BUSINESS IN THE INTERNATIONAL CONTEXT
BUS 270 FALL 2005
University of Puget Sound
Professor:
Office:
Telephone:
E-mail:
Dr. Jeffrey J. Matthews
Room #111C, McIntyre Hall
(home) 460-7955
(office) 879-3155
jmatthews@ups.edu
Office Hours:
T & TH 9am -11am, with special appointments always available.
VISIT! CALL!
Course Purposes
▪ To examine the historical development of globalization and differing capitalist systems, to develop abilities to
assess the external environments of global business, and to introduce the disciplines of international marketing,
management, and finance.
Course Goals
▪ To develop a basic understanding of international business operations, especially foreign market assessments.
▪ To grasp elementary concepts and theoretical perspectives involving international business.
▪ To understand major historical, legal, economic, cultural, and political factors that affect international firms.
▪ To strengthen student communication skills through varied writing, speaking, and listening projects.
▪ To provoke and inspire critical and creative thinking.
Course Tactics
▪ To learn about international commerce by analyzing and discussing broad historical developments, core business
principles and strategies, and specific case studies.
Our “Total Involvement” Course Stratagem
▪ In Class Writing Assignments: At least five quizzes to reward “close reading” of homework readings.
▪ In Class Communication*: Quality discussions based on reading assignments are vital to successful learning.
*Come to class well prepared (well read)! Regular class attendance is pivotal to success!
▪ In Class Presentation: A 20-minute, professional TEAM presentation providing detailed profiles of two nonU.S. multinational corporations and their home countries. Your team must choose two companies based on
different continents. For example, Nokia and Finland, and, Toyota and Japan. All companies and countries must
be approved by me. *You may NOT choose an predominantly English-speaking country like Australia, nor any of
the four countries (Germany, Great Britain, Japan, or the United States) featured in our main text.
Your grade will be evenly based on two criteria:
1. Content Quality 2.Communication Skill (organization, clarity, mastery, etc.)
▪ Out of Class Papers (12 pt. font Times New Roman, 1” margins, double-spaced, stapled, paginated).
Paper #1: 2 page max.
Contrast and comment on LeFeber and Veseth’s approaches to “globalization.”
Paper #2: 2 pages max.
Summarize the major issues and comment on China’s recent attempt to acquire UNOCAL.
Paper #3: 5-8 pages.
Prepare market assessments of 2 non-U.S. countries, one developed and the other less developed.
 For example, you could research and write a paper about business investment risks and opportunities (for sales,
services, or manufacturing) in Finland, as contrasted to those of Slovakia. *You may NOT choose GERMANY, JAPAN, the
UNITED STATES, or BRITAIN.
 Your paper will be graded on three primary fronts:
1. Quality of content as derived from your research materials.
2. Quality of your independent analysis.
3. Quality of your communication skill (organization, clarity, syntax, grammar, etc.)
 You are expected to conduct independent research and integrate ideas/principles from class.
I am granting you considerable leeway in terms of specific topics because one purpose of this assignment is to
encourage your intellectual self-reliance and self-motivation.
*Want help with your writing? (And who doesn’t!) I am always available to provide assistance; just ask. Others
want to help you too. Visit the “free” UPS Center for Writing and Learning, located at Howarth Hall, 105. The
center’s webpage is: http://www.ups.edu/CWL/home.htm I also encourage you to read about good writing habits
at Harvard University’s webpage: http://www.fas.harvard.edu/~wricntr/html/tools.htm
▪ Mid-Term Exam:
Primarily essay questions focusing on major themes of the course.
▪ Final Exam:
Primarily cumulative essay questions on the major themes of the course.
Performance Evaluation: “An Entrepreneurial Approach To Grading”
I promise to conduct a thorough and fair evaluation of your class work.
When it comes to EARNING your grades, imagine that you are starting your own business in a very
competitive industry. You have four major clients (me and your three others UPS professors.) Unless
working on a team project, consider your classmates MY employees. Always treat them with respect.
The challenge for you is to perform well for all of your very judgmental clients, knowing that if you fail
just one, you will “lose” that client and a whopping 25% of your firm’s revenue. Such a loss is likely to
cause you unbearable stress and even bankruptcy!
As we progress through the semester consider your grades recognition of (or payment for) the quality
of work that you provided me, your client (think here of written work, presentations, etc.). In other
words, before you come to EACH class/meeting, ask yourself: Am I adequately prepared to meet with
this very important and demanding client? What will he think if I am not prepared for our meeting?
What will he think if I am late to the meeting? What if I don’t meet his deadlines? What if my
papers/reports are poorly written? etc.
*Always remember that in-class discussions, presentations, and writings are golden opportunities to
prove that you have prepared well. Forty-percent of your grade is tied them. You must both read and
study the material. You must be self-motivated in a seminar-style class. Honing your communication
skills is important to me. You want to be understood by everyone in your presence.
*Tardiness is an inexcusable sign of disrespect, and habitual lateness will severely weaken your grade.
Grading Descriptions
A
Superior
AExcellent
B+
Very Good
B
Good
BSatisfactory
C
Merely Adequate
D
Poor
F
Failure
Grading Breakdown
In-Class Writing Assg. 15%
In-Class Communication15 (Class attendance is required!)
In-Class Presentation 10
Short Paper #1
5
Short Paper #2
10
Term Paper
15
Mid-Term Exam
15
Final Exam
15
Total Grade
100%
Academic Honesty The suspicion of dishonesty in the academic community is a serious matter because it threatens the
atmosphere of respect essential to learning. Academic dishonesty can take many forms, including but not limited to the
following: plagiarism, which is the misrepresentation of someone else's words, ideas, research, images, video clips, or
computer as one's own; submitting the same paper for credit in more than one course without prior permission; collaborating
with other students on papers and submitting them without instructor permission; cheating on examinations. Academic
dishonesty will result in a severe grade penalty and possible expulsion from UPS. Please see:
http://www.ups.edu/dean/handbook/honesty.shtml
Required Readings & Films
Thomas K. McCraw, Creating Modern Capitalism
Walter LaFeber, Michael Jordan and the New Global Capitalism
Bruce Gilley, Modern Rebels: The Rise and Fall of China’s Richest Village
Reading Packet of global business case studies.
Hotel Rwanda and Gung Ho
Course Schedule
08/30 (T)
Introductions, team assignments, glossary, library, map quiz, and miscellaneous items
“Ethics in International Business”
Film Clip: Commanding Heights
09/01 (TH)
Discussion: Globalization
Reading Packet:
“Globalization”
News Clip: India
___________________________________________________________________________________________
9/06 (T)
Discussion: Michael Jordan & The New Global Capitalism, pp. 13-89
Film Clip: Commanding Heights
*”Highly Recommended Lecture, Visiting German Business Professor Klaus Haase
“The Impact of Taxation on Financing Decisions of EU-based Companies”
5pm Wyatt, 109.
9/08 (TH)
Discussion: Michael Jordan & The New Global Capitalism, pp. 90-151
Film Clip: Commanding Heights
___________________________________________________________________________________________
9/13 (T)
Discussion: Michael Jordan & The New Global Capitalism, pp. 151-end of book
Also for discussion, bring two book reviews critical of LaFeber’s book.
9/15 (TH)
Discussion: “Globaloney”
Reading Packet:
Veseth, “Introduction,” “MJ and NBA Global Fever,” “The Beautiful Game…”
___________________________________________________________________________________________
9/20 (T)
Paper #1 Due (Comparing and contrasting the arguments of LeFeber and Veseth)
Assessing The Environment of Global Business I —National Political Economies
Reading Packet:
“The Poorest Continent”
“40 Years of Corruption In Nigeria”
“Piracy In The Video Game Market”
“Privatization In Taiwan”
“The Changing Political Economy Of India”
“Privatization in Brazil”
“Microsoft’s Troubles in China”
9/22 (TH)
Assessing The Environment of Global Business II—Culture
Reading Packet:
“Guanxi—Ties That Bind”
”Islamic Banking In Pakistan”
“McDonald’s And Hindu Culture”
“Islamic Dissent in Saudi Arabia”
“Hitachi and Japan’s Changing Culture”
Film Clip: Mr. Baseball
News Clip: Italian Culture
*Group screening of Hotel Rwanda, 6-8:30 pm, Mc. 003? (You can watch it separately if you prefer).
___________________________________________________________________________________________
9/27 (T)
Discussion:
British Capitalism, Part I
—McCraw’s “Josiah Wedgwood and the First Industrial Revolution”
9/29 (TH)
Discussion:
British Capitalism, Part II
—McCraw’s “British Capitalism and the Three Industrial Revolutions”
__________________________________________________________________________________________
10/4 (T)
Paper #2 Due (Summarize the major issues and comment on China’s attempt to acquire UNOCAL)
Assessing The Environment of Global Business III—Trade
Reading Packet:
“Hollowing Out the U.S. Knowledge-Based Economy”
“Crawfish Wars”
“Free Trade and REI”
“The Rise of Finland’s Nokia”
“Logitech”
“The Politics of Trade in Steel”
“Is Boeing Benefiting From Japanese Subsidies”
“Navigating Around Import Quotas”
“Trade In Hormone-Treated Beef”
“Shrimps, Turtles, And The WTO”
“Agricultural Subsidies And Development”
“Costs of Protectionism in U.S.”
10/06 (TH)
Assessing The Environment of Global Business IV—Foreign Investment
Reading Packet:
“The Globalization of Toyota”
“Foreign Direct Investment In China”
“Cemex’s Foreign Acquisitions”
“FDI By Volvo in South Korea”
“Ford And General Motors In Russia”
“Starbuck’s FDI”
___________________________________________________________________________________________
10/11 (T)
Discussion:
Japanese Capitalism, Part I
—McCraw’s “Toyoda Automatic Looms and Toyota Automobiles”
10/13 (TH)
Discussion:
Japanese Capitalism, Part II
—McCraw’s “Japanese Capitalism”
___________________________________________________________________________________________
10/18 (T)
MID-TERM EXAM
10/20 (TH)
Port of Tacoma Tour (meet on Jones Circle, don’t be late!)
___________________________________________________________________________________________
10/25 (T)
Presentations, Day #1
Discussion:
10/27 (TH)
American Capitalism, Part I —McCraw’s “American Capitalism”
Managing Global Business I: International Marketing (guest speaker)
Reading Packet:
**Please note that the readings below are out of sequence in the Packet!
“Astro Boy—Marketing Japanese Anime to the World”
“Marketing to Black Brazil”
“Overcoming Cultural Barriers To Selling Tampons”
“Unilever—Selling To India’s Poor”
“Castrol Oil in Vietnam”
“Proctor & Gamble In Japan”
___________________________________________________________________________________________
11/01 (T)
Presentations, Day #2
Discussion:
11/03 (TH)
American Capitalism, Part II
—McCraw’s “IBM and the Two Thomas J. Watsons”
Presentations, Day #3
Assessing The Environment of Global Business V—Regional Economic Integration
Reading Packet:
“Drug Companies and the European Union”
“NAFTA and the U.S. Textile Industry”
“The European Commission and Media Industry Mergers”
“Increasing Competition In The European Automobile Market”
“European Commission & Media Mergers”
“Deutsche Bank”
*Group screening of Gung Ho, 6-8:30 pm, Mc. 003? (You can watch it separately if you prefer).
_________________________________________________________________________________________
11/08 (T)
Presentations, Day #4
Assessing The Environment of Global Business VI—The Global Monetary System
Reading Packet:
“Volkswagen’s Hedging Strategy”
“George Soros—The Man Who Moved Currency Markets”
“Why Did The Korean Won Collapse”
“China’s Exchange Rate Policy”
“Argentina’s Currency Board”
“Turkey’s 18th IMF Program”
“Airbus Responds To The Strong Euro”
“The Tragedy of the Congo (Zaire)”
“1995 Peso Crisis and the Automobile Industry”
“China Mobile”
“Deutsche Telekom”
“The Search for Capital In The Czech Republic”
11/10 (TH)
Presentations, Day #5
Discussion:
German Capitalism Part I —McCraw’s, “German Capitalism”
__________________________________________________________________________________________
11/15 (T)
Presentations, Day #6
Discussion:
German Capitalism Part II
—McCraw’s, “The Deutsche Bank”
11/17 (TH)
Presentations, Day #7
Managing Global Business II: International Finance & Accounting
Reading Packet:
“The Adoption of International Accounting Standards in Germany”
“The Consequences of Different Accounting Standards”
“Novartis Joins the International Accounting Club”
“China’s Evolving Accounting System”
“Global Treasury Management at Proctor & Gamble”
“Transfer Pricing Wars”
“Translation Exposure at Baxter International”
“Motorola’s Global Cash Management System”
___________________________________________________________________________________________
11/22 (T)
Presentations, Day #8
Managing Global Business III: International Management
Reading Packet:
“Molex”
“Managing Expatriates At Royal Dutch/Shell”
“Monsanto’s Repatriation Program”
“Degrussa: Strategy And Human Resources In China”
“Wal-Mart’s Global Expansion”
“Global Strategy at MTV Networks”
“Tailoring World Cars To The U.S. Market”
“IKEA”
“Global Strategy at General Motors”
“Abbot Laboratories”
“Dow Chemicals’s Matrix”
“Organizational Culture and Incentive Systems at Lincoln Electric”
“Amway in China”
“The Jollibee Phenomenon”
“Fuju-Xerox”
11/24 (TH)
THANKSGIVING BREAK
___________________________________________________________________________________________
11/29 (T)
Paper #3 Due (market assessment report—contrasting developed & less developed markets)
Discussion: Model Rebels: Rise & Fall of China’s Richest Village, pp. 1-72
12/01 (TH)
Discussion: Model Rebels: Rise & Fall of China’s Richest Village, pp. 73-117
___________________________________________________________________________________________
12/06 (T)
Discussion: Model Rebels: Rise & Fall of China’s Richest Village, pp. 117-179
Final Exam Review
TABLE OF CONTENTS
“Globalization”
Veseth, “Introduction,” “MJ and NBA Global Fever,” “The Beautiful Game…”
“The Poorest Continent”
“40 Years of Corruption In Nigeria”
“Piracy In The Video Game Market”
“Privatization In Taiwan”
“The Changing Political Economy Of India”
“Privatization in Brazil”
“Microsoft’s Troubles in China”
“Guanxi—Ties That Bind”
”Islamic Banking In Pakistan”
“McDonald’s And Hindu Culture”
“Islamic Dissent in Saudi Arabia”
“Hitachi and Japan’s Changing Culture”
“Hollowing Out the U.S. Knowledge-Based Economy”
“Crawfish Wars”
“Free Trade and REI”
“The Rise of Finland’s Nokia”
“Logitech”
“The Politics of Trade in Steel”
“Is Boeing Benefiting From Japanese Subsidies”
“Navigating Around Import Quotas”
“Trade In Hormone-Treated Beef”
“Shrimps, Turtles, And The WTO”
“Agricultural Subsidies And Development”
“Costs of Protectionism in U.S.”
“The Globalization of Toyota”
“Foreign Direct Investment In China”
“Cemex’s Foreign Acquisitions”
“FDI By Volvo in South Korea”
“Ford And General Motors In Russia”
“Starbuck’s FDI”
“Drug Companies and the European Union”
“NAFTA and the U.S. Textile Industry”
“The European Commission and Media Industry Mergers”
“Increasing Competition In The European Automobile Market”
“European Commission & Media Mergers”
“Deutsche Bank”
“Volkswagen’s Hedging Strategy”
“George Soros—The Man Who Moved Currency Markets”
“Why Did The Korean Won Collapse”
“China’s Exchange Rate Policy”
“Argentina’s Currency Board”
“Turkey’s 18th IMF Program”
“Airbus Responds To The Strong Euro”
“The Tragedy of the Congo (Zaire)”
“1995 Peso Crisis and the Automobile Industry”
“China Mobile”
“Deutsche Telekom”
“The Search for Capital In The Czech Republic”
“Astro Boy—Marketing Japanese Anime to the World”
“Marketing to Black Brazil”
“Overcoming Cultural Barriers To Selling Tampons”
“Unilever—Selling To India’s Poor”
“Castrol Oil in Vietnam”
“Proctor & Gamble In Japan”
“The Adoption of International Accounting Standards in Germany”
“The Consequences of Different Accounting Standards”
“Novartis Joins the International Accounting Club”
“China’s Evolving Accounting System”
“Global Treasury Management at Proctor & Gamble”
“Transfer Pricing Wars”
“Translation Exposure at Baxter International”
“Motorola’s Global Cash Management System”
“Molex”
“Managing Expatriates At Royal Dutch/Shell”
“Monsanto’s Repatriation Program”
“Degrussa: Strategy And Human Resources In China”
“Wal-Mart’s Global Expansion”
“Global Strategy at MTV Networks”
“Tailoring World Cars To The U.S. Market”
“IKEA”
“Global Strategy at General Motors”
“Abbot Laboratories”
“Dow Chemicals’s Matrix”
“Organizational Culture and Incentive Systems at Lincoln Electric”
“Amway in China”
“The Jollibee Phenomenon”
“Fuju-Xerox”