A. COURSE PROPOSAL AND OBJECTIVES.
1. To define the field of international business and emphasize the differences between business within the domestic and international contexts.
2. To define and discuss briefly basic terms relevant to international business.
3. To discuss the different means (exporting, importing, licensing, investing, etc.) a firm can use to accomplish its international objectives.
4. To emphasize the importance of history in understanding current international business relations.
5. To underline company differences insofar as they affect and are affected by environmental and operational constraints.
6. To discuss present-day volumes, structure, policies, etc. of world economic relations (including Costa Rica's foreign trade) and perspectives, and their relevance to international business people.
B. COURSE CONTENTS
I. THE RAPID CHANGE OF GLOBAL BUSINESS
1. Why you need International Business. Experience and how to get it.
2. History of International Business.
3. Why is International Business different?
4. International Business Model.
II. INTERNATIONAL TRADE AND FOREIGN INVESTMENT.
1. International trade: volume, direction, major trading partners.
2. Foreign investment: portfolio investment, direct investment.
3. Why enter foreign markets?
4. How to enter foreign markets?
5. Multidomestic or global strategy?
III. ECONOMIC THEORIES ON INTERNATIONAL TRADE, DEVELOPMENT AND INVESTMENT.
1. The advantage of knowing economic theory.
2. International trade theory. Mercantilism. Absolute advantage. Comparative advantage. Factor endowment. Introducing money. The product life cycle. Toward a theory of international business: Newer theories.
3. Trade restrictions. Governmental influence on trade. The rationale for government intervention. Forms of trade control.
4. Economic development: indicators (potential versus level).
5. International investment theories.
IV. THE DYNAMICS OF INTERNATIONAL ORGANIZATIONS: Relevance for I.B. people.
1. United Nations
2. The World Bank. Multilateral Development Banks: The European Bank for Reconstruction and Development. The Interamerican Development Bank. Other regional development banks.
3. The WTO
4. OPEC and other product organizations.
5. The European Union. Other regional groupings of nations.
6. The IMF
V. THE INTERNATIONAL MONETARY SYSTEM: Relevance for I.B. people
1. The Gold Standard.
2. Bretton-Woods and the Gold Exchange Standard.
3. The Balance of Payments.
4. 1971 and the next two years.
5. 1973 to the present
VI. FINANCIAL FORCES.: Relevance for I.B. people
1. Fluctuating Currency Values.
2. Foreign Exchange Quotations.
3. Currency Exchange Controls.
4. Balance of Payments.
5. Tariffs and Duties.
6. Taxation.
7. Inflation.
8. Accounting Practices.
VII. ECONOMIC AND SOCIOECONOMIC FORCES: Relevance for I.B. people.
1. Economic analysis.
2. International economic analysis: Dimensions of the economy.
VIII. PHYSICAL AND ENVIRONMENTAL FORCES : Relevance for I.B. people
1. Location
2. Topography
3. Climate.
4. Natural Resources
IX. SOCIOCULTURAL FORCES: Relevance for I.B. people.
1. What is culture?
2. Sociocultural components: Aesthetics, attitudes and beliefs, language, religion, material culture, societal organization.
3. Understanding national cultures.
X. POLITICAL FORCESS: Relevance for I.B. people.
1. Ideological forces.
2. Government ownership of business.
3. Privatization.
4. Nationalism.
5. Government protection.
6. Government stability.
7. Traditional hostilities.
8. International organizations as political forces.
9. Labor as a political force. Labor unions.
10. Country risk assessment.
XI. LEGAL FORCES: Relevance for I.B. people.
1. National legal forces.
2. International forces.
3. International standardizing forces.
4. Export/Import and other contracts.
XII. LABOR FORCES: Relevance for I.B. people.
1. Labor mobility.
2. Labor shortages and guest workers.
3. Composition of the labor force.
4. Social status, gender, race, traditional society, minorities: Considerations in employment policies.
5. Employer-employee relationships.
XIII. COMPETITIVE AND DISTRIBUTIVE FORCES
1. Competition at the macro level.
2. Analysis of the competitive forces.
3. Distributive forces.
4. International channel of distribution members: Indirect or direct exporting. Foreign production.
XIV ASSESSING AND ANALYZING MARKETS.
1. Market screening.
2. International information systems (sources).
3. Marketing research: product, market, etc.
4. Market research.
XV. MARKETING INTERNATIONALLY.
1. The marketing mix.
2. Marketing strategies.
XVI. EXPORT AND IMPORT PRACTICES.
1. Why export?
2. Who exports?
3. Why don't they export?
4. Locating foreign markets.
5. Payment and financing procedures.
6. Government incentives.
7. Export procedures.
8. Export shipments.
9. Importing.
XVII. HUMAN RESOURCE MANAGEMENT.
C. Textbook
Donald A. Ball and Wendell McCulloch, Jr. International Business, The Challenge of Global Competition. Ninth Edition. Homewood, Ill., Richard D. Irwing, Inc, 2002.
D. Reference books
Cateora, Philip and John Hess. International Marketing. Homewood, Ill.: Richard D. Irwing, Inc
Daniels, John, Ernest Ogram, Jr. and Lee Radebaugh. International Business, Environments and Operations. Reading, Mass. Addison-Wesley Publishing Company.
Eiteman, David and Arthur Stonehill. Multinational Business Finance. Reading, Mass.: Addison-Wesley Publishing Company.
E. EVALUATION
Class participation (including attendance)
20% (You lose 3 points per each absence)
First partial test
20%
Second partial test
20%
Midterm project
20%
Third partial test
20%
Total 100%
Class participation. The student is expected to participate actively in class with comments, questions, answers to questions, group discussions, etc. Needless to say, presence in class is a fundamental prerequisite to get the full 20 points of class participation. If a student misses three sessions he or shi is automatically considered as having dropped out or, in other words, as having failed the course.
Midterm project. The student will choose any of the subject areas covered in the syllabus or closely related to them and do a more detailed analysis by using additional bibliographical sources or direct investigation. The project has to be presented in writing in approximately 10 pages. Due date is week 13.
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