Welcome to MT 220
Global Business
Bill Okrepkie
WOkrepkie@kaplan.edu
bokrepkie@rap.midco.net
AIM - WSOkrepkie
(605) 342-1689 (h)
(605) 390-0466 ©
Agenda
•
•
•
•
•
•
Admin
Welcome everyone
Expectations of the class
Go over the syllabus
Start talking about Global Business
Conclusion of Seminar
• Hi I’m Bill Okrepkie and welcome to this week’s
seminar. Please refer to me as Bill and please be
comfortable with this. It is easier to spell then Okrepkie
:).
Some of the Basics
•
•
•
•
•
•
•
•
•
Print the syllabus – course home or doc sharing areas
Kaplan emails – access, check daily, email tab
My addresses – Wokrepkie@kaplan.edu
AIM address – WSOkrepkie
Home phone number – 605-342-1689
Cell number – 605-390-0466
Everyone have an AOL AIM account
Contact tech support for any computer problems
Office hours
Some of the Basics cont.
• Don’t worry aobute speling errores when you tpyt happens to the best of us.
• Seminars are not graded
• Questions so far
Course Description
• This course gives you an overview of global business.
• You will receive an introduction to the terminology, and
the cultural, economic, strategic, market and production
differences encountered in the global business
environment.
• This course serves as an introduction to the factors
involved in making business decisions regarding
globalization.
• Case studies and real world scenarios will illustrate the
reality of doing business on this broad scale.
Course Outcomes
• By the end of this course, you should be able to:
• Identify the meanings of global business terminology
• Discuss differences in global organizational structures
• Evaluate the reasoning of opposing perspectives on
ethical issues
• Analyze the economic and political risk factors involved
in a global business scenario
Your First Weekly Activity: Reading!
• This course uses a text:
Title: Global Business Today, 6th Edition
Author: Hill, Charles W.L.
ISBN: 007807455X / 9780078074554
• Your Reading this week: Chapter 1 pp. 3-36 in the textbook
• Always make your reading the first activity of the unit!
Any questions ?
Your Second Weekly Activity: Class
Discussion! It Allows Us To:
• Learn from the many different
perspectives represented
• Add experiential knowledge to our course
material
• Ask questions
• Get help from instructor and classmates
• Exchange ideas
• Get feedback
• And they are fun!
How To Do Well In Class Discussion:
• Post early: Your Initial Post must be made no later than Saturday, midnight
EST. The earlier the better! Posts must be made on at least 3 different
days. This is expected to be an on-going discussion!
• Respond to at least two classmates, not including the instructor!
• Be sure your Initial Discussion Post is at least 100 words in length
• Check out the key terms at the end of each unit – try to incorporate them
• Use web based research where appropriate to make a point. If you use
referenced material, this must be correctly cited.
• Be thoughtful, thorough, and substantive. The posts should address the
Discussion questions or topics.
• Check frequently to see if anyone has asked questions
• Spell Check your posts ! Proper grammar and punctuation are required.
• Pay attention to the rubric in your syllabus
Any questions ?
Your Third Weekly Activity: Homework
Assignments!
• Exercises may consist of answering questions in a text chapter,
writing a paper, or completing some other assignment. Exercises
are usually performed offline.
• Proof, proof, proof – grammar and spelling matter. Apply the
concepts and language of the course
• Answer all the questions in terms of the key concepts of that unit
• Additional research may be used.
• Assignments are due by Tuesday Midnight EST.
• Is everyone clear on how to use the Dropbox?
• If something is confusing, please check with your me.
How to Do Well in Homework Assignments:
• You are expected to use the APA format. Please let me
know if you have any concerns or questions.
• APA style means that you are required to include: 1) A title
page, 2) The paper itself, 3) A references page, and 4. In
text citing.
• A title page contains three items: the paper's title, the date
and the author's name.
• The last thing required is the references page. Sources
should be alphabetized by the author's last name (or, for
sources without authors, by the first letter in the title) and
the second line of each source should be indented a half
inch (the first line is not indented).
• If something is confusing, please check with me .
How To Do Well In Homework Assignments
Page (Continued)
• Be sure your response adequately answers the
assignment question (s).
• Be sure your Homework Assignment is well-written
without spelling errors, using complete sentences, and
paragraphs.
• Be sure your assignment is submitted to the correct
Dropbox as an attachment in MS Word (.doc) format.
• Be sure your file is named using the correct Kaplan file
naming convention.
Any questions ?
Your Fourth Required Weekly Activity:
Reviews!
•
•
•
•
•
Multiple choice quizzes
Reviews are not timed
Think the question through
Retake the quizzes as necessary for most quizzes
Press the “Submit for Grade” button when you are finished and
ready for me to grade your Review
• If you have any technical problems, call the Help Desk immediately
Any questions ?
Class Seminars!
•
•
•
•
•
Fun and helpful
Opportunity to ask questions
Opportunity to interact with classmates
You can review the recording if you are unable to attend
Go to the KHE link as you did to enter this Seminar and
choose “History.” Choose the date of the Seminar you
would like to review and click on it.
• Seminar Participation is not graded but you are strongly
encouraged to attend!
• We will have seminars in Unit 1, 3, 6, and 9.
Any questions ?
Class Calendar
Unit 1
Introduction to Global Business
•
•
•
•
•
•
Introductions
Reading
Discussion
Assignment-Simulation
Seminar
Graded work
- Discussion Posts
- Simulation: Geography/ Time Zone Quizzes
Unit 2
Culture and Political Economy
•
•
•
•
•
•
Reading
Discussion- Investing in Georgia
Assignment- Risk in Bolivia and Venezuela
Quiz- Hofstede’s Cultural values
Geography quiz – Extra Extra
Graded work
- Discussion posts
- Assignment- paper
•
Unit 3
Ethics and Social Responsibility in a
Global Environment
•
•
•
•
•
•
Reading and video- R. Ketcham
Discussion- Ethics approaches
Assignment-Google in China
Ungraded Sustainability Quiz
Seminar
Graded work
- Discussion Posts
- Assignment: paper
Unit 4
Trade and Investment
•
•
•
•
•
•
Reading
Discussion- Mercantilism- China
Assignment- Subsidies and Tariffs
Review Quiz- True/False
Vocabulary Review - ungraded
Graded work
- Discussion Posts
- Assignment Case Study paper
- Review Quiz– One time True/False
Unit 5
Foreign Direct Investment
•
•
•
•
Reading
Discussion-FDI in Ireland & Japan Starbucks case
Assignment-FDI risk in the BRIC countries
Graded work
- Discussion Posts
- Assignment: Memo to Management
Unit 6
Export / Import
•
•
•
•
•
•
Reading
Discussion- LOC/Export/Import
Quiz
Blog- Business etiquette
Seminar
Graded work
- Discussion Posts
- Quiz- unlimited times
- Blog- Business Etiquette in China
Unit 7
The Strategy and Structure of
International Business
•
•
•
•
•
Reading
Discussion- IKEA/Time Zones
Assignment- Organizational Structures
Seminar- Jing presentation
Graded work
- Discussion Posts
- Assignment paper
Unit 8
Entering Foreign Markets
•
•
•
•
Reading
Discussion: ING entering the U.S.
Assignment: Final Project start-Power Point
Graded work
- Discussion Posts
- Assignment: PPT
Unit 9
Global Production, Outsourcing and
Logistics
•
•
•
•
•
•
Reading
Discussion: Trax Mountain Bikes
Final Project: India/ Mexico- IKEA
Seminar
Preview Unit 10 Writing Assignment
Graded work
- Discussion Posts
- Assignment: Final Project
Unit 10
Reflection
•
•
•
•
Discussion-optional
Writing Assignment
Quiz
Graded work
- Writing Assignment
- Quiz
Any questions ?
Introduction to Global Business
What Is Globalization?
• Globalization refers to the trend towards a more
integrated global economic system
• Two key facets of globalization are:
- the globalization of markets
- the globalization of production
The Globalization of Markets
• The globalization of markets refers to the merging of
historically distinct and separate national markets into
one huge global marketplace
• In many markets today, the tastes and preferences of
consumers in different nations are converging upon
some global norm
• Examples of this trend include Coca Cola, Starbucks,
Sony PlayStation, and McDonald’s hamburgers
The Globalization of Production
• The globalization of production refers to the sourcing of
goods and services from locations around the globe to take
advantage of national differences in the cost and quality of
factors of production (labor energy, land, and capital)
• The goal for companies is to lower their overall cost
structure or improve the quality or functionality of their
product and gain competitive advantage
• Examples of companies doing this include Boeing and Vizio
The Emergence of Global Institutions
• The World Trade Organization (WTO) which is
responsible for policing the world trading system
and ensuring that nations adhere to the rules
established in WTO treaties
-In 2008, 151 nations accounting for 97% of world trade
were members of the WTO
• The International Monetary Fund (IMF) which
maintains order in the international monetary
system
The Emergence of Global Institutions
• The World Bank which promotes economic
development
• The United Nations (UN) which maintains international
peace and security, develops friendly relations among
nations, cooperates in solving international problems
and promotes respect for human rights, and is a center
for harmonizing the actions of nations
Declining Trade and Investment
Barriers
• International trade occurs when a firm exports goods or
services to consumers in another country
• Foreign direct investment (FDI) occurs when a firm
invests resources in business activities outside its
home country
• During the 1920s and 1930s, many nations erected
barriers to international trade and FDI to protect
domestic industries from foreign competition
Declining Trade and Investment
Barriers
• After WWII, advanced Western countries began removing
trade and investment barriers
• Under GATT (the forerunner of the WTO), over 100 nations
negotiated further decreases in tariffs and made significant
progress on a number of non-tariff issues
• Under the WTO, a mechanism now exists for dispute
resolution and the enforcement of trade laws, and there is a
push to cut tariffs on industrial goods, services, and
agricultural products
Declining Trade and Investment
Barriers
• Lower trade barriers enable companies to view the
world as a single market and establish production
activities in optimal locations around the globe
• This has led to an acceleration in the volume of world
trade and investment since the early 1980s
The Role of
Technological Change
• Major advances in communication, information
processing, and transportation
• Microprocessor has lowered the cost of global
communication
• Commercial jet aircraft and super freighters
The Changing World Output
and World Trade Picture
• Rapid economic growth in countries like China,
Thailand, and Malaysia
• Decline in the U.S. share of world output and world
exports seems likely
• Increase in world output by developing nations such as
China, India, Indonesia, Thailand, and South Korea.
• Decline in world output by industrialized countries such
as Britain, Japan, and the United States
The Changing World Order
• The collapse of communism in Eastern Europe
• Economic development in China has created huge
opportunities despite continued Communist control
• Free market reforms and democracy in Latin America
have created opportunities for new markets and new
sources of materials and production
The Globalization Debate
• Is the shift toward a more integrated and interdependent
global economy a good thing?
- Many experts believe that globalization is promoting greater prosperity
in the global economy, more jobs, and lower prices for goods and
services
- Others feel that globalization is not beneficial
Globalization, Jobs, and Income
• Opponents - Jobs in advanced economies are being
lost to low-wage nations
• Supporters - The benefits of free trade outweigh its
costs
-While some jobs may be lost, the economy as a
whole is better off
• Supporters argue that free trade will result in countries
specializing in the production of those goods and
services that they can produce most efficiently, while
importing goods and services that they cannot produce
as efficiently, and that in doing so, all countries will gain
Globalization, Labor Policies, and the
Environment
• Critics - Free trade encourages firms to move offshore
to less developed countries with lax environmental and
labor regulations
• Supporters - Free trade does not lead to more pollution
and labor exploitation, it leads to less as countries
develop
Globalization and National
Sovereignty
• Critics - Economic power is shifting away from national
governments and toward supranational organizations
such as the WTO, the European Union (EU), and the
UN
• Supporters – disagree the power of these organizations
is limited to what nation-states collectively agree to
grant
-The organizations must be able to persuade
members states to follow certain actions
-Without the support of members, the organizations
have no power
Globalization and the World’s Poor
• Critics – The gap between rich and poor has gotten
wider and that the benefits of globalization have not
been shared equally
• Supporters - The actions of governments have made
limited economic improvement in many countries
- Totalitarian regimes
- Endemic corruption
- Have few property rights
- Involved in war
- Burdened by high debt
Managing in the Global Marketplace
1. Countries differences require companies to vary their
practices country by country
2. Managers face a greater and more complex range of
problems
3. International companies must work within the limits
imposed by governmental intervention and the global
trading system
4. International transactions require converting funds and
being susceptible to exchange rate changes
Results of increased globalization of
investment and trade
Declining
barriers to
Investment and
Trade
Increased
competition
The most
efficient and
responsive to
market prevail
Any questions ?
APA Made Simple: First step
• All words you use that are written or said by another
person must be cited in APA. It is easy once understand
it!
• All citations (in-text citations) must also have an
accompanying Reference.
So here is what to do for In-text citations:
In text citations made easy:
Introduce them into your writing first using such phrases as:
• “according to” or
• “as stated by”, or
• “as mentioned in” ….etc.
Examples of In-text citations are:
According to Yang, Stephenson and Horner (2009), “the
global economic climate prevented the new venture from
turning a profit” (p. 129).
OR if no page is available you can use the section or
paragraph # (para. 4).
As stated by Yang, Stephenson and Horner (2009), “the
global economic climate prevented the new venture from
turning a profit” (para. 4).
The Reference page should be at the end
of your paper:
References
Yang, W., Stephenson, C. J. & Horner, L.T. (2009, June
11). Global economic impact: Downsizing in a
changing economy. Foreign Affairs, 302(2). Retrieved
March 21, 2010, from http://www.foreignaffairs.com/
References continued…
FOR a book:
Hill, C.W. (2009). Global business today. (6th ed.). New
York, NY: McGraw-Hill Irwin.
It looks like the hour is up. I hope this session was
valuable to you and I look forward to seeing you in our
next seminar. Have a great week and weekend and see
you in the discussion board.