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CAL STATE UNIVERSITY, EAST BAY

Winter 2008
M-W 8:00 – 9:50 p.m. → Room Science S143
Multinational Business (MGMT 4670) Section 02

Instructor: Madeline C. Damkar, M.A. French and International Studies, Certificate


in Translation, Monterey Institute of International Studies;
M.B.A., International Business, Golden Gate University
E-mail: madeline.damkar@csueastbay.edu
Telephone: 510.885.4467
Office Hours: Monday 7:00 – 7:35 PM and Wednesday 7:00 – 7:35 PM or
by appointment in Room: AE 208

Instructor’s Notes: Multinational Business is one of the most important courses you will
take during your academic career. We live and function in a global economy that is
interconnected, inter-related and incredibly dynamic. Only those who understand the
complexities and are able to manage and compete effectively in the global arena will be
able to succeed and survive in our globalized world. In addition to being an essential
course and a required core course, the subject matter is fascinating.

Course Description: Exploration of the risks and opportunities involved in the


international business arena, an investigation of the key issues of doing business in the
global economy, and identification of the skills required for global managers.

Text: Charles W. L. Hill, INTERNATIONAL BUSINESS: Competing in the Global


Marketplace, 6th Edition, ISBN: 0-07-3260711: McGraw-Hill Higher Education, 2007.
You can also access the Online Learning Center at www.mhhe.com/hill to give you
additional information, review materials, and practice quizzes.

Course Objectives:
1) Recognize and understand the political, legal, cultural, and financial
differences in the overseas operating environment, especially in emerging
market economies.
2) Understand the dynamics of currency values, the factors which influence
them, and the impact of currency fluctuations on both company decisions and
strategies and on country competitiveness.
3) Acquire skills necessary to analyze information and events in the global arena
in order to evaluate appropriate management responses.
4) Acquire a sensitivity to and understanding of the critical issues, opportunities
and risks, costs and benefits associated with international business.
5) Prepare students to be able to navigate and compete effectively in the
globalized business world and to exit CSUEB and enter the professional
workforce with a competitive advantage due to skills and knowledge obtained
during their course of study at CSUEB.

Class Format: Micro-lecture, class discussion/ interactivities, with audio-visual support.


MGNT 4670 MULTINATIONAL BUSINESS/DAMKAR page 2
Course Requirements: This course requires completion of assigned reading and
attendance in class in order to obtain an adequate understanding and foundation in
international business. The primary methods for assessment of performance in the course
include: in-class quizzes and examinations on material from the text and lectures, and
three written responses. The course starts out by examining major key foundational
concepts and then focuses in on the more pragmatic operational aspects of international
business. You should not undertake this course if you do not have the time to complete
the reading or attend class because we cover a great deal of information and analyze
many topics in a relatively short time.

Reading: Reading the assigned chapters in the text is an important requisite if you want
to advance in this class. You should read to understand the concepts being introduced.
The work we do in class serves to demonstrate, explore further and apply the material in
the text. The lectures and presentations highlight the most significant points of the
chapters and will be included in the exams. Some material presented in the lectures is
not included in the textbook but will be on the exams. Though I give you study
guides, you can not rely on the power points alone to achieve high scores in exams. If
you do not attend class, you will miss information, explanations and experience
gained through group work and in-class demonstrations. Attendance and
participation in class will help your grade in the course.

Quizzes: Unless specified otherwise in class, there will be two (2) quizzes. The quizzes
will consist of one essay question with multiple parts. Approximately one week before
the quiz, you will be given three topics to study; one of these topics will appear on the
quiz. No scantron or blue books are required for the quizzes. Each quiz is worth five (5)
% points towards your overall grade.

Exams: Unless specified otherwise in class, there will be three (3) exams. For Exams 1
and 2, you must bring Scantron Form 882-E (bubble response). For Exam 3, you will use
886-E (bubble responses with mini-essay book). If you tend to erase or be messy when
taking exams, bring an extra form in order to avoid problems in scanning.
• Exams 1 & 2: consist of 50 multiple choice questions [worth two (2) points each].
• Exam 3 (final): consists of 40 multiple choice questions [worth two (2) points
each] and two essay questions. You will be given five (5) essay topics to study in
advance. Three of the essay questions will appear on Exam 3; you must chose and
write on two (2) [worth ten (10) points each].
Approximately one week before each of the exams, I will post core study subjects on
Blackboard in the Quiz & Exam Folder. Exams are worth twenty-five % points (25) each
towards your overall grade. Multiple choice questions on the exams include: true/false
questions, questions defining, identifying examples of/or explaining terms, and questions
requiring some reasoning or deduction. Important Note: These exams test for
understanding of concepts, not just your ability to repeat back information. Here are
some examples in short-form of each type of question that may be on the exams.
• True/False
Example: Culture is not constant; it evolves over time. T F.
Correct answer: True
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• Definition/explanation/identification
Example: The volatility or unpredictable movement of foreign exchange which can have an impact on business transactions
is known as:
a) political risk
b) foreign exchange risk
c) interest rate risk
d) global market risk Correct answer: b
Example: International Paper Company wants to produce paper in Germany. The German government requires that 50%
Of the chemicals and components which are used to produce paper must be source from Germany. This is an example of which type
of trade policy?
a) Ad valorem content requirements
b) Specific intent requirements
c) Local content requirements
d) Domestic policy requirements Correct answer: c

• Reasoning/deduction.
Example: Zoolander Services is looking for a country which has a higher rate of new product development so that it can establish
an R & D unit. It will be looking for the presence in the country of all of the following factors, except for:
a) affluent consumers
b) strong local demand
c) little funding for R & D
d) intense competition Correct answer: c
If you have difficulty with multiple choice exams, please look on Blackboard under Quiz
& Exam Info where I will post some suggestions for taking this type of exam.

Assignments: There will be three (3) written assignments. Each written assignment is
worth five (5) points. The three (3) written responses involve answering assigned
questions for selected Case Studies presented in the textbook. Written responses must be
typed, size 12 font, double spaced, preferably in question-answer format with complete
sentences and about 1-3 pages in length (See instructions for each). The objective of these
written exercises is to enable you to demonstrate comprehension of the topics and to give
you an opportunity to cultivate and exercise critical thinking and managerial skills. These
written assignments are mandatory, not optional; if you do not hand them in, you are
giving up 15 points of your grade. If you have difficulty in writing, please utilize the
help services offered by the University at the Student Center for Academic Achievement
(phone 510-885-3674). No special accommodation can be made for basic skills deficits in
writing or language. If I have to “guess” at what you are saying, I may “guess”
incorrectly. These assignments are not “group” assignments. Each student is
responsible for doing his/her own original work in his/her own words.
• Written Response #1: (Chapter 1) Management Focus: “China’s Lenovo Acquires
IBM’s PC Operations” page 23 and Closing Case: “Wipro Ltd. – The New Face of
Global Competition” pages 37-38. Answer the questions that will be posted on
Blackboard in the folder “Assignments”. Due Date: no later than Wednesday, January
16.
• Written Response #2: (Chapter 2) Opening Case: “Indonesia—The Stumbling
Giant” page 43 Answer the questions that will be posted on Blackboard in the folder
“Assignments.” Due Date: no later than Wednesday, January 23.
• Written Response #3: (Chapter 14) Closing Case: “Diebold” pages 506-507. Answer
the Case Discussion questions 1,2,3, and 4 which follow the case in the textbook.
Due Date: no later than Wednesday, March 5.
Late Work/Make-up quizzes or exams: No late work or make-up exams will be
permitted unless arrangements prior to due date are cleared by me. Late work is
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subject to points deduction. You can only make up one (1) quiz and one (1) exam unless
you have medical reasons which must be validated by sufficient documentation. Make-up
quizzes and exams must be done within two weeks of the schedule date of the missed
quiz or exam, unless agreed upon in advance.

Problems/Questions: If you have problems or questions, please see me! I am available


by phone, e-mail and during office hours. Every student is important.

Summary Grading Criteria: Grading is standard, based on your individual


performance, not on a curve.

Number of Value of
ACTIVITY Description of activity assignments each Percent of overall grade
one multi-part
Quizzes essay question 2 5 % points 10% points
#1& 2: 50 multiple choice
#3: 40 multiple choice &
Exams two essay questions 3 25 % points 75% points

Responses to questions
Written exercises on Case Studies 3 5% points 15% points
Number of points (%) Grade
94-100 A
90-93 A-
87-89 B+
83-86 B
80-82 B-
77-79 C+
73-76 C
70-72 C-
67-69 D+
63-66 D
60-62 D-
Below 60 F

Academic Dishonesty: CSUEB has a very specific policy on academic dishonesty.


Cheating will not be tolerated; if cheating is found, be advised that appropriate measures
will be taken, according to University policy. Cheating includes any form of academic
dishonesty, including but not limited to copying or taking someone else’s work, using
someone else’s writings or thoughts without giving credit to them (plagiarism), bringing
in hidden materials, notes, or devices or prompting another student during exams and
quizzes. No electronic devices, (such as electronic dictionaries and cell phones) or “cheat
sheets” are allowed during quizzes or exams, unless specified in advance. There is no
reason to cheat because the topics to study for quizzes and exams are identified in
advance. Do not make a poor decision to cheat because you will lessen the value of your
education, run the risk of a report of academic dishonesty on your record, and jeopardize
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your chances of receiving a passing grade in the course. If you have questions about this
subject, refer to the Cal State East Bay website on academic dishonesty or talk to me.

Blackboard: Announcements, power points from the class lectures, and information on
topics for exams will be posted on the blackboard. You must have an Horizon e-mail
account to access Blackboard. I will send important information and announcements
in e-mails to all of the class, so check your Horizon e-mail or you may miss key
information. I can not be responsible if you miss vital information because you did not
check your Horizon e-mail!

M2 or Multinational Manager: Power Point presentations will include M2 reports.


Armed with a multilingual dictionary, a pocketful of multiple hard currencies, and a
laptop PC, M2 scans the globe reporting in on situations and issues involved in
international business.

In the News: Power Point presentations feature information from the news since
globalization and International Business is happening all around us. This
information will give you real world examples of what you are learning in the class.

Emergency Information: Having a safe learning environment is essential. California


State University, East Bay is committed to being a safe and caring community. Your
appropriate response in the event of an emergency can help save lives. Information on
what to do in an emergency situation (earthquake, electrical outage, fire, extreme heat,
severe storm, hazardous materials, terrorist attack) may be found at:

http://www.aba.csueastbay.edu/EHS/emergency_mgnt.htm

Please be familiar with these procedures. Information on this page is updated as required.
Please review the information on a regular basis.

If you think you have an emergency, call University Police immediately.


From a campus phone dial 9-1-1 right away. From any other phone: (510) 885-3791 or
(510) 885-3333. It is useful for you to have one of these numbers programmed into your
phone address book for rapid access.

MGNT 4670 MULTINATIONAL BUSINESS: Tentative Schedule & Assignments


DATE DAY TOPIC ASSIGNMENTS
DUE THIS
WEEK/ DATE
WEEK 1
Jan 7/9 M/W • Course overview -Lecture only
• Globalization
-Chapter 2
• National Differences in Political Economy (start)
• M2 Reports In: “Beware! Pirates!”
WEEK 2
Jan 14/16 M/W • Differences in Culture -Chapter 3
• M2 Reports In: “How Do I Prepare for an -Chapter 4 (pp 125-
International Business Trip?” 134)
• Ethics in International Business (selected pages) Written response #1:
Due: Weds Jan 16

WEEK 3 M/W
Jan 21/23 • Monday – NO CLASS University holiday (Martin -Chapter 5
-Written response #2:
Luther King’s birthday)
Due: Weds Jan 23
• International Trade Theory
• Quiz Show: “Wanna trade?
WEEK 4 M/W
Jan 28/30 -Chapter 6
• Political Economy of International Trade -Chapter 7
• M2 Reports In: Trade Wars! -Quiz #1: Weds Jan 30
• Foreign Direct Investment
WEEK 5
Feb 4/6 M/W -Chapter 8
• Political Economy of Foreign Direct Investment -Study for exam
-Exam #1: Weds Feb 6

WEEK 6
• EXAM 1: Chapters 2-8, Lecture on Chapter 1
Feb 11/13 M/W -Chapter 10
-Chapter 19 pp 650-
• Foreign Exchange 660
• Foreign Exchange Issues in International Trade -Chapter 20 pp 681-
And Foreign Direct Investment 682
• M2 Reports In: Pass Through or No Pass? - lecture

WEEK 7 -Chapter 11
Feb 18/20 M/W -Quiz #2: Monday
• Foreign Exchange Issues (finish) Feb 18
• International Monetary System -Chapter 12
• Strategy of International Business
• Quiz Show: Name that Strategy
WEEK 8 -Study for exam
Feb 25/27 M/W -Exam#2:Mon, Feb 25

• Exam #2 Chapters 10-11 and lectures; -Chapter 14


Selected parts of Chapters 19, 20 -Chapter 15 pp 534-46
• Entry Strategy & Strategic Alliances
• Entry Strategy: Close-up on Exporting
WEEK 9
(selected pages)
Mar 3/5 M/W -Chapter 14/15
-Chapter 16
-Written response #3
due: Weds March 5
• Entry Strategy & Strategic Alliances (finish)
WEEK 10 M/W • Global Production, Outsourcing, Logistics -Chapter 17
Nov 27/29 • Quiz Show: To Buy or Not To Buy -lecture

• Global Marketing and R & D


EXAM -Study for Final exam
• Wrap up/review/Human capital and the Changing
Weds March W 8:00-9:50 pm
19 Global Economy -Exam #3 (Final)

• Exam #3 (Final) Chapters 12,14, parts of 15, 16-17


lectures