HONORS INTERNATIONAL HONORS INTERNATIONAL BUSINESSBUSINESS

Presented By: Cindy YinglingPresented By: Cindy YinglingBusiness, Computer, and Information Business, Computer, and Information

Technology DepartmentTechnology Department

Honors International BusinessHonors International BusinessSemester/Full TimeSemester/Full Time Honors Wt.Honors Wt.

Grades 11, 12Grades 11, 12 Credit .5Credit .5Honors International Business will provide an up-to-date and Honors International Business will provide an up-to-date and complete exploration of international business issues and complete exploration of international business issues and practice. With a strong foundation of international business practice. With a strong foundation of international business theory, this course will include current examples, cases and theory, this course will include current examples, cases and insights showing how global businesses apply these concepts. insights showing how global businesses apply these concepts. Controversies in international business will be reflected upon, as Controversies in international business will be reflected upon, as will the impact of international business practices on countries, will the impact of international business practices on countries, corporations and individuals. The course will examine the role corporations and individuals. The course will examine the role and impact of culture and also includes the exploration of and impact of culture and also includes the exploration of numerous current world maps; helping students develop and numerous current world maps; helping students develop and refine a global perspective. This course adopts a truly global refine a global perspective. This course adopts a truly global approach with attention given to topics that are critical to the approach with attention given to topics that are critical to the international manager in the global business environment. Any international manager in the global business environment. Any student planning further study in International Business or student planning further study in International Business or Business in general or who has an interest in this topic will Business in general or who has an interest in this topic will benefit greatly from this course. benefit greatly from this course.

Criteria for Selection -Criteria for Selection -‘‘B’ or better in prior Social Studies Course.B’ or better in prior Social Studies Course.

Honors International BusinessHonors International Business

TEXTBOOK SELECTIONTEXTBOOK SELECTION• Global Business, 1Global Business, 1stst Edition Edition

2009 copyright2009 copyright Mike Peng Mike Peng - University of Texas at Dallas- University of Texas at Dallas

Honors International BusinessHonors International Business(Outline)(Outline)

I. Globalizing BusinessI. Globalizing Business• International Business and Global BusinessInternational Business and Global Business• Why Study Global Business?Why Study Global Business?• A Unified FrameworkA Unified Framework

One Fundamental QuestionOne Fundamental Question An Institution-Based ViewAn Institution-Based View A Resource-Based ViewA Resource-Based View

• What Is Globalization?What Is Globalization? Three Views of GlobalizationThree Views of Globalization The Pendulum View of GlobalizationThe Pendulum View of Globalization SemiglobalizationSemiglobalization

• Global Business and Globalization at a CrossroadsGlobal Business and Globalization at a Crossroads A Glance of the World Economy (GDP, GNP/GNI)A Glance of the World Economy (GDP, GNP/GNI) The Globalization Debate and YouThe Globalization Debate and You

II. Understanding Formal Institutions: Politics, II. Understanding Formal Institutions: Politics, Laws, and Laws, and EconomicsEconomics• Formal and Information InstitutionsFormal and Information Institutions• What do Institutions DoWhat do Institutions Do• An Institution-based View of Global BuisnessAn Institution-based View of Global Buisness• Two Political SystemsTwo Political Systems

DemocracyDemocracy TotalitarianismTotalitarianism Political RiskPolitical Risk

• Three Legal SystemsThree Legal Systems Civil Law, Common Law, and Theocratic LawCivil Law, Common Law, and Theocratic Law Property RightsProperty Rights Intellectual Property RightsIntellectual Property Rights

• Three Economic SystemsThree Economic Systems• Debates and ExtensionsDebates and Extensions• Management SavvyManagement Savvy

III. Emphasizing Informal Institutions: Cultures, III. Emphasizing Informal Institutions: Cultures, Ethics, and NormsEthics, and Norms• Where Do Informal Institutions Come From?Where Do Informal Institutions Come From?• CultureCulture

Definition of CultureDefinition of Culture LanguageLanguage ReligionReligion

• Classifying Cultural DifferencesClassifying Cultural Differences The Context ApproachThe Context Approach The Cluster ApproachThe Cluster Approach The Dimension ApproachThe Dimension Approach Culture and Global BusinessCulture and Global Business

• EthicsEthics Definition and Impact of EthicsDefinition and Impact of Ethics Managing Ethics OverseasManaging Ethics Overseas Ethics and CorruptionEthics and Corruption

• Norms and Ethical ChallengesNorms and Ethical Challenges• Debates and Extensions/Management SavvyDebates and Extensions/Management Savvy

IV. Leveraging Resources and CapabilitiesIV. Leveraging Resources and Capabilities• Understanding Resources and CapabilitiesUnderstanding Resources and Capabilities• Analyzing the Value Chain: In-house versus Analyzing the Value Chain: In-house versus

OutsourceOutsource• Analyzing Resources and Capabilities with a VRIO Analyzing Resources and Capabilities with a VRIO

FrameworkFramework The Question of ValueThe Question of Value The Question of RarityThe Question of Rarity The Question of ImitabilityThe Question of Imitability The Question of OrganizationThe Question of Organization

• Debates and Extensions/Management SavvyDebates and Extensions/Management Savvy

V. Trading InternationallyV. Trading Internationally• Why Do Nations Trade?Why Do Nations Trade?• Theories of International TradeTheories of International Trade

MercantilismMercantilism Absolute AdvantageAbsolute Advantage Comparative AdvantageComparative Advantage Product Life CycleProduct Life Cycle Strategic TradeStrategic Trade National Competitive Advantage of IndustriesNational Competitive Advantage of Industries Evaluating Theories of International TradeEvaluating Theories of International Trade

• Realities of International TradeRealities of International Trade Tariff BarriersTariff Barriers Nontariff Barriers (NTBs)Nontariff Barriers (NTBs) Economic Arguments against Free TradeEconomic Arguments against Free Trade Political Arguments against Free TradePolitical Arguments against Free Trade

• Debates and Extensions/Management SavvyDebates and Extensions/Management Savvy

VI. Investing Abroad DirectlyVI. Investing Abroad Directly• Understanding the FDI VocabularyUnderstanding the FDI Vocabulary

The Key Word is DThe Key Word is D Horizontal and Vertical FDIHorizontal and Vertical FDI FDI Flow and StockFDI Flow and Stock MNE versus non-MNEMNE versus non-MNE

• Why Do Firms Become MNEs By Engaging in FDI?Why Do Firms Become MNEs By Engaging in FDI?• Ownership AdvantagesOwnership Advantages

The Benefits of Direct OwnershipThe Benefits of Direct Ownership FDI versus LicensingFDI versus Licensing

• Location AdvantagesLocation Advantages Acquiring and Neutralizing Location AdvantagesAcquiring and Neutralizing Location Advantages

• Internalization AdvantagesInternalization Advantages Market Failure/Overcoming Market Failure through FDIMarket Failure/Overcoming Market Failure through FDI

• Realities of FDIRealities of FDI Political Views on FDIPolitical Views on FDI Benefits and Costs of FDI to Host/Home CountriesBenefits and Costs of FDI to Host/Home Countries

• How MNEs and Host Governments BargainHow MNEs and Host Governments Bargain• Debates and Extensions/Management SavvyDebates and Extensions/Management Savvy

VII. Dealing with Foreign ExchangeVII. Dealing with Foreign Exchange• Factors Behind Foreign Exchange RatesFactors Behind Foreign Exchange Rates

Basic Supply and DemandBasic Supply and Demand Relative Price Differences and Purchasing Power ParityRelative Price Differences and Purchasing Power Parity Interest Rates and Money SupplyInterest Rates and Money Supply Productivity and Balance of PaymentsProductivity and Balance of Payments Exchange Rate PoliciesExchange Rate Policies Investor PsychologyInvestor Psychology

• Evolution of the International Monetary SystemEvolution of the International Monetary System The Gold Standard (1870-1914)The Gold Standard (1870-1914) The Bretton Woods System (1944-1973)The Bretton Woods System (1944-1973) The Post-Bretton Woods System (1972-present)The Post-Bretton Woods System (1972-present) The International Monetary Fund (IMF)The International Monetary Fund (IMF)

• Strategic Responses to Foreign Exchange Strategic Responses to Foreign Exchange MovementsMovements Strategies for Financial/Non-Financial CompaniesStrategies for Financial/Non-Financial Companies

• Debates and Extensions/Management SavvyDebates and Extensions/Management Savvy

VIII. Capitalizing on Global and Regional VIII. Capitalizing on Global and Regional IntegrationIntegration• Global Economic IntegrationGlobal Economic Integration

Political/Economic Benefits for Global Economic Political/Economic Benefits for Global Economic IntegrationIntegration

• General Agreement on Tariffs and Trade: 1948-General Agreement on Tariffs and Trade: 1948-19941994

• World Trade Organization: 1995-presentWorld Trade Organization: 1995-present Trade Dispute SettlementTrade Dispute Settlement The Doha Round: The “Doha Development Agenda”The Doha Round: The “Doha Development Agenda”

• Five Types of Regional Economic IntegrationFive Types of Regional Economic Integration Pros and Cons for Regional Economic IntegrationPros and Cons for Regional Economic Integration

• Regional Economic Integration in EuropeRegional Economic Integration in Europe Origin and EvolutionOrigin and Evolution The EU TodayThe EU Today The EU’s ChallengesThe EU’s Challenges

• Regional Economic Integration in the AmericasRegional Economic Integration in the Americas North American Free Trade Agreement (NAFTA)North American Free Trade Agreement (NAFTA) Andean Community, Mercosur, FTAA, and CAFTAAndean Community, Mercosur, FTAA, and CAFTA

VIII. Capitalizing on Global and Regional VIII. Capitalizing on Global and Regional Integration (con’t.)Integration (con’t.)• Regional Economic Integration in Asia PacificRegional Economic Integration in Asia Pacific

Australia-Ne Zealand Closer Economic Relations Trade Australia-Ne Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER)Agreement (ANZCERTA or CER)

Association of Southeastern Asian Nations (ASEAN)Association of Southeastern Asian Nations (ASEAN) Asia-Pacific Economic Cooperation (APEC)Asia-Pacific Economic Cooperation (APEC)

• Regional Economic Integration in AfricaRegional Economic Integration in Africa• Debates and Extensions/Management SavvyDebates and Extensions/Management Savvy

Honors International BusinessHonors International Business Course DeliveryCourse Delivery

• Textbook Chapters and Notes/PowerPoint'sTextbook Chapters and Notes/PowerPoint's• Chapter Reviews and TestsChapter Reviews and Tests• Case Studies (approx. 3 per Chapter)Case Studies (approx. 3 per Chapter)• Current EventsCurrent Events• Videos/SpeakersVideos/Speakers• Internet Research Activities (Enhance Content)Internet Research Activities (Enhance Content)• Country Research and Final PresentationCountry Research and Final Presentation

Class Website:Class Website:

http://teachers.northallegheny.org/cyingling/intl/index.htmhttp://teachers.northallegheny.org/cyingling/intl/index.htmll

HONORS INTERNATIONAL HONORS INTERNATIONAL BUSINESSBUSINESS

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