THE PENNSYLVANIA STATE UNIVERSITY

SMEAL COLLEGE OF BUSINESS ADMINISTRATION

SPRING SEMESTER 2002

INTERNATIONAL BUSINESS AND NATIONAL POLICIES—IB322

SECTION 1:  T TH 2:30-3:45, ROOM 117 BORLAND BUILDING

SECTION 2:  T TH 1:00-2:15, ROOM 117 BORLAND BUILDING

 

INSTRUCTOR:   Anne Riley

    OFFICE:   310Q BAB

    TELEPHONE:   865-4277

    E-Mail:    akr3@psu.edu

   OFFICE HOURS:    Monday 2:30-4:00, Wednesday 10:00-11:30, and by appointment

 

 

TA:  Lisa Vollowitz

    OFFICE:   433 BEAM

    TELEPHONE:  865-9310

    E-Mail:   lbv105@psu.edu

    OFFICE HOURS:  Tuesday  12:30-2:00, Thursday 2:30-4:00, and by appointment (please Email to set up) 

COURSE DESCRIPTION, OBJECTIVES AND PREREQUISITES

IB 322 uses a case-driven approach to integrate macro and micro analyses of the dynamics between international businesses/multinational enterprises (MNEs) and national governments.  Students who successfully complete IB 322 will acquire knowledge of and tools to understand, analyze and evaluate actions, theories and philosophies that influence home and host government policies, the roles businesses play in shaping these policies, and how policies and other factors shape competitive strategies of international business firms in the areas of trade, investment and other international economic activities. The PREREQUISITE for this course is IB 303--this means you must have completed IB303 prior to this semester.  If you have not met the prerequisite, you will be dropped from the class roster.

TEXT, REQUIRED AND RECOMMENDED READINGS

IB322 Case and Reading Packet (Required)

Wall Street Journal/ New York Times/ Economist (Required) These resources are essential for staying current on the topics addressed in this class and for quality group projects.  Relevant articles may be assigned from these publications during the semester.

Other Assigned Readings (REQUIRED). Assigned readings that are not in the reading packet can be accessed in one of several ways.  (1) Log on to LIAS, Data Bases and More, and select either PROQUEST DIRECT or ABI INFORM.  Follow the directions on the menu, enter the title of the article and issue the appropriate command to obtain the full-text version of the article. (2) Log on to the internet and go to the address specified for the assigned reading. The articles can be printed, sent to your e-mail account to be read on screen or print later. While these procedures may entail a bit of effort on your part, you will save money by avoiding the requirement to pay copyright fees.  I recommend that you invest a bit of time at the beginning of the semester to download or retrieve copies of the articles rather than wait until the day before the assignment is due in class.

Class handouts (required). These will be mostly one or two page articles taken from newspapers or other sources.

COURSE REQUIREMENTS

Attendance

 

 

Students in IB 322 are required to attend classes regularly and to participate constructively in class discussions. Attendance will be recorded daily. Each student is permitted to have three unexcused absences; for every unexcused absence beyond these three, one percentage point will be deducted from your final average.  No unexcused absences are permitted for exams and YOUR group's presentation. You should familiarize yourself with University policies on excused absences--these include SOME University-sponsored activities; they DO NOT include interviews, wedding rehearsals, even sick relatives (sorry). IF YOU ARE ILL, go to Ritenour and give permission to the attending physician to release information about your ability to attend class/take exams. If there is an EMERGENCY in your family, please contact the Office of Student Affairs at 863-2020; the staff there will verify the situation and contact all your professors to inform them of the dates of absences and return.

 

 

Case Preparation and Writing Assignments

 

 

I will distribute lists of questions to help you prepare for case discussions. You may choose to not submit answers to THREE of the assigned cases. Typewritten responses to two of the questions for each case will be due the day the case is assigned.  No answers to case questions will be accepted after the case has been discussed in class and no handwritten assignments will be accepted.  Responses will be graded P 1/2 P or F.  A grade of F means you do not receive any credit for the assignment; a grade of 1/2 P will earn 1/2 point; a grade of P will earn one point.  

 

 

Individual Writing Assignment

The individual writing assignment for this semester will be due on January 29, 2002.  It will focus on understanding the motivations and mechanisms behind a current international business policy issue and the winners and losers of potential outcomes.  See SCHEDULE (p. 5) for further details.

 

 

Case Preparations

The success of case-driven learning depends to a large extent on student preparation. In other words, I expect students to read case studies and other articles prior to class meetings and to come to class prepared to participate in discussing the lesson.  Graded case answers, reports, exams and other materials will be brought to class only one time to be returned; they will be returned only to the student who submitted them.

 

 

Group Projects

Members of the class will be assigned to an interdisciplinary group.  Each group will be responsible for one class presentation and written report on a specific industry, government policy or firm strategy on a topic related to a case or cases that will be covered in the class.   Presentations of group projects begin in class on February 19 and continue throughout the semester as listed on the schedule.  Assignments of group projects will be made on a first- come, first-serve basis.  Sign-up sheets for group projects will be available in class beginning on January 17. The deadline for selecting group project topics is January 24.

For group projects, each group will be required to make a 20-minute presentation to the class and submit a TYPEWRITTEN report.  No more than three presenters can be accommodated per group per topic. Unless other arrangements are made, written reports are due the same day the presentation is made.  Students in IB 322 classes usually appreciate group efforts and are willing to learn from other students.  Therefore, they tend to be safe environments for speaking before groups--even for individuals who are reluctant to do so. GROUP preparation is the key to success.  Additional information about requirements for group projects will be provided in a separate handout.

All group members are required to meet with me (AS A GROUP) for about 15 minutes at least two weeks prior to the presentations; if you do not attend the group meeting, five points will be taken from your grade on the project and if your group does not complete a meeting at the appropriate time, five points will be taken from the grade of all members. At this meeting, each group is required to submit a written statement defining the scope of the project, a detailed list of specific references and a detailed outline of the proposed approach to the assignment that identifies the structure, the major elements that will be included, and how the team effort is being divided (who has responsibility for what).

Grades for the group project will include preparation for and contributions in the group meetings. Each member of each group also is required to complete a confidential peer evaluation form for their group's activity.  These evaluations will be due the class after the presentation.  If you hand in your peer evaluation late, your grade on the project will be decreased by 5% for every day that it is late.  Written evaluations of the group project will be given to each member of the group -- but these evaluations will not be given until all information required for the project (including confidential peer evaluations) is received.

Exams

There will be three exams.  All exams will consist of essay and short-answer questions and will be given as scheduled on the syllabus.  Please note that all exams will be evening exams as listed on the Schedule.  Except for situations specified in University policy manuals, ALL EXAMS MUST BE TAKEN DURING THE SCHEDULED TIMES. Material for the exams will be drawn from assigned cases and other assigned readings, class discussions thereof and group presentations--therefore it is important that you be an "active listener" during group presentations.  The exams will not be cumulative (i.e., no effort will be made to retest material from a previous exam). However, you should expect that knowledge of earlier material may be necessary for adequate understanding of certain concepts covered in all exams.

Grade Determination

It is possible to earn a total of 110 points in this class. Final grades will be based on a percentage grade computed from the following breakdown.  Letter grades will be assigned based on the percentage grade as follows:  A = 90 or above; A- = 88-89; B+ = 86-87; B = 80-85; B- = 78-79; C+ = 76-77; C = 68-75; D = 60-67; F = <60.

                                                                                                                                    Points

Answers to case questions and class participation in case analyses and quizzes                  20       

Individual Writing Assignment and Discussion (Due January 29)                                     10

First examination                                                                                                              15

Second examination                                                                                                         20

Third examination                                                                                                            20

Group Projects*                                                                                                              20

Group Planning Assignments*                                                                                            5

* These are GROUP projects.  Ten percent of your grade will be determined by your peers' confidential evaluations of your contributions to the project, including your participation in the required meetings and ten percent will be determined by the audience's evaluation of your presentation. Of the remaining 80 percent, half of YOUR grade/points earned on the project will be based on my evaluation of the content and delivery of the GROUP'S presentations AND WRITTEN report; the other half of the grade/points will be based on my evaluation of your contribution to the project.

Academic Integrity:

According to the Penn State Principles and University Code of Conduct:  Academic integrity is a basic guiding principle for all academic activity at Penn State University, allowing the pursuit of scholarly activity in an open, honest, and responsible manner.  In according with the University’s Code of Conduct, you must not engage in or tolerate academic dishonesty.  This includes, but is not limited to cheating, plagiarism, fabrication of information or citations, facilitating acts of academic dishonesty by others, unauthorized possession of examinations, submitting work of another person, or work previously used without informing the instructor, or tampering with the academic work of other students.

 

Any violation of academic integrity will be investigated, and where warranted, punitive action will be taken.  For every incident when a penalty of any kind is assessed, a report must be filed, using the pdf form at this URL: www.smeal.psu.edu/smeal/integrity.   This form is used for both undergraduate and graduate courses.  This report must be signed by both the instructor and the student, and then submitted to the Associate Dean for Undergraduate Programs (Dave.Christy@psu.edu).

In IB 322, use of Nittany Notes is considered to be a violation of academic integrity.  In keeping with University Policies, any academic integrity violations will be considered to be a serious breach of the compact that exists between professor and students, and will be punished.   

Affirmative Action & Sexual Harassment:  

The Pennsylvania State University is committed to a policy that all persons shall have equal access to programs, facilities, admission, and employment without regard to personal characteristics not related to ability, performance, or qualifications as determined by University policy or by Commonwealth or Federal authorities.  Penn State does not discriminate against any person because of age, ancestry, color, disability or handicap, national origin, race, religious creed, sex, sexual orientation, or veteran status.  Direct all inquiries to the Affirmative Action Office, 211 Willard Building.

 

 

Americans with Disabilities Act:

The Smeal College of Business Administration welcomes persons with disabilities to all of its classes, programs, and events.  If you need accommodations, or have questions about access to buildings where Smeal College activities are held, please contact us in advance of your participation or visit.  If you need assistance during a class, program, or event, please contact the member of our staff or faculty in charge.  Access to International Business courses should be arranged by contacting the Insurance and Real Estate Department Office: (814) 865-4172.

 

An Invitation to Students with Learning Disabilities:

It is Penn State’s policy to not discriminate against qualified students with documented disabilities in its educational programs.  If you have a disability-related need for modifications in your testing or learning situation, your instructor should be notified during the first week of classes so that your needs can be accommodated.  You will be asked to present documentation from the Office of Disability Services (located in 116 Boucke Building, 863-1807) that describes the nature of your disability and the recommended remedy.  You may refer to the Nondiscrimination Policy in the Student Guide to University Policies and Rules.

SCHEDULE (Subject to Revision as Necessary)

 

DATE

TOPICS AND ASSIGNMENTS

1/08

Introduction and Overview of IB 322

TOPIC:  Competition and Competitiveness of U.S. Industries

 

1/10

TOPIC: Theories, Models and Policies--Country-based advantages

     ASSIGNMENT:  Gould, David M.  "The Theory and Practice of Free Trade"  Economic Review (Federal Reserve Bank of Dallas, Fourth Quarter 1993, pp 1-16 (ABI INFORM--Backfile)

 

1/15

 

TOPIC: Theories, Models and Policies (Cont'd)--Imperfect Competition, Barriers to Entry and Strategic Trade Policy

     ASSIGNMENT: Moon, H. Chang and James A Goodrich. "Making U.S. Industry More Competitive:  Myths and Realities," Review of Business, Fall 1996, pp. 18-23  (ABI INFORM--Backfile)

1/17

TOPIC:  Competitive Analysis

     ASSIGNMENT: Read William P. Munk,  "Using Competitive analysis models to set strategy in the Northwest Hardboard Industry," Forest Products Journal, Jul/Aug 1994, pp. 11-18. (ABI INFORM--Backfile)     

Group Topics

ASSIGNMENTS TO GROUPS WILL BE ANNOUNCED

                 Section 1                                                                Section 2

1/22

TOPIC: Theories, Models and Policies (Cont'd)--Product Life Cycle and Porter Models

     ASSIGNMENT:  Read "Competitive Advantage of Nations" article (RP)

     HOMEWORK DUE:  Answer Porter Questions

 

1/24

TOPIC: Integrating Market and Non-Market Strategy

       ASSIGNMENT:  Read David P. Baron, "Integrated Strategy:  Market and Nonmarket Components, California Management Review, Winter 1995, pp. 47-64. (ABI INFORM--Backfile)

DEADLINE FOR SELECTING GROUP PROJECTS

1/29

TOPIC:  Current International Business Policy Issue 

     ASSIGNMENT:  Locate and write a 3-5 page analysis of a current article or articles (i.e., within the past 6-12 months) dealing with government policy on one of the following issues:

 

                  . Pricing of anti-AIDS/HIV drugs in developing countries.

                  . Agriculture, environment and the WTO

Select an article or articles that will permit you to do an analysis (NOT a summary) of the following:  a U.S. policy OR the U.S. Government's perspective on the issue and policy being discussed, the rationale for the policy, the groups who support and oppose the policy in the U.S. and/or abroad (including business groups and non-business groups) and the basis for their positions, the potential winners and losers (these will not be exactly the same as the supporters and opponents), and your assessment of whether or not the policy should be adopted or changed and/or under what conditions it should be adopted or changed.  Attach a copy of the article(s) to your paper.  Also, come to class prepared to participate in a discussion of the topic you have selected.

1/31

TOPIC:  Manipulating and Managing External Stakeholders Across Borders                             

     ASSIGNMENTS:  Read "Nike Hits the Wall" Case (RP)

     HOMEWORK DUE:    Nike Questions

     ANSWERSAnswer Sheet     Transparency

2/05

TOPIC:   Transitional Economies:  Opportunities, Risks and Strategies

     ASSIGNMENTS:  Read "Daewoo's Globalization:  Uz Daewoo Auto Project"

     HOMEWORK DUEANSWER Case Questions

     ANSWERS: Answer Sheet   Transparency 1   Transparency 2

2/07

EXAM # 1:    Evening Exam

                        8:15-10:15  (Room 112 Kern)

Regular Class meeting will consist of a Q&A Review session

Exam Review Sheet

2/12

No class

2/14

 

TOPIC:    Strategies for Successful Foreign Direct Investment in China

     ASSIGNMENTS:  Read "Shanghai Volkswagen" Case (RP)

     HOMEWORK DUEANSWER Case Questions   Transparency

     ANSWERSAnswer Sheet

2/19

GROUP PROJECTS #1 

     Update on DMC:  Country, Industry and Firm-level Determinants

     Section 2 - Group 1's PowerPoint Slides             Section 1

2/21

TOPIC:  Evaluating Opportunities and Risks in Global Industries

     ASSIGNMENTS:  Read "Indonesia's Pharmaceutical Industry" Case (RP)

     HOMEWORK DUEANSWER Case Questions

     ANSWERSAnswer sheet

2/26

GROUP PROJECTS #2       Roche-UK Section 02     Pfizer Section 2

        Government Policies, Industry Competitive Dynamics and Firm Strategies in the US and EU Pharmaceutical Industry

     Optional Readings:  "Healthy Returns," Far Eastern Economic Review, June 1, 2000 (PROQUEST) and Joanne McManus and Trish Saywell, "Not in Our Backyard," Far Eastern Economic Review, August 3, 2000 (PROQUEST)

     Section 1-HOMEWORK DUE:  ANSWER Case Questions     Answers

2/28

TOPIC:  Privatization of Telecommunications

     ASSIGNMENTS:  Read "Australia's Telstra Corp:  Going Public" (RP)

     Section 2-HOMEWORK DUE:  ANSWER Case Questions     Answers

Telecom Transparency   Deregulation Transparency

3/05

Spring Break

3/07

Spring Break

3/12

GROUP PROJECTS #3             AT&T presentation - Section 2    Section 1

     TOPIC:  Telecommunications Services in the US and the EU:  Government Policies, Industry Competitive Dynamics and Firm Strategy

     Optional Reading:  Matt Forney, "China Spurns Qualcomm Phone Plan…." Wall Street Journal, June 5, 2000

                                                (PROQUEST)

3/14

 TOPIC:    Economic Integration: the Case of Europe

     ASSIGNMENT:  Read "European Monetary Union" Case (RP)

     HOMEWORK DUE:  ANSWER Case Questions      ANSWERS

     EU Transparency      EU Transparency2      ECB Transparency

3/19

GROUP PROJECTS #4

             NAFTA and MERCOSUR:  Macroeconomic Outcomes, Industry Assessment and Firm Strategies

     Mercosur Presentation - Section 2

     NAFTA Presentation       Section 1                    Section 2

3/21

Exam # 2:    8:15-10:15 PM  (Room 112 Kern)

                     Regular Class will be Q&A REVIEW

REVIEW SHEET

3/26

No class


3/28

TOPIC:  Industrial Policy, Foreign Direct Investment and Economic Growth

     ASSIGNMENT:     Read  "1-800" Buy Ireland" Case (RP)

     ANSWER:  Case Questions     Answers

     Transparency

4/02

GROUP PROJECTS  # 5      Section 1 - Turkey      Section 2 - Turkey

                                                Section 1 - Czech        Section 2 - Czech

      EU Expansion:  Economic Issues, Opportunities, Risks and Firm Strategies in Turkey and the Czech Republic

4/04

TOPIC:  Foreign Market Entry Strategies for Regulated Industries

     ASSIGNMENTS:  Read "AXA:  The Global Insurance Company" case (RP)

     ANSWER:   Case questions

4/09

GROUP PROJECTS #6      Sec 2 - Prudential         AIG Inc.

                                              Sec 1 - Prudential

      Update on Policies, Industry Structure and Competitive Strategies in Financial Services in the U.S. and the EU

     TRANSPARENCIES:   Life Insurance

4/11

TOPIC:   Industrial Policy and International Competition

     ASSIGNMENTS:    Read "Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991" Case (RP)

     ANSWER:  Case questions            Answers

     TRANSPARENCIES:  Commercial Aircrafts

4/16

GROUP PROJECTS #7

        Update on market dynamics, government policies and firm strategies in the commercial aircraft industry

     AIRBUS:   Section 2

     BOEING:  Section 1               Section 2

4/18

TOPIC:  International Competition in Services Industries

     ASSIGNMENTS:  Read "U.S. Airline Industry 1995" Case (RP)

     ANSWER:   Case questions        Answers

     TRANSPARENCIES:   Deregulation          Legislation

4/23

 GROUP PROJECTS #8           AA - Section 2

            Update on U.S. and EU policies in the Airline Industry and Impacts on  Industry Structure and Firm Strategy.

4/25

REVIEW (Regular Class meeting period)

     Review Sheet

4/25

EXAM # 3--EVENING EXAM

                     8:15-10:15 p.m. (Room 112 Kern)