Busad-170

1. Busad-170 Spring 2011 1st 8 weeks: Feb 14 - Apr 9, 2011 Introduction to International Business 3-units, 6:55-10:05 pm, CR-137 Poorna Pal MS MBA PhD

2. Today, virtually every country in the world is affected by what happens in other countries. Some of these effects result from political events. But a great deal of interdependence among nations is economic in nature, based on theproduction and trading of goods and services. Dr. Poorna Pal invitingYOU to apply for the Busad-170 (Introduction to International Business) class at Glendale Commu-nity College

3. The course has no prerequisites, as the primary objective here is to provide you with an introduction to the world economy that will help you be an effective manager in business – whether or not you actually work in a global corporation. You will therefore need to not only be up-to-date with all the current developments worldwide but should be also able to analyze and examine how they affect your daily life. The course will seek to both explain the theoretical and conceptual dimensions of international business and explore the ways international business concepts effect the operations of both large and small businesses as also the employability and quality of life at the individual level.

4. Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm International trade holds the key to economic prosperity. Notice how, worldwide, the annual changes in gross domestic product have moved in tandem with those in the volume of world merchandise exports.

5. The U.S. is the largest trading nation in the world, exporting and importing more goods and services than any other country. Some people worry that such extensive levels of international trade may have hurt the U.S. economy. But the data show otherwise. • Overall, all the trading partners gain, total level of production and consumption in the world rises, the costs of production and the prices that consumers pay decreases, and the standards of living increase.

6. U.S. holds the largest share of world merchandise trade. Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm

7. U.S. also holds the largest share of world trade in commercial services. Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm

8. Above all, U.S. is the single most important destination for world’s investments. Major FDI indicators (WIR 2010) % of 2009 US Dollars at current prices and current exchange rates in millions 1990 2000 2009 World FDI Flow Stock Flow Stock Flow Stock Stock World 207697 2081782 1401466 7442548 1114189 17743408 100.0% Developing economies 35096 524526 256465 1728455 478349 4893490 27.6% China: 3487 20691 40715 193348 95000 473083 2.7% India: 237 1657 3588 16339 34613 163959 0.9% Brazil 989 37143 32779 122250 25949 400808 2.3% Mexico 2633 22424 18098 97170 12522 309523 1.7% South Africa -78 9207 887 43451 5696 125085 0.7% Commonwealth of Independent States 5286 54444 61620 412229 2.3% Developed economies 172526 1555605 1137976 5653181 565892 12352514 69.6% Euro area 62934 532039 501755 1620467 276181 5146806 29.0% European Union (EU) 97309 760208 698224 2322127 361949 7447904 42.0% Developed economies: Europe 104415 807253 724878 2440336 378388 8037813 45.3% Developed economies: Asia 1943 14326 15280 72878 15831 271399 1.5% United States 48422 539601 313997 2783235 129883 3120583 17.6% Developed economies: America 56004 652444 380859 2996215 148753 3648577 20.6% Developed economies: Oceania 10164 81582 16959 143752 22920 394724 2.2% http://stats.unctad.org/FDI/TableViewer/tableView.aspx

9. This course on International Business will help you understand the global economic develop-ments and trends, and learn about the ways businesses adapt to them. • This matters to you because • the economic future of a diverse and multi-cultural region like Southern California depends on how well we harness them to our advantage; and • your own employability and quality of life increasingly depend on how well you adapt to them, no matter what your professional choices, goals and objectives.

10. About the Course • This course is designed for non-business majors as well as majors. Business is global. Therefore, an understanding of the global economy has become a foundation for nearly all business activity. • The course is structured to provide a basic, integrated understanding of the complexity of the international business environment and the challenges it poses for businesses which are engaged in cross-border activities. The course introduces concepts and processes of global trade and foreign direct investment, the international monetary system, regional economic integration and foreign exchange markets. • In a global economy it is especially important to study differences between countries and understand how these differences are linked to the various strategic choices businesses adopt in order to compete internationally. Therefore, this course puts a special emphasis on national differences. By the end of the course, students will enhance their ability to understand and explain international business practices.

11. Course Objectives In today’s global economy, business people must understand the relationships, institutions, and environment that underlie international commerce. The primary objective of IB 320F is to provide an introduction to the global economy that will help you be effective in business – whether you actually work in a global corporation or not. I hope it will also help you to be an educated citizen, understanding the major issues impacting government policy and globalization. The topics in the class have been selected to address both theoretical and practical dimensions of the global economy. The following are the specific objectives, therefore. • The students will recall and be able to define the basic tools to understand the global economy and the business environments. These tools include: • theories related to international trade and investment • major indicators of global business activity • knowledge of the major organizations which influence international trade • differing legal systems, economic systems, political systems and economic philosophies • cultural forces including what the theory has to say, language, and communications

12. Course Objectives (continued) • The students will recognize and be able to define basic international business concepts. • The students will be able describe and explain current global business environment. This knowledge base includes: • The students will be able to explain and distinguish among the different organizations and institutions This includes: IMF, UN, WTO and GATT, OECD, NATO, OPEC. • Global and regional impacts of the current economic melt-down • continuing globalization and its impact on the economy, both positive and negative • European expansion and general economic integration, • world trading blocs (EU, NAFTA, CAFTA, MERCOSUR), • the expansion of emerging markets – particularly in China and India, and the growing importance of developing countries in the global economy • The students will be able to develop an understanding of the evolution of the global monetary system and the resulting mechanisms and factors that influence currency exchange rates.

13. Course Objectives (continued) • The students will be able to explain the understanding that global interdependence as a compelling factor in the global business environment, which is creating demands on international managers to take a positive stance on issues of social responsibility, economic development, and ethical behavior. • The students will develop an understanding that much of today’s trade takes place in a global environment The majority of trade is within three regional free-trade blocs (Western Europe, Asia, and North America), called the TRIAD market, and grouped around the three dominant currencies (the euro, the yen, and the dollar). • The student will develop the knowledge and understanding of the unique aspects and problems involved in international business. This is will only help to serve in honing in particular skills. • The students will develop an understanding of the theory, and read the real life application of this concept. • The students will develop throughout the course, the ability to analyze and do critical thinking using IB terminology through class discussions and questions. This will lead to the development a strong knowledge base which you will use to keep abreast of the many changes that will occur in global business during your life and professional career.

14. 1. The business enterprise in the international environment 2.. Perspectives on globalization 3. The economic environment 4. The cultural environment 5. The political and legal environment 6. International trade and regional integration 7. Strategy and organization 8. Marketing 9. Human resource management 10. Supply chains 11. Finance and accounting 12. Innovation and strategy 13. Ecological challenges for business and society 14. Corporate social responsibility 15. Global governance The class Textbook: International Business Challenges in a Changing World by Janet Morrison Palgrave Macmillan, December 2008 ISBN: 978-1-4039-4563-1, ISBN10: 1-4039-4563-2

15. Schedule of lectures and tests