AIB Newsletter - vol. 7, no. 4 - 2001 Q4...L e t t e r f r o m t h e P r e s i d e n t Dear Colleagues, The 2001 Annual Meeting in Sydney was an out-standing success. It was attended

Warm Australianhospitality, high-quality presenta-

tions, and a spectacular venuemade the Academy ofInternational Business 2001annual meeting one of thebest ever, despite thetragedies and uncertaintypresent in the world sinceSeptember 11. Nearly fourhundred participants traveledto Sydney, Australia to partic-ipate in the conference andenjoy hosted receptions everyevening.

The Sheraton on the Park– Hotel Sydney provided theperfect conference venuewith its central location, beautiful décor, and central location. AGSM (theAustralian Graduate School of Management) surpassed all expectations ashost school for this meeting. Local Chair Tim Devinney found sponsorship forfour hosted receptions, and lined up former foreign minister Hon. Gareth Evansas keynote speaker at the fabulous Gala at the Town Hall, while assistant AnneFitzsimmons did a wonderful job organizing the events and managing the con-ference registration desk with her staff. We are grateful to AGSM and its spon-sors for hosting the meeting and the wonderful events at the Power House

AIB Newsletter - Fourth Quarter 2001� 1

AIB Newsletter is published quarterly by theAcademy of International Business

Secretariat. For information, please contact: James R. Wills, Jr., AIB Exec. Secretary or

Laurel King, Managing Director, 2404 Maile Way,

University of Hawai‘i, CBA C-306,Honolulu, Hawai‘i 96822 U.S.A.

Tel: (808) 956-3665 • Fax: (808) 956-3261 E-mail: [email protected]

www.aibworld.net AIB Staff:

Layout - Eric FongEditing - Karen IwamotoAdmin - Linh Vu

Copyright © 2001 Academy of International Business

ISSN: 1520-6262

AIB NNeewwsslleetttteerrF O U R T H Q U A R T E R 2 0 0 1V O L . 7 , N O . 4

...Continued on Page 4

I N S I D E T H I S I S S U E

AIB 2001 1President’s Letter 2Member Updates 4AIB Insights 13Chapters 28Announcements 29Advertisements 30Membership Forms 34

Fabulous Meeting in Sydney

Insights

AIB Insights presents

articles by Gareth Evans,

Peter Enderwick, and Brian

Lorfman, providing com-

mentary on the tragedies of

September 11.

Complimentary CDEnclosed:

“Internationalizing theBusiness School:Global Survey of

Institutions of HigherLearning

in the Year 2000”

To order a hard copy,please see page 25 of

this issue.

Aboriginal greeting at the opening reception

2 � AIB Newsletter - Fourth Quarter 2001 p r e s i d e n t ’ s l e t t e r

EXECUTIVE BOARDPresident

Stephen J. KobrinWharton SchoolUniversity of Pennsylvania

Immediate Past PresidentJosé de la TorreThe Anderson School at UCLA

Vice President - 2001 ProgramBernard YeungStern School, New York University

Vice President - 2002 ProgramLorraine EdenMays College, Texas A&M University

Vice President of AdministrationDaniel Van Den BulckeUniversity of Antwerp - RUCA

Executive SecretaryJames R. Wills, Jr.University of Hawai‘i at Manoa

CHAPTER CHAIRPERSONS-Japan Chapter-

Masataka Ota, Waseda University

-Korea Chapter-Dong-Kee RheeSeoul National University

-Pacific Basin Chapter-Aspy P. PaliaUniversity of Hawai‘i at Manoa

-Southeast Asia Chapter-T.S. ChanLingnan University, Hong Kong

-Western Europe Chapter-J.J. Duran HerreraUniversidad Autonoma de Madrid

-United Kingdom Chapter-James H. TaggartUniversity of Glasgow

-Canada Chapter-Terri R. Lituchy, Concordia University

-Midwest USA Chapter-Sumit Kundu, Saint Louis University

-Northeast USA Chapter-Rajib SanyalThe College of New Jersey

-Southeast USA Chapter-Robert D. Goddard, IIIAppalachian State University

-Southwest USA Chapter-Syed Tariq AnwarWest Texas A&M University

-Western USA Chapter-“Ram” Sundaresan RamThunderbird

-Chile Chapter-Carlos FuentesUniversidad Gabriela Mistral

JOURNAL OF INTERNATIONALBUSINESS STUDIESThomas L. Brewer, EditorGeorgetown University

Catherine Langlois, Deputy EditorGeorgetown University

EXECUTIVE SECRETARIATLaurel King, Managing Director

L e t t e r f r o m t h e P r e s i d e n t

Dear Colleagues,

The 2001 Annual Meeting in Sydney was an out-standing success. It was attended by 369 AIBmembers (somewhat smaller than the norm) from28 different countries. Less than half were fromNorth America and a very large number were fromAustralia and the Asia-Pacific region. In additionwe helped a relatively large number of Ph.D. stu-dents and faculty from the region attend the meet-ing, many of whom were at an AIB event for thefirst time. The meeting certainly accomplished ourobjective of extending our reach into this veryimportant area of the world.

Vice President Bernie Young put together a very interesting and varied pro-gram that provided all of the intellectual stimulation that we all have come toexpect from the papers and presentations at our Annual Meeting. I know thatthere is no question in anyone’s mind that the number, variety and quality ofthe cultural events (which included several chances to taste Australian wineand beer) were unprecedented. We all owe a strong round of “thanks” to TimDevinney and Anne Fitzsimmons of the Australian Graduate School ofManagement who put in endless amounts of time to all of our benefit.

Both Hon. Gareth Evans, who served as Australia’s Foreign Minister and SirC.K. Chow of Barmbles Ltd., our Executive of the Year, addressed the meet-ing. Their talks were interesting and relevant, and for those who did not makeit to Sydney, they are printed on pages 13 and 3, respectively.

I think that I speak for everyone in saying that the Annual Meeting took onunusual importance this year. AIB has always been a community as well asan academic organization and it has evolved into a truly global communityover the last few decades. Coming together in Sydney as colleagues andfriends was a very necessary affirmation of our common humanity and com-mon interests; a statement that cooperation among individuals from virtuallyevery continent (Africa, alas, was not represented) is not only possible, butproductive and rewarding.

Let me close by wishing all of us a very peaceful New Year.

Regards,

AIB PresidentStephen J. Kobrin

AIB Newsletter - Fourth Quarter 2001� 3B o a r d N o t e s

REQUEST FOR JIBS PUBLISHING PROPOSALS

The AIB Executive Board is seeking proposals for newpublishing arangements for the Journal ofInternational Business Studies to be effective from

the second half of 2002 for the 2003 volume. GeorgetownUniversity will have completed its editorial term and willcomplete the 2002 volume. The Executive Board has decid-ed to separate the editing activities of the journal from theproduction activities to provide the AIB with more flexibil-ity regarding JIBS and to attain the highest in both editorialand publishing quality. The incoming Editor-in-Chief, ArieLewin of Duke University, will oversee the editorial team.They are responsible for reviewing articles, editing, andsubmitting the final versions to the publisher. CopenhagenBusiness School will continue to host the www.jibs.net Website and the online archives that are available for free to AIBmembers. The publisher will be responsible for managingJIBS subscriptions, final copy-editing of articles, printing,distribution, and marketing of JIBS. The five-year term forthe publishing arrangements would be subject to reviewannually by the Executive Board.

Interested publishers should outline their plan forassuming responsibility for the administration and produc-tion of the journal. Commitments for physical facilities andpersonnel should be described and the proposal shouldinclude a full description of financial arrangements and pro-jected financial statements. JIBS is now on sustainablefinancial footing so proposals which recommend unjustifiedsubscription rate increases are discouraged. The AIB willmaintain its copyright of the journal.

The current contract with the Georgetown Universitycalls for a payment from AIB of US$7.50 per member perquarterly issue. This amounted to $77,622 during the 1999-2000 fiscal year. The host school also received US$113,759from the approximately 1400 library subscriptions and non-subscription revenue related to JIBS.

It is expected that a contract will be agreed upon byMarch 2002 so that it can be announced in the first quarter2002 AIB newsletter and JIBS. Publishing and administra-tive responsibilities will shift for the 2003 volume in thesecond half of 2002. Proposals should be submitted byJanuary 31, 2002. Interested parties should submit proposalsand direct specific inquiries to the AIB Executive Secretariatat the address below. Since this represents a restructuring ofthe publishing process, innovative proposals are preferred.

Academy of International BusinessUniversity of Hawaii at Manoa - CBA (C-306)2404 Maile Way, Honolulu, HI 96822 U.S.A.

[email protected]: (808) 956-3665 fax: (808) 956-3261

Sir C.K. Chow Acceptance Speech at the AIB

International Executive of the Year AwardPowerhouse Museum

Sydney, 18 November 2001

Thank you very much ladies and gentlemen, thank youJose, you certainly brought back a lot of memories onthe much better life than I myself thought about, and

you also took away most of my speech tonight. I’m acutelyaware that I’m the only thing between you and the finest qual-ity of Australian beer, so I’m under tremendous pressure. It isboth a great pleasure and privilege for me to be here tonight toaccept this award. I understand I was considered for thisaward, partly, at least, because of my contribution to mergeBrambles and GKN support services businesses to create aglobal company also named Brambles. There are a number ofpeople who have contributed significantly to the success ofthis merger, and I really wish to recognise them tonight, andshare this honour with them. They include the two chairmenDon Argus and Sir David Lees of GKN, the former chief exec-utive of Brambles, John Fletcher, and David Turner who wasthe financial director of GKN and is today the CFO ofBrambles. I could not have predicted a year ago that I wouldbe here in Sydney to have the opportunity to talk to you.

One of the features and characters of an internationalcareer is that it’s full of surprises, and one of my elders oncetold me that the necessary condition for a successful interna-tional career is good health, a good spouse and a rock-solidfamily. Come to think about it, these are actually the featuresof most happy lives today, and I want to say that I am gratefulto my wife. Although she could not be here tonight she hasreally been the foundation of my family when I was runningaround the globe, and she has given up her own career in orderto satisfy my ambition.

As many of you know, I was born and brought up in HongKong. I left Hong Kong in 1968 to go to the U.S. to studychemical engineering as Jose said. The choice was actuallyquite simple, because when I left Hong Kong I spoke only afew words of English and I could write only with a very limit-ed vocabulary. I was not literate enough to study any socialscience or arts program. Signs, I like, logic I understand and Ilove to turn conceptual things into reality. After I finished mystudies and worked for a couple of years in the U.S. I returnedto Hong Kong for personal reasons. Then I joined BOC, whichwas then called British Oxygen. I worked there for 20 years.BOC is a U.K.-based multinational company. It offered me agreat development ground, not through any planned careerdevelopment or career program, and I find that today that istrue for many of our youngsters as well. But the developmentwas mainly through a series of informal mentors whom I hadthe opportunity to meet; they met me, they kind of liked me,they opened doors for me and I tried to learn as much as Icould from them. One of them, Sam who is one of the best cor-porate entrepreneurs that I have known, took me to Japan.Looking back, my career in Japan was not a particularly suc-

..continued on page 9

4 � AIB Newsletter - Fourth Quarter 2001 M E M B E R U P D A T E S

�Memberson the Move

�

HARRY G. HARRIS, Visiting Professor at the University of California,Davis, traveled to Malaysia and Argentina in October 2001 at the invi-tation of the American embassies in Kuala Lumpur and Buenos Aires. Inboth countries, he met with senior government officials and private sec-tor leaders and gave a series of lectures and speeches on economic andglobalization issues in the post September 11 environment. In November2001, Harry was invited to present a seminar on political and economicissues in the North Asian region at the Toyota Corporation’s Institute ofInternational Economic Studies (IIES) in Tokyo.

JANET Y. MURRAY has returned to Cleveland State University afterspending a year in Hong Kong during the last academic year. While shewas in Hong Kong, she was an associate professor of marketing andinternational business at the Department of Marketing, City Universityof Hong Kong. She received two research grants from the CityUniversity of Hong Kong to conduct China-related studies. Dr. Murray'se-mail address is: [email protected].

PAUL KIRKBRIDE of Ashridge, a leading European Business School,hasjust edited two new linked volumes on Globalization. These are:Kirkbride, P.S. (Ed.) Globalization: The External Pressures, (JohnWiley, Chichester, 2001) and Kirkbride, P.S. and Ward, K. (Eds.)Globalization: The Internal Dynamic (John Wiley, Chichester, 2001).Both books are £24.95 in hardback or £45.00 for the pair. The first vol-ume brings together a picture of how organizations are responding on amacro scale in terms of their interfaces with an increasingly global envi-ronment, while the second volume focuses on what it really takes tobecome a global organization.

MASAAKI KOTABE (Temple University) and RICARDO LEAL (COP-PEAD, Federal University of Rio de Janeiro) announce their recentbook, Market Revolution in Latin America: Beyond Mexico (New York:Elsevier Science, 2001; ISBN 0-08-043897-0). This book offers a com-pilation of in-depth analyses of trade and liberalization movements inLatin America (particularly MERCOSUR), examines managerial issuesrelated to collaborating with Latin American companies, and exploremacro- and micro-financial implications of investing in Latin Americancountries. For more information, please visithttp://www.elsevier.nl/inca/publications/store/6/2/1/9/0/5/index.htt.

Museum, the Australian Museum, the Town Hall,and the Sheraton.

Program Chair Bernard Yeung of SternSchool, NYU organized a thoughtful and stimulat-ing program for the meeting with the help of histrack chairs, Tarun Khanna (Harvard BusinessSchool), Durairaj Maheswaran (Stern, NYU),Schon Beechler (Columbia University), and MylesShaver (University of Minnesota and Stern, NYU).Many participants commented on the quality of thesessions and presentations at the meeting. The AIBwould like to thank his assistants Gloria Asuncionand Joan Lucas at Stern, NYU who worked end-lessly to finish everything in time for the meeting,especially since devastating the World Trade Centertragedy occurring only blocks from NYU.

The program began on Friday, November 16with the Doctoral Consortium chaired by WalterKuemmerle (Harvard Business School) and JuniorFaculty Consortium chaired by Robert Hoskisson(University of Oklahoma). Both sessions wereregarded highly by the participants. A stimulatingpre-conference plenary entitled, A ChangingJapanese Business System and its ChangingRelationship in Asia was organized with AJBS(Association of Japanese Business Studies) andAAoM (Asia Academy of Management) in theafternoon for those that arrived early to Sydney. The

JUST OFF T H E P R E S S

..continued from cover

spectacular performance ofaboriginal music and dance

2002 Local Chair ArleenHernandez & 2002 Program

Chair Lorraine Eden

Tim Devinney and AnneFitzsimmons of host

school AGSM

AIB Newsletter - Fourth Quarter 2001� 5S Y D N E Y 2 0 0 1

Presidential reception, a wonderful wine tasting at theAustralian Museum hosted by Southcorp Wines, followedthat evening. The participants were treated to a selection ofsuperb Rosemount, Penfolds, and Lindemans wines pro-duced by Westcorp, Australia’s largest exporter of winesand learned about the different varieties of wines. Theywere also honored with an aboriginal greeting and wereable to view the large aboriginal art collection as well.

Saturday, November 17 began with an interesting AIBFellows plenary chaired by Noritake Kobayashi oneconomic and business trends in Asia and theirimplications for management since the Asian eco-nomic crisis. Various concurrent sessions on cut-ting-edge topics were held throughout the dayand lunch was served at the poster session.That evening, the Department ofManagement at Texas A&M hosted a recep-tion for the first annual meeting of WAIB(Women in the AIB). Austrade generouslyhosted a reception that evening as well. Bothreceptions were well-attended and informa-tional for participants.

An elegant awards banquet was held onSunday, November 18 at the Sheraton ballroom.AIB President Stephen Kobrin announced that SirC.K. Chow, CEO of Brambles Industries Limited waschosen as International Executive of the Year, and thatArvind Parkhe, Indiana University had won the JIBSDecade Award. The Ivey Business School swept first andsecond place in the first annual AIB-CIBER Case compe-

tition sponsored by Indiana UniversityCIBER. A case by Ken Cole and TimaBansal won, and the first runner-upprize went to a case by Ken Mark andDon Barclay, all from Ivey.

2001 Program Chair BernardYeung recognized his track chairs,staff, and AGSM for their contribu-tions to the quality of the the 2001Program. He announced that the 2001Haynes Prize for Best Paper wasawarded to Ishtiaq Mahmood,National University of Singapore.Next, Richard N. FarmerDissertation Award selection com-mittee member Rob Grosse recog-nized all the 2001 finalists at theawards luncheon. Finalists includedHeather Berry (University ofPennsylvania, Ph.D. from UCLA),Namgyoo K. Park (University ofMiami, Ph.D. from NYU), Ahmad

Syamil (Arkansas State University, Ph.D. from Univ. ofToledo), and William P. Wan (Thunderbird, Ph.D. fromTexas A&M Univ.). The first-place winner was HeatherBerry.

Dean of AIB Fellows Susan Douglas spoke on behalfof the Fellows and announced that Robert Grosse and C.K.Prahalad had been elected as new AIB Fellows. She pre-

sented the International Dean ofthe Year award to Moshe

Porat, Temple University,and he gave a short

speech thanking theAIB for the honorand his work toimprove interna-tional businesscurriculum atTemple.

AIB PresidentStephen Kobrin

spoke briefly aboutthe untimely pass-

ing of AIB memberSteve Guisinger in July

2001. He also discussedthe need for AIB members to

share their knowledge of interna-tional business and relations to reduce the negative ramifi-cations of globalization, especially in the aftermath of theSeptember 11, 2001 tragedies.

Wine tasting at the Australian Museum

Finally, 2002 Program ChairLorraine Eden, Local Chair ArleenHernandez, and former AIBPresident Jeff Arpan gave a presenta-tion on the 2002 AIB meeting in SanJuan, Puerto Rico June 28-July 1,2002. They encouraged all to attendthe first annual meeting to be held inthe summer. A presentation of theInternational Executive of the Yearaward was held that evening at a fab-ulous beer tasting event hosted by theLion Nathan breweries.

The last day of the conferencewas Monday, November 19. An abun-dance of panel and competitive ses-sions packed the day. The 2001 JIBSDecade Award winner Arvind Parkhe(Indiana University) presented hiswork and its contribution to the fieldover the past decade in a special ses-sion. All in all, this year’s conferencewas a wonderful success. Poster ses-sions were continually popularthroughout the conference.

Sydney was a wonderful place tovisit and the weather was generallywarm and dry enough for severalAIBers to tackle the bridge climb, partake in wine coun-try tours and enjoy springtime in Sydney. Thanks go outto the program staff, host school, AIB Secretariat, theconference hotel, and numerous participants for all theircontributions. The AIB invites you to join us at the 2002meeting in San Juan, Puerto Rico June 28-July 1, 2002.It will be held at the beautiful Caribe Hilton and hostedby the University of Puerto Rico. See the AIB web siteat www.aibworld.net for up-to-the-minute details under"Events".

6 � AIB Newsletter - Fourth Quarter 2001 S Y D N E Y 2 0 0 1

The Australian Notables Panel was a hit with theattendees: Patricia Turner, moderator Libby, Tim

Flannery, and Malcolm TurnbullJose, Susan, Tim, Danny, Anne & Steve

at the Powerhouse Museum

Hearty AIBers on the SydneyHarbor Bridge Climb

The passing of the Torch: 2002 ProgramChair Lorraine Eden and 2001 Program

Chair Bernie Yeung

Local Chair Tim Devinney andAIB President Steve Kobrin

Alan Rugman, John Dunning, Steve Robock,and his wife, Hanne

Susan Douglas and AGSM Dean,Michael Vitale

AIB President Steve Kobrin

Aw

ard

s


International Executive of the YearSir C.K. Chow

CEO, Brambles Industries Limited

JIBS Decade AwardArvind ParkheIndiana University

“Interfirm Diversity, Organizational Learning, and Longetivity inGlobal Strategic Alliances”JIBS v.22, n.4, pp. 579-602

International Dean of the Year AwardMoshe Porat

Dean, Fox School of Business, Temple University

AIB-CIBER Case AwardWinner: Meridian MagnesiumKen Cole and Tina Bansal

Ivey Business School, received plaques and US$1500 award

1st Runner-Up: Waverider Communications Inc: The Sparta Deal

Ken Mark and Don BarclayIvey Business School, received plaque and US$800 award

(sponsored by the Indiana CIBER)

Haynes Prize for Best PaperIshtiaq Mahmood

National University of SingaporeThe Two Faces of Group Structure

Richard N. Farmer Dissertation AwardHeather Berry

University of Pennsylvania (UCLA), received a plaque andUS$1000 award for “The Exploitation and Development ofIntangible Assets by Multinational Enterprises (MNEs): An

Empirical Analysis of the Foreign Direct Invetsment of US andJapanese MNEs, 1974-1997”

FinalistsNamgyoo K. Park

University of Miami (NYU), Resource Access and Firm Value: ATest of Resource Effects in the International Airline Industry

Ahmad SyamilArkansas State University (Arkansas State), International

Benchmarking of Integrated Product Development, Practices inthe Auto Industry Supply Chain: A Multigroup, Invariance

Analysis

William P. WanThunderbird (Texas A&M), Country Resource Environments,Corporate Diversification, Strategies, and Firm Performance

Sir. C.K. Chow of Brambles Industries Limited withImmediate-Past President Jose de la Torre- see page 3

for acceptance speech

Upper Left: JIBS Editor Tom Brewer (left) presents the 2001JIBS Decade Award to Arvind Parkhe of Indiana University

Upper Right: Tom Brewer and Arvind Parkhe with panelistsTatiana Kostova and David Ralston

International Dean of theYear, Moshe Porat, of

Fox School of Business,Temple University

Ishtiaq Mahmood, NationalUniversity of Singapore,

winner of the 2001 HaynesPrize received a plaqueand a US$2000 award


McGraw-Hill/Irwin Asian Scholars

The ten McGraw-Hill/Irwin Asian Scholars received $500 travelstipends to assist them in traveling to the meeting through a gener-ous donation from McGraw-Hill/Irwin. The AIB Foundationawarded each with complimentary registration, one-year AIBmembership, and $370 to help cover the cost of hotels.

Yao Chen, Yangzhou University, P.R. ChinaLydia B. Echauz, De La Salle University, PhilippinesShishir K. Jha, Sjm, Iit Bombay, IndiaLalit Mohan Johri, Asian Institute of Technology, ThailandNarasimhan Ramesh, T.A. Pai Management Institute, IndiaSiriyupa Roongrerngsuk, Sasin Graduate Institute, ThailandSukpal Singh, Institute Of Rural Management, IndiaSusula Devi Suppiah, University of Malaya, MalaysiaShuming Zhao, Nanjing University, P.R. ChinaJinghua Zhao, Shangdong University, P.R. China

Sheth and AIB Foundation Doctoral Travel Stipends

The following doctoral students received $500 travel stipends, andthose coming from outside Australia also received complimentarystudent registration. The Sheth Foundation graciously contributed$5000 to fund doctoral travel to the meeting.

Oleg Chvyrkov, Tilburg University, NetherlandsHung-bin Ding, Rensselaer Polytechnic Inst., USALan Ge, City University of Hong Kong, Hong KongOlivier Irrmann, University of Vaasa, FinlandJootae Kim, Seoul National University, Republic of KoreaConstantina Kottaridi, Athens University, GreeceJ.Muir Macpherson, The Wharton School, USAJane Menzies, Monash University, AustraliaTatiana Minchev, Flinders University, AustraliaAntoine Monteils, Texas A & M University, USABo Bernhard Nielson, Copenhagen Business School, DenmarkChinmay Pattnaik, Seoul National University, Republic of

KoreaDorota Piaskowska-Lewandowska, Tilburg University,

NetherlandsJan Marc Staelens, University of Melbourne, AustraliaDavina Vora, University of South Carolina, USAYue Wang, University of Melbourne, AustraliaKlaus Weber, University of Michigan, USAMina Yoo, University of Michigan, USA

2 0 0 1 A I B M e e t i n gR e g i s t r a n t s b y

C o u n t r y

AUSTRALIA 63 17.07%

BELGIUM 4 1.08%

BRAZIL 1 0.27%

CANADA 4 1.08%

DENMARK 8 2.17%

FINLAND 6 1.63%

FRANCE 5 1.36%

GERMANY 1 0.27%

GREECE 2 0.54%

HONG KONG, SAR-PRC 11 2.98%

INDIA 3 0.81%

JAPAN 19 5.15%

MALAYSIA 2 0.54%

NETHERLANDS 9 2.44%

NEW ZEALAND 15 4.07%

NORWAY 2 0.54%

P.R. CHINA 9 2.44%

PHILIPPINES 1 0.27%

REP OF KOREA 10 2.71%

REP OF SINGAPORE 13 3.52%

SPAIN 2 0.54%

SWEDEN 12 3.25%

SWITZERLAND 2 0.54%

TAIWAN, R.O.C. 4 1.08%

THAILAND 4 1.08%

UNITED KINGDOM 9 2.44%

USA 147 39.84%

WEST INDIES 1 0.27%

Total: 369


cessful one, but I did learn a number oflessons, which I applied to better uselater on. Japan has a number of world-class industries, but industrial gases isnot one of them. It is an industry inwhich the participants themselves call ita wide industry in a very Japanese sense,implying that it is a subordinate industryto its customers. I have over the fouryears seen a lot of effort to try toimprove that industry. However it is veryfragmented withno differentiationamongst the play-ers. It is alsosqueezed in the value chain, on the pro-duction end, by utility companies. And atthe customer interface, where there arelayers and layers of distributors so sym-bolic and representative of manyJapanese sectors, that the profitabilitywas squeezed right in the middle of thesecompanies. Over the period I oversawhundreds of millions of pounds ofinvestment into this company withoutreally a satisfactory return. There arestructural difficulties in many of Japan’sweaker industrial sectors and a foreigncompany should not underestimate thedifficulties to restructure those difficul-ties in those industries. Having said allthat the biggest failure I had in Japan isprobably that I did not utilise thestrength of Japan. We could have done alot more to utilise our customer networkin Japan, which included Hitachi andToshiba of the semi-conductor industry;and Honda, Toyota and the Nissan inautomotive. We could have learnt a lotmore about the operation of practices,we could have conducted more jointtechnology programs, used them as asource of innovation and we would havebecome a better partner for them on aglobal basis. Also that we did not con-duct enough research in Japan. Japan hasa very good research infrastructure, goodengineers and also a lot of governmentsupport. Like many other companies inJapan, we overspent on building themost expensive laboratories in Japan andunderspent on intellectual capital.Understanding Japan is not an easy taskfor a foreign company; it often timestakes more than one generation of exec-utives, then it becomes a challenge tomaintain corporate memory to rememberwhat we have learnt over a long periodof time. We did not do particularly wellin that aspect either. I was very grateful

to BOC because I got a promotion afterJapan, perhaps I had made some incre-mental improvements. By 1993 I wasmanaging the global gases business forBOC, from London, and three years lateras Jose said, I was recruited to be thechief executive of GKN.

GKN has origins since 1750 and isnearly 250 years old. It was started dur-ing the industrial revolution and isamongst the oldest companies in the U.K

today. It began as a steel maker and hascontinuously transformed itself as thetime and technology changed; it has astrong tradition in engineering and man-ufacturing. In many ways GKN isregarded as a very British institution. Iwas therefore surprised that the boardwould choose me, who until that timespent most of my time in the U.S. and inAsia, to be its new chief executive. I wasnonetheless delighted to accept the chal-lenge. Going to the U.K. was an interest-ing experience by itself. In the first threemonths of my arrival I managed to upseteveryone I worked with. Compared tothe U.S. and Hong Kong, Britain is amore structured society and I had tolearn how to observe the unspoken rulesin Britain. The ability to articulate anddebate is more highly valued in theBritish business society, perhaps areflection of the society itself. I had alsoto learn to temper my natural enthusi-asm, because a higher level of certaintywas required by my board. However Ialso found that I could use my distinctdifferent background as an advan-tage…to confuse them. Throughout myinternational career I have always triedto assimilate, but only to about 60 to 70per cent. In 1996 GKN had three mainbusinesses. Approximately half of thecompany was in automotive compo-nents, 25 per cent of the company inaerospace and defence, and 25 per centin support services.

The support services part mainlycomprised of two 50-50 joint ventureswith Brambles Industries Limited ofAustralia. These were a pallet poolingbusiness called CHEP and a waste man-agement business called Cleanaway.Strategically it was a number of chal-lenges, the defence and aerospace indus-

tries were consolidating at a relativelyhigh speed on a global basis. The U.S.competition was already completed;Boeing and Lockheed Martin were theleaders of the industry in the U.S. at thattime, and the consolidation in Europewas about to begin. GKN’s defence andaerospace business included anarmoured vehicle business, and WesternHelicopters and Western Aerospace.Western Helicopters is a proud industry

and is one of theU.K.’s leadingprime contractorsfor defence. On a

world scale, however, it had much biggercompetitors. It did have a strong orderbook at the time and was in a good posi-tion to take advantage of the consolida-tion process. The joint ventures of CHEPand Cleanaway were also being tested.The long success of the relationship, 27years in the case of CHEP, had producedtwo very successful businesses that werebecoming bigger and bigger. Later in theGKN/Brambles transaction, we foundout that about 50 per cent ownership ofCHEP and Cleanaway actually repre-sented about 60 per cent of GKN’s valueand nearly 80 per cent of Brambles. Thetail not only started to wag the dog, thetail has become the dog.

Issues such as funding, competitionfor resources and management structureswere growing in importance. Many ofus began to think that the JV structure,which had been successful up to then,was unlikely to be the appropriate struc-ture for these two highly successful busi-nesses over the longer term. GKN was,and is still a strong global brand in auto-motive components. It has world-classmanufacturing, and first-tier supplierabilities. It is global in outlook, andtransfers its knowledge and processeffectively across country boundaries. Itis an effective global supplier to its glob-al customers. In the beginning of 1997,we embarked on a new five-year strategyfor GKN; it was called “double double”inside the organisation, signifying thefinancial objective of doubling the rev-enue, and doubling the profit the earn-ings would share of the company.

However there was another hiddenagenda, which we did not explicitlyexpress, and that was to seek a solutionfor some of the fundamental strategicissues of the company. Four-and-a-half

“Throughout my international career I have always tried toassimilate, but only to about 60 to 70 per cent”

Exec of the Year continued from page 3


years later I could look back with somesatisfaction. GKN merged its armouredvehicle business and the helicopter busi-ness with others to form significantlystronger companies. Agusta Westland of

which GKN now owns 50 per cent, is thesecond largest helicopter company in theworld, and has an $8 billion order book.GKN has more than doubled its aero-space component and service business.Utilising its knowledge in automotive iscreating a first-tier supplier position inthis very traditionally, very fragmentedsupply chain of aerospace. It has becomea partner for Boeing, Lockheed Martin,British Aerospace and so on, around theworld. In automotive, GKN has built anew business to about US$1 billion inpowder metallurgy. GKN’s Sinter Metalsis the only global company in this sectorand is more than three times bigger thanthe next competitor. But more important-ly than all this, the expansion of GKN’sengineering businesses in aerospace andautomotive gives it a scale to considerthe merger of the support services. Scaleis important in a practical sense for thecapital market as well as the attraction oftalented personnel. Today, other than themerger of support surfaces business,GKN is still larger in revenue and profitthan it was in 1997 and it remains aFTSE 100 company in the U.K.

There was another aspect of theGKN experience that was particularlymeaningful to me. GKN got it right inJapan this time. It took over a componentfactory in Nissan, we learned from thisworld-class manufacturing process, weestablished an engineering and researchcentre in Japan and we used it as a baseto partner with all the carmakers in

Japan. It is already profitable and willplay a central role in GKN’s network asa global automotive supplier. The merg-er of GKN’s support surfaces withBrambles was completed on the seventhof August this year. The strategic advan-tage of the merger was very compelling;it removed the joint venture structuresfor CHEP and Cleanaway and all itsuncertainties and inefficiencies. Itremoved the artificial boundaries thatwere imposed on these two very success-ful businesses by agreements draftedmany years ago. It allows CHEP to useits unique global brand in support servic-es, and there are not too many globalbrands in support services to developother products and services. It stream-lines management by creating a unifiedone; it creates two focused companies.

GKN is a world-class engineeringcompany on the one hand and Bramblesis a world-class support service compa-ny. Today 40 per cent of Brambles busi-ness is in Europe, 30 per cent in theAmericas and 18 per cent only inAustralia and New Zealand, with the restin Asia and South Africa. Our share-holder base is equally international.European shareholders hold about 40 percent of the shares, Australian sharehold-ers about 28 per cent and the U.S. insti-tutions about 25 per cent. Brambles has aDual Listed Companies structure withlistings both in Australia and London.About half of Brambles is represented byCHEP, I don’t know how many of youare familiar with CHEP; it is a businessbased on an elegantly simple idea. It isalmost like the eraser at the end of thepencil. It manages a standard loadingdevice, which can be a pallet or plasticcrate, or any other container as long asthey’re standardized, throughout its sup-ply chain amongst multi-users on a con-tinuous basis. Before CHEP, when gro-cery manufacturers, for example, pro-duced a laundry soap, or chocolate bar,they bought a pallet and put the goods onit. When they shipped their goods to theretailer’s warehouse, that was the lasttime they ever saw that pallet. Whenthey arrived at the warehouse they triedto pick up used pallets, repair them, andthey bought some new ones. CHEP camealong and offered them a hired pallet ofa standard size that could be circulatedaround all grocery manufacturers and allgrocery retailers. CHEP tracks, repairs,collects, and delivers these pallets, and

the manufacturers are only required topay for them when the product sits onthem. CHEP now owns over 160 millionpallets on a global basis. It has grown atdouble-digit for many years. Its businessmodel is based on the concept of stan-dardisation for every participant in theindustry, manufacturers and retailersalike. It has huge growth potential. Afterthat case of growth, about 50 years inAustralia and about 11 years in the U.S.,CHEP has only penetrated less than 30per cent of the Americas market and theEuropean market. It is just beginning toenter the non-grocery market, such aschemicals, pharmaceuticals, cosmeticand health products and horticultureproducts. These so-called secondarymarkets together are as big as the gro-cery markets. It is also introducing otherstandard loading devices, such as thereturnable plastic crate to replace theconventional cardboard boxes in thetransportation of fruits and vegetables.Auto crates are introduced for automo-tive components. It is a unique business,it has a proven record, high growth, andhas global market leadership.

The other two businesses ofBrambles are Cleanaway and Recall.Cleanaway is a waste management busi-ness with presence in the U.K.,Germany, Australia and China. AndRecall is an information managementbusiness that manages both documentsand digital information. Recall is rela-tively small today, but has the ability tobecome a substantial part of Brambles.CHEP, Cleanaway and Recall representover 80 percent of Brambles’ profit. AtBrambles we have defined our missionto be the world’s leading provider ofinnovative business solutions in supportservices, and to use our outsourcingexpertise to add exceptional value in theeyes of our customers. We intend to winand create superior shareholder valuethrough our people and the enterprisingspirit. It has a number if high-qualitybusinesses, we are a business-to-busi-ness outsourcing company with specialknowledge and expertise. We intend tobuild a winning and enterprising culture.I’m excited by the opportunity to leadBrambles, and I’m deeply honoured byyou tonight.

Thank you very much.

..continued from previous page


...more pictures on pages 26-27!

w i n e The first evening of the

conference, AIB mem-bers strolled across Hyde

park to attend the opening cere-monies. Southcorp Wines host-ed a wine tasting at theAustralian Museum. Along withthe wines and museum exhibits,AIB members also had thechance to watch Aboriginaldancers perform.

12 � AIB Newsletter - Fourth Quarter 2001 N E W M E M B E R S

Abidin Zainal Abd. RazakRosiana AdinegoroErman Aminullah

Dorian AmstelKartika D. Antono

Radianto ArifinBahasyim AssifieHassan BachtiarJay B. BarneyNeil BarnwellAam Bastaman

Denise A. BergerGordon BoyceDietmar Brodel

Henry Shelton Brown IIIJune BuchananPeter Carroll

Abhirup ChakrabartiYao Chen

Kenichiro ChinenEun-Young Choi

Jaepil ChoiYun Chu

Oleg ChvyrkovE. Eugene Clark

Henry CollierJose R. ConchaProtiti DastidarBhushan Dewan

S.E. DibsonoIrini Dimou

Mark J. DodgsonLydia Echauz

Alev M. EfendiogluYujiro Eguchi

Eric EnsmingerCatharine FarrellAnne M Ferrante

Craig FleisherRidwan Fontaine

Anokye FrimpongMichael R. Galvin

Frans GanaMarie Gant

Lan GeJohn GodwinPeter Gordon

Siegfried GuderganAnis Gunawan

Dominique HalabyBudhi Halim

Byung-Sop Han

Wibisono HardjopranotoFelicity HudsonMasato Inoue

Olivier IrrmannPeruvemba JayaShishir K. Jha

Jessica C. JohanssonLalit Mohan Johri

Juana JudithDenny JunartoP.E. KammingaJon D. KendallKeiichi Kimoto

Toshihiko KinoshitaNoke KiroyanYanti Koestoer

Constantina KottaridiRobin J. Kramar

KrisnaragaAndrej Kumar

Carlos Lago-SilvaAnna LaminFan Liang

Denise J. LuethgeIshtiaq Pasha Mahmood

Willem MakaliweTsutomu Makimoto-

KondoSjfrida ManuotoAnthony Marsh

Maris G. MartisonsSilvia MassiniYau Ong MengXavier Meschi

Emmanuel MetaisBambang MirawanKavoos Mohannak

Alexander Toni MohrGordon Moir

Marie Louise MorsSuryani Motik

Mustafa NasutionGogor Nurhayoko

Safri NurmantoAbdullah Othman

Mina N. PalimouneRajendran J. PandianDerry Pantjadarma

Susan Aagaard PetersenAntoaneta PetkovaMichel C.T. Phan

Dorota Piaskowska-

LewandowskaRebecca Piekkari

Subramaniam PillayPaul Prabhaker

Roger PrestwichHenky Priatna

Twi Untoro PudjiAli Rachman

Hasan RachmanyPurbo, Sri Nugroho

RahayuNarasimhan RameshCarlos E. Ramirez

Syamsubaridah RamleeH.S. Razad

Jahja B., Jr. RiabudiCorina Riantoputra

Derek RichMark Rix

Sugeng RiyantoEdgar Rodriguez

Siriyupa RoongrerngsukeUnifah RosyidiJean Paul Roy

Karen RuckmanKlara SabirianovaMohammad SaeedIlham Andi SaidRoy V. Salomo

SangkalaElias Sanidas

Shankar SankaranGrazia D. Santangelo

James SantomierJose Santos

Achuthan SarlaRiri Satria

Maggie SchomakerGad J. Selig

Sen SendjayaInge SetiawatiKishor Sharma

Toyoharu P. ShimizuToyoharu P. ShimizuAdam Louis Shrier

Elliot SimangunsongQuentin H. Somerville

Christine SooLow Soo-Wah

Doug StaceJan Marc Staelens

Benjamin Stahl

Michael StevensJesper Strandskov

Robert D. StraughanSri Suryanti Sugeng

Ly Fie SugiantoPudjo SugitoDr. Supaath

Susela Devi SuppiahFranky SupriyadiSukarno SuyosoAhmad Syamil

Ekki SymsulhkimSumihiro Takeda

Hermansyah TaminHwee-Hoon Tan

Tuck Cheong TangRobert H. Terpstra

Jann HidajatTjakraatmadja

Noriko TokunagaJanell D. Townsend

Santo TrihartoMichael Trimarchi

Kim-Chi TrinhDan Trotter

Chris TuggleTim Turpin

John P. UlhoiTetsuya UsuiEero Vaara

Jeroen Van WijkLisa Voss

David WaltersGreg WaltonYue WangTim White

Andrew WilsonVincentius, Dr. Winarto

Djoko WintoroShiu Ho WongDeli D. YangZhong YangMina Yoo

Emre YucelHassan Za’afaran

Anna Zarkada-FraserSara D. ZhangJinghua Zhao

Shuming ZhaoSaijing Zhou

New AIB Members (Joining September 9 to December 6, 2001)

AIB Newsletter - Fourth Quarter 2001� 13I N S I G H T S

�Academy of In

tern

ati

on

al

Bu

sin

es

s

Volume 1, No. 3, 2001Insights

Comments From the Editor

Comments andsuggestions

should be sent tothe Editor

Please send arti-cles and class-

room material tothe Editor for con-

sideration forupcoming Insights- consider reprintsof speeches you

have made

Readers areencouraged tosubmit com-

ments, for possi-ble inclusion infuture Insights

Please contactthe Editor withsuggestions

Although almost three months have passed since September 11, the ter-rorist attacks on the USA remain in the front of our minds. Theseevents (now often referred to as simply nine eleven or 911) and their

aftermath, including heightened tensions in Israel and Palestine, remain a con-cern, for all the world. This issue of INSIGHTS reflects this. The articles inthis issue provide three view points – a CEO working in the field, an academicteaching in the field, and students studying in the field. Included in this issueare:

� An article, by the Honourable Gareth Evans based on his addressat the 2001 AIB Conference in Sydney. This piece considers "TheWorld after 11 September", and sets out some of the consequencesof the terrorist attacks – both negative and positive. Gareth Evans isPresident and CEO of The International Crisis Group – an organiza-tion, which "tells governments around the world what they should bedoing to prevent and contain deadly conflict" (quoted from theaddress). Clearly, he provides an especially relevant view on theevents of September 11.

� A reprint of the article, "Terrorism and the International BusinessEnvironment" (by Peter Enderwick), which we published in a spe-cial electronic edition following the terrorist attacks. This piece pro-vides a framework for assessing the impact of the attacks, in theshort, medium and longer term, and thoughts on what these impactswill be.

� A piece outlining student perspectives on the terrorist attacks"When Terrorism Hits Home", provided by Brian Lorfman at RollinsCollege in Orlando. This is based on responses from students, study-ing international business, to open ended questions regarding theoutcome of the nine eleven events.

Most readers will be preparing for a new semester, or at the beginning of one,when they receive this issue of INSIGHTS. Many have struggled with thequestion of how to incorporate nine eleven into courses. We will continue to

14 � AIB Newsletter - Fourth Quarter 2001 I N S I G H T S

...continued from previous page

S u b m i s s i o n I n f o r m a t i o n

• Submissions to Insights can be sent atany time to the Editor.

• Submissions may be electronic, byfax, or by mail. Electronic submissionsare preferred.

• Submissions will be reviewed by theEditor to ensure material is appropriatefor Insights, then the advisory boardwill comment on submissions.

• For consideration for specific editions,submissions must reach the editor by thefollowing dates:

1st Quarter: December 152nd Quarter: March 153rd Quarter: June 154th Quarter: September 15

• Articles should be approximately 2-3printed pages.

• Exercises, simulations, and othermaterial should include all the informa-tion needed for use in the classroom.Material submitted should not contra-vene any copyrights.

• Blunders should be based on real-world events and should be new - ie, notpreviously published, or disseminated in

other media. We look forward to your comments andsubmissions.

Thanks to the AIB Board for this initi-atve. Thanks to Laurel King for her sup-port and suggestions. Thanks to theAdvisory Board members for their assis-tance in preparing this issue of AIBInsights.

BJ

FAQsThe most frequently asked questionsrelate to the length and format for sub-missions to Insights. We do not havestrict guidelines for submissions. Weencourage you to send material in theformat that you believe will provide thebest insights. If we want to include thematerial, we may then ask you to makechanges to suit a particular issue. Wedo have general guidelines:

� submissions should be short (usuallyabout two printed pages, althoughthere will be both longer and shorterpieces), and

� they should be "insightful" (providingknowledge obtained by mental pene-tration - Oxford), and can be provoca-tive (inviting a reaction, stimulating aresponse – Mirriam -Webster) � necessary references should be pro-

vided as end notes

Editor

Betty Jane (BJ) PunnettManagement StudiesUniversity of the West

IndiesCave Hill, Barbados

Ph. 246-420-1796Fax 246-420-1797

[email protected]

Advisory Board

Jagdeep ChhokarIndian Institute of

Management, Ahmedabad,India

Terry JacksonEAM. UK

Paul SimmondsFlorida State University,

Tallahassee

David RicksUniversity of Missouri,

St. Louis

face this issue for some time to come. The events of September 11, 2001, and their aftermath, have profoundimplications for international business, and we clearly need to deal with these in the classroom. I believe thatreaders will find the pieces in this issue of INSIGHTS valuable in class discussions.

Taken together, the three articles in this issue of INSIGHTS provide an effective way to incorporate nine eleveninto teaching international business. I have used Peter Enderwick’s framework in my own classes successfully,with an emphasis on identifying both positive and negative outcomes. Gareth Evans’ assessment of positive andnegative outcomes adds a knowledgeable perspective, from someone professionally involved in evaluatingevents of this kind. Finally, Brian Lorfman’s students’ comments give readers a flavor of how students are think-ing. Similar questions to other students may provide interesting comparisons, similarities and contrasts.


There has certainly been a lot hap-pening, here and now, in the lastfew weeks for the world’s most

imminent people to be thinking about,and wrestling with. September 11 wasnot just another catastrophe, anotherCNN media moment of the kind withwhich we’ve become all too compla-cently familiar as a result of too manymoments of well-documented TV hor-ror over the last decade or more. Whathappened on that bright sunny morning– when more people were killed in twohours than were lost to terrorist atroci-ties over the last 50 years in Irelandand Israel combined – was a genuinewatershed in world history: things arenot going to be the same again.

Obviously a number of thechanges that have occurred have beenfor the worse: it’s not hard to list them,and I will. But the shock of 911, asshock often does, has also produced anumber of changes which - if they canbe sustained, and that’s a big if – havethe potential to make the world a bet-ter, safer and saner place than it hasbeen. Let me make an effort, then, tosketch out a balance sheet of the worldafter 11 September, at least as I see itfrom my present vantage point in theInternational Crisis Group.

Since where you stand oftendepends on where you sit, perhaps Ishould say a word about that vantagepoint. The International Crisis Group –of which I have been full-timePresident and CEO since January 2000– is a fascinating, and I think unique,private, non-profit, multinationalorganisation which tells governmentsaround the world what they should bedoing to prevent and contain deadlyconflict. We give them analyses of

what’s going wrong, and policy pre-scriptions as to how to put things right,which they usually don’t want to hear,and often don’t even want to thinkabout, but which they are certainlyincreasingly taking notice of.

The organisation began in 1995essentially as a response to the policydisasters of the early 90s in Somalia,Bosnia and Rwanda. It’s founders werea group of well known internationalfigures from the US and Europe, whohave now been joined on a rather glit-tering governing board full of formerPresidents and Prime Ministers andForeign Ministers and the like. ICGhas grown rapidly, especially in the lasttwo years, to the extent that we nowhave field operations in some 20 coun-tries across four continents, along withadvocacy offices in Brussels,Washington, New York and Paris.

From that platform, what is to besaid first of all about the negative sideof the 911 ledger?

The world’s new physical vulnerabili-ty. Not only the immediate physicalimpact of the 911 attacks, but theirdemonstration effect, has beenextremely scary. If this is what a hand-ful of well-organised, imaginativefanatics can do by totally low-techmeans – using primary weapons nomore complex than knives or box-cut-ters – how much more damage can ahandful of well-organised and imagi-native fanatics do employing the high-tech weaponry that is potentially avail-able to them with chemical, biologicaland bomb-in-an-ice-cream-van nuclearweapons? Every major city, everymajor financial centre, in the world ishopelessly unprepared either to pre-

vent or to cope with such an attack atthe moment, and we are deluding our-selves to deny it.

The world’s new economic vulnera-bility. This audience will know betterthan most, and be better able than mostto calculate the order of magnitudeinvolved, the extraordinary economicdamage done by 911: consumer confi-dence has collapsed, investment is nothappening, trade is falling away, thetourism and travel sectors are on theirknees, productivity is sliding backwardas inventory management systems fallapart, the stock market is reeling,unemployment is skyrocketing, andrecovery seems a long way away.

Of course it has all been madeworse by the economic downturn thatwas well and truly underway by 911,but even the most buoyant environ-ment would have been punctured bythe enormity of the events of that day,and the knowledge we now have ofwhat more danger might be possible.

The psychological scars that havebeen inflicted. I am not talking hereonly about the gut-wrenching impactof ground zero, not only for the fami-lies and friends of those who died therebut for anyone who visits the site or

THE WORLD AFTER 11 SEPTEMBER: A BALANCE SHEET

Based on the Address by Hon.Gareth Evans AO QC , President of theInternational Crisis Group and Former Australian Foreign Minister,

to the Academy of International Business (AIB) Conference, Sydney, 19 November 2001.


even just sees it on TV; nor even justthe palpable new fear around the place,most easily measurable by the hugenumber of people in the US and aroundthe world who are now refusing to fly.I’m talking also about something moreinsidious – the suspi-cion and hostility onracial and religiousgrounds that 911 hasbrought to so many ofour human dealingsand interactions,notwithstanding allthe highly laudableefforts of Westernleaders from the out-set to characterise thewar against terrorismas a war againstdeeds not beliefs.

At the macro-level we’ve seen it inthe kind of ugly cam-paign against Afghanboat-people refugeesthat Prime Minister Howard and hisparty were able to mount to win therecent Australian election. I doubt thiswould have had the same resonancebefore 911.

And at the micro-level we see ithappening all the time: in my casemost recently in New York late lastweek, boarding my flight to LA to con-nect to Australia. Every passenger hadalready been through the most compre-hensive electronic and manual searchprocedure, with every bag emptied andpocket turned out. But that didn’t stopthe captain of the aircraft standing atthe door and turning back, in the mostobvious and humiliating way possible,for further interrogation and bodysearching, anyone of Middle Easternor West Asian appearance. The youngman beside me who – as he told theflight crew and anyone else who wouldlisten – had been born and raised inManhattan, studied at Wharton andnow worked for Goldman Sachs – wasalmost crying with rage and pain atbeing singled out in this way for hisappearance alone, and it was difficultfor a lot of us not to cry with him.

The downside costs and risks of newconflict. It is difficult to argue against

the US reaction to 911 taking a partlymilitary form. When any country’shomeland and heartland have beenattacked on the scale that happened inSeptember, when the ultimate respon-sibility could reasonably be sheeted

home to Osama binLaden and al Qaeda -despite all the prob-lems of court-proofevidence – and whenthis group was soobviously being shel-tered and nurtured bythe deeply unlovelyTaliban, a punitiveretaliation wasinevitable and defen-sible. But it was evenmore inevitable that,even with the bestconceived and man-aged such campaign,innocent civilianswould die in theprocess. It continues

to be desperately necessary as a resultthat any such campaign be as limitedas it possible to be: not only to meetthe immediate moral imperative, butalso to avoid giving fuel to extremistselsewhere, making the whole problemof extremist-generated terrorism worsethan it was to begin with.

And it is also crucial in this contextthat the costs and risks of embarkingon any new military campaign – aboveall in Iraq – be weighed very carefullyindeed.

Positives

In all this litany of gloom and anxiety,how can there possibly be any groundfor optimism about the future? Whaton earth could have been positive inthe fallout from 911? Well, let me giveyou my own list of half a dozen itemsfor a start, which I think do make a rea-sonable case in defence of optimism.

The end of American disconnected-ness. 11 September shattered any illu-sion that the two-ocean cocoon inwhich the US has felt so sheltered forso long was any longer a protection forthe heartland. And with that recogni-tion has come a much greater recogni-

tion, psychologically, across the nationand not just among policy makers(who I don’t think ever really believedit), that isolationism – switching offfrom the rest of the world’s problemsand just focusing on America’s own –is just not an option.

The world is a highly connectedplace these days, as every highbrowstudy and lowbrow piece of journalismkeeps telling us, and dirty little wars infaraway places that may not seem to beanyone’s business in the developedworld - and political and economic andsocial and cultural grievances that no-one wants to have to even think aboutin the West – have shown themselvesto be capable of generating, directly orindirectly, the most catastrophic dam-age in the West. The impact on NorthAmerica and Europe of instability andconflict in faraway corners of theworld has been obvious enough foryears if anyone had wanted to look inthe spread of narcotics trafficking andother international crime, in the spreadof disease like AIDS, in spillover envi-ronmental disasters, and in massmovements of the refugees and dis-placed. And, as nobody now needsreminding, it’s there with internationalterrorism. What 911 has done is forceeveryone to face up to the reality ofinternational connectedness, and toaccept that this means some kind ofpolicy engagement.

The greater embrace of multilateral-ism in American foreign policy. It’sone thing to recognise that engagementis necessary, quite another to carry itout in the right way. A turning awayfrom isolationism doesn’t mean an endto unilateralism. Small or mediumsized countries have long recognisedthe need for engagement to occur on acooperative, give-and-take, multilater-al basis, not least because they don’thave the economic or political or mili-tary clout to be able to do it any otherway. But big guys – and especiallyvery big guys – find it hard to be per-suaded not to act unilaterally. As theold Swahili saying has it: Where doesthe elephant sit? The elephant sitswhere he likes…Things were not really all that differentin substance under either Bush Senior

“11 Septembershattered any

illusion that thetwo-ocean

cocoon in whichthe US has feltso sheltered forso long was anylonger a protec-

tion for theheartland”

or the Clinton Administration, as Ican testify from eight years asAustralia’s Foreign Minister – and wewere one of their favorite countries!But unilateralism was at its mostextreme level for a long time inGeorge W’s Foreign Policy Mark I(the one prevailing from January to10 September this year): America did-n’t really need much help from any-one else, and it certainly didn’t needto enmesh itself in tiresome andrestrictive treaty obligations on cli-mate change, biological weapons,small arms, the new internationalcriminal court...

While I don’t want to exaggeratethe extent of the conversion – andthere are certainly many EU memberswho would remain to be convinced ofthe US’s enthusiasm for acting in anyway but unilaterally – I do think it’sfair to day that since 911 there hasbeen something of a conversion. Therealisation does seem to have dawnedin a major way that there are a wholebunch of inter-related problems, notleast those involving terrorism, thatno country in the world, not even theUS, can solve all by itself. Buildingsustainable defences against interna-tional terrorism means not onlymounting punitive military action(which needs, at the very least, basesand overflight rights in other coun-tries), but intelligence cooperation,money trail cooperation, public diplo-macy cooperation (what used to be

indelicately called propaganda) andcooperation in addressing root causegrievances through effective develop-ment assistance and conflict resolu-tion diplomacy.

If the multilateralist approach theUS is very effectively adopting at themoment in the war against terrorism –and which it’s going to have to main-tain there for a long time to come –can start filtering out into other areasof externa, policy, as it seemed to lastweek with the flexibility shown at theDoha WTO negotiations on a new

trade round, the US is going to winmore genuinely appreciative friendsaround the world than it’s had for along time, and that will very muchwork to the country’s long term inter-ests both in security and economicterms.

A better US relationship with Russia.President Putin’s alacrity in respond-ing to 911 with policy support acrossa wide front (intelligence coopera-tion, air corridors, support for basingin Central Asia) may have beenopportunistic – motivated by a desireto get some cover for Chechnya, holdsome lines on missile policy and getsome help for the Russian economy.But it’s certainly breathed newwarmth and content into a relation-ship that certainly needed both, andcould lead to some real benefits – notleast getting a real policy partnershipgoing in resolving the remainingproblems in the Balkans. Among theunthinkable things that have nowbecome thinkable is Russia’s admis-sion to NATO – although Russiacould of course end up taking therather sophisticated Groucho Marxview that it wouldn’t want to belongto a club that was prepared to have itas a member…

A better US relationship with China.Even more extraordinary than the US-Russia love-in has been the rap-prochement in Washington-Beijing

relations, a remarkable turnaroundfrom the deep freeze relationship –with the spy plane affair as the nadir –just a few months ago, which BushForeign Policy Mark I seemed deter-mined to create and maintain. China,again, has its own motives for want-ing to be cooperative on terrorism –with its anxiety about Islamistextremism in its western border zones, but the thaw is in everyone’s inter-est. And I say that with particularlydeep feeling as someone whose for-eign policy life has been concentrated

in the Asia Pacific reason, and dedi-cated in particular to forging a work-able set of relationships around theregion with China.

The possibility of forward movementon the Israel-Palestine conflict.There has been a great deal ofrethinking going on in the US since911 about American relations with theIslamic world generally, and the needfor the US to win moderate Arab sup-port for the war on terrorism has ledto some useful signs in relation to theArab-Israeli conflict – that it wants toplay a role back in the field and not inthe bleachers, that it is preparedrecognise the absolute legitimacy notonly of the Israelis’ but also thePalestinians’ claim to have a viablestate of their own, and that it is pre-pared to be tough about some of MrSharon’s more egregious excesses.

But of all the areas for optimismgenerated by 911 that I have identi-fied, this has to be the flimsiest. It’snot possible to be very optimisticabout anything with the Palestinianleadership as rudderless as it usuallyseems to be, and with the presentIsraeli leadership all too clear in itsdetermination to steer anythingresembling a viable peace planstraight on to the rocks. That said, anactivist role by the US is an absolute-ly indispensable precondition to drag-ging the present awful situation inIsrael, Gaza and the West Bank back

on track, and it’s good that it’s start-ing to be played.

A new focus on the values that real-ly matter. Tragedy can be cathartic,and there’s plenty of evidence of 911jolting people in the United Statesinto new patterns of behaviour thatare genuinely admirable. One thingthat many people have remarkedupon, and as a regular visitor to NewYork I can vouch for it, is a new kindof courtesy and consideration for oth-ers that is genuinely noticeable in this

“...there are a whole bunch of inter-related problems, not least thoseinvolving terrorism, that no country in the world, not even the US, can

solve all by itself”



normally brash, tough, swaggering, inyour face, me-me kind of town. I’mnot suggesting that Manhattan turnedovernight into a kind of hippy com-mune, and you would have to be asupreme optimist to think this will lastforever, but it’s nice while it does – andmaybe New Yorkers will actually getto like it.

Another phenomenon is the burst-ing of the conspicuous consumptionbubble of the 1990s, with a great manypeople in this country, as well as theWest generally, having secondthoughts after 911 about whether thethings that really matter in life are allthe material badges of success – as dis-tinct from home, family, personal rela-tionships and deeper values. What weare also perhaps seeing is the begin-ning of a glimmer of recognition thatmaybe it’s not all that good idea to beshowing it off so much in a widerworld where per capita income in theworld’s richest country is 100 timeshigher than the poorest, as compared toa ratio of just 9 to 1 a century ago;where in a number of places not justrelative but absolute levels of povertyare growing as well; and where aroundhalf the world’s 6 billion people arestruggling to survive on less than $2 aday, and have never seen a personal

computer or even made a telephonecall.

There’s one other value, of partic-ular resonance with this audience, thathas been getting a lot of attention in theaftermath of 911 – not so much in thecontext of the US or the West, butrather that of the regions of the worldwhere terrorism is bred - and that iseducation. The relationship betweenthe rise of Islamist extremism and thecollapse of the secular public educa-tion system in a number of countrieshas been much remarked upon – espe-cially in Pakistan, where poor familieshave been left with no alternative butto send their children to madrassas,with an almost wholly religious cur-riculum designed in the 18th Century,the numbers of which have grownfrom 3000 in the late 70s to 39,000today. If ever there was a job for edu-cationists, and a priority target fordevelopment assistance in the MiddleEast and West Asia, this is it - and it’sencouraging to see the extent to whichthat has been accepted.

I’ve tried to make a case for deriv-ing at least a little good cheer from theaftermath of events which themselveshad nothing but horror about them. It’sthe fate of optimists to be constantlydisappointed by the real world - opti-

mism, as they say, is simply the tri-umph of hope over experience - and itmay be that many of the developmentsI have mentioned will prove all toounhappily transitory.

But it’s the nature of optimists tobounce back, and that’s an importantdynamic in the world out there.Optimism can be just as self-fulfillingas pessimism and despair, and if itleads you to take risks – hoping alwaysthat some good will come from dis-turbing the status quo – then just occa-sionally some good is just what willhappen. A little bit of intelligent,adventurous optimism, combined withsome faith in basically decent valuesand the ultimate power of good to tri-umph over evil, is what not only theUnited States, but the whole world,most needs right now. And the morepeople there are saying that, andbelieving it, and acting upon it, thefaster we will put the horror of 11September behind us and create aworld which is a genuinely better placefor all its citizens.

"Do not use while sleeping" (Sears Hair Dryer)

"Use like real soap" (Dial Soap)

"Serving Suggestion – Defrost" (SwansonFrozen Dinners)

"Products will be hot after heating" (Marks andSpencer’s Bread Pudding)

"Do not iron clothes on body" (Rowena Iron)

"Do not drive a car or operate machinery"(Boot’s Children’s Cough Medicine)

"Instructions: Open bag, eat nuts" (AmericanAirlines packet of peanuts)

"Warning: Contains nuts" (Sainsbury’s Peanuts)

"May cause drowsiness" (Nytol)

...If we can do this in English, how were thesetranslated into other languages?

On The Lighter SideBased on an email sent to BJ Punnett by Dave Wood. Thanks Dave!

Some directions and warnings seen on products:


IntroductionThe terrorist attack of September

11 triggered worldwide condemnationand revulsion. For many those feelingswill long persist. However, teachers ofinternational business are likely to dis-cern a growing interest in both under-standing the causes of, and the likelyeffects of these acts. For internationalbusiness academics it is important totry to understand what these eventsmight mean for our discipline. Theirimpact is likely to be considerable.The September 15-21 2001 issue ofThe Economist was entitled 'The Daythe World Changed'. We need toanalyse ways in which these changeswill occur and what they will mean.This article offers an initial assess-ment. It recognises that at this earlystage it may not be possible to identifyall of the impacts, or to fully assesstheir importance. However, it may beseen as a first step in trying to discernsome of the immediate impacts and inraising some of the more complex,longer term issues that will arise.

Discerning ImpactsA useful way of thinking about the

likely impacts of such a significantevent is to utilise a framework such asthat provided in Figure 1. We cananalyse impacts in terms of a series ofconcentric bands. Bands closest to thecentre show primary impacts. As wemove out secondary impacts can beseen, followed by those impacts whichwill result from the various responsesto the attacks. The outermost bandidentifies a number of longer termissues that may arise. Currently these

are perhaps the most difficult to under-stand and their evolution is subject toconsiderable uncertainties.Nevertheless, they are likely to repre-sent the most significant changes in theinternational business environment.We will discuss these in turn.

Primary ImpactsOur discussion is confined to the

primary business impacts of the terror-ist attacks. The two sectors most sig-nificantly impacted were airlines and

tourism. The form of the attacks, utilis-ing commercial aircraft, had an imme-diate impact on the propensity for, andcost of, airline travel. This in turnadversely affected the tourism sector.Airline layoffs in just the first fewweeks have topped 100,000. It is notjust US airlines that have requiredassistance. Chinese, Korean andAustralasian airlines have all receivedassistance. Many have cut back onservices. Globally, the airline industrymay lose US$7 billion in 2001. Thestock values of airlines fell by up to 65

Terrorism and The International BusinessEnvironment

Professor Peter EnderwickDepartment of Marketing and International Management

University of WaikatoHamilton

New Zealand

Figure 1 Discerning Impacts of the Terrorist Attack on the International BusinessEnvironment


percent. However, prospects are notthe same for all airlines. Air Canada,heavily dependent on US traffic hasalready grounded a number of planes.Singapore Airlines, while some dis-tance from the US market has a 49 per-cent stake in Virgin Atlantic. VirginAtlantic depends on the US for 70 per-cent of its traffic. Budget airlines suchas Ryanair and Easy Jet seem likely tobe less affected. The high levels offinancial assistance provided to themajor US airline companies will alsoput smaller regional carriers, such asthose within Central America, at amajor competitive disadvantage.

Higher security costs and delayswill have a differential adverse impacton the productivity of short haul carri-ers. In turn, Boeing in anticipation of adrop in orders, has announced layoffsof between 20,000 and 30,000. Worldtourism growth rates have been halvedto 1-1.5 percent. It is worth noting thatairline traffic levels did not fullyrecover for 12-15 months after theGulf War.

However, one of the perverseeffects of the attacks is also apparent inthe travel industry. While numbers oncommercial flights have fallen, thedemand for executive jet flights hasincreased significantly. Similarly, sub-stitution is apparent in the increaseddemand for Amtrak services, particu-larly in the Washington-New York-Boston corridor. Airline costs will alsorise significantly as insurance risk isreassessed.

Significant impacts will also beexperienced by countries and indus-tries heavily dependent on MiddleEastern markets. An example is pro-vided by the Korean constructionindustry which has long depended oncontracts from this part of the world.Korean construction contractors cur-rently have more than 60 projectsworth US$1.3 billion in the MiddleEast. This represents half of all over-seas contracts. The increased difficul-ties of doing business in these markets,

particularly when large numbers ofpersonnel are based there, means thatthe impacts will be considerable.

Secondary ImpactsThe second band highlights a num-

ber of sectors where there will be sig-nificant impacts that will develop overthe short to medium term. Theseinclude insurance, transport and thesecurity industry. With the terroristattack representing the biggest event ininsurance history, the industry is in fora very difficult year with preliminaryclaims possibly as high as US$50 bil-lion and losses of perhaps US$2 bil-lion. Insurance risks and premiumswill increase significantly for a numberof transport industries. Shipping com-panies are likely to face a war risk pre-mium of between 0.1 and 0.25 percentof insured value. On the other hand,the security industry is likely to bene-fit. Suggestions are that its growth rateover the next few years could exceed10 percent per annum. Similarly, thesubstitution of video-conferencing andother communication technologies forair travel and face-to-face meetingscould benefit companies in these areas.

The investment industry has alsoreacted to the attack and the changedits risk perception. We may see a shiftof capital towards 'relatively' safermarkets such as Europe. If the USattracts a premium, investment sourcesmay develop more rapidly in the mar-kets of Europe and Asia. However, themagnitude of this will depend critical-ly on a range of factors including theextent to which other markets are iden-tified with the US and therefore sharerisk premiums.

Considerable changes in intelli-gence gathering are likely to resultfrom the apparent failure of intelli-gence agencies to anticipate theattacks. There will be a reassessmentof the terrorist threat: this was not anattack involving chemical, biological,nuclear weapons, nor was it a cyberattack. More traditional methods of

intelligence gathering will be reconsid-ered. There are likely to be strong callsfor greater communications surveil-lance. Regulations on phone taps,access to e-mail and powers to detainand deport will be amended. We mayeven see the authorities seeking 'antic-ipatory powers'. Where the terrorthreat is perceived as global there willbe strong incentives for cooperation ininformation gathering and sharing. Aswe will discuss in a subsequent sec-tion, these changes are likely to gener-ate conflict between national securityconcerns and civil liberty rights.

Response Generated ImpactsWe can distinguish a third band of

impacts, those that are the result ofresponses to the terrorist attacks. Theserange from the stimulus of governmentspending, new controls on financialtransactions and migration, to inducedchanges in costs and individual behav-iour.

At the most general level are theimpacts on expected growth rates. Inthe global era interdependencybetween markets means that a down-turn in any major market is likely toquickly feed through to affect othermarkets. We may expect a closer syn-chronisation of the business cycle.Forecasts for US growth in 2001 arearound 1.5 to 2.0 percent comparedwith 4.1 percent in the year 2000. Weshould note that the US economy hadslowed before the attack, but this couldprecipitate a recession. Since the USaccounts for one-fifth of global eco-nomic activity the contagion effectsare considerable. A sharp downturn inthe US would be expected to cutaround 1.2 percent from the growthrates of East Asia economies, exclud-ing Japan.

It is difficult to assess the likelyimpact of this attack from past experi-ence. The September 11 attack differsfrom earlier conflicts such as the GulfWar which was an 'external' shock forthe US economy and the effects trans-


mitted through reduced travel andhigher oil prices. A direct attack on theUS will have a more sizeable impacton confidence and sentiment. Worldeconomic prospects also depend criti-cally on the price of oil. At the presenttime there has been no substantial risein oil prices but this will depend criti-cally on the form, extent and durationof retaliatory conflict.

Perhaps the easiest impacts tounderstand are the stimulatory effectsof increased government expenditure.This expenditure is generally reflation-ary and takes the forms of direct assis-tance to distressed industries such asairlines, underwriting of additionalinsurance and security costs, increasedmilitary expenditure as well as macroeconomic effects. The progressive cut-ting of US interest rates also raises thepossibility of negative real interestrates (where rates are lower than therate of inflation), which stimulate bor-rowing and spending.

While US military expenditurewill rise by perhaps one percent ofGDP it will still amount to only around4 percent, compared with some 38 per-cent at the height of the Second WorldWar. While wars generally have anexpansionary effect on the world econ-omy this conflict may be different. Itwill not involve full-scale troopdeployments or the traditional build upof armaments and could actually costthe world economy some US$160 bil-lion (due to a half percent reduction inthe global growth rate) as a result ofdisruption. Furthermore, the call up ofreservists will also adversely impactmany high technology industries andbusinesses. While these people areunlikely to be in front line operationsthey will have to assume the tasks tra-ditionally performed by the military. Ifthe conflict is protracted this loss ofkey staff will sap the strength of manybusinesses.

Attempts to starve terrorist groupsof funds will also impact on financialmarkets. The G7 and the EU's member

nations have already moved to tightenfinancial controls on significant cashflows. Tighter regulation by marketssuch as Switzerland (home to one-thirdof the world's offshore wealth),Luxembourg and Liechtenstein is like-ly to slow the rapid expansion of glob-al capital flows and may bring greatertransparency to financial markets.

Migratory movements are alsolikely to be curtailed. While the result-ing conflict may substantially increasethe world's refugee problem, interna-tional migration, particularly for eco-nomic reasons, is likely to be more dif-ficult. This will also include a tighten-ing up of student visas, a system whichseems to be easily abused.

Induced changes in behaviour willaffects businesses, governments andindividuals. For businesses, tightersecurity measures for cargo shipped byair and sea and checks on border cross-ings will throw into question the valueof just-in-time global supply chains. Aweek after the attack Ford cut produc-tion by 13 percent because of deliverydelays. Business planning may beexpected to change. In the increasinglyturbulent business environment there islikely to be a shift from incremental toscenario planning. For government, anew focus on terrorism means thatother objectives may be neglected.This may include restructuring pro-grammes that are badly needed incountries such as Japan, Thailand andIndonesia. The danger is that govern-ments will simply focus on survivingthe turbulent market conditions andpostpone needed reforms.

Changes in individual behaviourmay also be seen as responses to theterrorist attacks. An example may beprovided by labour flows. In recentyears high skilled individuals have leftmany of the smaller or less developedeconomies seeking higher rewards andopportunities in major markets such asthe United States and the UnitedKingdom. This has certainly been theexperience of countries including

Australia and New Zealand. We mayexpect some reversal of these flows aslocational choice is increasingly deter-mined by safety related and not simplypecuniary considerations. A furtherexample is provided by the longer termneed to socialise the additional costs ofsecurity. While government may bewilling to offset these in the short term,it is unlikely to continue to do thisindefinitely. Producers, and ultimatelyconsumers, will have to learn to bearthese costs.

Longer Term IssuesThe outer band identifies a number

of more tenuous, longer term issuesthat have emerged since the attack.Here we briefly outline some of themost significant.

The first concerns the tensionbetween security and liberty. As men-tioned above the 'asymmetric warfare'characteristic of the recent attacks cre-ates a dilemma for governments. Onthe one hand they will require moreinformation on citizens in an attempt tocombat this form of conflict, on theother, we have experienced severaldecades of growing social and politicalfreedom. How these two can be effec-tively reconciled is likely to emerge asa major challenge for most democraticgovernments.

A second issue is increased com-plexity in the business environment.This complexity stems from a numberof sources including rising costs anduncertainty, unpredictable inducedchanges in behaviour, greater stateintervention in a range of areas and thegrowing power of poorly understoodgroups and individuals. The key play-ers in the global business environmentare no longer simply nation states,multinational enterprises or NGOs. Inthe past decade we have seen the awe-some power of individuals to disruptthe environment. This would includeperpetrators of computer viruses, glob-al investors such as George Soros, andnow terrorists such as Osama binLaden.


The changing role of the state is athird issue that will need to beaddressed. Despite years of privatisa-tion and deregulation as well as asser-tions that globalisation will lead to acontraction or even elimination of thestate, much of this appears to be over-turned in a day. Many businesses nowlook to the state to resolve this newconcern. The state has been instrumen-tal in both underwriting the costs of theattacks and in carrying the responsibil-ity for tackling it. The adjustmentprocess is also of interest. Despite thewidespread belief that a market systemis best equipped to deal with changeand uncertainty, it is government thatseems to be driving the response in thiscase. It will be necessary for us toresearch the issue of whether such anevent causes some form of market fail-ure or whether we have underestimatedthe importance of the state. The airlineindustry at least in many countriesseems set to return to varying degreesof state ownership and control.

A fourth issue concerns globalbusiness strategy. Our rather simplisticanalysis of the trade-offs between thecost advantages of global strategy andthe need for local responsiveness willneed to be revisited. The attacks clear-ly demonstrate that there are signifi-cant parts of the world that rejectWestern business strategy and the val-ues that lie behind them. We are likelyto see a growing interest in new waysof achieving local responsiveness andacceptance. The pursuit of global(Western) branding strategies will alsobe reconsidered.

A more controversial issue, andone which international businessscholars will need to confront, are theunderlying causes of the attack and theresentments that appear to have trig-gered it. We will need to incorporateinto our teaching and research a greaterrecognition of the interdependenciesbetween foreign policy and businessstrategy. While for those approachinginternational business from a politicaleconomy perspective this is perhapsnothing new, it would be true to saythat much of mainstream analysis hasundervalued such connections. US for-eign policy towards the Middle East,

its unqualified support for Israel, main-tenance of conservative regimes in theMiddle East and strategic focus on oilsupplies, have undoubtedly fuelledresentment in much of the Muslimcommunity. A long term 'solution', asopposed to simply eradicating terror-ism, will necessitate changes in Arabopinion and this may well require aresponse to perceived injustices in theMiddle East, a negotiated solution tothe Palestinian problem and the liftingof sanctions against countries such asIraq.

A related issue is the continuationof globalisation in its present form. It isclear that the massive inequalities thathave accompanied the growing global-isation of the world economy must beaddressed. While anti-globalist protes-tors have increased awareness of theseconcerns, the attacks of September 11have elevated them to a new con-sciousness. It is clear that an attack onthe World Trade Center is also anattack on the heart of global financeand business. It is important not to losesight of the fact that continuing global-isation may be the most effective wayof raising the living conditions of theworld's most disadvantaged, but in theabsence of some form of intervention itis unlikely to do so. To bring a morehuman face to globalisation may be thesingle most important challenge in thefirst half of this century.

A seventh issue is the recognitionof new, and extremely significant,geopolitical alliances. Cooperationbetween the US, India, Pakistan andRussia with strong endorsement byIran and China is an alliance thatwould have been laughingly dismissedsix months ago. As the structures andprocesses of the Cold War era havegiven way to unfettered economiccompetition in the present global era,shifting political alliances become anew reality. These new alliances haveradically altered perceived tensions inthe international system. The concernwith US-China relations has now givenway to a new focus on the non-specif-ic enemy of terrorism.

However, the formation of suchalliances is likely to bring new insta-bilities. The threat is perhaps greatest

within countries such as Pakistan andIndonesia, which, while pledging sup-port to the US, also contain sizeableMuslim populations. At the same timethese countries will extract consider-able concessions in exchange for theirsupport. This has already happened inthe case of Pakistan with the lifting ofsanctions and the rescheduling of debt.We may also expect to see internation-al organisations such as the IMF andWorld Bank align their policies toreflect these new political realities.

ConclusionsThis brief discussion offers an

attempt to understand the likelyimpacts of the tragic terrorist attack onthe United States. A number of conclu-sions are evident.

First, the attack highlights thedynamism and the volatility of theinternational business environment. Itis evident that patterns and processesmay change suddenly and radically. Ithas implications for a broad range ofsectors and issues.

Second, the impacts are difficult tofully discern or quantify at this earlystage. However, the framework offeredabove does allow us to distinguishbetween immediate effects, inducedchanges and more nebulous, longerterm issues. Over time, our under-standing will increase and many of thechanges will be incorporated into ourteaching and research programmes.

Third, it is apparent that the worldhas indeed changed, and in significantways. New geopolitical alliances, newtensions, increased pressure to addresslong standing perceived inequities andto bring a more human face to the driv-ing force of globalisation have all coa-lesced in the brief weeks since theattack. As international business edu-cators it is incumbent upon us to betterunderstand why this has occurred andwhat it means for our discipline.


� "I felt vulnerable, betrayed, and beganto question the security of relations withforeign countries."

� "I have a dream/goal of entering thefield and making a positive difference inthe lives of others … if September 11thhas done anything to affect my interestin the field, it has increased it."

� "These events have actually made mewant to pursue my interest in an interna-tional business career even more. Theyhave made me realize that life is tooshort to worry about what might happen…. "

� "Although we all have fears, I do notfear change … good or bad. I knew thatmy ability to react to sudden change hasled me to business."

� "… the recent terrorist attacks havebeen very destructive and detrimental,however, it hasn’t changed my interestin pursuing a career in internationalbusiness. … made me focus more on mypersonal relationships …. The attacks …will affect my decisions as far as livingoutside of the country with a family"

� "My goal is to do business interna-tionally and I intend to keep it that way.Life is all about risk to me … I cannot letthis kind of fear or threat take over mylife."

� "I still want traveling to be a part ofmy job, and if I let these events affectthat, then I feel that they have won."

� "I’m still interested in traveling anddealing with different cultures aroundthe globe. I will not let terrorists keep mefrom pursuing my career."

When Terrorism Hits Home: Student Perstpectives Brian Lofman

Department of International BusinessRollins CollegeOrlando, Florida

As I prepared for my InternationalBusiness class on September 12,I was undecided how to discuss,

if at all, the incomprehensible events thathad occurred the day before. Would anarmchair analysis be in order? No, therewere too many unknowns and thoseevents could have been the harbinger ofother horrific acts soon to follow. Woulda more personal characterization of theevents be appropriate? No, my studentsand I might hold some thoughts and feel-ings in common, but we likely experi-enced the events and interpreted them indiverse ways. Could I simply move onwith our scheduled agenda? No, I wouldbe remiss in not addressing the immedia-cy of the situation.

The answer became clear - I wouldmake a few comments and then ask thestudents for their thoughts and feelings,even if this were merely to get ideas outon the table for all to consider. The stu-dents responded with a broad variety ofconcerns, and raised some interestingpoints relevant for international business(all but one were IB majors). One studentreflected on the difficulties of conductingbusiness in the future, given the per-ceived need for increased security.Another sounded distressed that thedream of working abroad might havebeen shattered. Another wondered if anybusiness career was worth the risk. In all,some negativity pervaded the classroom,though there were hints of optimism. Thediscussion lasted the entire class session.

Two months later, I developed a briefquestionnaire of five open-end items,designed to elicit students’ views on the911 events (as they have become known).Following are the questionnaire items,with excerpts from selected responses:

� "After the tragic events, I viewed theinternational business major as a ‘wasteof time.’ My anger and shock resulted inthe consideration of a new major. I nolonger wanted to study an internationalperspective."

� "Before September 11th I wouldoften wonder where my career wouldtake me. Would I work for a large inter-national company? Would I live andwork in a big city? Would I travel exten-sively or even live in a foreign country?… I am still very interested in and excit-ed about international business as mychosen major."

�"I am still interested in internationalissues, however, I feel I may now beextremely limited in pursuing signifi-

cant international experience in the localbusiness environment."

� "This has really made my internation-al business classes seem more real thanever. It feels like I am actually a part ofwhat I am studying and has let me real-ize some of the factors involved in inter-national business that cannot always belearned in a classroom."

� "A businessperson should spend timelearning the culture he will be dealingwith to better anticipate a particular out-come."

� "The role that international businesswill play will prove to be vital for sus-tainability in an emerging global envi-ronment."

How have the terrorist events of September 11 (and subsequentrelated events) affected your interest in pursuing a career in interna-

tional business?

How have these events changed your view of international business?


� "… The world will become more cau-tious and perhaps develop stronger rela-tions with foreign countries."

� "… improved security regulationswhich would protect expatriates andtourists visiting foreign countries that havehigh political and social tensions towardthe United States."

� "… awareness and more careful think-ing when it comes to conducting businessinternationally. People, companies andfirms will have to look more closely at theconsequences of their actions."

� " It forces companies to rethink theirstrategies and alliances … it will improvethe safety and efficiency of the way inwhich business is conducted. It may taketime for some minor problems to beworked out, however, in the long run thiscould open up and create many more jobsrelated to the international business field."

� "People are becoming wiser and moreaware of what’s going on around them …technology will play a bigger role thanever, especially in communication, trans-portation and security systems. Americanbusinesses … may have to merge withdomestic companies in order not to be asbig a target for such terrorist acts."

� "Firms will assess which businesses toinvest in, reviewing their financial state-ments and culture a lot closer, so their riskcan be reduced and they can feel moreconfident in the potential of the invest-ment."

� "… they have created this sense of prideand solidarity among Americans, evenwith other countries. … for youngAmericans … there has been this awaken-ing of strong feelings of nationalism andunity … sparked a sense of greater aware-ness to what is going on around the world…."

� "I would like to see actions takentoward human rights worldwide (the poor,oppressed women of the Afghanistanregion). … I hope to see a great deal ofpositive changes in the valuation of allhumans. … people advertising productsusing the tragedy - ethically aware corpo-rations would not use desperation to theiradvantage - this frustrates me and I hope tosee it discontinue."

� "… attacks will give reason for coun-tries and international businesses to uniteand come together to possibly help solveother world problems such as globalwarming and promoting sustainability."

� "…, business will always be business,and opportunities will always exist in for-eign countries. International business willnot be affected more than domestic busi-ness."

� "The role of international business willbecome much more important in sustain-ing successful alliances."

� "Some issues I have pondered sinceSeptember 11th - how easy it would be fora group of terrorists to shut down a globaleconomy, how one hiccup in a global sys-tem can affect everything, how far reach-ing the ripple effect can be, what level ofcontrol is someone willing to give up forsafety."

In the face of these adverse circumstances, it’s reassuring to hear optimistic voices among my students, and anoverarching message of hope for a better future.

Thanks to my students who participated. The following agreed to having their names published:

Jennifer Beames, Meg Glynn, Evan Shapiro, Betsy Carroll, Evan W. Hoffman, Jennifer Treco, CristinaFernandez, Luigi Saieh, Diego Vargas

� "Foreign travel and expansion will nolonger be taken so lightly without seriousconcerns for heightened security.Likewise, expatriates will need extraincentives and protection when assignedto foreign locations."

� "This will make another argument in thecase against globalization and put fear inthose who conduct it."

� "These events will slow down interna-tional business and the international econ-omy for years to come … due to an over-whelming amount of caution taken bycompanies and their executives in travel-ing and business negotiations."

� "People are more afraid for their per-sonal safety and are less willing to invest.These events have also caused someinconvenience in the transportation sys-tem. Air travel is becoming more restrict-ed and expensive. Ground transportation isslowing down …."

� "The process of doing business interna-tionally is greatly slowed down in variousindustries due to new safety issues. Theselonger procedures can negatively affectmany businesses in terms of using time asefficiently as possible."

� "Many more people that encouragedglobalism may be much more hesitant andselective in the future. Security restrictionsmay inhibit some globalization, but theseare small setbacks to improve future rela-tions."

What negative consequences willthese events ultimately have for

the conduct of international busi-ness?

What positive consequences willthese events ultimately have for

the conduct of international busi-ness?

Please comment on any relatedopinions or viewpoints.

Yes, I would like a copy of “Internationalizing the Business School.” The price per copy for AIB members is $20; for non-AIBmembers and libraries the price per copy is $35. For a CD attached: an additional $10. Postage per copy is as follows: U.S. $3,Canada $7, Mexico $11, Other countries $18. Checks are to made payable to The Business Partnership Foundation.

# of copies ______ # of CDs _______ Total enclosed $________

AIB Newsletter - Fourth Quarter 2001� 25S p e c i a l A n n o u n c e m e n t

INTERNATIONALIZATION OF BUSINESS SCHOOLS:SUMMARY AND CONCLUSIONS

Significant progress continued to bemade in the internationalization of businessschools throughout the world. The courses,programs and other educational experiencesavailable to students of business were richand varied. Capacity to provide education inthe international dimensions of business ofspecific functional fields was dramaticallyenhanced. Whereas previously most schoolssought to provide students with only anawareness of the international dimensionsof business and primarily used only infusionof international content into core courses,far more schools now had understanding asthe objective for all students, and expertisefor increasingly more students than previ-ously. They also now had more IB courses,and required more of them for all students,and infusion of international material intocore courses continued to proceed signifi-cantly. However, at the master and doctorallevel, non-US schools were stronger interms of internationalization than USschools (consistent with their higher objec-tives), while US schools were stronger at theundergraduate level, and accredited schoolswere stronger in terms than non-acredtiedschools. Internships and overseas studyopportunities also increased in many moreschools throughout the world, although aslightly higher percentage of non-US busi-ness schools offered more student intern-ships in other countries, and as did accredit-ed schools compared to non-accreditedschools.

All institutions reported significantenhancing and upgrading of the internation-al capabilities of their faculty, and learnedmore about the value of various methods of

internationalizing faculty which resulted intheir assessments that their faculty’s interna-tional knowledge was greater than it hadbeen five years ago. Faculty researchbecame more international, and schoolsresponded more to the global needs of theirstakeholders. However, there remainedsome differences. The US had fewer facultywho were natives of other countries, didinternational research, taught IB courses,had taught in other countries, and had IBexperience in industries, and faculty inaccredited schools did more internationalresearch and consulting and were slightlyhigher in terms of levels of IB education andtraining

The majority of business schools weresatisfied with the internationalization oftheir curricula and faculty, only thereremained only a minority of businessschools who were very satisfied, despite anoverall improvement and enhancement ofthe internationalization of faculty, programsand students. By comparison, non-USschools were more satisfied than US schoolsabout the progress of the internationaliza-tion of their institutions over the last fiveyears, and accredited schools were the mostsatisfied and the most dissatisfied! The mostlikely reason for remaining dissatisfactionwas that globalization throughout the worldincreased even faster than the international-ization of business schools’ curricula andfaculty—hence business schools continuedto lag behind business needs and develop-ments. Hopefully, the next decade willshow a closer fit between academic andworld realities.

“Internationalizing theBusiness School:Global Survey of

Institutions of HigherLearning

in the Year 2000”

This is the most comprehensivesurvey report, in terms of geograph-ic reach and the scope of informa-tion requested, about changes in

the internationalization of businessschools’ curriculum, faculty, organi-zation, affiliations and institutional

arrangements, and their goals,emphasis and approaches.

The survey, conducted once againby the University of South

Carolina’s Center for InternationalBusiness Education and Research,was the sixth one commissioned by

the Academy of InternationalBusiness since 1969. (You can also

download a short version of our2000 survey on AIB’s website:

www.aibworld.net)

The survey team discovered morethat a hundred findings pertinent toall colleges and universities, and

also identified some of the areas inwhich non-U.S. schools have madegreater progress toward globaliza-tion. Attached is a summary of the

entire study, FYI.

For a copy of the research book(about 360 pages), please complete

the form below.

Mail this form and your check to:

Professor Jeffrey S. Arpan International Business

DepartmentMoore School of Business

University of South Carolina1705 College Street

Columbia, SC 29208 USA

(e-mail: [email protected])

Name of the Purchaserand Library

Address

City, State, ZIP/Postal Code, Country

Contact email


beerThe PowerhouseMuseum housedthe fabulous beer

tasting sponsored byLion Nathan brewers ofHahn, Tooheys andVictoria Bitter. C.K.Chow won theExecutive of the YearAward and spoke at theevent.

...More pictures from Sydney!


gala dinnerSydney Town Hall set the

stage for Monday night’sspectacular Gala Dinner.

Speakers included MichaelVitale, the Dean of AGSM, andthe Honorable Gareth Evans,who spoke on the impacts ofSeptember 11’s events. A tran-script of his speech can be foundon page 15 of this newsletter, inthis month’s AIB Insights.

28 � AIB Newsletter - Fourth Quarter 2001 C H A P T E R I N F O

SOUTHEAST ASIA /AUSTRALIA

Regional ConferenceJuly 18-20, 2002Shanghai, China

The 2002 Academy ofInternational Business (AIB)Southeast Asia and AustraliaRegional Conference is co-hostedby the Hong Kong Institute ofBusiness Studies (HKIBS),Lingnan University, Hong Kongand Shanghai University ofFinance and Economics(SHUFE), Shanghai, People’sRepublic of China.

We invite papers for presentationand proposals for panel discus-sion related to the ConferenceTheme from scholars, businessexecutives, professionals andpublic policy makers.Conceptual, theoretical andempirical papers will all be con-sidered. Relevant papers are thoserelated to Global Competitionand International Business.

For more information, contact:

Ms. Vanessa Chan/Ms. Katy FanHong Kong Institute of Business

StudiesLingnan University

Tuen Mun, Hong Kong

Tel: (852) 2616 8373Fax: (852) 2572 4171

E-mail: [email protected]

NORTHEAST USAChapter Conference

September 26-28, 2002Salisbury, Maryland

The 2002 meeting will be heldSeptember 26-28, 2002 inSalisbury, Maryland. The host isthe Perdue School of Business atSalisbury University. The pro-gram chair is Dr. RichardHoffman.

The conference theme is “GlobalTransformations”. Globalizationof economies, markets, and cul-tures is affected by a number offactors including: regional eco-nomic integration (EU, NAFTA,ASEAN, MERCOSUR), chang-ing technology, security issues,and innovation.

Submission Deadline:April 26, 2002

Awards for best paper and bestdoctoral student paper will be

presented.

Send submissions to or for moreinformation, contact:

Dr. Richard C. Hoffman,Program Chair

Perdue School of BusinessSalisbury UniversitySalisbury, MD 21801

Tel: 1.410.548.5398Fax: 1.410.546.6208

Email: [email protected]

UNITED KINGDOMChapter Conference

April 12-13, 2002University of Central Lancashire,

Preston

“INTERNATIONAL BUSINESS IN THE

GLOBAL KNOWLEDGE ECONOMY

Economic Growth: Competition,Cooperation, Resistance”

For this conference at the start ofthe new millenium - in which glob-alisation is seen by some as a driv-er for economic growth but by oth-ers as a threat - the AIB UK chapteris encouraging a wide range of con-tributors centred around the for-ward-looking perspective of howinternational business willprogress. Papers on new andemerging issues will also be verywelcome.

There will also be a DoctoralColloquium, to provide doctoralresearchers in InternationalBusiness with the opportunity topresent and discuss their researchwtih a panel of distinguished schol-ars in the field. The Colloquiumalso provides doctoral researcherswith an opportunity to interact withcolleagues from other institutionsworking on International Businesstopics, and to join and feel part ofthe AIB community of researchers.

For more information, contact: LizKelly, Business Services,

University of Central Lancashire,Preston Lancashire PR1 2HE

Tel: +44 (0)1772 892256 / Fax:+44 (0)1772 892938 / email:

[email protected] /www.uclan.ac.uk/AIB29

AIB Newsletter - Fourth Quarter 2001� 29A D V E R T I S E M E N T S

� MISCELLANEOUS ANNOUNCEMENTS �

� 3rd World Symposium on Logistics in Forest SectorKhalkis, Greece

23-24 September 2002

As we have now completed a vast job in establishing the logisticsresearch into the forest sector, we expect submitters of papers tobe aware of, and to refer to, relevant articles published inLOGSITICS IN THE FOREST SECTOR, 2000; and SUPPLYCHAIN MANAGEMENT FOR PAPER AND TIMBER INDUS-TRIES, 2001. Greece in September is expected to have a warmand nice climate. We intend also to arrange a half-day industrialtour hosted by Shelman Wood Product Industries Company.Further information is available at:h t t p : / / m e m b e r s . s u r f e u . f i / o t a n i e m i/sympgrec.htm

� International Business Education & TechnologyConference

Clearwater Beach, Florida, USA14-19 February 2002

Organized by Midwestern Academic Publishers, the IBETConference seeks papers related to educational technology, inter-net, distance learning, business & economics instruction, curricu-lum, cases, multi-disciplinary, and related educational issuesincluding research related papers and cases in accounting, mar-keting, management, economics, e-business, finance, CIS, MIS,ethics, international business, global technology, literaturereviews, pedagogy and empirical research. Email enquiries [email protected] or visit the web site athttp://www.ibetconference.com.

� 6th International Workshop on Teamworking(IWOT6)

Malmö University, Sweden 16-17 September 2002

The aim of the workshop is to bring together researchers interest-ed in the issues raised by teamworking. The workshop willinclude work from a variety of perspectives, disciplinary back-grounds and geographical areas. While papers are welcome onany aspect of teamworking, cross-national comparisons, empiricalwork in general and theoretical/conceptual analysis are especiallywelcome. Special streams shall be organised around large-scaleorganisational surveys and panel studies, the use of the team con-cept in the service sector and project teams. For more information,please visit the conference website athttp://www.ts.mah.se/forskn/worksci.

The AIB Newsletter is proud to share the lat-est news about its members in the

Members on the Move and Just Off thePress sections. E-mail your professional

accomplishments, book publications, promo-tions, and honors, to:[email protected]

Or send typed items and photographs viamail to:

AIB Newsletter2404 Maile Way, CBA-C306

Honolulu, HI 96822-2223 USA

AIB Copy Deadlines are:Quarter 1: February 1Quarter 2: May 1Quarter 3: August 1Quarter 4: November 1

Only items received on or before the firstworking day after the deadline will be con-

sidered for publication. Fax us at (808) 956-3261 for information regarding our advertis-

ing and promotional services.

Feature Articles for InsightsFor consideration in Insights, feature articles

may be sent at any time to NewsletterSubmissions Editor Betty Jane Punnett.

Submissions should be a maximum of 2000words and of general interest to the AIBmembership. See page 13 for details.

Send articles as a Word attachment or astext in the body of the message to:

[email protected]

You may also mail articles with a diskette to:

Betty Jane PunnettDept. of Management Studies

The University of the West IndiesCave Hill, Barbados

West Indies

Calls for Papers

30 � AIB Newsletter - Fourth Quarter 2001 A D V E R T I S E M E N T S

AIB

M a r k y o u rc a l e n d a r sf o r A I B ’ s2 0 0 2A n n u a lM e e t i n g

Geographies and InternationalBusiness

Caribe Hilton San Juan, Puerto RicoJune 28 - July 1, 2002

2 0 0 2

w w w . a i b w o r l d . n e t

click on “Events” for details

Program Chair Lorraine Eden, Texas A&M University

Hosted by the University of Puerto Rico


Brandeis UniversityGRADUATE SCHOOL OF INTERNATIONAL

ECONOMICS AND FINANCE

THE GRADUATE SCHOOL INTENDS TO MAKE THE

FOLLOWING APPOINTMENTS FOR YEAR 2002

FINANCE (INVESTMENTS) Candidates with interests in the inter-national aspects of the field and in risk assessment and man-agement are particularly welcomed, as these fields would com-plement the work of other faculty at the School. The successfulcandidate will excel in teaching at the MBA level and inresearch valued by both academics and practitioners.Versatility in teaching and interest in participating in academicactivities outside of the candidate’s functional specialty are alsodesirable. The School has a preference for filling the positionon the full professor or associate professor level, but will con-sider assistant professor candidates with exceptional creden-tials. MANAGEMENT Candidates may have interests in function-al fields such as financial management, service management, ortechnology management. Their expertise should encompass apractical understanding of how companies design and imple-ment management strategies, and the ability to communicatethis knowledge through examples and case studies. The suc-cessful candidate will excel in teaching at the MBA level, willideally have experience as a corporate executive or consultant,and will produce research valued by both academics and prac-titioners. Versatility in teaching and interest in participating inacademic activities outside of the candidate’s functional spe-cialty are desirable. The School has a preference for filling theposition on the assistant professor level, but will also considermore senior candidates with exceptional credentials.

Established in 1994, the Graduate School of InternationalEconomics and Finance is a rapidly growing, interdisciplinarybusiness school with a strong commitment to international busi-ness and finance. The school currently enrolls more than 200graduate students from 40 countries in MBA, MA, MSF andPh.D. degrees. Further growth is anticipated. The School isunique among business schools in combining an intimate, rig-orous educational environment with a focus on global marketsand institutions; it also maintains active exchange programswith leading business schools worldwide. Faculty researchinterests range from foreign direct investment and alliancestrategy to international trade, financial markets, and develop-ment economics. For further information, visit www.bran-deis.edu/global.

Candidates should send a CV, a sample of research, and evi-dence of teaching ability. First consideration will be given tocandidates whose application is complete by December 31,2001. Applications should be sent to: Search Committee,GSIEF MS 032, Brandeis University, Waltham, MA 02454.

As an equal opportunity/affirmative action employer, Brandeisis committed to building a diverse faculty and invites applica-tions from women and minorities.

Requirements: Applicants must possess a Ph.D. inInternational Business or Business Administration. Tenuretrack positions carry an expectation of excellence in teachingand adequate evidence of scholarly production.

Course Assignments: Probable assignments includeIntroduction to International Business, International BusinessStrategies, and Asian, Latin American, or European Businesscourses.

The University: A Jesuit institution, Saint Louis Universitycomprises eleven schools and colleges specializing in numer-ous disciplines including medicine and law. The university’sdiversity is further enhanced with a fully operating campus inMadrid, Spain.

John Cook School of Business: Approximately 1300 under-graduate and 400 graduate students study at the university’sSchool of Business and Administration.• Accreditation: The school is fully AACSB accredited• Expansion: Completed in summer 2000, John and Lucy Cook Hall,

the School’s $15 million expansion, contains high tech classrooms,study rooms, offices, and meeting facilities.

• International Business: Degrees offered include BS/BA, MBA,Ph.D. and Executive Master of International Business.

Location: Located in midtown St. Louis, the University isaccessible from all major thoroughfares. The St. Louis metro-politan area with 2.5 million residents is home to manyFortune 500 companies and is rated among the top cities for liv-ability with regard to cost of living, housing, cultural and enter-tainment venues, educational institutions, and employment.Numerous opportunities exist for the successful candidate tointeract with area business leaders.

To be considered, please send cover letter, curriculum vitae,and supporting documents to:

Dr. Seung H. Kim, DirectorBoeing Institute of International BusinessSaint Louis UniversityJohn and Lucy Cook Hall, 3323674 Lindell BoulevardSt. Louis, MO 63108-3397

Phone: (314) 977-3898 Email: [email protected]: (314) 977-7188 Website: http://biib.slu.edu/

Saint Louis University is an affirmative action/equal opportunity employer. The final offer is subject to approval of the university’s budget.

Tenure Track PositionFall 2002

Assistant Professor ofInternational Business

John Cook School of BusinessBoeing Institute of International Business

32 � AIB Newsletter - Fourth Quarter 2001 A D V E R T I S E M E N T S

The School of Business Administration atOakland University is seeking to fill a positionin International Business at the Assistant

Professor level starting in 2002-03.

Qualified applicants should have a Ph.D. inInternational Business or an equivalent degree. Inaddition, a significant interest in a functional area ofbusiness, a strong commitment to teaching preferablywith some teaching experience, and a clear researchagenda in international business and/or internationalaspects of a business functional area are required.

Candidates with greater teaching and/or researchexperience may be considered for a senior Assistant oruntenured Associate level appointment. Successfulcandidates should be able to help shape the growinginternational business emphasis within the MBA andcontribute to the unique international and informationtechnology foci of the school’s graduate business pro-grams. The normal teaching load is five classes peracademic year. Class sizes are moderate. Researchactivity is supported and expected. Summer researchsupport or teaching is readily available. Salary is com-petitive with excellent fringe benefits.The undergraduate and MBA programs within the

School of Business Administration are AACSB-accredited. The school has 1,950 undergraduate and550 masters students. Oakland University is a state-supported institution located in Rochester, Michigan.With about 16,000 students, it has a wide range ofmajors in the arts, sciences, engineering, health servic-es, and business.

For more information about the School of BusinessAdministration see www.sba.oakland.edu .

Send letter of application and vita to: Ravi Parameswaran, Chair, IB Recruitment Committee,School of Business Administration, Oakland University,

Rochester, MI 48309-4401 (tel: 248 370-3299)

The Committee will begin reviewing the applications onNovember 1, 2001 and the search process will be open untila suitable candidate is found. Oakland University is an affir-mative action/equal employment opportunity employer and

encourages applications from women and minorities

Assistant Professor ofInternational Business - Oakland

University

Global Corporate Finance, 5th Edition Suk Kim, Seung Kim, and Kenneth Kim

Blackwell Publishers, 2002

The fifth edition of Global Corporate Finance is suit-able for both undergraduate and graduate courses ininternational finance. This book may be used success-fully in college courses and in professional seminars allover the world, because it does not take a specificnational viewpoint, it is self-contained, and it combinestheory with applications. Global Corporate Finance,one of the most popular textbooks in the field, has beenused at over 200 colleges, universities, and managementdevelopment programs worldwide, because it stressespractical applications in a user-friendly format.

Global Corporate Finance provides students with thepractical skills needed to understand global financialproblems and techniques. The fifth edition of this distin-guished text has been completely revised in the areas ofshareholder value and corporate governance, globalstrategy, and corporate finance practices, while itsapproach is still grounded in readability, case studies,the basics, and user-friendliness.

The fifth edition of Global Corporate Finance isaccompanied by a highly extensive set of supplements.A comprehensive Instructor's Manual is available foradopters of this book from Blackwell Publishers. Andthe following textbook-related items are available on ourwebsite: a study guide, transparency masters of lecturenotes prepared by the authors, and currency symbols andcodes. Our website is an integral part of the fifth edition.In addition to providing useful information about thebook, our site will also direct visitors to World WideWeb sites in three related areas: international business,investments, and student needs. To help visitors use ourwebsite more effectively, we have developed 40 Internetexercises and posted them on our home page.

To obtain a copy of the book, please contact:Blackwell Publishers: ISBN 0-631-22951-5 (hardback)

PO Box 20Williston, VT 05495, USATel: (800) 216-2522Fax: (802) 864-7626

Blackwell Publishers: ISBN 0-631-22952-3 (paperback)PO Box 269, AbingdonOxon OX14 4YN, UKTel: +44(0)1235 465500Fax: +44(0)1235 465555


Applications must include a letter of application, résumé, and letters of referencesfrom at least three individuals. Applications must be received by December 15,

2001 for full consideration. The position will remain open until filled.

Loyola University is an Affirmative Action/Equal Opportunity Employer.Women and people from diverse racial, ethnic, cultural backgrounds are espe-

cially encouraged to apply.

Loyola University New OrleansCollege of Business Administration

Gerald N. Gaston Eminent Scholar Chair in International Business

The College of Business Administration seeks nominations and appli-cations for the Gerald N. Gaston Eminent Scholar Chair inInternational Business. The Gerald N. Gaston Eminent Scholar willsupport the College’s international business program by teaching andconducting research in international business. The person selected tohold the chair will be a highly qualified, eminent scholar with substan-tial research and instructional experience in international business. Itis also expected that the individual selected will have substantialunderstanding of the business world and the economies of LatinAmerica.

PositionDuties:

� Teach international businesscourses at both the undergraduateand graduate (MBA) levels.� Teach courses of interest notonly to majors in internationalbusiness but also of general inter-est to business majors and stu-dents from across campus.� Take a leadership role in estab-lishing an applied research agen-da with an emphasis on LatinAmerican business and econom-ic issues.� Forge relationships with corpo-rations and academic institutionsin Latin America.

� Seek external grant funding tosupport research.� Enable Loyola to play a majorrole in improving significantlyresearch about and the educationof students in international busi-ness.� Advise majors in internationalbusiness.� Provide assistance to the busi-ness community and local andstate government on dealing withcurrent international and LatinAmerican business and econom-ic issues.

Qualifications: Ph.D. required.

Terms ofAppointment:

Salary:

Tenure-track position. Date of appointment is negotiable.

Competitive.

University:

College ofBusiness:

Application &Nominations:

Loyola University New Orleans is a Jesuit university charteredin 1912. Located in uptown New Orleans, the University iscomposed of five colleges; Arts & Sciences, Business, CityCollege, Law, and Music, and enrolls approximately 5000 stu-dents.

The College is accredited by AACSB International, TheAssociation to Advance Collegiate Schools of Business.Approximately 800 undergraduate and graduate students areenrolled. The faculty consists of 34 full-time members. TheGaston Chair is one of four endowed Chairs in the College ofBusiness. Degrees offered include the BBA (economics,finance, international business, management and marketing),and the BAcc. (accounting). Graduate degrees include theMBA and MBA/JD.

Send applications and nominations to:

J. Patrick O’Brien, Dean Gerald N. Gaston Eminent Scholar Chair in International

Business Search CommitteeCollege of Business Administration

Loyola University Box 15New Orleans, LA 70118

e-mail: [email protected]

Ball State University seeks a visionary leader for the position ofAssistant Provost for International Education. The successful candi-date will be a major force in leading Ball State toward its goal ofbecoming a national model for all who seek intellectual vitality in alearner-centered and socially responsbile academic community. Thisperson will foster and realize a more international and diverse cur-riculum, faculty, student body, and campus.

Position Description: The Assistant Provost for InternationalEducation serves as the institution's primary international educationofficer. Reporting to the Provost and Vice President for AcademicAffairs, she or he provides leadership in all aspects of internationaleducation, including curriculum development, faculty development,recruitment, and retention of international programs. Reporting tothe Assistant Provost for International Education is the Director ofthe Center for International Programs.

The Assistant Provost will expand opportunities for the developmentof new exchange programs and will work with the colleges and deansto develop new international curricula and academic programs. He orshe will provide institutional leadership in the coordination of allinternational programs on campus (e.g., study abroad programs,exchange agreements, curriculum initiatives, and special projectsdirected toward internationalizing the institution), and in creation offaculty development opportunities and dissemination of facultydevelopment resources for international development. The AssistantProvost will have a major role in seeking external funding, partner-ships, and grants to provide support for international initiatives.Major responsibilities include: development of long-term and strate-gic plans for the growth of international programs and internationalstudents; creation of national visibility for the university in the inter-national educational arena; provision of leadership in the develop-ment of recruitment plans and in the recruitment of international stu-dents. She or he will be responsible for overseeing admission ofinternatinal students through the Center for International Programs.

Minimum Qualifications: A candidate must have an earned doc-torate and experience in international education. Preferred qualifica-tions include five or more years of experience in international admin-istration, experience in internatinal student recruitment and thedevelopment of recruitment programs. Salary is competitive andcommensurate with experience and qualifications.

The Institution and Setting: Ball State University is a state-assist-ed institution of higher education located in Muncie, Indiana, a cityof 70,000, approximately 50 miles northeast of Indianapolis. Theuniversity has an enrollment of 17,500 students and a full-time fac-ulty of 850. Although its primary concern is for the citizens ofIndiana, its programs appeal to regional, national, and internationalaudiences. A Carnegie Doctoral Intensive institution, Ball Stateoffers 155 undergraduate programs, 90 master's programs, and 14doctoral programs thorugh its 48 academic departments. The univer-sity values teaching and has a selective admissions policy. Primarilya residential acadmic community, it also supports programs thatreach students will beyond the immediate campus. Ball StateUniversity's operating budget for 2001-2002 will exceed $214 mil-lion and its endowment of $115 million.

The university's Strategic Plan and the information about its nation-ally ranked programs are available on the university Web site:http://www.bsu.edu.

Application Process: Applicants and nominees should send a letterof application, including statement of vision for international educa-tion, and curriculum vitae along with names and contact informationof five professional references to the address below. Review of appli-cation materials will being February 1, 2002, and will continue untilthe position is filled. Appointment will begin July 1, 2001.

Ball State University is an equal opportunity, affirmative actionemployer and is strongly and actively committed to diversity withinits community.

Professor Brian R. SinclairChairperson, Assistant Provost for International EducationSearch CommitteeOffice of the Associate ProvostBall State UniversityMuncie, IN 47306

Ball State University

34 � AIB Newsletter - Fourth Quarter 2001 I n s t i t u t i o n a l F o r m

Terms of Membership: For an annual fee of US$1,000, a school may designate two faculty members to receive AIB membershipand two to receive registration at the AIB’s Annual Meeting. A Ph.D. candidate may also be nominated to receive membershipand meeting registration provided that he or she applies to attend the Doctoral Consortium. Each participating institution will berecognized once a year in both the AIB Newsletter and the Annual Meeting Program.

AIB INSTITUTIONAL MEMBERSHIP APPLICATIONA C A D E M Y O F I N T E R N A T I O N A L B U S I N E S S

INSTITUTION’S CONTACT INFORMATION Please type or print clearly and remit payment with form.

NAMES OF NOMINEES

- Please write the names of the individuals at your institution

who will receive the benefits listed below.

- Attach a copy of the “Individual Membership” form on the next

page for each person nominated.

- Check off the box for “Institutional Nominee” on the form.

MEMBERSHIP #1FIRST NAME INITIAL FAMILY NAME

POSITION/TITLE FAX NUMBER

E-MAIL

MEMBERSHIP #2FIRST NAME INITIAL FAMILY NAME


E-MAIL

Our institution nominates the following two individuals toattend the AIB’s Annual Meeting in San Juan, Puerto Ricoon June 28 - July 1, 2002.

REGISTRATION #1 (name only if same as #1 above)FIRST NAME INITIAL FAMILY NAME


E-MAIL

REGISTRATION #2 (name only if same as #2 above)FIRST NAME INITIAL FAMILY NAME


E-MAIL

Ph.D. Nominee (Membership and 2002 Registration Fee)FIRST NAME INITIAL FAMILY NAME


E-MAIL

FIRST NAME INITIAL FAMILY NAME

POSITION TITLE ORGANIZATION

STREET ADDRESS LINE 1

STREET ADDRESS LINE 2

CITY STATE COUNTRY POSTAL CODE

TELEPHONE FAX

E-MAIL PERSONAL WEB PAGE

Make cheques payable to the Academy of International Business.Applicants outside the US must pay by credit card or remit funds by meansof an international money order denominated in US dollars or by a checkdrawn upon a US bank. Foreign cheques must have micro-encoded bankinginformation, including the ABA routing number at the bottom of the cheque,a US bank address and have the US dollar amount imprinted on them. Theregular annual membership dues of $85 and the Student and Low-incomeannual membership of $45 in the Academy of International Business bothinclude $40 for a one-year subscription to the Journal of InternationalBusiness Studies. (Federal Employer ID #23-7442958).

You must return this form (or a copy) with your payment to ensureproper recording. (Return by May 15 for the current meeting.)

AMOUNT PAID: $ _________ (Dues for _____ years)

METHOD OF PAYMENT:❑ Cheque (No.: __________ Date: __________)❑ Credit Card (Circle: MasterCard / VISA / AMEX / Diners / Discover)

Credit Card Number

Expiration Date: _____/_______ (Month/Year)

Signature (if credit card payment)

MAIL TO: Academy of International BusinessUniversity of Hawai`i at Manoa - CBA2404 Maile Way (C-306)Honolulu, HI 96822-2223 USA

FAX TO: (808) 956-3261

AIB Newsletter - Fourth Quarter 2001� 35D i s c i p l i n e C o d e s

Please fill in your discipline and researchinterests in the boxes to the right and onthe reverse side. Refer to the list below todetermine the appropriate codes.

Disciplines: / (also write codes on reverse side)

Research Interests: / / / /

DISCIPLINE & RESEARCH INTERESTCODES

A. ECONOMICSA1 INTERNATIONAL TRADEA2 THEORY OF FDI AND THE MNEA3 INDUSTRIAL ORGANIZATIONA4 TRANSACTION COST ECONOMICSA5 ECONOMIC DEVELOPMENTA6 ECONOMIC INTEGRATIONA7 ECONOMICS OF INNOVATION & TECHNOLOGICAL TRANSFERA8 OTHER . . . . . . . .

B. FINANCEB1 COST OF CAPITAL & FINANCIAL STRUCTUREB2 CAPITAL BUDGETINGB3 INTERNATIONAL FINANCIAL MARKETSB4 FOREIGN EXCHANGE MANAGEMENTB5 INVESTMENT APPRAISALB6 TRANSFER PRICING ISSUESB7 OTHER . . . . . . . .

C. ACCOUNTING & TAXATIONC1 COMPARATIVE ACCOUNTING SYSTEMS & PRACTICESC2 INTERNATIONAL FINANCIAL REPORTINGC3 MEASUREMENT ISSUES (E.G., CURRENCY TRANSLATION, INFLATION

EFFECTS)C4 INTERNATIONAL MANAGEMENT ACCOUNTINGC5 PERFORMANCE EVALUATION & CONTROLC6 AUDITINGC7 INTERNATIONAL TAXATIONC8 OTHER . . . . . . . .

D. ORGANIZATIOND1 ORGANIZATIONAL STRUCTURED2 THE SOCIOLOGY OF ORGANIZATIONSD3 DECISION-TAKING STRUCTURES, HQ-SUBSIDIARY RELATIONSD4 INTER-FIRM ORGANIZATIONS (JV, ALLIANCES, NETWORKING)D5 COMPARATIVE ORGANIZATIONAL STUDIESD6 OTHER . . . . . . . .

E. MANAGEMENTE1 COMPARATIVE MANAGEMENTE2 CROSS-CULTURAL MANAGEMENTE3 MANAGEMENT & INFORMATION SYSTEMS (PLANNING, STRATEGY,

CONTROL, INFORMATION)E4 MANAGEMENT OF TECHNOLOGYE5 PRODUCTION/SOURCING OPERATIONS MANAGEMENTE6 MANAGEMENT OF RISKE7 ENTREPRENEURSHIPE8 OTHER . . . . . . . .

F. BUSINESS POLICYF1 BUSINESS STRATEGYF2 BUSINESS/GOVERNMENT INTERACTIONF3 BUSINESS & THE ENVIRONMENTF4 BUSINESS POLICY & DEVELOPING COUNTRIESF5 GLOBAL COMPETITION & MARKETSF6 OTHER . . . . . . . .

G. MARKETINGG1 COMPARATIVE MARKETINGG2 INTERNATIONAL MARKETING MANAGEMENT & STRATEGYG3 CROSS-NATIONAL CONSUMER & INDUSTRIAL BEHAVIORG4 INT’L PRODUCT/PROM/PRICING/DIST STRATEGYG5 EXPORT/IMPORT: FOREIGN MARKET ENTRY MODESG6 OTHER . . . . . . . .

H. HUMAN RESOURCES & INDUSTRIAL RELATIONSH1 HUMAN RESOURCES (INCL PERSONNEL) MANAGEMENTH2 COMPARATIVE IR SYSTEMSH3 DISPUTE RESOLUTIONH4 LABOR/MANAGEMENT ISSUES (INCL WAGE NEGOTIATIONS)H5 EMPLOYMENT EFFECTS OF FDI & MNE ACTIVITYH6 RECRUITING & TRAINING ISSUESH7 OTHER . . . . . . . .

DISCIPLINE & RESEARCH INTERESTCODES

I. LAWI1 LAW OF CONTRACTI2 INTERNATIONAL PROPERTY LAWI3 EXTRA-TERRITORIALITYI4 FOREIGN INVESTMENT LAWSI5 INVESTMENT GUARANTEES & DISPUTE SETTLEMENTSI6 NEGOTIATION & BARGAINING PROCEDURESI7 INT’L TRADE LAW & INT’L ORGANIZATIONSI8 CODES OF CONDUCTI9 OTHER . . . . . . . .

J. INTERNATIONAL RELATIONS AND POLITICAL SCIENCEJ1 POLITICAL RISK ASSESSMENT & MANAGEMENTJ2 INTER-GOVERNMENT RELATIONSJ3 ISSUES OF SOVEREIGNTY, HEGEMONY & DEPENDENCEJ4 POLITICAL ASPECTS OF MNE ACTIVITY, BUREAUCRACIESJ5 MNES & DISTRIBUTION POWERJ6 PRESSURE GROUPS, PUBLIC AFFAIRS, PUBLIC OPINIONJ7 OTHER . . . . . . . .

K. SOCIAL ISSUESK1 ENVIRONMENT & POLLUTIONK2 CONSUMER PROTECTIONK3 INCOME DISTRIBUTIONK4 SOUTH AFRICAK5 CULTURAL IMPACT OF MNESK6 OTHER . . . . . . . .

L. ECONOMIC & BUSINESS HISTORYL1 ECONOMIC HISTORYL2 BUSINESS HISTORY (GENERAL)L3 BUSINESS HISTORY (COMPANY SPECIFIC)L4 HISTORY OF FDI & THE MNEL5 OTHER . . . . . . . .

M. COUNTRY OR AREA STUDYM1 NORTH AMERICAM2 LATIN AMERICAM3 EUROPEM4 JAPANM5 OTHER ASIA & PACIFICM6 AFRICA & MIDDLE EAST

(IF INTEREST IN COMPARATIVE STUDIES, PLEASE INDICATE HERE BYINDICATING 2 OR MORE AREAS, E.G., NORTH AMER/JAPAN AS M1/4)

M7 OTHER . . . . . . . .

N. INDUSTRY/SECTORIAL STUDYN1 PRIMARYN2 SECONDARYN3 SERVICE (IF INTERESTED IN PARTICULAR SECTORS, E.G., PHARMA-

CEUTICAL, BANKING, PLEASE STATE)N4 ELECTRONIC COMMERCE

O. POLICY-ORIENTED STUDYO1 COST-BENEFIT ANALYSISO2 FOREIGN DIRECT INVESTMENT POLICYO3 INVESTMENT INCENTIVESO4 PERFORMANCE REQUIREMENTSO5 NATIONALIZATION, EXPROPRIATION, ETC.O6 OTHER . . . . . . . .

P. EDUCATION & IBP1 PEDAGOGIC ISSUESP2 CURRICULA & SYLLABIP3 EDUCATION & IBP4 RESEARCH METHODOLOGY IN IBP5 CASE STUDIESP6 TEACHER TRAINING IN IBP7 OTHER . . . . . . . .

Q. RESEARCH AREAS NOT COVERED BY GROUPINGSQ1Q2 . . . . . . . . . . . .

36 � AIB Newsletter - Fourth Quarter 2001 M E M B E R S H I P F O R M

AIB MEMBERSHIP APPLICATIONA C A D E M Y O F I N T E R N A T I O N A L B U S I N E S S

Action(s): ❑ New Membership ❑ Renewal ❑ Address Correction

Type of Membership: ❑ Regular - $85 ❑ Student - $45 ❑ Low Income - $45*

❑ Current member sponsoring dues for new member

Please print clearly or type and remit payment with form.Family (or Last) Name First Name Middle Initial ❑ Add your name to the WAIB (Women in the AIB)

Street Address

City State Country Postal Code

Telephone Fax

E-mail Personal Web Page

Position/Title Organization

Highest Degree Alma Mater

Disciplines Research Interests See Research Codes on the back of thispage, or under the Membership link on our

Web site at http://www.aibworld.net

Make cheques payable to the Academy of International Business. Overpayments will be processed as giftsto the AIB Foundation and/or the Adopt-A-Library program and acknowledged in the AIB Newsletter. Applicantsoutside the US are requested to pay by credit card or to remit funds by means of International money orderdenominated in US dollars or by check drawn upon a US bank. Foreign cheques must have micro-encodedbanking information, including the ABA routing number at the bottom of the cheque, a US bank address andhave the US dollar amount imprinted on them. The regular annual membership dues of $85 and the Studentand Low-income annual membership of $45 in the Academy of International Business both include $40 for aone-year subscription to the Journal of International Business Studies. Federal Employer ID #23-7442958

FOR OFFICE USE:

AMOUNT:__________

NAME:____________

DEP.#: ____________

CHECK#: __________

DATE: ____________

AREA: ____________

REGION: _________ _

AMOUNT PAID: $___________ (Dues for _________ years)

Method of Payment:

❑ Cheque (No.: ______________ Date: ______________)

❑ Credit Card (Circle One: MasterCard / VISA / AMEX / Diners / Discover)

_______________________________________________________________Credit Card Number

Expiration Date: ______ / _______ (Month/Year) ___________

_______________________________________________________________Signature (If Credit Card payment)

You must return this form (or a copy) withyour payment to assure proper recording.

MAIL TO:Academy of International BusinessUniversity of Hawaii at Manoa - CBA2404 Maile Way (C-306)Honolulu, HI 96822-2223 USA

FAX TO: (808) 956-3261

* Low income memberships are offered to individualswith gross annual incomes below US$25,000.** Electronic Membership is available only to membersin developing countries who qualify for low income.

____________________________________Your Name and ID Number (if sponsoring new member below)

❑ Electronic - $25** (DevelopingCountries - Web access to JIBS &Directory, etc. No print materials)

Documents

AIB Newsletter - vol. 7, no. 4 - 2001 Q4...L e t t e r f r o m t h e P r e s i d e n t Dear Colleagues, The 2001 Annual Meeting in Sydney was an out-standing success. It was attended