Fundamentals of International Business, IBUS 300

Fall 2010

Class time: Tues/Friday 210- 325PM

Class location: T-62
Instructor: Dr. Frank L. DuBois, Chair, International Business Department
Office: Room 218 in Kogod School of Business
Office Hours: To Be Announced, Check Blackboard Site
E-mail: fdubois@american.edu or jetfrank@yahoo.com
Phone: (202) 885-1967 (office)
(443-336-7664) (cell)

 NOTE: NO EARLY OR LATE EXAMS WILL BE ADMINISTERED unless

arrangements are made at least two weeks in advance. THE FINAL EXAM IN THIS
CLASS IS December 7th at 210 PM – PLEASE PLAN ACCORDINGLY.

Required  Global Business Today by Charles W.L. Hill, Irwin 2009, 6th edition
 Slides downloaded from class blackboard site prior to each class.
 Frequent readings from Wall Street Journal and other business press

Recommended Reading: The Economist, New York Times, Wall Street Journal, other
business publications and web sites.

Learning Objectives

The overarching objective of this course is to develop an understanding of the

international environment in which firms operate and how this environment impacts firms’
decisions. To this end, the following topics will be addressed in detail.

 The multinational enterprise (MNE) and theories of foreign direct investment

 The interactions between the MNE and the nation state
 Mode of foreign entry and involvement
 The international monetary system and other macroeconomic factors
 Rudiments of foreign exchange: mechanics and theory
 The international trade framework and its evolution.
 The role of Regional Economic Integration
 Cultural differences and the MNE
 Strategic implications of global business
 Importing and exporting
 Operational issues: how does the foreign environment impact the different
business functions: marketing, management, finance, operations, human
resources.

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Course Overview

Managers engaged in international business must understand the economic, political and
social environments of business and learn to manage in risky and often uncertain conditions. In
addition, they must work with employees, suppliers and partners from around the world who
often have widely differing expectations and capabilities. Simultaneously they must innovate,
learn and outpace competitors. Clearly, understanding all of the macro and micro factors
involved in international business is no small task. The purpose of this course is to introduce you
to all of these factors and to help you develop an understanding of the fundamentals of
international business.

Course Format and Requirements

To better understand the challenges of international business we will study important

concepts and tools for conducting business in foreign markets and learn to apply these concepts
to real-world cases. The class format will include lectures, class discussions and videos based on
assigned readings and cases. Grades in the course will be based on the following factors:

 Class Participation: 5%
 Case Presentation 10%
 Two Exams 30%
 Comprehensive Final Exam: 35%
 Country Analysis: 10%
 MNE Analysis 10%

Class Participation (5%)

Your class participation is critical for making this a rich learning environment.
Participation includes a variety of factors such as:

 Attendance: Everyone is expected to be on time and attend all classes. Students with
more than three absences will earn an “F” for participation. I normally do not take
attendance unless early in the class I perceive there to be a problem in this area.
 Reading the assigned material: The reading for this course is significant. All
students are required to read all the material for each day.
 There may be occasional pop quizzes which count towards participation grade.
 Prepare assigned discussion questions
 Actively and constructively engaging in class discussions and group activities

Class participation will be graded on a “0” to “4” scale.

Two mid term Exams (30%)

The format for the exams will be combined objective, short answer/essay and will be
given during the normal class time. There may be an additional take-home portion to the exam
but this will be discussed in class.

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Case Presentation (10%)[group project]
Depending on class size, student groups of 2-3 persons are responsible for the
presentation of one case from the text. Your group will present and lead classroom discussion of
the case and will prepare a brief paper (1000-1500 words max) addressing the major issues
associated with the case. You are also responsible for a one page handout for the class that
presents the major issues covered in the case. In some situations, the case may require
significant updating to reflect more current information than that presented in the text. Your
paper is due on the day that you present the case. For the presentation, students should use
powerpoint software. The presentation should be emailed to the instructor the day before you
are to present the case. Otherwise, save the presentation to CD or to a jump drive for use with
the instructor’s laptop.

Country and MNE Analysis (20%)[individual project]

Each student is responsible for two short papers during the course. Paper requirements are as
follows.

Market Entry Analysis: (8-10 pages)

Each student will choose a country from a list provided by the instructor. Your analysis should
cover a brief history of the country, a description of the business and economic environment of
the country, the political environment, the socio-cultural environment, and the potential for
future economic development in the country. See Chapter Two in text for ideas. The paper
should be written from the perspective of a potential investor who has engaged your services to
examine the potential viability of the country for future investment. You should include relevant
statistics concerning trade and investment in the country, its major imports and exports, current
account data, demographic data, major trading partners, trade disputes with partners,
memberships in regional trade groups and so on. There are numerous resources for this project,
one, the global edge site at MSU (see page 84 in text) is an invaluable resource for data.

MNE Analysis (8-10 pages)

For this project, each student should select a major Multinational Enterprise (US or non-US) and
assess that company’s international involvement. Students should have their company choice
preapproved by the Instructor. In analyzing the company you should make an assessment of:
What strategies the company is using? Which parts of the world are they focused on? What
forms of foreign involvement are they using? What has been their historical pattern of foreign
involvement? Which countries did they first enter? What are present problems and issues?
What has their financial performance been over time? How are they coping with the present
economic situation?

Paper Guidelines (see also “10 ways” list at end of syllabus)

Papers should be in 12 point Times Roman Font with 1 inch margins and double spaced. All
normal citation requirements should be followed. Footnotes and/or endnotes are fine. 1 Do not
“cut and paste” the paper together from internet sources. It should be written in your own words.
I have zero tolerance for plagiarism. Internet sources should be no more than 50% of your total
1
For example: DuBois, F., 2008, “A Failed Treatment for a Case of Writers Block,” Journal of Irreproducible
Research, 16(1), p. 1-2.

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sources – there should be footnotes and a bibliography and you should use at least 15 sources for
each paper. The business periodicals index should be consulted for appropriate content about
your country and company.

Final Exam (35%)

The format for the final exam will be the same as the two tests. The exam will be given
during the final exam period. The final exam is comprehensive covering all material in the
course. The majority of the exam will focus on the newest material.

General Expectations
 In terms of your performance in this class, my expectations are very high and I anticipate
only outstanding work from each of you.
 Without exception, all assignments should be typewritten. They should be thoroughly
proofread prior to submission.
 Late assignments will be downgraded one letter grade for everyday they are late.
 All students are expected to be respectful and courteous to other class members. This
includes turning off cell phones before class.
 PLEASE REFRAIN FROM TEXTING. INTERNET SURFING OR OTHER
ANNOYING DIVERSIONARY HABITS DURING CLASS!!!!!!!!!
 Violations of the honor code will result in disciplinary action. Egregious ethical misconduct
will be referred to the appropriate academic integrity officials.

Academic Integrity

Academic integrity is paramount in higher education and essential to effective teaching and learning. As
a professional school, the Kogod School of Business is committed to preparing our students and graduates
to value the notion of integrity. In fact, no issue at American University is more serious or addressed with
greater severity than a breach of academic integrity.

Standards of academic conduct are governed by the University’s Academic Integrity Code. By enrolling
in the School and registering for this course, you acknowledge your familiarity with the Code and pledge
to abide by it. All suspected violations of the Code will be immediately referred to the Office of the
Dean. Disciplinary action, including failure for the course, suspension, or dismissal, may result.
Additional information about the Code (i.e. acceptable forms of collaboration, definitions of plagiarism,
use of sources including the Internet, and the adjudication process) can be found in a number of places
including the University’s Academic Regulations, Student Handbook, and website at
<http://www.american.edu/academics/integrity>. If you have any questions about academic integrity or
standards of conduct in this course, please discuss them with your instructor.

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Academic Support Services

If you experience difficulty in this course for any reason, please don’t hesitate to consult with me. In
addition to the resources of the department, a wide range of services is available to support you in your
efforts to meet the course requirements.

Academic Support Center (x3360, MGC 243) offers study skills workshops, individual instruction, tutor
referrals, and services for students with learning disabilities. Writing support is available in the ASC
Writing Lab or in the Writing Center, Battelle 228.
Counseling Center (x3500, MGC 214) offers counseling and consultations regarding personal concerns,
self-help information, and connections to off-campus mental health resources.
Disability Support Services (x3315, MGC 206) offers technical and practical support and assistance
with accommodations for students with physical, medical, or psychological disabilities.
If you qualify for accommodations because of a disability, please notify me in a timely manner with a
letter from the Academic Support Center or Disability Support Services so that we can make
arrangements to address your needs.

Kogod Center for Business Communications

If you feel you need help with your writing, public speaking, and team assignments for this class, contact
the Kogod Center for Business Communications. You can get advice for any type of business
communication, including memos, reports, individual and team presentations, and PowerPoint slides.
Hours are flexible and include evenings and weekends. Go to kogod.american.edu/bizcomm and click on
"make an appointment," visit KSB 101, or e-mail cbc@american.edu.

EMERGENCY PREPAREDNESS FOR DISRUPTION OF CLASSES

In the event of an emergency, American University will implement a plan for meeting the needs of all
members of the university community. Should the university be required to close for a period of time, we
are committed to ensuring that all aspects of our educational programs will be delivered to our students.
These may include altering and extending the duration of the traditional term schedule to complete
essential instruction in the traditional format and/or use of distance instructional methods. Specific
strategies will vary from class to class, depending on the format of the course and the timing of the
emergency. Faculty will communicate class-specific information to students via AU e-mail and
Blackboard, while students must inform their faculty immediately of any absence. Students are
responsible for checking their AU e-mail regularly and keeping themselves informed of emergencies. In
the event of an emergency, students should refer to the AU Student Portal, the AU Web site (www.
prepared. american.edu) and the AU information line at (202) 885-1100 for general university-wide
information, as well as contact their faculty and/or respective dean’s office for course and school/ college-
specific information.

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 SCHEDULE

Week Date Topics and Readings

Week 1 August 24 Course Introduction:
Syllabus Overview plus Chapter One
IB Awareness Quiz
August 27 Chapter 1,5: Globalization, Trade and FDI Theories
Week 2 August 31 Chapter 7 (to page 252): FDI Theories
*Select groups and determine cases.
September 3 Start Chapter 10: International Monetary System
Case: Flat panel TVs and the Global Economy, p.39
Week 3 September 7 Chapter 10: International Monetary System
September 10 China’s Managed Float, p.371
Week 4 September 14 Chapter 9: Foreign Exchange Market
September 17 Forex Homework
Case: The Curse of the Strong Dollar at ST Micro, p. 336
Week 5 September 21 Test #1
Week 5 September 24 Chapter 6: Political Economy of Intl Trade
Case: Agricultural Subsidies, p. 234
Week 6 September 28 Chapter 8: Regional Economic Integration
October 1 Chapter 7 (page 252 to end) : Foreign Direct Investment
Case: Starbucks FDI, p. 279
Case: NAFTA and the US Textile Industry, p. 304
Week 7 October 5 Country Paper due
October 8 Chapter 3: Influence of Culture
Case: Wal-mart’s Foreign Expansion, p. 122
Week 8 October 12 Chapter 11: Global Strategy
Case: IKEA-The Global Retailer, p. 408
October 15 Fall Break: no classes
Week 9 October 19 Chapter 12: Entering Foreign Markets
October 22 Case: JCB in India, p. 434.
Week October 26 Exam Review and Catch Up day
10 October 29 TEST #2
Week November 2 MNE Paper work day: Work on MNE paper – consult with
10 Professor
November 5 Chapter 13: Export, Import and Countertrade
Case: Megahertz Communications, p.443
Week November 9 Chapter 15: Global Marketing
11 November 12 Finish Global Marketing
Case: Levi Strauss goes Local, p. 519

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 Week Date Assignments
Week November 16 Chapter 14: Global Manufacturing and Logistics
12 Case: Li and Fung, p. 484
November 19 Chapter 16: Global HR Management
Case: XCO China, P. 546
MNE Paper Due on November 23rd
Week November 23 Finish Global HRM, Final MNE paper due
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Week November 30 Future Issues in IB,
14 December 3 Final Exam Review, Course Wrap Up
Week December 7 Final Exam
15 210-440pm No Early Exams
No Make Up Exams

 Do not schedule flight reservations for the holiday until after the FINAL EXAM! No early exams!

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 Ten Ways to Get a Poor Paper/project/case Grade

The following hints are guidelines to help students improve their performance on written
work. These suggestions are not meant to be all inclusive but represent many of the most
common problems I have observed over the years. Think of them as a starting point for doing
quality work. Study them carefully.

1. Failure to adhere to word limitations (if any).

2. Failure to use page numbers (this is especially annoying!).

3. Failure to attribute non-original thoughts, ideas and facts to the appropriate source.

4. Failure to use a style guide to organize footnotes (or endnotes) and the bibliography.

5. Failure to label tables and charts with the appropriate units of measure. (e.g., 100s or
1000s where appropriate). Or failure to clearly label a table or chart so that it makes sense
to the reader.

6. Failure to use the most current sources possible. Be sure to update case facts as needed.

7. Failure to use headings and subheadings to break up the body of the paper.

8. Failure to demonstrate to the reader that you put an appropriate amount of time, effort,
and "clear thinking" into the assignment.

9. Failure to write clearly, logically, and in an organized manner.

10. Failure to follow instructions.

Bonus: Failure to meet with instructor about your paper.

Additional resources are available from the:

Financial Services and Information Technology Lab (FSIT) (x1904, KSB T51) to excel in your course work and
to maximize your business information literacy in preparation for your chosen career paths, we strongly recommend
to take advantage of all software applications, databases and workshops in the FSIT Lab. The FSIT Lab promotes
action-based learning through the use of real time market data and analytical tools used by business professionals in
the market place. These include Bloomberg, Thomson Reuters, Argus Commercial Real Estate, Compustat, CRSP,
@Risk etc. For more information, please check out the website at Kogod.american.edu/fsit/ or send us an email to
fsitlab@american.edu.