all class activities. Research shows that learning occurs when
information is transformed into knowledge. Business knowledge can be defined as the ability to think about
information, adapt and apply it effectively and successfully to various business situations. My approach will:
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(Inform) Provide an overview of key concepts in strategy formulation
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(Adapt) Offer examples on how the concepts can be adapted in real situations
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(Think) Facilitate class discussions and debate
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(Apply) Use what is learned in case studies and simulated business environments
Grades are intended to reflect how well you have learned. I recommend a focus on learning – good grades will
follow. Grades are an outcome of the learning process. This course assumes a basic understanding of general
business practices. However, I recognize that not all students have absorbed the same amount of learning in all
areas. Let me invite any student who needs it to ask for my help and mentoring. Contact me before or after
class or during my office hours to set up a mutually convenient time for assistance. I am committed to your
success! Each of you is a valued and important part of the entire learning experience and I will facilitate your
learning process in every way that you allow. Let me also recommend that you look for areas of strong
interest to you. Interest will motivate you to read, participate, think deeply about issues and generate the
impetus needed to apply knowledge learned. Finally, I am committed to providing the highest academic value
and richest experience. Classes that stimulate you to reach beyond your present capabilities are not always
easy, but in the end, they serve to broaden your innate cognitive abilities.
Student Evaluation:
Grade dimensions measure your participation in activities that lead to learning and quantify how much you
have learned. They also provide frequent and prompt feedback on your achievement and mastery. In each of
the learning dimensions, I will use the individual evaluation criteria shown below to evaluate performance.
Final course grades will be computed using the following percentages:
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Percent
Learning dimensions
25%
20%
20%
35%
Class Participation and Current Events
Case Write-up
Term Project and Oral Presentation
Final Exam (50% Application Terms and 50% Multiple Choice)
100%
Total
Individual Evaluation Criteria:
Here is what differentiates students in the ‘A’ range, the ‘B’ range and the ‘C’ (or lower) ranges:
“A” grade range:
Are self-starters who take initiative – they don’t wait for the professor to tell them what
to do. They approach the subject with an independent and conscientious viewpoint.
This includes taking some risks, such as expressing opinions that may be ‘unpopular’ or
may differ from the professor’s. They read cases and material with a critical eye and
seek to understand the underlying issues, not just the facts. They are eager to participate
in all aspects of the course. They really try to “get into” business strategy by reflecting
on the information and sincerely attempting to apply what they learn.
“B” grade range:
Are very conscientious about their work; strive to do what is expected of them in a
competent and timely manner. Come to class regularly and interact with other students
and the professor about cases and basic concepts. They try to discover the most
important aspects of the business environment and care about their written work. Case
analyses are not as in-depth as papers in the ‘A’ range, but are clearly expressed with
well thought out logic.
“C” (or lower)
grade ranges:
Tend to do the “minimum” to get by; focus on what the professor is emphasizing (rather
than on how they react to or interpret those issues in terms of their own experience.)
Write in a manner that does not display much originality and tend to let other students
carry the conversation. They are prepared most of the time, but take little risk.
Class Participation:
My approach to teaching operates under the assumption that each of you has knowledge and creative ideas that
are valuable and significantly enhance everyone’s learning experience when shared with the rest of the class. I
am confident the process of dialectical inquiry used in class will create a rich learning environment. In this
process, you learn by debating and challenging other students’ thoughts and logic.
You learn best when classes start and end on time. Moreover, class contribution is a crucial and essential
component in higher learning. Persuasion and reasoned opinion will be valued over simply conversing; and the
criteria for measuring participation include:
1. You must be present. While I understand there may be times you cannot make class, you cannot be
considered to have participated for that particular class;
2. You must participate in the discussion. To be considered fully participating, you must participate in
presentation of cases, questions, discussions and;
3. Be thoroughly familiarity with case content and how the material relates to the text readings with a
clear understanding of the underlying problem(s) or issue(s);
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4. Analysis of the information and considerations affecting the choice of action alternative. Where
information is insufficient, I expect you to be able to reasonably indicate assumptions you made, what
information is needed, the costs associated, and how it might be obtained; and
5. Action recommendations and a justification of these recommendations. Since justification of any
business action lies in its expected payoff, your recommendation should be supported by estimates of
costs, sales, profits, uncertainty, and risks.
In order to accurately assess the quality of your participation, it is essential that I know each of you
individually as soon as possible. To facilitate this, I ask that you do the following:
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Hand in your personal information sheet by the 2nd session; (I will hand this out at the first session)
Bring a name card to class and place it in front of you at your seat
Class Participation -- Weekly Case Discussions, Analysis and Dialectic Inquiry:
We will use a variety of methods to analyze cases in class. These include class discussion, structured exercises
and group discussion. Most weeks the class will be divided into discussion groups to analyze the case or
current event for the week. Each group will be assigned a different aspect to analyze (competition, logistics,
financials, underlying issues, recommendations, etc.) or to conduct a related exercise. Each group will then be
asked to present their finding to the other groups. After each presentation, groups or teams not presenting are
expected to challenge the analysis. The questions asked and level of intellectual debate will contribute 25% to
the participation portion of your grades.
Written Case Analysis Guidelines:
It is expected that you are generally familiar with the case-study method of learning and have a reasonable
grasp on the concept of analyzing a case. However, one objective in this course is to further develop your case
analysis skills. The following criteria are used to evaluate cases. An exceptional case analysis contains indepth consideration of each section based:
Executive Summary (10%)
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High level summary of relevant facts, key problems, and highlight of international issue
Root Cause Analysis (25%)
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Identifies the key two or three underlying issues. A case may contain many obvious issues that are
all generated from just a few root or common causes. Without correctly identifying these
underlying issues, decisions and plans serve only to remedy tactical problems, and undermine a
manager’s ability to recommend truly strategic and effective actions;
Basic Analysis (45%)
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Examines the business environment using all of the appropriate analysis methods: economic,
market, cultural, competitive and financial.
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Presents a succinct analysis of the case by organizing and selecting relevant facts, and applies
concepts learned in class to draw logical conclusions;
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Identify the various alternatives business options available and provides an analysis of the “pros”
and “cons” for each alternative;
Recommendations and Conclusions (20%)
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Provides overall sound conclusions that flow logically from the analysis and considers the political
environment and capabilities of the corporation and constraints in the business environment (would
the solution be acceptable to the parties involved);
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Provides: Plans to mitigate high risks and optimize benefits; utilizes concepts learned in class;
applies a balanced approach to achieving results (in the real world no solution is perfect);
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Provides a clear and practical implementation plan for any recommended changes;
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Is precise, clear, and succinct without reiterating all the facts of the case, providing appropriate
citations and references to material used in the analysis.
The written case is expected to be 4-6 typewritten pages. After the case, I will inform you of the 2-3
underlying issues. Uncovering these issues is considered the most important element of the case analysis. A
student achieving an “A” grade usually uncovers most or all of these key issues.
Term Project
For this term, you will select a country in which you would like to conduct business. You will be researching
the background and current events on your country for inclusion in a written term project paper (see detail
below). You will identify and explore:
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Business opportunities, trade and the investment environment in the country
How country factors affect one or more business opportunities
How its culture affects trade and bargaining with US companies
Select what you believe to be the best business opportunity based on your analysis (above); then develop and:
 State why you believe this to be the best opportunity
 Develop a strategy for entrance into the market
 Recommend a structure for the business and how to set up operations
You will be asked to hand in an outline on the 5 th class, so that I can provide guidance and help direct your
research to a successful conclusion. In addition, you will be assigned to do a brief oral presentation on the
business proposal for your selected business. We will discuss this in class. Your paper should include a
discussion of the topics listed below. They represent a good start and structure to adequately research your
business opportunity and country. I want to encourage you to go beyond the minimum. During the course of
your research, you may find that additional topics are particularly relevant, or one that’s listed may be less
relevant (particularly if you choose a developed country). Use your good judgment in determining what is
appropriate to include. Although the papers’ lengths will vary depending on your country’s issues, a minimum
8-10 page paper should adequately cover these topics. The oral presentation will count 25% and the paper
75% toward your term project grade.
Recommend Format and Grading Rubric
(10%) Executive Summary –
 Overview of the country’s trade and investment environment
(25%) Culture and Country factors
 Values and norms; religious and ethical systems; is business conducted differently?
 Level of economic development; GNP/GDP, population Human Development Index (HDI)
– life expectancy at birth and other health care issues;
 Country Factors: brief background and history; property rights – who can/cannot own land;
 Level of economic development; GNP/GDP, population Human Development Index (HDI)
– life expectancy at birth and other health care issues;
 Educational attainment; average income sufficiency (or, poverty level;
 Politics -- is the current political situation conducive or antithetical to development?
 Environment –Ecology – what are relevant ecological issues (soil degradation,
desertification, deforestation, pollution) as they relate to economic development?
 Is migration/urbanization an issue and what are related economic impact
(20%) International Trade Analysis
 How specific country factors, affect one or more business opportunities;
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How its culture affects trade and bargaining with US companies;
Key industries/sectors, exports, and imports of the country currently and their rates of
growth; in what direction they are developing (what are new or growing industries?)
 Volume of foreign direct investment (FDI) into/out of the country; government policies
fostering/restricting investment; costs (i.e. impact of MNEs on local business and, therefore,
competition; capital outflows; loss of sovereignty) and benefits (i.e. employment, capital,
technology, management) to your country in its role as the host country
 Infrastructure and its level of sophistication (both physical and technological, i.e.
roads/highways, information technology, access to internet) and its impact on trade and
business
 Degree of regional economic integration – what exists; for how long; benefits to country
 Risk level for doing business in the country – given political, social, economic environment,
what are risks and opportunities of doing business there.
(20%) Business Opportunity
 Identify a viable trade opportunity (import or export)
 State why you believe this to be the best opportunity
(25%) Implementation
 Develop an entrance strategy
 Recommend a structure for the business and how to set up operations
 Strategy – What are/were drivers for this company’s entry into the country? What are they
trying to achieve (i.e. resource acquisition, revenue growth, skills or product transfer, cost
efficiency)?
 Structure – How have they organized to operate in this country? What functions are located
in this country (i.e. sales only, manufacturing)? Where is locus of control (centralized,
decentralized)?
 Operations – What you discuss here will depend on the type of operations in which your
company is engaged in the country and/or the availability of information for this company.
Include here any relevant supply chain, manufacturing, marketing, or R&D issues,
challenges, and successes the company is experiencing
Final Examination:
A final examination will be conducted during the last session. Examinations are intended to thoroughly
evaluate knowledge learned and the ability to apply it to real world cases. The final examination is your
opportunity to showcase your management skills and abilities. It will consist of about 40 multiple-choice
questions intended to test your understanding of key concepts learned over the term of the course and an essay
question on doing business in the country you selected for your project (each will count for 50% of the final
exam grade). You may bring a calculator; however, textbooks, computers and class notes are not permitted
during the multiple-choice portion of the final exam but may be used during the essay portion of the exam.
Northeastern University’s Policy on Academic Honesty (from the NU Handbook):
Northeastern University is committed to the principles of intellectual honesty and integrity. All members of the
Northeastern community are expected to maintain complete honesty in all academic work, presenting only that
which is their own work in tests and assignments. If you have any questions regarding proper attribution of the
work of others, contact your professor prior to submitting the work for evaluation.
Special Accommodations:
If you have specific physical, psychiatric, or learning disabilities that you believe may require accommodations
for this course, please meet with me after class or during my conference hours to discuss appropriate
adaptations or modification, which might be helpful for you. The Disability Resource Center (DRC), which is
location on campus in 20 Dodge Hall (ext 2675) can provide you with information and other assistance to help
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manage any challenges that may affect your performance in your coursework. The University requires that
you provide documentation of your disability to the DRC.
Writing:
While the principal goal of this course is the acquisition of knowledge in the subject area, students should be
aware that the School of Profession and Continuing Studies requires that clear and effective writing be an
integral part of the learning process.
Expectations:
(1) I expect that you will successfully learn the course material and that you will earn a good grade. This
will require a reasonable amount of work on your part. If you satisfy the remaining expectations, you
will be on your way to success.
(2) I expect that you will read assigned readings (cases, articles and text chapters) before coming to class.
(3) I expect that you will strive to attend every class, participate fully and thoughtfully in all class activities
and discussions.
(4) I expect that you will do your homework and submit according to the specifications on the due date.
(5) I expect you to be an active learner and take responsibility for learning the material – not just surviving
homework assignments and exams.
(6) I expect that you will treat other members of the class with respect and not represent the work of others
as your own.
(7) I expect you will arrive on time to enhance your learning experience and to ensure we cover all the
class material.
(8) I also expect that we will have a good time and learn a lot.
Internet Resources:
www.ceoexpress.com
Index site for business magazines
www.businessweek.com The online magazine
www.stat-usa.gov
After entering the site go to Globus, Market and Country Research, then to
Country Commercial Guides. A 50-100 page document for each country covers
many details about entering a given market for trade. This is a free Web site
when accessed through NU’s network. It appears as an icon on the NU library’s
research site.
www.commerce.gov
This site has a good international trade section.
www.un.org
Contains macro-level country statistics.
www.worldbank.org
Contains country-level economic statistics.
www.export.gov
Organized by the U.S. Department of Commerce
www.export.doc.gov
Contains listings of export restrictions
www.exportall.com
A foreign trade search engine
www.exporthotline.com Boston-based service helping international buyers and sellers
www.tradecompass.com Washington-based service offering free basic trade information
http://usip.org/
Group deals with prevention, management, and peaceful resolution of
international conflicts. They have numerous FREE publications.
http://www.worldpress.org/gateway.htm Access world newspapers through this site
www.census.gov
Contains foreign trade and international population information
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www.cia.gov/cia/publications/factbook/ Great source for information on countries
www.encarta.msn.com Encyclopedia source
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CLASS HOMEWORK ASSIGNMENTS
Session
1
November 29th
What’s Due (Assignments)
Topic
International Business
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Introductions
Course Design & Admin
2 December 6th
Globalization – Theory of Trade
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1. Purchase text Book and bring to
class
1. Hand in Student Information Sheet
Globalization and Trade Introductions
World Trade Exercise
Current Events
3 December 13th
Country factors and Trade
2. Read Syllabus: Ask questions
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2. Read Chapters 2 - 3
Country factors
World Trade Exercise (Continued)
Case: Guanxi – Ties that Bind (pg 89)
Current Events
4 January 3rd
Politics and the Economy
3. Read Chapters 1 & 4
1. Term Project Outline
1. Read Chapters 6 - 7
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Term project outline comments
Foreign Direct Investment (FDI)
Case: Ford & General Motors in Russia (pg 237)
Country Business Presentations
5 January 10th Global Strategy and Organization
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6
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Global Strategy and the Political Economy
The Political Economy
Country Business Presentations
January 17th Structure and Global Deployment
Organization and Entry Strategy
Video case: Chrysler & Mercedes; Cannondale
Case: Racal and Eltech Electronics
7 January 24th Manufacturing and Marketing
1. Read Chapters 8 & 12
1. Read Chapters 13 - 14
2. Case write-up due
1. Read Chapter 15
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Export/Import Activities
Export Exercise
Case: Artais Weather Check (pg 552)
Country Business Presentations
8 January 31st International Business Opportunities
 Capturing International Business Opportunities
 Video case: APL
 Case: Ford & General Motors in Russia (pg 237)
9 February 7th Managing Global Resources
 Global Resource Management
 Country Business Presentations
10 February 14th Applications in International Business
 Class Review
 Country Business Presentations
11
February 21st
 Final Exam
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1. Term Projects due
2. Read Chapter 16 - 17
1. Read Chapter 18
1. 20 Multiple Choice Questions
2. 20 Application Term Definitions
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