Transcript Slide 1

Today, virtually every
country in the world is
affected by what happens
in other countries. Some
Dr. Poorna Pal
inviting YOU to
of these effects result from
apply for the
Busad-170
political events. But a great
(Introduction to
International
deal of interdependence
Business) class at
Glendale Commuamong nations
nity College
is economic in
nature, based on the production
and trading of goods and
services.
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.
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.
10
8
6
4
2
0
-2
1950-60 1960-70 1970-80 1980-90 1990-00 2000-07
2001
2002
Volume of total ex ports
2003
2004
2005
2006
2007
GDP
Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm
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.
17.4
European Union
15.2
United States
10.4
China
6.4
Japan
3.9
Canada
Korea, Republic of
3.5
Hong Kong, China
3.4
Mexico
2.7
Singapore
2.7
U.S. holds the
largest share of
world merchandise
trade.
2.2
Taipei, Chinese
India
1.7
Sw itzerland
1.6
Saudi Arabia
1.5
Malaysia
1.5
Australia
1.5
18.2
Other Members
0
5
10
15
20
25
30
35
Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm
12.4
United States
United Kingdom
7.3
Germany
7.2
Japan
4.3
France
4.1
China
3.9
Italy
3.6
Spain
3.6
Ireland
2.9
Netherlands
2.7
India
2.6
Belgium
2.3
Korea, Republic of
2.3
Canada
2.2
Singapore
2.2
U.S. also holds
the largest share of
world trade in
commercial
services.
32.9
Other Members
0
5
10
15
20
25
30
35
Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm
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
World FDI
2009
Stock
Flow
Stock
Flow
Stock
Flow
Stock
207697
2081782
1401466
7442548
1114189
17743408
100.0%
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%
-78
9207
887
43451
5696
125085
0.7%
5286
54444
61620
412229
2.3%
World
Developing economies
South Africa
Commonwealth of Independent States
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%
104415
807253
724878
2440336
378388
8037813
45.3%
1943
14326
15280
72878
15831
271399
1.5%
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%
Developed economies: Europe
Developed economies: Asia
United States
This course on International Business will help
you understand the global economic developments and trends, and learn about the ways
businesses adapt to them.
This matters to you because
the economic future of a diverse and multicultural 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.
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.
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
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:
• 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 explain and distinguish
among the different organizations and institutions This
includes: IMF, UN, WTO and GATT, OECD, NATO, OPEC.
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.
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.
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
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 13. Ecological challenges for
10. Supply chains
business and society
11. Finance and accounting
14. Corporate social responsibility
12. Innovation and strategy
15. Global governance
Schedule of lectures and tests