International Business
2
International Business
Date: Week 2, 2020, due 03/20/2020 Student Name:
Activity: ONLINE Assignment, Chapters 2 and 3
Instructions:
Dear Students,
For this assignment, please use this form and do the following:
· Read Chapter 2 and 3 of our textbook as assigned last week.
· Read the articles and watch the videos posted (I attach down there)
· Please add your own research if you like.
· Feel free to use additional sources and if you do, please include information/links in your document.
· 3 pages
Use these Video and article to finish the Questions down there:
https://www.businessinsider.com/the-culture-map-8-scales-for-work-2015-1
The Culture Map – Decoding How People Think, Lead, and Get Things Done Across the World
QUESTIONS:
1. (20 Points)
Discuss the concept of international social responsibility. What role does it play in the relationship between a company and its host country?
2. (20 Points)
What is meant by international business ethics? How does the local culture affect ethical practices? What are the implications of such local norms for ethical decisions by MNC managers?
3. (20 Points)
Describe the four dimensions of culture proposed by Hofstede. What are the managerial implications of these?
4. (20 Points)
Discuss the types of operational conflicts that could occur in an international context because of differences in attitudes towards
a. time,
b. change,
c. material factors, and
d. individualism.
Give examples relative to specific countries.
5. (20 Points)
Discuss collectivism as it applies to the Japanese workplace. What managerial functions are affected?
Page 2 of 2
Introduction
Agenda – Week 1.1
Introduction of class – students and professor
Introduction of course content
Course etiquette
Discussion of syllabus & course evaluation criteria
Introduction of GROUP PROJECT for this course
Forming the TEAMS for the GROUP PROJECT
Assignments for Week 1.2
Questions and Answers
Introduction of our Class
Course Etiquette
What does ‘Etiquette’ mean?
How – do YOU think – should our course
etiquette look like?
What does the business world have in
common with university life?
Introduction of Course Content
I. Assessing the Environment (Chapter 1)
A. The Global Business Environment
B. The Political and Economic Environment
C. The Legal Environment
D. The Technological Environment
II. Managing Interdependence (Chapter 2)
A. The Social Responsibility of MNCs
B. Ethics in Global Management
C. Managing Interdependence
Introduction of Course Content
III. Understanding the Role of Culture (Chapter 3)
A. Culture and its Effects on Organizations
B. Cultural Value Dimensions
C. Culture and Management Styles around the Globe
IV. Communicating Across Cultures (Chapter 4)
A. The Communication Process
B. The Culture-Communication Link
C. Information Technology
D. Managing Cross-Cultural Communications
Introduction of Course Content
V. Cross-Cultural Negotiation and Decision
Making (Chapter 5)
A. The Negotiation Process
B. Understanding Negotiation Styles
C. Managing Negotiation
E. Decision Making
VI. Formulating Strategy (Chapter 6)
A. Reasons for Going International
B. Strategic Formulation Process
C. Steps in Developing International & Global
Strategies
Introduction of Course Content
VII. Global Alliances and Strategy Implementation
(Chapter 7)
A. Strategic Alliances
B. Strategic Implementation
VIII. Staffing and Training for Global Operations
(Chapter 9)
A. Staffing Philosophies for Global Operations
B. Global Selection
C. Training and Development
D. Compensating Expatriates
E. Compensating Host-Country Nationals
Introduction of Course Content
IX. Developing a Global Management Cadre
(Chapter 10)
A. Preparation, Adaptation and Repatriation
B. Global Management Teams
C. The Role of Women in International Management
D. Global Multiculturalism: Managing Diversity
E. Working Within Local Labor Relations Systems
Introduction of Course Content
X. Motivating and Leading (Chapter 11)
A. Motivating
B. Cross-Cultural Research on Motivation
C. Leading
D. The Global Leader’s Role and Environment
E. The E-Business Effect on Leadership
F. Cross-Cultural Research on Leadership
G. Contingency Leadership-The Cultural
Variable
Syllabus & Evaluation Criteria
Questions about the Syllabus?
Evaluation Criteria:
1. Quizzes 15%
2. Group Project: Strategic Analysis
Paper & Presentations 40%
3. In-Class Assignments 15%
4. Individual Presentation 15%
5. Final Exam 15%
IBUS 2002 GROUP PROJECT
Let’s get started…
Get to know your class mates
Find your team mates
Seek for diversity within your team!!
Review Group Contract
195 COUNTRIES –
know them all!
Assignments for next Session, Week 1.2:
Study Chapter 1 in Text Book
Study World Geography for in-class workshop:
www.geoquizzes.com
Prepare for Group Project:
Ready to sign group contract/hand in
Discuss/ready to select market/country
Discuss/ready to assign roles/responsibilities
http://www.geoquizzes.com/
Week 1.2
03/11/2020
Copyright ©2011 Pearson Education, Inc.
publishing as Prentice Hall
AGENDA
1. Group Project Organization and
Instructions
2. Finalize Group Contract
3. Chapter 1 Discussions
4. Assignments Week 2.1
Chapter Learning Goals
1. Understand the global business
environment
and
how it affects the strategic and operational
decisions which managers must make.
2. Critically assess the developments,
advantage
s, and
disadvantages of globalization.
3. Review the role of technology in international
business.
4. Develop an appreciation for the ways in which
political, economic, legal, and technological factors
and changes impact the opportunities that
companies face.
5. Discuss the complexities of the international
manager’s job.
1-3
What is International
Management?
The process of developing
strategies, designing and
operating systems, and working
with people around the world to
ensure sustained competitive
advantage
What is Globalization?
…characterized by
• networks of international linkages
• that bind
countries
, institutions,
and people
• in an interdependent global
economy
What are CHALLENGES for International Management?
Discuss with your Team
• language barriers
• business attitude
• custom differences
• technical
development
• legal environment
• natural resources
• different ethics
• currency
• wage differences
• taxes
• different
markets/customer
needs
• terrorism
• health issues and
system
• different time zones
What are BENEFITS of International Management?
Discuss with your Team
• economic growth
• company revenue
increases
• buying power
• cultural integration
• risk management
improves
• less restrictive labor
laws
• lower operation
cost/economy of
scale
• larger variety of
products & services
• natural resources
• decrease of
competition
• job creation
• increase/improve-
ment of technology
• higher profitability
• larger market/
market share
Typical Challenges that Managers
Face in the 21st Century
Political and cultural differences
Global competition
Terrorism
Technology
Finding ways to balance their
social responsibilities, their images,
and their competitive strategies
Challenges to Globalism
Backlash against capitalism and
rekindling of nationalism
Increased protectionism of high-
demand resources
Need to develop top managers
with international understanding
and experience
Benefits of Globalism
▪ Access to more markets
▪ Growth of developing economies
▪ Opportunities for flexibility and
efficiency
▪ Opportunities for small and
medium-sized enterprises (SMEs)
▪ Many more…
Regional Trading Blocks
Examples:
European
Union (EU)
Regional Trading Blocks
North American
Trade Agreement
(NAFTA)
The Impact of the Information
Technology
Making geographic barriers less
relevant
Lowering cultural barriers
Encouraging convergence of
consumers’ tastes and
preferences
1-
13
The Global Manager’s Role
The Political and Economic
Environment
• Sustainability—economic, political, social,
and environmental—has become a
significant worldwide issue
• Ethnicity—a driving force behind political
instability around the world
• Religion—religious disputes lie at the heart
of regional instabilities: former Yugoslavia,
Northern Ireland, the Middle East…
Political Risk
Examples:
Any governmental action or politically motivated
event that could adversely affect the long-run
profitability or value of a firm
Venezuela took control
of cement plants and
offices belonging to
Mexico, after failing to
reach an agreement in
nationalization talks.
Bolivian president’s
move to
nationalize the
national gas
industry followed
that in Venezuela.
The Political Risk Cont.
Typical Political Risks
• Expropriation and confiscation
• Nationalization
• Terrorism
• Macro-political risk event
• Micro-political risk event
• Discriminatory treatment
• Barriers to repatriation of funds
• Interference in managerial
decision making
• Corruption/Dishonesty by
government officials
Political Risk
Assessment
Helps companies manage
exposure to risk and
minimize financial loss
Two forms:
Consultation with experts
Development of internal
staff capabilities
Managing Political Risk
Avoidance and
Adaptation
• Equity sharing
• Participative
management
• Localization of the
operation
• Development
assistance
Dependency and
Hedging
• Input control
• Market control
• Position control
• Staged contribution
• Political risk insurance
(OPIC and FCIA)
• Local debt financing
Categories of Economic Risk
1. Loss of profitability due to abrupt
changes in monetary and fiscal policies
2. Loss of profitability due to changes in
foreign investment policies
3. Risk of currency exchange rate
• Example: devaluation of peso in 1990s
The Legal Environment
Consists of
▪ the local laws and legal systems of
those countries in which an
international company operates and
▪ of international law, which governs
relationships between sovereign
countries
Other Regulatory Issues
Protectionist policies, such as tariffs or
quotas
The attractiveness of the tax system
The level of government involvement in
the economic and regulatory
environment
Assignments Week 2.1
1. Study Chapter 2
2. Read articles and watch videos
posted in Week 2 folder on ulearn
3. Start preparing UNIT A of Group
Project (due in Week 3)