The Pennsylvania State University, York Campus IB 303 GI - 001 - International Business Operations SPRING 2009 Time: 10:40 11:55am Instructor: Dr. Ali Kara Day (s): Tuesday & Thursday Office: ISTC 206 Place: 206 Main Bldg. Office Hours: Tue & Thur Noon 1:00 pm Prerequisites: 5 th Semester Standing Office phone: 717-771-4189 E-mail: axk19@psu.edu COURSE DESCRIPTION International business is important and necessary because economic isolationism has become impossible. Failure to become a part of the global market assures a nation of declining economic influence and deteriorating standards of living for its citizens. International business, therefore, presents more opportunities for expansion, growth, and income than does domestic business alone. This course will cover the major aspects of international business environment and operations with the emphasis on its impact on the local businesses in your state. In other words, in this course, you will learn why international business differs from domestic business, economic theories on international trade, and how managers deal with the uncontrollable forces of international environment. How international operations effect different parts of a business organization are also examined. COURSE OBJECTIVES 1. Understand the differences businesses face when operating in an international versus a domestic environment. 2. Examine the various international institutions and practices that impact international business. 3. Develop insight into how the environments in other countries or regions significantly impact international operations. 4. Understand the impact of international operations on the local businesses in your state. 5. Appreciate how cultural differences impact individuals and how those differences must be considered by international businesses. 6. Understand how to research and enter international markets. TEXTBOOK The following text provides the primary source of information for this course. Text chapters should be read prior to class discussion. Cavusgil, S. Tamer, Gary Knight, and John R. Riesenberger, International Business: Strategy, Management, and the New Realities, Pearson/Prentice-Hall, 2008. 1
EXAMS AND QUIZZES Three exams (two midterms and one final exam) and two quizzes have been scheduled for this section of International Business. The exams will consist of both multiple-choice and essay questions. GRADING SYSTEM Course grades will be based on tests, term paper, presentation, the FOREX game, contribution and participation. Details are illustrated below: 2 Exams 140 points 2 Quizzes 60 points Final Exam Term Paper Presentation Forex Exercise Class Participation and peer evaluation TOTAL 100 points 40 points 400 points TERM PAPER AND ORAL PRESENTATION Three to four people will form a group and each group is expected to write a report on the business climate, news, history, political structure, economic landscape, and relevant statistical data for a country of choice. A main emphasis should be given to the role of culture in doing business in that specific country. In other words, it is known that culture defines a society, fuels differences and highlights similarities. You need to research relevant business etiquette in that specific country that the international business people need be aware of. In preparing this term paper you can use the variety of resources, such as library, INTERNET and other resources (also see attached table of "A Resources for Secondary Data"). However, you have to provide a bibliography of sources you used to collect the information to support your proposal. Written papers are due last week of classes. I expect that anything you turn in to me will look professional. No other way is acceptable in the "real world." Professional means that documents are typed (and for this class doublespaced), grammar is correct, and there are no spelling errors. I understand that some points of grammar are open for interpretation, but for instance, complete sentences either are or are not. Computers make this job much easier. Also, each group will present their export business plan at end of the semester. You will have about 15 to 20 minutes and you are expected to make a professional presentation (use of technology in presentations, organization of materials, effective communication, and professional look). Data (qualitative and quantitative) must be used to support your conclusions. Presentations will be made during the final week of classes. 2
FOREX EXERCISE The objective of this game is to familiarize you with value of the major foreign currencies and start paying attention to the foreign currency market like international business people do. Each team will have same amount of US dollars ($10,000) in the beginning of the semester and make buy or sell decision on the foreign currencies every class. Your objective is to accumulate the highest amount of value in your portfolio by anticipating (predicting) the potential movements of the foreign currencies. COURSE RULES AND PROCEDURES Class Attendance: Students are expected to attend classes regularly, be punctual, and complete all work whether present or not. Whenever possible, the opportunity for making up class-work missed as a result of an excused absence is to be worked out between the instructor and the student upon the student's initiative. Excused absences include the following: (1) the student has contacted the faculty member prior to the absence due to a college sponsored activity, (2) the student has contacted the faculty member prior to the absence and the faculty member concurs that the absence is unavoidable and legitimate, (3) faculty member determines that the student has missed classes/assignments due to factors beyond the student's control (i.e., illness, family misfortune, etc.), and the faculty member concurs. All other absences are considered unexcused, in which case the instructor is not obligated to provide an opportunity for making up class-work for credit. Make-Up Exams: No make-up exams will be given for other than instructor approved absences. There are no excused absences from exams other than physician-documented illness and documented personal emergency. Academic Honesty: All university, college, and department policies on academic honesty will be strictly enforced. The usual consequence of academic dishonesty is failure of the course and referral of the case to the Dean of the College for additional disciplinary action. Class Participation: Each student must actively participate in class discussions in order to earn his/her "class participation" grade. It is not enough to come to class and just sit and listen to the instructor or other students. You will not earn class participation grade that way. Sometimes, I will call on students to answer questions and discuss class materials. I will try my best to encourage everyone to participate in class, and contribute to the learning experience. Study expectations: Senate Policy 42-23 states "for the average student, a total of at least 40 hours of work planned and arranged by the university faculty is required to gain one credit." That yields 120 hours for this 3-credit course. After deducting class time (15 days * 3 hrs = 45 hours), this leaves a balance of 75 hours, which averages to about 5 hours of outside classroom preparation per week for this course. The workload of this course is based on this expectation. You will have to keep up with the work or you will quickly fall behind. Some students will find it necessary to spend more than two hours per class hour outside of class. Some students having an aptitude for the material covered in the course will find that two hours per class hour might be unnecessary. Please see me if you encounter difficulties with the workload. Students are expected to attend all classes in accordance with Senate policy, and to come prepared by having reviewed notes from the previous lecture and having read the current scheduled assignments. Quizzes will be frequently given to test the student's class preparation by asking questions based upon the prior lectures or current assigned reading. Students with Disabilities: Penn State is committed to providing access to a quality education for all students, including those with documented disabilities. If a student has a disability and wishes an accommodation for a course, it is the student's responsibility to obtain a University letter confirming the disability and suggesting appropriate accommodation. This letter can be requested from the York campus Disability Contact Liaisons, Dr. Sharon Christ, Student Affairs (ALL); Dr. Cora Dzubak, Learning Center (LEARNING); and Sherri Bett, Admissions (PHYSICAL). 3
OUTLINE OF COURSE AND TENTATIVE SCHEDULE Weeks Assignments 1 Course introduction, rules, and administrative details; Chapter 1- What is international Business? FOREX GAME (TRIAL) 2 Chapter 2- Globalization of Markets and the internationalization of the firm Chapter 3- Organizational Participants that make international business happen FOREX GAME 1 3 Quiz #1 (1/29) Chapter 4-Theories of International Trade and Investment FOREX GAME 2 4 Chapter 5- The cultural environment of international business FOREX GAME 3 5 Exam #1 (2/12) Chapter 6- Political and Legal systems in national environments FOREX GAME 4 6 Chapter 7- Government intervention in international business FOREX GAME 5 7 Quiz #2 (2/26) Chapter 8- Regional Economic Integration FOREX GAME 6 8 Chapter 9- Understanding emerging markets Chapter 10- The International Monetary and financial environment FOREX GAME 7 9 SPRING BREAK 10 Chapter 11-Global strategy and organization FOREX GAME 8 4
11 Chapter 12- Global market opportunity assessment Chapter 13- Exporting and countertrade FOREX GAME 9 12 Exam #2 (4/2) Chapter 14- Foreign direct investment and collaborative ventures FOREX GAME 10 13 Chapter 15- Licensing, franchising, and other collaborative ventures FOREX GAME 11 14 Chapter 16- Global sourcing FOREX GAME 12 15 Chapter 17 Marketing in the global firm FOREX GAME 13 16 GROUP PRESENTATIONS (4/28 4/30) FINAL TERM PAPER DUE (4/28 4/30) REVIEW 17 Final Exam Week ASSIGNMENT OF LETTER GRADE Cutoffs (%) Points Letter grade Grade point 94.5% and above 89.5-94.4% 87.5-89.4% 83.5-87.4% 79.5-83.4% 74.5-79.4% 69.5-74.4% 59.5-69.4% less than 59.5% 400-378 377-358 357-350 349-333 332-318 317-298 297-278 277-238 237 or less A A- B+ B B- C+ C D F 4.00 3.67 3.33 3.00 2.67 2.33 2.00 1.00 0.00 5