BUSS2067 - Lecture 1 - Fundamentals of International Business
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The document outlines the syllabus for an international business course, including an introduction to fundamental concepts, trade and GDP trends, and risks associated with internationalization. It details the teaching format, assessments, and provides discussion prompts regarding current economic issues and case studies, specifically referencing the Asian financial crisis and the brand Diesel Jeans. Students are encouraged to collaborate in small groups and utilize various resources to enhance their learning experience.
BUSS2067 - Lecture 1 - Fundamentals of International Business
- 1. Lecture 1 Fundamentals of International Business Lecturer: Dr. Preston Teeter BUSS 2067 International Business Environment
- 2. Before we start: 1) Phones/electronics: silent, off, and away! 2) Say hello to the people around you; you need a small group to discuss questions (online: consult textbook) BUSS 2067 International Business Environment
- 3. Outline • Course introduction • Trade and GDP • Risks of internationalization • IB participants
- 5. Topics covered 1. Fundamentals of IB (today) 2. Globalization and internationalization 3. Participants in IB 4. Cultural environment of IB 5. International trade and investment 6. Political environment 7. Emerging markets 8. Global strategic structure 9. International entry strategy 10. Global sourcing and HRM
- 6. Teaching format • Lecture 1. Short case/problem 2. Group discussion (online: consult text) 3. Class discussion 4. Link to concepts in text 5. Go beyond the text • Tutorial 1. Review of text material 2. Case discussion • In groups • As a class 3. Work on major assignment
- 7. Textbook • Cavusgil, et al. 2015, International Business, 2nd Ed., Pearson, Australia • e-book
- 8. Assessment • 40%: Case study report • 60%: Final exam – All topics covered (lecture + text + cases) – True/false, multiple choice, open ended, case analysis – 3 hours, closed book
- 9. Support • Tutorials (VCs)/tutors • IB page • Assignment help page • Discussion forum (learnonline) • Sample exam (learn online) • Lecture recordings • Consultation: 10-11am, Tues/Wed (WL3-36)
- 10. TRADE AND GDP
- 11. Trade and GDP Recently, there has been much debate, on a global scale, about the trends, benefits, and consequences associated with international trade. In addition, debate simmers as to whether living standards are even rising these days. Consider the following articles…
- 16. Trade and GDP So this all ‘begs the questions’: 1) What are the real trends in trade? Globally and in Australia? 2) What are the real trends in GDP? Globally and in Australia? 3) Do the benefits of international trade outweigh the problems? Please discuss in small groups, or, if online, consult your textbook and other sources. We will reconvene in 4 minutes to discuss as a class.
- 31. Risks of internationalization In the mid to late 1990s, foreign investment poured into Southeast Asia, particularly the economies of Thailand, South Korea, Indonesia, and the Philippines. By 1997, however, a financial crisis gripped this region, a crisis that raised fears of a worldwide economic meltdown due to financial contagion. Watch video
- 34. Based on what you just saw and read, and anything else you’ve read previously, answer the following: 1. As outlined in the text, what categories of risk were involved in the Asian financial crisis of 1997? Be specific and use examples. 2. For each risk that you identified, what are one or two ways in which companies can mitigate such risks in the future, in Asia and elsewhere? Please discuss in small groups, or, if online, consult your textbook and other sources. We will reconvene in 6 minutes to discuss as a class (extended break). Risks of internationalization
- 39. • Cross-cultural risks – Hiring local managers – Investing in similar cultures – Localize product/service • Country risks – Joint ventures – Invest in ‘safe’ countries – Portfolio approach • Currency risks – Options contracts/etc. – Move products/not cash – Portfolio approach • Commercial risks – Use referrals – Learn from best practice – Hiring local managers Mitigating risks
- 41. IB PARTICIPANTS
- 42. IB participants Consider the case of Diesel jeans (intro provided in text). Diesel was founded in Italy in the 1970s by Renzo Rosso. After starting small, Diesel grew to be one the premier fashion companies of the 1990s. In 1996, the company was recognized as “Best Italian Company of the Year” and in 1998 the Wall Street Journal called Diesel “the label of the moment.” However, soon after, questions emerged over the company’s image, strategy, and growth.
- 46. IB participants Based on this information, answer the following: 1) What kind of organization is Diesel: MNE, SME, born-global, NGO, or other? 2) Why was Diesel facing such a challenge, what is this case an instance of? 3) Do you believe Diesel could continue to be successful with such a strategy? Please discuss in small groups, or, if online, consult your textbook and other sources. We will reconvene in 4 minutes to discuss as a class.
- 49. Questions?