University of Indianapolis
School for Adult Learning
Course Syllabus
International Business IBUS 201 – January-February 2012
A very warm welcome to IBUS 201 - Global business affects both our personal and business
lives multiple times each day. I look forward to sharing key international business issues,
perspectives, relationships, and developments with you in the next five weeks. See you in a few
weeks. - Jim Roudebush
I. Course Information
Course Title: International Business
Course Number: IBUS 201
Credit Hours: 3
Five Meetings: January 19, 26 and February 2, 9, and 16
Prerequisites: None
Classroom Location: TBD
Meeting Time: Thursdays 6:00p – 9:45p
II. Instructor Information
Name: James Roudebush
Title: Instructor
Tel./Voice Mail: 317 850 3012
Email: jrr474@gmail.com preferred
Dean: Dr. Pat Jefferson
III. Textbook
Textbook: Ball, McCulloch, Franz, Geringer, and Minor; Irwin/McGraw-Hill 12th edition, 2008
– ISBN 978-0-07-338140-4; International Business: The Challenge of Global Competition
IV. Course Description and Objectives
The course provides an overview of the current global business environment including history,
trends, governing/advising bodies, cultural influences, political issues, regional market groups
and other factors impacting the transaction of business in the international community. Specific
course objectives include:
1
2
3
4
Achieve a global awareness for an improved overall business perspective
Understand recent developments, trends and current events in international business
Comprehend key international advising and assistance groups
Establish sensitivity of cultural and political differences across countries and market
areas
5 Understand key international financial, market entry, and trading concepts
6 Provide a global orientation and framework for your business career
7 Discuss the relationship between global companies and the markets/countries in which
they compete
V. Assignments, Grading and Policy Statements
Assignments
For each class meeting beginning Week 1, each student should bring a topical international
business article from a newspaper, news magazine, printout from the internet, etc. Be prepared to
provide a brief (one-minute) presentation of the article and issue within the class. Subjects of
these articles could relate to international developments affecting commerce, international trade,
international governing bodies, market developments, international business transactions or
about any international business subject in the news.
The instructor will use group engagement activities during most class sessions such as
whiteboard sharing, gallery walk, rotating incremental review and “fishbowl”.
January 19 - Week One -Global Business Introduction
Article
Read Chapter 1, 2 and 4, Bring
January 26 – Week Two -Cultural Influences/International Finance/World Geography
Read Chapters 5 and 10 (Instructor will lecture from Chapter 6, but not required reading),
Review Global Map, Bring Article
Submit Paper – 2 Parts 1) Based on the lecture and chapters to date, why does International
Business tend to be more complex than doing business domestically…provide support? 2)
Why is the understanding and respect for culture in a foreign country so important for market
success?
February 2 – Week Three- Political, Economic, Legal and Labor Forces Read Chapters 7,
8, and 9 (Instructor will lecture from Chapter 11 but not required reading), Bring Article, Take
Quiz One
February 9 – Week Four- Global Competition, Market Analysis/Entry, and E/I Practices
Read Chapters 14, 15, and 16 – Bring Article, Individual International Business Topic and Paper
February 16 – Week Five Take Quiz 2, Country Analysis Exercise, Bring Article, Debate
over Key Global Issues (No preparation required)
The instructor will lecture from all Chapters assigned to be read and present information from
other Chapters which are not required reading, as indicated. The quizzes will be sourced from a
combination of assigned readings and lectures. The first quiz will be worth 60 points and include
a global geography component. The second quiz will be worth 45 points. The Week 2 Paper and
Week 4 IB Topic and Paper will each be worth 15 points. Each article presented in class will be
worth 2 points for a total of 10 points during the course. The Country Analysis Exercise is worth
30 points. The Week 5 Debate will be worth 5 points. All written submissions should include
name(s) and be double-spaced typewritten. Class participation is worth 20 points, consisting of
10 points (2 points per class) for participating in individual and group discussions, and 10 points
(2 points per class) for on-time attendance (and during the entire evening), papers, quiz taking,
individual and group assignments. If a class is missed, the student forfeits participation and news
article points for that class. The instructor may or may not allow make up opportunities for one
missed class only for a majority of the points missed. (No make-up opportunities will be
available if the absence was not discussed with the instructor in advance or for more than one
absence.) The total points for the course are 200 with the following grading scale:
188-200
180-187
173-179
166-172
160-165
A
A–
B+
B
B–
153-159 C+
146-152 C
140-145 C133-139 D+
126-132 D
The School of Adult Learning no longer withdraws a student for not attending the first night of
class. It is up to the student to withdraw from a course. He/She must do so by Friday of the first
week of class in order to receive a 100% refund. This withdrawal may affect financial aid. The
instructor has the right to withdraw a student from the course for non-attendance.
The instructor will be available before and after class and during breaks for student discussion.
Phone calls, emails, or setting appointments are other methods to conduct student and instructor
discussions.
It is important that all students have an optimum environment for learning. If you have a
disability that affects learning, please discuss this in advance with the instructor. Also, students
with a learning disability must register with the Services for Student Disability office (SSD) in
Schwitzer Center 206 (317-788-6153/www.uindy.edu/ssd for disability verification and for
determination of reasonable academic accommodations. The student is responsible for initiating
arrangements for accommodation for tests and other assignments in collaboration with SSD and
the faculty.
Incomplete work due to unavoidable illness or family emergencies must be communicated in
writing before the last class meeting to secure an incomplete grade for the class. The student will
have 90 days to finish the assignments.
Academic misconduct will not be tolerated including cheating, fabrication, plagiarism,
interference, violation of course rules, multiple submission of the same academic work,
facilitating academic dishonesty, and abuse of confidentiality per university guidelines.
VI. Tips for Success in IBUS 201
1
2
3
4
5
6
7
Attend all classes from start to finish
Listen actively and participate (share personal experiences) in class
Complete all assignments thoroughly and on time
Read assigned chapters
Study and understand critical lecture and classroom discussions
Be prepared to learn about foreign cultures, customs and perspectives
Written and oral presentation tips are presented, as follows:
Presentation Tips for IBUS 201
Written
1 Content/Development – all key areas assigned are covered; content is comprehensive,
accurate, and/or persuasive; major points stated clearly with adequate support from
outside sources with the appropriate documentation.
2 Organization/Format – structure of paper is clear and easy to follow because of headings
and organizational cues; name, course, date, and subject of paper are clearly presented up
front in the document; introduces purpose with body of supporting information and ends
with a conclusion; paper possesses good flow which aids comprehension and persuasion
3 Grammar/Punctuation/Spelling/Readability/Style – good grammar and punctuation are
used with correct spelling; complete sentences are used which are clear and often
concise; good sentence and paragraph flow and breaks are employed; and appropriate
word choice and tone are reflected.
Oral
1 Content – presentation follows written paper on which it is based (if applicable); the topic
is relevant and addresses assignment; content presented is comprehensive, accurate,
understandable, and believable; key points are noted and presented logically.
2 Organization/Structure – presentation is well organized, clear, and effectively structured;
in group presentation, it is integrated rather than disjointed series of individual
presentations; topic is introduced, supported with body of information and ends with a
logical conclusion; presentation is easy to understand and persuades or informs
appropriately.
3 Style – non-verbal gestures are used appropriately to support the presentation; confidence
and knowledge of content are displayed; audience is engaged with speaker and
appropriate eye-contact and delivery timing (presentation is neither rushed or seems
slow); speaker adheres to designated time limits.
The instructor looks forward to an enjoyable and interactive sharing of international business
fundamentals, student business experiences, and key current global events.
Distributed with Syllabus
IBUS 201
Individual International Business Topic – Week 4
Student will select a topic from an instructor-provided list an international business topics during
Week 1 for submission and discussion in Week 4…see the follow list of topics.
The student will submit a 2 page telegraphic summary of the topic to the instructor and be
prepared to answer questions on the topic in class.
Week 4 International Business Topics
1. Why is International Business knowledge important?
2. Explain the basics of Foreign Direct Investment (FDI) Chap. 2
3. What is the EU and why is it powerful? Chap. 4
4. Why is religion important to understand by the IB executive?
5. Basics of Hinduism - Ch. 5
6. Basics of Buddhism - Ch. 5
7. Basics of Shintoism – Ch. 5
8. Basics of Confucianism and Taoism - Ch. 5
9. Basics of Islam Ch. 5
10. Discuss Simply the Sunni-Shia Conflict Chap. 5
11. What is Animism and where is it practiced? Chap 5
12. Compare Islamic Values with Western Values
13. Discuss Social Status in Great Britain, India, and Japan Ch. 11
14. Discuss Sexism as part of the key worldwide labor issues Ch. 11
15. What are some economic downsides to U.S. dependence of foreign oil?
16. Why is the rule of law important to economic development in a country?
17. What are effects of terrorism on international business? Ch. 8
18. Discuss the market entry modes of direct exporting and indirect exporting, explain the
difference, and indicate under what conditions they are frequently used. Ch. 15
19. Discuss the market entry modes of franchising and licensing, explain the difference,
and indicate under what conditions they are frequently used. Ch 15
20. Discuss the market entry modes of contract manufacturing and joint venture, explain
the difference, and indicate under what conditions they are frequently used. Ch 15
21. What has changed in China in the past two decades to make the country an economic
force?
22. Discuss positive and negative economic development issues within Russia
23. Discuss positive and negative economic development long term trends in India. 24.
24. Discuss barriers to international trade and economic development in Africa.
Prepare a typed a 2 page telegraphic summary of your topic. Content should include a basic
definition or explanation/description of the topic. Provide enough support elements to make the
topic understandable and to give it meaning and dimension.
Mr. Roudebush will lead a discussion about your topic at the Week 4 session including questions
to you about your subject.
International Country Analysis Exercise
In-Class Presentation – Week 5
Each student will choose one country for analysis, presentation and document development.
Country should be chosen no later than Week 2. First student to notify instructor of country
reserves that country. No duplication of countries. U.S., Canada, Mexico, and England
cannot be selected. Available countries include: Egypt, South Africa, Italy, China, Japan,
Australia, Germany, India, Philippines, Brazil, Turkey, Sweden, Spain, Argentina, Chile,
Saudi Arabia, Finland, Norway, Netherlands, Ireland, Austria, Switzerland, France, Belgium,
Taiwan, Denmark, Poland, South Korea, Greece, Russia, Indonesia and any other approved
country. Low population countries are not recommended due to lack of available
information.
Three Segments of Country Analysis Exercise:
1. Student will prepare Cultural Observations on chosen country (see component parts in
Chapter 5) including brief history, b/w country map, population, geographical location,
unique art, music, food, clothing contributions to the world. Focus on distinct and unique
aspects that shape its culture, unique beliefs, historical contributions in terms of material
offerings, famous creators of culture like composers, artists, etc. – (12 points)
2. Student will identify typical Non-Verbal and Verbal Communications and/or
Customs of people from the chosen country like gift giving, gestures, greetings,
manners, negotiation traits, etc. – (10 points)
3. Student will indentify One Global Company Headquartered in Selected Country
(Annual sales should exceed $1 Billion and the company should market into at least 5
foreign countries). Report on annual sales and profits, products/services sold and in what
foreign countries, number of employees and one unique product or marketing strategy
that they employ successfully in their global business. – (8 points)
The student will complete a 3-5 page bulleted paper to cover the above three segments and
give this to the instructor before the 4 minute presentation in Week 5.
International Business IBUS 201 Lecture Notes
IB Ball 12th Edition
Week 1 Lecture Notes Chapters 1, 2, and 4 - Introduction
Globalization – has two components – global companies/brands and markets/countries.
Globalization places emphasis on global markets not national markets and global
companies/brands/production… with integration of companies, markets, capital, increased
competition, technology advances (speed of transaction and lowering costs), emphasis on lower
costs and low-cost producer, declining trade barriers, reduced barriers of time/distance/language,
formation of regional groups (e.g. EU), reduced border influence, global media/internet, etc.
Some trends in international/global business…more of a world labor pool, borders becoming
much less important, shorter product life cycles, greater innovation, technology powering much
of globalization. Cost removal key to improving global market share.
Global company characteristics: Searches world for market opportunities – global vision;
maintains presence in multiple key markets around the world; looks for similarities in markets;
standardizes and integrates operations worldwide
Two historic periods of globalization – transportation revolution and technological revolution.
Five driving forces to globalization – Political - regional market groups for economic reasons
and trade reductions; Technology – increased speed of communication and transaction
opportunities and reduced costs dramatically; Market – reduce border influence, increase
competition/new competitors; Cost – economies of scale come in to play, low cost producer
often prevails; and Competitive – more competition, different competitors, and reduced product
life cycle with emphasis on quality and/or costs.
Controllable factors include product, price, promotion, personnel, and distribution but these must
be adjusted and adapted to respond to cultural, political and economic influences of country of
entry by the domestic company.
Uncontrollable or environmental factors include cultural, social, economic, distribution,
competitive, legal/political/regulatory, labor, technological, religion, etc. – they often vary
dramatically from the environmental factors in American within other countries – causing many
adjustments of product and operations for a company entering a foreign market –see figure 1.1
Page 26.
Foreign Direct Investment (FDI)…ownership or assets and management of operations in firm
located in foreign country…facilities in FDI can be built or purchased.
See changes in major trading partners…Table 2.5 Page 43
Discuss advantages and disadvantages of globalization. How have U.S., China, Europe, India,
Japan, and Russia fared with globablization?
Why enter foreign markets? Increased sales and profits because of new markets, faster growing
markets… other reasons to expand internationally: follow customers overseas, attack a
competitor’s home market, use foreign production to lower costs, guarantee raw material
supplies, acquire technology, geographic diversification, and satisfy management’s desire for
expansion. But without due diligence, major losses can result.
International Organizations: United Nations (UN) 190+ country group with peace making and
keeping mission along with assisting poorer nations.
World Bank – make hard loans usually to developing countries.
International Monetary Fund (IMF) – fosters orderly foreign currency exchange.
World Trade Organization (WTO) – around 150 members…designed to deal and assist with
trade among nations.
Organization of Petroleum Exporting Countries (OPEC) 12 members.
Group of Eight – (G8) – Small group of industrialized nations whose economies have been
greatly affected by oil issues.
Economic Integration among nations has evolved into regional economic alliances such as
European Union (EU), NAFTA, APEC. Factors in common countries entering alliance usually
have: 1)Desire for improved economic situation through trade 2)Same region of the world and
3)Similar economic and political views.
Week 2 Lecture Notes
Chapter 5 and 10 - Cultural Influences, International Finance, World Geography
(Chapter 6 – Not Required Reading)
Cultural Forces: Culture is sum total of beliefs, rules, institutions, and artifacts of a country or
population. Culture is learned, interrelated to other aspects of culture, shared, and defines
boundaries of different groups…and culture affects about everything in doing business
internationally.
Six rules of thumb of doing business across cultures – 1) be prepared- study the country and
current events before you go 2) slow down- Americans are more time focused than about any
people in the world 3) establish trust – spending time and developing a relationship are key 4)
understand the importance of the language 5) respect the culture and the people – respect the
rules, don’t treat the locals as foreigners 6) understand the components of culture – surface
culture such as fads and styles and deep seated culture such as attitudes, religion and values.
Components of culture – 1) aesthetics…art, music 2) attitudes and beliefs 3) religion 4) material
culture – technology 5) education 6) language 7) societal organization – family 8) legal
framework and 9) political structure
Attitudes and Beliefs…toward time, work, change – class exercise. Religion has many
underpinnings – class exercise. Language – spoken and unspoken.
Hard currencies are easily convertible, soft currencies are often difficult or expensive to
convert…often based on the strength or weakness of the underlying economy.
Balance of Payments essentially the difference between imports and exports…if more imports
there is a Trade deficit and if more exports there is a Trade surplus. Deficits often cause
inflation and often pricing, inventory re-valuations, and other items must be priced up due to
inflation which will cause a dilution in the value of the currency ultimately.
Fiscal policy is the collecting and spending by governments…has impact on inflation and control
of currency and thus impact on hardness of currency. If government spends more than they
collect a Fiscal Deficit results; if govenment collects more than they spend a Fiscal Surplus
results.
“Twin Deficits” - Trade Deficit and Fiscal Deficit
Monetary policy…control of amount of money in circulation and changes in interest rates –
affects value of currency
-Causes for a currency’s relative strengths and weaknesses include relative inflation, country’s
economy, balance of payments, fiscal surplus/deficit, productivity rate, political developments,
and confidence in country’s leaders.
Foreign exchange (FX) quotations – prices of one currency expressed in terms of another.
“Harder” the currency the more it is a “safe haven” from inflation, government overthrow, etc.
Spot rate…current rate. Forward rate…rate at which one will take foreign currency at future
date…can trade at discount or premium depending on future estimated valuation
Fluctuating exchange rates create risks for international business. Operations can make money
but company can lose it all and more with unfavorable currency exchange.
World Geography: Four key elements of geography relating to international business decisions:
location, topography, climate, and natural resources
World Geography Review…map handout.
Week 3 Lecture Notes
Chapters 7, 8, and 9 International Economic, Political, Legal and Labor Forces
(Chapter 11- not required reading)
Chapter 7…Economic Forces: See Figure 7.2, Table 7.2, Table 7.5, Table 7.6, Table page 228,
Figure 7.3, Figure 7.5, Figure 7.6,
Political Forces: Communism - conceived by Karl Marx was social change in classless society.
Evolved with Lenin in political party that seized power with stern suppression with ultimate goal
of worldwide communist state; Socialism – public and collective ownership of production and
distribution; and Capitalism- production and distribution are based on free market rather than
central decisions with a profit motive.
Stability versus Instability…in terms of fiscal policy, monetary policy, political structure.
Predictable versus sudden changes. Terrorism creates instability.
Expropriation – country takes over and reimburses company. Confiscation – country takes over
and no reimbursement.
Firms versus nations…about ½ of world’s largest economic units are corporations – like
countries they have tremendous power. Countries still have sovereign power.
Legal Forces: Intellectual Property Rights differ greatly by country (e.g., U.S. IP Law strong,
China weak). Need to understand when national and international laws prevail for all types of
law. Within country, local rule of law prevails, but once business issues or products cross borders
rule of law becomes much more complicated and often with international laws involvement.
Trade Restrictions: Tariffs – taxes on imports reduce competition for local producers. Non-tariff
barriers – restriction on imports help domestic producers/markets. Examples – quotas, marketing
agreements, voluntary export restraints, customs, rules, standards, procurement procedures and
producer subsidies.
Week Four Lecture Notes – Competitive Forces, Market Analysis/Entry and E/I Practices
Chapters 14, 15 and 16
U. S. leads world in technology innovation, labor productivity, start-up dimensions, and
spending on Research and Development. Reasons for high job creation and economic
capabilities and in large measure why the brightest people from all over the world come to U.S.
China……competitiveness because of cost of labor, work ethic and reduced labor/economic
restrictions. China leads in counterfeiting because of different culture and views of intellectual
property laws along with ability to sell related “knock-off” goods.
Corruption in international business strips away incentive to work, achieve, and to grow because
unfair and rewards for output are not distributed appropriately.
Global Strategic Planning Steps: Analyze Foreign Environmental Forces, Analyze Corporate
Controllable Variables, ADAPT Business/ Product to Foreign Environment, Set Goals for New
Market, Formulate Strategies, and Create Tactical Plans.
Assessing and Analyzing Markets: Market Screening Process usually in this sequential order –
Basic Business/Product Need, Economic/Financial Screen, Political/Legal Screen, Socio-cultural
Screen, and then Competitive Screen.
Entering Foreign Markets – Direct Exporting, Indirect Exporting, Foreign Direct Investment
(Buy or Build), Licensing, Franchising, Joint Venture, Contract Mfg.
Export and Import Practices: Why Export – test the market and competition, meet customer
requests, offset cyclical sales of domestic market, additional sales/profits, extend product life
cycle, distract competition, replicate competition, and improve equipment utilization. One
downside is potential huge financial losses due to judgment or execution mistakes. 12 Most
Common Mistakes of New Exporters. P. 469
Export Payment Methods/Terms – Cash in advance, open account, consignment, letters of credit,
and documentary draft. Irrevocable letters of credit or export draft are the best methods for seller
to insure payment by buyer. For small and medium size businesses, credit cards are used. For all
the preferred methods, payment is secured before buyer takes possession of product or services.
Typical Export Documents: Shipping Documents – declaration, licenses, export bill of lading,
insurance certificate; Collection Documents – invoices, certificate of origin, inspection
certificates.