RYERSON UNIVERSITY
SCHOOL OF BUSINESS MANAGEMENT
IBS 724 – THE MANAGEMENT OF
THE INTERNATIONAL ENTERPRISE
Professor : Thomas McKaig
Ryerson Office Telephone : 416-979-5000 EXT. 6296
Brampton Office Phone : 905-458-6400
Brampton Office Fax : 905-458-7850
Website : www.tm-int.com
E-Mail : pres@tm-int.com
COURSE OBJECTIVE:
This course examines the issues and problems facing the manager in larger organizations conducting business in an international environment. It will focus on developing a conceptual framework of the operation of the multinational corporation and on identifying the factors leading to its successful performance. Use of Foreign Direct Investment as an effective competitive tool will be the primary focus. An explanation of the differences in a Multinational Corporation and a Global firm is explored. The course looks at the basic managerial functions in different counties as well as the assessment of the nature and scope of international business, the framework of international transactions, the interactions of governments and the multinational including an analysis of national environments.
TEXT BOOK:
Required: Oded Shenkar, Yadong Luo, International Business, Whiley Publishing, 2004. ISBN#0-471-38350-3.
Recommended: R. Grosse & D. Kujawa, International Business, Theory and Managerial Implications, (3rd Ed.), Irwin, 1995. ISBN#0-256-14175-4.
D. Ball & W. McCulloch, International Business, The Challenge of Global Competition, (8th Ed.), McGraw-Hill Irwin, 2002. ISBN#0-07-235676-6
EXTERNAL READINGS:
In order to develop an appreciation of the international environment, the student is expected to read the “Economist”, The Wall Street Journal Europe”, “The European”, and other readily available business publications focused on international business issues. Use of the internet to access many of these sources is expected
METHOD OF INSTRUCTION:
Teaching methods will include lectures, in-depth classroom discussions whereby the student is expected to contribute valuable insight, case studies, and video presentations. Because of the course structure, it is essential that the student make an attempt to attend all classes fully prepared.
ASSIGNMENTS:
All assignments must be handed-in fully typed, permanently bound, and double-spaced. Assignments will be graded based on content, and communicative effectiveness. In order to receive a grade, papers must be properly footnoted, and documented to show how the content is supported. All papers must follow proper research format.
SPECIAL NOTE:
EVERY EFFORT WILL BE MADE TO MANAGE THE COURSE AS PROVIDED IN THIS COURSE OUTLINE. HOWEVER, ADJUSTMENTS MAY BE NECESSARY AT THE DISCRETION OF THE PROFESSOR AND ANY CHANGES WILL BE ANNOUNCED IN CLASS. IT IS THE STUDENT’S RESPONSIBILITY TO BECOME AWARE OF ANY ANNOUNCED CHANGES IN CLASS.
DUE TO THE NATURE OF THE COURSE AND ITS STRUCTURE, STUDENTS WILL NOT BE ADMITTED AFTER THE 2ND CLASS.
ASSIGNMENTS & EVALUATION: 5 ASSIGNMENTS IN TOTAL. (NOTE – ANY PAPER WITHOUT A SUPPORTING BIBLIOGRAPHY & PROPER POOTNOTES WILL RECEIVE A FAILING GRADE) Please refer to Policy 60 of Ryerson’s Student Code of Academic Conduct. All assignments must include the student’s signature and ID number in order for the student to receive credit for work done.
1. First Essay Assignment – On August 14 2003, there was a massive electrical power outage that affected Ontario, Ohio, Michigan, Illinois, New York and the US east coast. It was the largest in North American history. In June 2005 the Society of Professionals went on strike against Hydro One and remain on strike as of Aug 15th. It is felt that this strike, if it is allowed to continue, will impact the province’s ability to meet future growth needs of the provincial market. On August 12th 2005, Ontario Power Generation announced that it will not refurbish the Nuclear Generators at its Pickering A site, thus eliminating approximately 1000 megawatts of supply from the domestic market. With current levels of demand for electricity in Ontario, there is an increasing need to import (expensive) power from Quebec and the US. MNE managers are beginning to question the reliability of supply of electricity in Ontario. As a result: “Does an unreliable infrastructure impact risk of doing business internationally”.
Yes or No. Please clearly identify your position. In taking your position, be sure to discuss the following questions:
1. Do MNE managers use events such as those noted above to make FDI decisions?
2. How will it impact MNE competitiveness?
3. How will it impact the competitiveness of places like Ontario to attract FDI?
Support you answer with sound business reasoning, using examples from industry and clear sources from the course’s content. Clearly identify your comments in a 7-10 page essay that utilizes at least five concepts from the textbook. Use specific examples to support your statements. This is a minimum. It is expected that you will use more sources to support your essay. Further details will be provided in class.
This assignment is to be done in groups of 2. Each student must sign the paper in order to receive credit for the work. Value = 10%.
2. Term Test 1 (multiple choice) Value = 15%.
3. Term Test 2 (multiple choice) Value = 15%.
4. Developing FDI Strategy for an MNE Project – Details to be provided in-class. This assignment is to be completed in groups of 4. All four students must sign the assignment in order to receive full credit for the work. Value = 30%.
5. Major Essay Assignment – Prepare a research paper covering one of the topics listed below. The paper is to be a major project, and replaces the traditional final exam. The paper should be about 20-25 pages in length, properly sourced and clearly written that draws some conclusion. It is not merely a restatement of known facts.
This assignment is to be completed in groups of 4. Value = 30%.
All four students must sign the assignment in order to receive full credit for the work.
a) Development of Global Governments – With the globalization of markets, the speed at which data is communicated, the increased awareness and usage of high tech equipment, and the integration of large trading blocks (EU, NAFTA) it is felt that a government should be created on a global basis. Do you agree Yes or No? As trading blocks continue to integrate, they themselves begin to supersede the sovereignty of individual nations. As MNE’s and Global firms begin to merge into even larger organizations, they often have economic power larger than many developing or newly developed nations. Thus it is felt that the time has come for a “World Government” to be created. Discuss in an essay your position on whether a World Government should be created. Take the point of view of the head of government of a newly developed nation (similar to South Korea). Include in your paper the concept of Global Government and the status of its creation today, the pro’s and con’s of global government, the level of evolution of the world’s two major trading blocks: the North American Free Trade Area, and the European Union, and draw conclusions from this discussion. Ensure that you include a discussion on the role of FDI as a competitive advantage for an MNE/Global firm. Use at least 10 examples from industry or government sources and at least 15 sources from the course material to support your answer. This is a minimum. It is expected that you will use more sources to support your essay.
b) Single Currency – Is it time for a single currency within NAFTA? Yes or No. Discuss the pros and cons of a single currency within the NAFTA region from the point of view of an MNE. In your discussion, elaborate on how a single currency would be beneficial to an MNE, how would it be established, who would manage it, and what government form/model would best suit NAFTA under such a scenario. Use at least 10 examples from industry or government sources and at least 15 sources from the course material to support your answer. This is a minimum. It is expected that you will use more sources to support your essay
TOTAL EVALUATION :
First Assignment 10%
Mid-term Test 1 15%
Mid-term Test 2 15%
FDI Strategy Assignment 30%
Major Essay Assignment 30%
Total 100%
OUTLINE OF WEEKLY TOPICS AND CLASS LECTURES
WEEK of |
TOPIC |
REQUIRED READING |
Sept 12 |
· The 5 Levels of International Business
· Introduction to the MNE and FDI |
|
Sept 19 |
· Defining the MNE
· MNE advantages |
Ch. 4, |
Sept 26 |
· Defining FDI
· International Trade & the Competitiveness of Nations
· Global Trading Blocks |
Ch. 3,5
CASE: The McDonald’s of Thai Food page 52
CASE: Softwood Lumber and the US |
|
|
|
Oct 3 |
· MNE and the political environment |
Ch.7, CASE: The Political and Legal Environment page 174 |
Oct 10 |
· Term Test 1 |
|
Oct 17 |
· MNE response to Trading Block integration
· Culture and organizing for International Business |
Ch. 8, 11 CASE: 3M page 198 |
Oct 24 |
ESSAY RESEARCH WEEK
· No formal lecture: Group meetings only |
|
Oct. 31 |
· The Strategic Environment for the MNE
|
Ch. 10, CASE: Dupont into China page 259 |
Nov 7 |
· Financial Management of MNE and the international monetary system |
Ch. 9, CASE: The Mexican Crisis page 225 |
Nov 14 |
· Term Test 2 |
|
Nov 21 |
· Global internet and e-commerce
· Global Governance and course wrap-up |
Ch 18. |
| Nov. 28 |
Group work |
|
Dec. 6 |
· Major Essay due |
|
MISSED TERM WORK OR EXAMINATIONS (FALL 2005):
Exemption or deferral of a term test or final examination is not permitted except for a medical or personal emergency. The instructor must be notified by e-mail prior to the test and appropriate documentation submitted. For absence on medical grounds, an official student medical certificate must be provided. This may be downloaded from the Ryerson website at www.ryerson.ca/rr or picked up from the Continuing Education Office, Room JOR100.
ABSENCE FROM MID-TERM EXAMINATIONS OR TESTS:
· Instructor must be notified by e-mail before the test
· Documentation must be presented at the next class (www.ryerson.ca/rr/forms.htm)
· Depending on course policy, the instructor may arrange a makeup or re-weigh the course requirements
ABSENCE FROM FINAL EXAM:
· Instructor must be notified by e-mail before the examination
Documentation must be presented at the Continuing Education Office, Room JOR100, within three working days. An INC can be awarded only when the completion of the outstanding work or an alternate final examination may result in a passing grade. The outstanding work or alternate examination must be completed by a specified date within four months of the submission of the INC. For complete GPA policy see policy #46 at http://www.ryerson.ca/acadcouncil
· Make up exams will be scheduled by the Continuing Education department. Please consult with your instructor for details.
ACCOMMODATION FOR RELIGIOUS OBSERVANCE:
Students must have filed the necessary forms for accommodation of religious observance at the beginning of the term, or for final exams, as soon as the exam schedule is posted (see policy on Accommodation of Student Religious Observance Obligations and related form.) Please refer to http://www.ryerson.ca/acadcouncil/current/pol150.pdf.
ACCOMMODATION FOR DISABILITY:
Students who wish to utilize the Access Centre must submit documentation to the instructor prior to a graded assignment, test or exam, according to the Access Centre Policies and Procedures. For tests/midterm exams, it is the student’s responsibility to book an upcoming test at least 7 days prior to the date of writing the test. For final exams, it is the student’s responsibility to book an upcoming final exam at least 2 weeks prior to the beginning of the examination period. The student must confirm the date and time with the instructor. For complete details please refer to:
http://www.ryerson.ca/accesscentre.
COURSE REPEATS:
A student who has failed a course may not repeat the same course more than twice (i.e., registered initially, repeated once, repeated twice=three registrations). For complete details please refer to: http://www.ryerson.ca/acadcouncil/current/pol46.pdf
TURNITIN:
IF YOUR INSTRUCTOR USES TURNITIN:
All work submitted for this course must first be submitted to www.turnitin.com. Students who do not want their work submitted to this plagiarism detection service must, by the end of the second week of class, consult with the instructor to make alternative arrangements. The instructor reserves the right to submit any work that is suspected to be plagiarized to www.turnitin at his or her discretion. |
CODE OF CONDUCT:
Students are required to adhere to the Ryerson Student Code of Academic Conduct and Non-Academic Conduct. Failure to do so will jeopardize any academic appeals. For complete details please refer to http://www.ryerson.ca/acadcouncil
EXAMINATIONS:
1. No student will be admitted more than 30 minutes after the exam has
commenced. No student may leave within the first 30 minutes after the
exam has commenced.
2. Those arriving later will be directed to the teaching department to petition
for alternative arrangements. Petitions are to be filed with the department
no later than the following business day except when medical/emergency
circumstances do not permit this deadline to be met. In such cases, the
student is responsible to provide appropriate documentation. Such
petitions will arise in cases where through emergency, illness, error, or
oversight, students have arrived more than 30 minutes late for an
examination or have missed the examination entirely.
3. No student is to leave the exam room during the last 15 minutes of an
examination.
4. Each student must submit all required exam materials before leaving the exam
room.
5. Students may bring into the exam room only those aids/resources that have
been specified by the course instructor(s). (To be specified on course
outline or by announcement in class at least two weeks before the end of
classes.)
6. All coats and bags must be placed in such a manner as to be inaccessible to
the student while the examination is in progress. Students should be
cautioned in advance against bringing anything of value to the examination
room, noting that the university accepts no liability for lost and stolen items.
Students should also be reminded that in an emergency situation (e.g., fire
alarm) they may not be able to pick up coats, bags, and other personal
belongings.
7. All students must display a valid and relevant student photo-identification
card during the course of an examination. In the case of Continuing Education
students, a driver’s license or other verifiable form of photo-identification must
be provided.
8. In case of a personal emergency of any sort (e.g., illness) students are to inform an invigilator of their circumstance and request assistance or permission to leave the exam room, as circumstances warrant. Only one student will be allowed to use the washroom at a time.
9. Students have a right to ask an invigilator for clarification if aspects of the
examination are unclear, but should be aware that invigilators will not answer
any question that is deemed to infringe on exam integrity.
10. In the case of externally generated emergencies, such as fire alarms, students will, in an orderly manner, follow the directions of the invigilator and evacuate the exam room, and return to the exam room when the emergency has been cleared. All exam materials must be left in the exam room during such emergency. In Continuing Education, examination papers will be collected by the instructor /invigilator. If the exam is to be continued in an alternate exam location, students will go immediately to the assigned alternate exam location.
In the event of timetable and/or material coverage changes, students
will be informed prior to this possibility
