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EXPORT MARKET DEVELOPMENT (BA 3372) Fall 2005 Section 001 - Wed 4:00-6:45 – Aug 24-Nov 30 - Room SM 2.

106 Instructor George Barnes, School of Management, UTD Office SM 2.232, voicemail 972-883-2783, email Office hours: Mon appointment, Tues/Thurs 9:00-10:30, Wed 2-3:30 In UTD’s School of Management, Mr. Barnes is a Senior Lecturer in the International Management Studies faculty, and Director, Global MBA Online program. He is a member of the North American Small Business International Trade Educators (NASBITE), co-founder of the Export Assistance Task Force at the North Dallas Chamber of Commerce, and served on the Board of the International Trade Association of D/FW, now absorbed by the World Affairs Council of Greater Dallas where he was an Advisory Director. He has done consulting work involving market entry strategies and foreign investment attraction. Previously, he spent 16 years in international business positions, with Citibank (Middle East), and in international planning at Mobil Oil Corporation. He has a Masters degree from the Fletcher School of Law & Diplomacy, Tufts University. Course Objectives Export Market Development focuses on the process of internationalizing business activities through exports. This course is unlike international marketing in several ways: exporting is the only entry mode considered; there is greater emphasis on trade policies and trading blocs which influence export market penetration; and minimum attention is given to certain dimensions of the marketing mix such as product development and promotional techniques. For export marketing the emphasis is on the selection of export markets, export strategies, channel management, product adaptation, export pricing, trade finance and logistics. Two ways students will demonstrate understanding of export market development are by preparing a market entry recommendation, and, in the process, becoming familiar with Internet-based export research resources. Readings Text – The Export Marketing Imperative, by Czinkota, Ronkainen, Ortiz-Buonafina, publisher Thomson, 2004. (REQUIRED) Lecture notes - in the form of downloadable Powerpoint slide sets are available at course website. Information provided by the instructor includes interpretation of text, and supplemental information ranging from 10-25% per chapter. (STRONGLY RECOMMENDED) Supplemental reading – see WebCT Course Materials. Included is an excerpt from Entry Strategies for International Markets, Franklin R. Root (Jossey-Bass/Wiley, 1994) which supplements text chapter 7 (OPTIONAL); and, a partial chapter on Trade Finance from International Financial Management, Jeff Madura (Thomson Southwestern, 2003) to accompany text chapter 9. (REQUIRED).

Attendance/activities Attendance is recommended, particularly because selected information for which you are responsible will only be presented in class. Many classes will feature peer-to-peer and peer-toinstructor interactivity using exporting exercises, case study discussions, current events and videos. Assignments Two written assignments will require students to prepare: Case study One individually-prepared case study analysis, 2 pages (typed, double-spaced, 1” margins, 12 point font), responding to the questions associated with each case available from website. The cases are (most relevant chapters in parenthesis): -Coastal Equipment (9) -Chaebol Automotive (9, Madura) Research report Groups of 4 students will submit one report. See Project section of syllabus for details. Two submission dates are important: Preliminary plan Project report no later than Sep 28 (see Project for details, submit via email) Nov 23

Participation One grading component is participation, including attendance, submission of an article on an export issue, and relevant contributions to class discussions (such as case studies and exporting exercises). Article: no later than Nov 9 submit article (last 12 months) and one paragraph analysis about an export issue dealing with or affecting a business firm. To help identify an article or to use a search engine, a sampling of key words include: export, non-tariff barrier, subsidy, distribution, channel member, logistics, trade finance, exchange rates, bilateral or regional market agreements, and WTO. Sources of articles: Wall Street Journal, Dallas Morning News business section, The Economist, Business Week and online news sources. Attendance: periodic attendance checks will take the form of ungraded review quizzes during a class. Examinations There will be 3 exams: the first two during a 75 minute class period, and a final exam on a day and time assigned by UTD. Sample multiple choice questions and answers, and sample essay questions are posted at course website. Course material covered by each exam is shown in the Schedule of Assignments.

Project Each group will conduct research and write a report dealing with specific phases of an export market development plan. First, choose a country from the following list: Argentina, Brazil, Chile, Spain, Poland, Turkey, South Africa, India, South Korea, China Second, choose a manufactured product (not a service) to be exported from the U.S. The product is not an actual brand name product manufactured and marketed by an existing company. A recommended approach is to consult the Country Commercial Guide (CCG) at NTDB: Leading Sectors/Best Prospects for U.S. Exports section. Other sources based on current exports of products to the listed countries include World Bank Atlas and the U.S. Census Bureau. The product may fit any of the following categories: ? a consumer product ? industrial product, or ? component that goes into the manufacturing of a finished product. (Not eligible are cell phones, petroleum/mining equipment, airplanes, passenger vehicles and trucks.) Organize the written report into the following specific sections: A. Brief description of the manufactured product (product and/or its features must serve the targeted segment, Section B.) B. Target Segment(s) Identify and describe the target segment(s) - - the customer or end-user. Justify the targeted buyers based on historical data and projections from marketing research reports and the CCG. How did existing competitor activity in the chosen market influence your selection of product and segment(s)? C. Regulatory influences Identify at least 3 regulations affecting the specific product (such as product standards, testing requirements, tariff/non-tariff barriers, government pricing regulations, local packaging requirements if applicable, etc.) and describe at least one adaptation to physical product or its pricing which will be necessary. D. Marketing infrastructure What are the typical channels of distribution within your chosen country? Based on the product and customer characteristics, what type of channel member is most appropriate for your export entry plan and why?

E. Sources (1 page) Minimum requirements are Country Commercial Guide (CCG), one ISA or IMI marketing report—all from NTDB, and one other country or industry-specific source of information from the Internet. For Internet sources, in addition to URL, provide name/title of report/survey/article, author/institution, date. See also similar step-by-step process in Export Market Screening: Using Secondary Data, pages 22-24 in text. Research tools: -WebCT course site: in Course Materials, Project Research Guidance -Library project research orientation -Chapter 2 and demonstrations of online resources in class Preliminary plan (due no later than Sept 28) Submit to instructor via UTD email: -names of group members -name of country -brief description of product -short paragraph justifying product’s market potential and targeted buyers -identify one source in the correct format Written report (due November 23) - typed, double-spaced, 1” margins, 12 point font; may be longer than recommended 8 pages (Section A-D), plus sources page, if supplemented by relevant tables, figures or graphs. Evaluation guidelines It is NOT recommended that groups approach this project by assigning each group member one section. Instead, consider having a lead organizer/editor supported by several research specialists. Report must display internal consistency section by section, each section building on and being consistent with the previous section. Grade will be based on how well report responds to the specific questions for each section, including quality and use of research data, analysis, and coverage of each section’s objectives. (See also Project Grade Criteria grading sheet in WebCT Course Materials, Project Research.) Policies Evaluation of group project: By group It is the intention that all members of a group receive the same project grade. However, individuals may submit a confidential evaluation of the group's performance, grading group members by distributing points to each person, including self, for a total score of 100. Consider research effort, cooperation, presence at and contributions to meetings. Due with project Nov 23. By Instructor using evaluation form (sample at website) and written comments in the report.

Grading Exam 1 or 2 (best grade) Final exam Group project Individual case Participation 30% 30% 20% 10% 10% Use scantron no. 882-ES, or equivalent Use scantron no. 882-ES, or equivalent See requirements for preliminary plan, report and peer evaluation Choose 1 of 2 identified in syllabus and available at WebCT course site 0-5 points for article 1-5 points for attendance/discussions full 10 points requires article, steady attendance and relevant contributions to class discussions

Late assignments: generally not accepted, but if exception is made, maximum grade is 80. Make-up exam: a student may request a make-up exam no later than one week prior to the scheduled exam; instructor will approve or disapprove on the merit of extenuating circumstances subject to agreement on a mutually acceptable make-up time. Policy on cheating: The University administration has asked that I remind you of the following policy, which is excerpted from their guidelines.
Students are expected to be above reproach in all scholastic activities. Students who engage in scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and dismissal from the university. “Scholastic dishonesty includes but is not limited to cheating, plagiarism, collusion, the submission for credit any work or materials that are attributable in whole or in part to another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to commit such acts.” (Regents’ Rules and Regulations, Part One, Chapter VI, Section 3, Subsection 3.2, Subdivision 3.22.)

Since scholastic dishonesty harms the individual, all students, and the integrity of the university, policies on scholastic dishonesty will be strictly enforced. Numerical grade correlation (no rounding up):
Grade of A = 91+ A89.1-90.9 B+ 85.1-89 B 81-85 B79.1-80.9 C+ 75.1-79 C 71-75 C69.1-70.9 D+ 65.1-69 D 60-65 F < 60

Beginning Fall, 2005, UTD requires instructors to submit mid-term grades for all students. For this course, during the 8th week the grade on Exam #1 will be the grade that is submitted.

Emailing UTD provides each student with a free email account that is to be used in all communication with university personnel. This allows the university to maintain a high degree of confidence in the identity of all individuals corresponding and the security of the transmitted information. Beginning September 1, 2004, UTD Administration informed faculty to require any email communications to be through UTD email accounts. An alternative to secure emailing is the email function in the password-protected WebCT course management system. WebCT online course site This course is available in WebCT, an online software platform supported by UTD. The online dimension is intended to enhance your learning and participation experience. Go to the following URL: and log on using your UTD-assigned Net-account User ID and password; click on this course. Student who don't currently have a Net ID account, please initiate your account at: For more information about Net ID, go to For help: call computer help desk 972-883-2911, or email In addition to a confident level of computer and Internet literacy, certain minimum technical requirement must be met to enable a successful learning experience. Technical requirements include but not limited to: Hardware • A Pentium processor or equivalent Mac system; Windows 98/Me/2000/XP or Mac OS 9.x or OS X 10.1. • Internet access with 56.6 kbps modem (minimum). A high-bandwidth connection is recommended. • 128 MB system Ram; 500 MB free disk space or sufficient storage • Sound card Software • Web browser: Internet Explorer, Netscape Navigator, AOL, Mozilla or Safari. For WebCT supported browsers and versions, please see validated browser list. Also see browser configuration information below. • MS Office 2000 is the minimum standard (Microsoft software is available at a nominal cost from UTD bookstore) • Virus detection/protection software such as McAfee • “Plug-in” tools such as current version of RealPlayer and Adobe Acrobat Reader Web Browser Configuration To view WebCT courses you need one of the WebCT supported browsers listed above with JavaScript enabled and cookie enabled. It is also important that you set the cache settings of your browser to verify web documents “Every Time”. The methods for configuring these settings vary among browsers. You can check your browser's documentation for details. Or you can follow this web link provided by WebCT to tune up your browser:

Features of your WebCT course website this semester • Syllabus • Calendar (Instructor will post key dates, and students may personalize Calendar with "private" entries) • Course materials 1) downloadable lecture files (PowerPoint slides) 2) supplemental readings 3) exercises 4) project research 5) case studies 6) Fruits of Free Trade (annual report of Dallas Fed) • Communications 1) in Discussions, Main Topic for questions about the course which concern all students, and may be answered by students and/or Instructor 2) Course announcements (for use only by Instructor) 3) Chat rooms which students may use to have a text-based real-time discussions 4) Private Discussion area for project teams to use for communicating, exchanging files • Exam Preparation 1) self-tests in multiple choice format for each of the three (3) exams 2) review topics and sample essay questions for each of three (3) exams • Student tools 1) My Progress 2) My grades

Export Market Development (BA 3372) Fall, 2005 Date Aug 24 Chapter/ Reading 1 3 4 2 6 Topics Introduction: syllabus, WebCT materials Export motivations and dimensions of trade Export modes Export intermediaries Building the knowledge base: research Library project orientation (5:30-6:30) Government roles in international trade Exam #1 (chap 1-4) Export readiness (starts 5:30) Export market choice and development Video: Breathe Right Product adjustments Video: Branding Financial management Pricing I Exam #2 (chap 6, 7, 8, 9 through p. 154) Pricing II/Payment (starts 5:30) Export channel management International transportation and logistics Video: The secret world of air freight Services exports Export management (for reference 9, 10, 11) Assignment

Aug 31 Sep 7 Sep 14 Sep 21 Sep 28 Oct 5 Oct 12 Oct 19

Project groups

7 8 5 9 (to p.154) 9 (start p.155) also: Madura 10 11 -

Project plan due Daewoo: in class discussion

Oct 26 Nov 2 Nov 9

Case due: Coastal or Chaebol

Class exercises Article due

Nov 16


Export promotion and negotiation Ethics in export marketing Field studies in export market development Final exam (chap 5, 9 from p.155 plus Madura, and 10, 11, 12)

Nov 23 Nov 30

Class role play and discussion Project due by 3pm