Professional Documents
Culture Documents
BUSINESS
Unit of Study Guide
Year: 2017
Semester: 1
Location: SUNWAY: KL
vu.edu.au
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Welcome
Welcome to this unit of study. This unit guide provides important information and should be kept as a reference to assist with your studies. This guide includes information about
your reading and resources, independent learning, class activities and assessment tasks. We recommend that you read this guide carefully: you will be expected to manage your
learning as you work towards successful study.
Detailed information and learning resources for this unit have also been provided on the unit website on VU Collaborate, which can be reached via the Student Portal at
vu.edu.au/student-tools/myvu-student-portal. It is important that you access your unit website regularly for messages and updates, as well as tasks related to your unit.
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Acknowledgement of Country
We respectfully acknowledge and recognise the traditional owners, their Elders past and present, their descendants and kin as the custodians of this land.
Contents
2. Assessment ................................................................................................................................................ 6
Key staff
Unit co-ordinators Name: Jesse Singh
Co-requisites
None
Mode of delivery
Face to face. Two-hour lecture and an hour tutorial per week. Total lecture/tutorial contact per semester is 36 hours.
Unit description
The aim of this unit is to introduce business students to the fundamental concepts of International Business within the broader context of economic policy and the business decision-
making process.
Learning outcomes
At the completion of this unit, students should be able to:
1. Explain national business environments and their implications for international business.
2. Highlight the importance of understanding various cultural, political and legal systems, and their Implications for international business.
3. Explain the theories of international trade and investment.
4. Understand the importance of business and government trade relations.
5. Explain the direction and importance of foreign direct investment and other international business entry modes.
6. Examine international business management practices and strategies
Graduate capabilities
In addition to discipline knowledge, skills and their application, the study of this unit is intended to contribute to students developing the capabilities needed to be:
Adaptable and capable 21st century citizens who can communicate effectively, work collaboratively, think critically and solve complex problems
Confident, creative lifelong learners who can use their understanding of themselves and others to achieve their goals in work and learning
Responsible and ethical citizens who use their inter-cultural understanding to contribute to their local and global communities.
Required readings
Wild, J.J. and Wild, K.L, International Business: The Challenges of Globalization, 7th edition, Pearson Education Limited, Essex, UK, 2014.
RECOMMENDED READING
Hill, C., Cronk, T. and Wickramasekera, R., Global Business Today: An Asia Pacific Edition, McGraw-Hill, North Ryde, NSW, Australia, 2011
Hill, C., International Business: Competing in the Market Place, McGraw-Hill New York, 2010.
1. Risk Test Research Plan for their 1 Professional report 0 4/4/2017, during lecture
Research Report hour
2. Test Mid Semester test on lecture 1 To answer all questions. A mix of short 20 31/3/2017, 3pm – 4pm
topics from weeks 1 to 3. answers and multiple choice questions
3. Research report Written report 1, 2,3 and 4 Penalty for late submission is 10% of the 20 22/5/2017, 10.30am –
total possible mark per working day. If 11.30am
late by more than three (3) working days
the work will not be assessed.
4. Exam Lecture topics from weeks 3,4,5,6 and 7 None 60 Examination period
4 to 11
Full details about assessment are provided in the VU Collaborate space for this unit.
Research Plan – On 4/4/2017, each group of students should submit a Research Plan for their Research Report
(see page16 for details) to their respective Tutors. Failure to do so will result in the group members being deemed
“at risk”. They will be required to meet personally with their lecturer/tutor to discuss their issues.
This Test is held in examination conditions on 31/3/2017 (3pm – 4pm). The duration of the test is 60 minutes. This
test will consist of a mixture of short answer and multiple choice questions, and will cover Lecture Topics 1, 2 and
3 or Chapters 1, 2 and 3 of the textbook.
A 2 hour written exam will take place during the University examination period. The examination will cover lecture
topics from weeks 4 to 11 or Chapters 5, 6, 7, 11 12, 13, and 14 of the textbook and the corresponding
required readings. Details will be announced in Lecture Week 12.
Detailed information regarding the date of final examination will be available on myvuportal.vu.edu.au.
Lecturers/tutors will not provide these details.
Please note: This unit is eligible for supplementary assessment. This unit is eligible for a conceded pass if it is the
final unit needed to complete your degree. For more details, please see the information provided in the University
Supplementary Assessment and Conceded Pass Procedure.
1
WW Ch. 1; power
Topic 1: Introduction to International Business/ Globalisation
20/2 – point Lecture Notes
24/2
2 WW Ch. 2; power
Topic 2: Cross-Cultural Business
27/2 – 3/3
point Lecture Notes
3 WW Ch. 3; power
Topic 3: Politics and Law in International Business
6/3 – 10/3
point Lecture Notes
4
WW Ch. 5; power
Topic 4: International Trade
13/3 – point Lecture Notes
17/3
5
WW Ch. 6; power
Topic 5: Business-Government Trade Relations
20/3 – point Lecture Notes
24/3
6
TEST: 3pm – 4pm, 31/3/2017. It will cover lecture topics 1, Discuss
27/3 – 2 and 3. (Chapters 1, 2 and 3). Assignment
31/3
7 WW Ch. 7; power
Topic 6: Foreign Direct Investment
3/4 – 7/4
point Lecture Notes
Break
Mid Semester Break
10/4 –
14/4
Break
No Lecture (In lieu of Block Teaching)
17/4 –
21/4
Break
Catching up / Research Report Requirements Catching up
8/5 – 12/5
NOTE: This schedule should be regarded as a general plan rather than as a strict timetable. Some Quick
Study Questions will not be discussed in tutorials, given time constraints. Students must read the
Chapter/Sections and summarise the answers to the Quick Study Questions before coming to the
Tutorials each week.
2
Quick Study 1 to 5 WW: Chapter 1.
6/3 – 10/3
3
13/3 – Quick Study 1 to 6 WW: Chapter 2.
17/3
4
20/3 – Quick Study 1 to 5 WW: Chapter 3.
24/3
5
27/3 – Quick Study 1 to 5 WW: Chapter 5.
31/3
Risk Test: Submission of the Research plan. (4/4/2017,
during lecture hour)
6
3/4 – 7/4 WW: Chapter 6.
Quick Study 1 to 4
7 (BT)
Quick Study 1 to 5 WW: Chapter 7.
8/4 & 9/4
Break Mid Semester Break
10/4 –
14/4
8
17/4 – Quick Study 1 to 4 WW: Chapter 11.
21/4
9
24/4 – Quick Study 1 to 4 WW: Chapter 12.
28/4
10
Quick Study 1 to 4 *Tutorial 1 will be replaced on 8/5/2017 WW: Chapter 13.
1/5 – 5/5
11
8/5 – 12/5 Catching up / Research Report Requirements Catching up
Session 2 QUESTION 1
6/3 – 10/3 Imagine that you and a group of your fellow classmates own a company that manufactures cheap
sunglasses. To lower production costs, you want to move your factory from your developed country to
a low-wage country. Choose a prospective country to which you will move. What elements of the
national business environment will affect your move? Are there any obstacles to overcome in the
international business environment? How will managing your company be different when you undertake
international activities? What challenges will you face in managing your new employees?
QUESTION 2
You are the CEO of Nike. In one widely publicized event, Nike called on civil rights leader Andrew
Young to look into its labour practices at Asian plants to which Nike outsourced work in order to
determine if policies adhered to the shoemaker’s own code of ethical conduct. After a month-long
investigation, Young reported no evidence of widespread or systematic mistreatment of workers abroad.
Critics charged that the report was shallow because Young admitted to spending only three hours in
any factory and was always accompanied by Nike officials. They were also sceptical because Young
presented his findings to Nike’s board and senior management a week before making them public. As
the CEO of Nike, how do you respond to these criticisms? Are there are more effective or objective
means of monitoring a company’s international activities? If so, what are they?
Session 3 QUESTION 1
13/3 – 17/3 You are the vice president of international operations for a large pharmaceutical firm that manufactures
an anti-malarial drug. Your firm is considering opening up a factory in a small Central American nation
where malaria is still extremely common. The operation will be a joint venture between your firm and
the local government. The majority of the people in this country cannot afford medicine because of the
high import tariffs. If your plan goes through over 200 jobs will be created and the cost of the drug will
drop by over 50 percent. In a final meeting with a senior government official, the gentleman informs you
that if you pay him $500,000 cash, the deal will go through. What issues must you consider? What do
you do?
QUESTION 2
In your opinion, is globalization among the causes of the increasing incidence of divorce, crime, and
drug abuse in Asia? Why or why not?
20/3 – 24/3 Under a totalitarian political system, the Indonesian economy grew strongly for 30 years. In India,
meanwhile, the economic system of the world’s largest functioning democracy was relatively poor for
decades until recently. Relying on what you learned in this chapter, do you think the Indonesian
economy grew despite or because of a totalitarian regime? What might explain India’s relatively poor
performance under a democratic political system?
QUESTION 2
You are the president of a firm that publishes textbooks for medical students in over 30 languages. On
a recent trip to a university in a developing country (with a GDP per capita of under $1,000 per year)
you discover that many of the students are using bound photocopies of your best selling medical
textbook. Speaking with several students, they inform you that if they were required to pay for the actual
books, they could not afford medical school. Witnessing the clear copyright violation firsthand, how do
you react? What possible courses of action might you take? If additional information would be helpful
to you, what would it be?
QUESTION 3
Session 5 QUESTION 1
27/3 – 31/3 If the nations of the world were to suddenly cut off all trade with one another, what products might you
no longer be able to obtain in your country?
QUESTION 2
As the first to set up an international air express business in 1969, DHL had the first-mover advantage
over other companies. Is being a first mover as advantageous for a service company, such as DHL
Worldwide Express, as it is for a manufacturing company, such as Boeing? Explain
3/4 – 7/4 Two students are discussing efforts within the global trading system to reduce trade’s negative effects
on the environment. One student says, “Sure, there may be pollution effects, but they’re a small price
to pay for a higher standard of living.” The other student agrees saying, “Yeah, those ‘tree-huggers’ are
always exaggerating those effects anyway. Who cares if some little toad in the Amazon goes extinct? I
sure don’t.” What counterarguments can you offer to these students?
QUESTION 2
You are an executive for a U.S. oil firm that is interested in forming a partnership with an Iranian oil
producer. This will be a challenge due to the poor relations between the U.S. and Iran over the years.
Since the early 1980s the United States has drawn fire from the business community for imposing
economic sanctions (similar to an embargo) against Iran for primarily political reasons. Those sanctions
disallow international trade and investment between U.S. and Iranian businesspeople. Business leaders
in the United States would like the sanctions removed so they can be included in lucrative Iranian oil
and gas deals in which firms from other countries are engaging. Other sanction opponents wonder if a
policy of offering “all stick and no carrot” is undermining social and political change in Iran since the
offending regime goes largely unpunished. What arguments could you present to the U.S. government
to help support an elimination of sanctions with Iran? Do you think that one country, acting alone, can
bring about reforms through the use of economic sanctions or embargoes?
Session 7 QUESTION 1
(BT)
The global carmaker you work for is investing in an automobile assembly facility in China with a local
8/4 & 9/4 partner. Explain the potential reasons for this investment. Will your company want to exercise a great
deal of control over this operation? Why or why not? What areas might your company want to exercise
control over and what areas might it cede control to the partner?
QUESTION 2
You are a sales manager working in international sales for a major Australian beef distributor. Your
firm is attempting to sell a large quantity of beef to a developing market in northern Africa where
Australian beef is a rarity. The vice president for new business development has instructed you to sell
the beef well below the market price quickly. Standing at the coffee machine, you overhear two quality
assurance managers discussing "the potentially tainted beef heading for Africa." You are aware that in
the past your firm has come across small traces of typhoid in some of its products. What do you do?
Do you first contact someone inside the company? If additional information would be helpful to you,
what would it be
17/4 – 21/4 “Cultures around the world are becoming increasingly similar. Companies, therefore, should
standardise both their products and global marketing efforts.” Do you agree or disagree with this
statement? Are there certain industries for which it might be more or less true? Provide specific
examples.
QUESTION 2
You are the new president of Star Manufacturing, an international subsidiary of a large New Zealand-
based multinational firm that makes automotive parts. Since you arrived at Star in Myanmar three
months ago, you are finding it difficult to get your firm’s materials and finished products through customs
quickly. Local legal counsel suggests a payment to local officials to eliminate your problem with
customs, an apparently common local practice. The bribe would expedite the entire shipping process,
which will help you improve profits. What do you do? Is there a specific policy your firm could develop
for all Star employees to follow? What other issues must you consider? If additional information would
be helpful to you, what would it be?
Session 9 QUESTION 1
24/4 – 28/4 For many global companies, China represents a very attractive market in terms of size and growth rate.
However, because China has a communist government, it ranks lower in terms of economic freedom
and higher in political risk than other country markets. Despite these risks, Volkswagen, Isuzu, and
Boeing, are just a few of the hundreds of companies that have established manufacturing operations in
China. In large part, this is because the Chinese government makes selling in China contingent on a
company’s willingness to locate production there. The government wants Chinese companies to learn
modern management skills from non-Chinese companies and acquire technology. Some observers
believe that when Western companies agree to such conditions, they are bargaining away important
industry know-how in exchange for sales today. Should Boeing and other companies go along with
China’s terms, or should they risk losing sales by refusing to transfer technology?
QUESTION 2
You are a member of Council of Economic Advisors. The President has asked you to assess and moral
basis for outsourcing to low-wage countries. Many globalization protestors argue that multinational
corporations from wealthy countries endanger the global economic system by investing capital in
developing countries and laying-off workers at home. They say that globalization pits the interests of
more prosperous workers in wealthy countries against the interests of lower-paid workers in developing
countries. It is also claimed that the practice pits developing nations against one another as companies
move from one developing country to another in search of lower wages or bigger market opportunities.
Do multinationals have an ethical obligation to try to preserve jobs for workers in their home-country
markets? How would you advise the President on the issue? Justify your advice with concrete
information
1/5 – 5/5 “Companies should use investment entry modes whenever possible because they offer the greatest
control over business operations.” Do you agree or disagree with this statement? Are there times when
other types of market entry offer greater control? When is investment entry a poor option?
QUESTION 2
You are the chief operating officer of a German-based telecommunications firm considering a joint
venture inside China with a Chinese firm. The consultant you’ve hired to help you through the
negotiations has just informed you that ethical concerns can arise when international companies
consider a cooperative form of market entry (such as a joint venture) with a local partner. This is
especially true when each partner contributes personnel to the venture because cultural perspectives
cause people to see ethical decisions differently. This is of special concern to you because the venture
plans to employ people from both China and Germany—which have very different cultural backgrounds.
Is there anything that your two companies can do to establish ethical principles in such a situation—
either before or after formation of the cooperative arrangement? Can you think of a company that
succeeded in the face of such difficulties?
8/5 – 12/5
Session 12 QUESTION 1
15/5 – 19/5 Price escalation can present serious problems for companies wishing to export their products to other
markets under a worldwide pricing policy. How might companies combat the effects of price escalation?
List as many possibilities as you can.
QUESTION 2
You are a lawyer working with the International Court of Justice in The Hague, Netherlands. You have
been asked to review a recent decision regarding extraterritoriality. The case: French survivors of the
Holocaust sued Yahoo U.S.A. because French citizens were purchasing Nazi memorabilia on Yahoo’s
U.S. Web site. The lawsuit also charged Yahoo U.S.A. with hosting the Web sites of anti-Semitic groups.
Although both of these actions are illegal according to French law, they are permitted in the United
States because of U.S. legislation protecting freedom of speech. Because Yahoo’s French web site did
not violate French law, the U.S. federal judge hearing the case threw it out. The judge ruled that French
law does not have the right to dictate the behaviour of U.S. firms operating inside the United States.
Today, the Internet sometimes makes it difficult to determine where jurisdictions begin and end. If you
had been the judge in this case, how would you have ruled? Can you think of any Internet controls that
could be used to stop incidents such as this from happening in the future?
2. On 4/4/2017, each group of students should submit a Research Plan to their respective Tutors (not
assessed for the final mark). The plan should include Names and IDs of students in the group, an
introduction, country chosen for research, and an outline of contents of the Report.
3. Each group must run their Research Report through the “Turnitin” software and hand in the “Turnitin”
report and a hard copy of the report, with completed and signed Assessment Declaration Form.
4. Each group is to select a country from the following list. Tutors must ensure that no two groups of the
same Tutorial pick the same country. Further, groups cannot be formed between students in different tute
groups. Note: please be aware that reports based on the same country from different tute groups
will be checked for similarities.
5.
Afghanistan
Angola
Argentina
Austria
Barbados
Belgium
Bhutan
Bolivia
Botswana
Brunei Darussalam
Cambodia
Canada
Chad
Chile
Cook Islands
Cuba
Cyprus
Denmark
El Salvador
Egypt
Ethiopia
Finland
Gabon
Georgia
Grenada
Guatemala
Haiti
Iceland
Indonesia
Iran
Italy
6. Each group will research and submit a paper as described in the scenario below.
(Note: This section is not to be presented as a mere description of the country of your choice. You
must mention the impact of each factor to the setting up either a wholly owned subsidiary or a
joint venture, and make a recommendation as to which structure is best suited).
b. Using both the Kluckhohn-Strodtbeck and Hoftstede Frameworks, investigate the cultural issues that may
impact on your business in your selected country, such as but not limited to expectations regarding, gift
giving, greetings, titles and form of address, the concept of time including punctuality of meetings, the role
of women, etc. You will need to contrast these factors with the cultural expectations as applied to
business operations in Malaysia or else marks will be deducted. (6 marks).
c. In your report also address what the government in your selected country has done to promote or
discourage foreign multinational corporations investing in their country? Explain (3 marks).
d. Overall presentation and quality of the briefing paper. There must be no spelling errors. (2 marks).
a. Each group member is required to confirm that they have made an equal contribution to the Research
Report. If it is felt that there are inequities in terms of group contribution any member of the group may
write to the subject coordinator regarding their perception of any difficulties.
c. There is an absolute need for correct referencing/documentation of the material presented (particularly
statistics). Students are to use the Harvard style of referencing. If material is presented without proper
documentation it will automatically result in a fail for the assignment. This is particularly applicable
to cutting and pasting material from the Internet. Refer to the Course Guide for access to “the Little Black
Book”.
d. Attach to your Research Report the duly completed Assessment Declaration, available in the
“Assessment Information” folder of VU Collaborate site for this subject. All students in the group should
include their names, and IDs, and should sign and date the Declaration form.
e. The Research Report must be submitted via turnitin (VU Collaborate). A hard copy must also be handed
to your Tutor on 22/5/2017 (10.30am – 11.30am).
f. Failure to submit the assignment by the due date and time will result in a fail for the subject.
g. It is expected that the research report be free of spelling, grammatical and expression errors. If the
paper does not meet the required standard in these areas it will be failed. Please note that Student
Services can provide support in these areas.
VU deals with plagiarism according to the Academic Integrity and Preventing Plagiarism Policy.
VU uses Turnitin for the review of written assessments. Turnitin checks submitted work against sources from across
the world, and provides a report detailing the use of third party text and references. Written assessments are to be
submitted via Turnitin in the VU Col site.
All students and staff of Victoria University are also bound by the requirements of the Copyright Act (1968) and the
University’s Copyright Material (the Use of) Policy when using third party copyright material in the course of their
research and study. Please ensure that you familiarize yourself with this policy and the rules around use of materials
produced or owned by others. For information on copyright entitlements and responsibilities for study and research
please see vu.edu.au/library/referencing-copyright/copyright.
vu.edu.au/library/referencing-copyright/referencing-guides
vu.edu.au/campuses-services/student-support/language-learning/academic-writing
Submission procedure
All paper-based assessments must be submitted with the completed assessment cover sheets.
All on-line assessments must have the Student Disclaimer accepted at the point of submission.
Alternative examinations are available for exceptional circumstances for students who apply at least five (5) working
days prior to the commencement of the examination period.
You can find information and forms for special consideration and alternative examinations at
http://www.vu.edu.au/student-life/exams-results/special-consideration-supplementary-exams.
You may need to contact a student counsellor to assist you with this process.
Support resources
Victoria University is committed to providing all students with the opportunity and support required to succeed in
their studies. If you require any support regarding academic progress in your unit during the semester you are
advised to speak to your unit co-ordinator.
We also offer a range of support, development and guidance services for all students. The portal
(vu.edu.au/student-tools/myvu-student-portal) provides detailed information on a range of student services that you
may find helpful. More information is also available in your unit site under ‘Support and Resources’.
We encourage you to provide informal feedback directly to your unit and course co-ordinators. The University also
collects your anonymous feedback systematically through the Student Evaluation Survey (SES), which is
comprised of two student evaluation instruments: the Student Evaluation of Unit (SEU) and the Student Evaluation
of Teaching (SET). Students are asked to complete the SEU and SET near the end of each unit. SEU and SET
results are anonymous, and are not made available to the teaching staff in the unit until after the University has
released your final grades.
Examples of actions taken recently to improve this unit, that were based on or influenced by student or other
feedback
2) Groups to be restricted to 3 students and members of group as far as possible should be diverse