INTERNATIONAL BUSINESS MANAGEMENT

Learning Guide

Universidad Santo Tomás

Facultad de Negocios Internacionales
Villavicencio
2020
 Presentation

The purpose of this guide is the development and understanding of the academic space called
International Business Management. This guide is splitted by terms and remain correspondence with
the Syllabus of the subject.

There are new realities in international business that are critical for today’s students to understand;
as a witnesses of remarkable changes in the cross-border flow of products, services, capital, ideas,
people and, in general, the world that we are living (Cavusgil et. Al, 2008, P. 25). One of the
challenges for today’s managers is the development of skills such as communication and travel,
technological advances, skills that helps large and small firms to internationalize.

The content of this guide has been organized in the way that motivate and prepare future managers
to grasp these new realities. These realities include: global sourcing, the impact of technological
advances on globalization, globalization of finance, and the success of the smaller firm in
international markets, and also three other new realities: emerging markets, the diversity of
international business participants, and corporate social responsibility.

Figure 1. Terms of the Subject

First Term
• Unit 1 to 5
• First Assessment
Second Term
• Unit 6 to 9
• Second Assessment
Third Term
• Unit 10 to 12
• Third Assessment
Source: own elaboration
Note: the figure represent the distribution of the content of the course, each
term have their own activities that students summit during the semester.
 Generalities

Table 1. Assessment distribution

Pre-requisites English IV, Logistics
Written Assessment 1 Week 5 1st term
Weightin 35%
Written Assessment 2 Week 9 2nd term
Weightin 35%
Written Assessment 3 Week 12 3rd term
Weightin 15%
Examination Week 14 3rd term
Wightin 15%
Source: own elaboration
Note: The subject is distributed by terms, each term has their particular units,
on week 5 students have to summit the first assessment according to activity
guidelines attached at the end of this subject guide

Course contents and units structure:

Unit 1
Foundations of international business
What is international business?
Globalization of markets and the internationalization of the firm

Unit 2
Foundations of international business
Organizational Participants that Make International Business Happen
Theories of International Trade and Investment

Unit 3
The Environment of International Business
The cultural environment of international business

Unit 4
The Environment of International Business
Political and Legal Systems in National Environments

Unit 5
The Environment of International Business
Government Intervention in International Business
Regional Economic Integration
Unit 6
The Environment of International Business
Understanding Emerging Markets
The International Monetary and Financial Environment

Unit 7
Strategy and Opportunity Assessment for the International Environment
Global Strategy and Organization
Global Market Opportunity Assessment

Unit 8
Strategy and Opportunity Assessment for the International Environment
Global Strategy and Organization
Global Market Opportunity Assessment

Unit 9
Entering and Operating in International Markets
Exporting and Countertrade

Unit 10
Entering and Operating in International Markets
Foreign Direct Investment and Collaborative Ventures

Unit 11
Entering and Operating in International Markets
Licensing, Franchising, and Other Contractual Strategies
Global Sourcing

Unit 12
Functional Area Excellence
Marketing in the Global Firm

Teamwork Generalities

For the development of collaborative work, students must form groups of four members; the students
in the group must assume one of the following roles:
 Leader: Responsible for streamlining the process, verifying within the group that individual
group responsibilities are being assumed, also make sure that individual contributions are
 being uploaded in a timely manner, maintaining interest in the activity and finally encouraging
the group to achieve the proposed objectives, and lastly is responsible to summit the
document on time
 Communicator: responsible for the communication between the tutor and the team, as well as
for presenting to his team the information he collects from the observation - to the
development of the activities - made to the other group teams: what is shared in the general
forum; It also verifies the fulfillment of the roles by each member.
 Rapporteur: Responsible for the rapporteur of all processes in written form. It is also
responsible for collecting and systematizing the information to be delivered to the tutor. He is
also in charge of organizing the document and delivering it to the leader for delivery.
 Supplier: Responsible for obtaining the material and / or tools according to the needs of the
team for the development of the activities and / or processes that are required (transform into
pdf, edit images, APA standards, Netiquette)

Competencies

 To define globalization and international business and show how they affect each other
 To understand why companies engage in international business and why international
business growth has accelerated
 To become familiar with different ways in which a company can accomplish its global
objectives
 To understand why companies engage in international business and why international
business growth has accelerated
 To understand methods for learning about cultural environments
 To analyse the major causes of cultural difference and change
 To discuss behavioural factors influencing countries business practices
 To understand cultural guidelines for companies that operate internationally

Learning Outcomes

 Understand the different challenges that business face in an international environment

 Examine the variety of features that affect the development of international business, features
such as culture, politics, economics and social issues
 Understand the trade and investment approaches an its theories, as well as foreign exchange
and its rates
 develop the administrative implications of strategic commercial and operational management
 Understand the ethics and social responsibility regarding the development of international
business
 TERM 1
Teaching strategy

In order to develop the subject terms, the teaching strategy to be applied is collaborative learning. In
order to achieve the learning outcomes, the students have to create work teams according to the
instructions given in the generalities

Figure 3. Teaching strategies

Strategy Tactics Activities

Case study Teamwork

Virtual class
Collaborative learning individual work
Tutorials

Virtual Objects of Lerarning Exhibits

Source: own elaboration

Note: there are the strategies that will be used in order to perform the
assessments

Introduction

The first term will cover the units 1 to 5 and the topics related with these units are:

Unit 1
Foundations of international business
What is international business?
Globalization of markets and the internationalization of the firm

Unit 2
Foundations of international business
Organizational Participants that Make International Business Happen
Theories of International Trade and Investment

Unit 3
The Environment of International Business
The cultural environment of international business
Unit 4
The Environment of International Business
Political and Legal Systems in National Environments

Unit 5
The Environment of International Business
Government Intervention in International Business
Regional Economic Integration

According to Cavusgil (2008), in our daily activities, we usually are unaware that most of the goods
that we consume are produced in different parts of the world, for instance, Julie Valentine is a college
junior majoring in business. On a recent Saturday, she went shopping at a local mall. First, she
ordered a big breakfast, unaware that most of her meal was imported from abroad: bacon from Spain,
fruit from Costa Rica, juice from Brazil, French-branded yogurt, and bread made from wheat grown
in Argentina. Julie then headed to the department store to buy a gift for her dad. She perused neckties
with Italian and French brand names, and others made in China, Mexico, and Romania. She also
considered electric shavers made by Braun (a German brand) and Philips (a Dutch brand).

Just for citing one example, International business refers to the performance of trade and investment
activities by firms across national borders; on the other hand, globalization of markets that refers to
the gradual integration and growing interdependence of national economies; and globalization allows
firms to view the world as an integrated marketplace. Initially, scholars used the term market
globalization to refer to the emergence of global markets for standardized products and services and
the growth of world-scale companies that serve those markets. (Cavusgil et. Al, 2008)

In this Unit, we going to explore concepts and features that makes those activities possible and
explain how the international business operates and how globalization give their support in the
international business environment.

Activity Description

Topics to develop: Foundations of international business and the Environment of International

Business

Skills and abilities to be develop

 To define globalization and international business and show how they affect each other
 To understand why companies engage in international business and why international
business growth has accelerated
  To become familiar with different ways in which a company can accomplish its global
objectives
 To discuss behavioural factors influencing countries business practices
 To understand cultural guidelines for companies that operate internationally

Assessment
The first task is an assessment Group Report. Students have to prepare a group report based on the
specified case provided on Moodle; your group has the task of analysing the international business
environment context of the case, and the challenges faced, students have to determine the nature
of Company´s domestic and international business environments. In addition, students have to
identify the types of risk does the firm face. Moreover, companies face challenges related with
globalization and multinational management enterprises activity are creating problems for the world;
the assessment must include the identification of these problems and its consequences of
international business. As we see in the unit, most aspects of cultural environment are largely
invisible to the casual observer (for example, gender roles, ways to solve problems, conversational
patterns). Students must identify the aspects of culture do Case Study Company promotes.

Use the library’s resources (CRAI) to gather the required information to complete the task, including
online academic journal databases; successful groups start by reading and working together to
understand the content of the case study as early as possible.

The assessment criteria for this assessment comprise research and analysis of company
information, considerations of constraints impacting international management, application of
relevant theories of management, development of argument and applied critical thought and lastly,
written communication and referencing standards

General guidelines of the report

Through Moodle Classroom students by groups (Maximum 4), will summit a Word document with
the next features: type letter Arial 12, line spacing 1.5, APA guidelines, also with the next sections:
 Cover page
 Introduction: Intro, aim and scope
 Method: analysis and development above described
 Results: Describe the main findings of above analysis
 Discussion: Give some conclusions related with the findings and some recommendations
 References (Using the Ms Word tool and applying the features to write a report under APA
referencing guide)

The report has to be 3000 words (+/- 10%) of length

 Rubric Assessment

In the next frame, you will find the evaluation criteria of the assessment; each assessment can be
summit by teams, couples or individual reports

Table 2. Rubric Assessment 1

RUBRIC ASSESSMENT

CRITERIA EXCEED THE TAKE OVER ALMOST REACH DO NOT REACH

REQUIRED THE THE REQUIRED THE REQUIRED
LEARNING (4.6 - REQUIRED LEARNING (3.0 - LEARNING (1.0 -
5.0) LEARNING (4.0 3.9) 2.9)
- 4.5)
*Dominion Excellent Good dominion, Sufficient Weak dominion,
dominion, good application dominion, weak application
excellent of the topics sufficient of the topics
application of the covered during application of the covered during the
topics covered the term topics covered term
during the term during the term
Methodology Excellent, build Good, build Sufficient, build Weak, barely build
concepts and concepts and concepts and concepts and
reflections beyond reflections from reflections reflections
literature literature
Quantity/ Excellent, beyond Good, near to Sufficient, almost Weak, do not get
theoretical to the task the task reach the task closer to the task
relevance
Report Excellent, writing Good, enough Sufficient, some Weak writing
Guidelines skills, APA writing skills, writing skills, APA skills, APA
standards well APA standards standards not standards not
used barely used used properly used at all
TOTAL

Source: own elaboration

Note: the table is a guide about the criteria that students must meet in the
development of written assessment

The dominion written in the rubric assessment, include the next criteria that will considered during
the evaluation of the report:

 Analysis of the international business environment context, and the challenges faced,
 The nature of Company´s domestic and international business environments.
 The types of risk does the firm face.
 Identification of the problems and its consequences of international business challenges
related with globalization and multinational management enterprises activity
 TERM 2
Teaching strategy

In the term 2, the teaching strategy to follow is collaborative learning, as well as the first term. In
order to achieve the learning outcomes, the students have to keep working in teams according to the
instructions given

Introduction

The second term will cover the units 6 to 10 and the topics related with these units are:

Unit 6
The Environment of International Business
Understanding Emerging Markets
The International Monetary and Financial Environment

Unit 7
Strategy and Opportunity Assessment for the International Environment
Global Strategy and Organization
Global Market Opportunity Assessment

Unit 8
Strategy and Opportunity Assessment for the International Environment
Global Strategy and Organization
Global Market Opportunity Assessment

Unit 9
Entering and Operating in International Markets
Exporting and Countertrade

Continuing with the studies of the environment of international business, we discuss emerging market
economies and contrast them to the other two major groups of countries: advanced economies and
developing economies. In addition, we going to review the international business transactions, these
operations take place within the global monetary and financial systems. Understanding these
systems is fundamental to company success. When people think of international trade, they
invariably think of trade in products and services. Moreover, globalization has increased the speed,
frequency, and magnitude by which firms from diverse industries can access international markets
for customers. Managers are evolving their internationalization strategies to transform their
organizations into globally competitive enterprises. And lastly, we will discuss how a global market
opportunity
Could favor a combination of circumstances, locations, or timing that offers prospects for exporting,
investing, sourcing, or partnering in foreign markets.

Activity Description

Topics to develop: Understanding Emerging Markets, International Monetary and Financial

Environment, Global Strategy and Organization, Global Market Opportunity Assessment, entering
and Operating in International Markets and Exporting and Countertrade

Skills and abilities to be develop

 The distinction between advanced economies, developing economies, and emerging markets,
what makes emerging markets attractive for international business, risks and challenges of
doing business in emerging markets
 Understanding how currencies and exchange rates in international business are determined,
and how the international monetary and financial systems works
 Distinct strategies emerging from the integration responsiveness framework, how the
Organizational structure works, alternative organizational arrangements for international
operations
 Analysis of the overview of global market opportunity assessment, and the organizational
readiness to internationalize, how assess the industry market potential, and how select a
foreign business partners

Assessment
The second task is a Practical written assessment, the group report comprises a case analysis, in
terms of internationalize a firm; the opportunity to analyses the attractiveness factors for the
company, risk and challenges taken by the company. Moreover, student have to establish distinct
strategies emerging from the integration responsiveness framework, how the Organizational
structure works, and alternative organizational arrangements for international operations; and lastly,
analyse the global market opportunity and how organization demonstrates readiness to
internationalize, how company assess the industry market potential, and how select a foreign
business partners if it applies. Remember, student must justify responses with the theory seen on
class; the study case will be given through Moodle

General guidelines of the report

Through Moodle Classroom, students will complete an individual report, a Word document with these
characteristics: letter type Arial 12, line spacing 1.5, APA guidelines, also with the following sections:
  Cover page
 Introduction: Intro, aim and scope
 Method: Develop the analysis of the strategic and environmental context of the case, and the
challenges faced.
 Results: Describe the main findings through business intelligence and industry structure
analysis
 Discussion: Give some discussion related with the findings and some recommendations
 References (Using the Ms Word tool and applying the features to write a report under APA
referencing guide)

The report has to be 3000 words (+/- 10%) of length

Once students complete the report through the Moodle platform, students must also share their own
report through the collaborative forum placed in the second stage tab

Rubric Assessment

In the next frame, you will find the evaluation criteria of the assessment; each assessment can be
summit by individual reports

Table 3. Rubric Assessment 2

RUBRIC ASSESSMENT

CRITERIA EXCEED THE TAKE OVER ALMOST DO NOT REACH

REQUIRED THE REQUIRED REACH THE THE REQUIRED
LEARNING (4.6 LEARNING (4.0 REQUIRED LEARNING (1.0
- 5.0) - 4.5) LEARNING (3.0 - 2.9)
- 3.9)
*Dominion Excellent Good dominion, Sufficient Weak dominion,
dominion, good application dominion, weak application
excellent of the topics sufficient of the topics
application of the covered during application of the covered during
topics covered the term topics covered the term
during the term during the term
Methodology Excellent, build Good, build Sufficient, build Weak, barely
concepts and concepts and concepts and build concepts
reflections reflections from reflections and reflections
beyond literature literature
Quantity/ Excellent, Good, near to Sufficient, almost Weak, do not get
theoretical beyond to the the task reach the task closer to the task
relevance task
Report Excellent, writing Good, enough Sufficient, some Weak writing
Guidelines skills, APA writing skills, writing skills, skills, APA
standards well APA standards APA standards standards not
used barely used not used used at all
properly
 TOTAL

Source: own elaboration

Note: the table is a guide about the criteria that students must meet in the
development of written assessment

The dominion written in the rubric assessment, include the next criteria that will considered during
the evaluation of the report:

 Analysis of the attractiveness factors for the company, risk and challenges taken.
 Establishment of distinct strategies emerging from the integration responsiveness framework
 Organizational structure description and identification of alternative organizational
arrangements for international operations
 Analysis of the global market opportunity and the readiness of the organization to
internationalization
 Assessment of the industry market potential, and selection of a foreign business partners
 TERM 3
Teaching strategy

In the term 3, the teaching strategy to follow is collaborative learning, as well as the first and second
term. In order to achieve the learning outcomes, the students have to summit a last group
assessment in the same work teams as the work on the first two assessments.

Introduction

The third term will cover the units 9 to 12 and the topics related with these units are:

Unit 9
Entering and Operating in International Markets
Exporting and Countertrade
Incoterms

Unit 10
Entering and Operating in International Markets
Foreign Direct Investment and Collaborative Ventures

Unit 11
Entering and Operating in International Markets
Licensing, Franchising, and Other Contractual Strategies
Global Sourcing

Unit 12
Functional Area Excellence
Marketing in the Global Firm
Human Resource Management in the Global Firm

In this term we going to discuss the emerging markets, they are countries such as Brazil, China,
India, Mexico, and Turkey that, in contrast to advanced economies, are experiencing rapid economic
growth, industrialization, and modernization. A young population and a growing middle-class
characterize most emerging markets. While emerging markets represent attractive markets and low-
cost manufacturing bases, they also tend to have inadequate commercial infrastructure, evolving
legal systems, and a high-risk business environment. Despite their drawbacks, emerging markets
have begun to produce new global challengers, top firms that are fast becoming key contenders in
world markets. These firms pose competitive challenges to companies from the advanced
economies, such as in Europe, Japan, and North America.

These companies also take the challenge to perform international business transactions, and these
operations take place within the global monetary and financial systems. Understanding these
systems is fundamental to company success. When people think of international trade, they
invariably think of trade in products and services. However, the markets for foreign exchange and
capital are much larger. Firms regularly trade the U.S. dollar, European euro, Japanese yen, and
other leading currencies to meet their international business obligations. It is an important factor, the
understanding of the financial and monetary systems in order to succeed in overseas markets

There is other topic important for managers, Globalization. This phenomenon has increased the
speed, frequency, and magnitude by which firms from diverse industries can access international
markets for customers. Managers are evolving their internationalization strategies to transform their
organizations into globally competitive enterprises. There are skills that can be develop, managers
are striving to coordinate sourcing, manufacturing, marketing, and other value-adding activities on a
worldwide basis.

The choices managers make determine the future of the firm. Making good choices depends on
objective evidence and hard data about which products and services to offer, and where to offer
them. The more managers know about an opportunity, the better equipped they will be to exploit it.
This is particularly true in international business, which usually entails greater uncertainty and
unknowns than domestic business, that’s why is important to understand, identify and define the best
business opportunities in the global marketplace.

Activity Description

Topics to develop: Exporting and Countertrade, Incoterms, Foreign Direct Investment and
Collaborative Ventures, Licensing, Franchising, and Other Contractual Strategies, Global Sourcing,
marketing in the Global Firm, and Human Resource Management in the Global Firm

Skills and abilities to be develop

 The distinction between advanced economies, developing economies, and emerging markets,
and how its dynamics works
 Broadly understand how he international monetary and financial systems works
 Understand the role of strategy in international business, also the integration-responsiveness
framework for a firm and its strategies emerging from the integration
 The ability to assess the global market opportunity for a firm, as well as, the analysis of
organizational readiness to internationalize
Assessment
The written assessment is a Practical Written Assessment. The group report must analyse the
management, they are keen on entering some emerging market or developing economies. Student
must establish the types of risks and challenges does company likely face in doing business in
emerging markets. Student have to identify the most promising markets; if it is possible, identify the
nature of company’s international strategy, advantages and disadvantages, moreover, describe
company’s organizational culture, and the characteristics of its culture. Remember, student must
justify responses with the theory seen on class; the study case will be given through Moodle

General guidelines of the report

Through Moodle Classroom student will summit a Word document with the next features: type letter
Arial 12, line spacing 1.5, APA guidelines, also with the next sections:

Cover page
Introduction: Intro, aim and scope
Method: Develop the analysis of the global strategy and development
Results: Describe the main findings through the literature review
Discussion: Give some discussion related with the findings and some recommendations
References (Using the Ms Word tool and applying the features to write a report under APA
referencing guide)

Rubric Assessment 3

In the next frame, you will find the evaluation criteria of the assessment; each assessment can be
summit by teams, couples or individual reports

Table 4. Rubric Assessment

RUBRIC ASSESSMENT

CRITERIA EXCEED THE TAKE OVER ALMOST DO NOT REACH

REQUIRED THE REQUIRED REACH THE THE REQUIRED
LEARNING (4.6 LEARNING (4.0 REQUIRED LEARNING (1.0
- 5.0) - 4.5) LEARNING (3.0 - 2.9)
- 3.9)
*Dominion Excellent Good dominion, Sufficient Weak dominion,
dominion, good application dominion, weak application
excellent of the topics sufficient of the topics
application of the covered during application of the covered during
topics covered the term topics covered the term
during the term during the term
Methodology Excellent, build Good, build Sufficient, build Weak, barely
concepts and concepts and concepts and build concepts
reflections and reflections
 reflections reflections from
beyond literature literature
Quantity/ Excellent, Good, near to Sufficient, almost Weak, do not get
theoretical beyond to the the task reach the task closer to the task
relevance task
Report Excellent, writing Good, enough Sufficient, some Weak writing
Guidelines skills, APA writing skills, writing skills, skills, APA
standards well APA standards APA standards standards not
used barely used not used used at all
properly
TOTAL

Source: own elaboration

Note: the table is a guide about the criteria that students must meet in the
development of written assessment

The dominion written in the rubric assessment, include the next criteria that will considered during
the evaluation of the report:

 Identification of emerging market or developing economies.

 Types of risks and challenges that company face in doing business in emerging markets.
 Identification the most promising markets
 The nature of company’s international strategy, advantages and disadvantages,
 Organizational culture, and its characteristics
 References

Cavusgi, T., Knight, G. and Riesenberger, J. (2008) International Business: Strategy, Management,
and the New Realities , Prentice Hall
John Daniels , Lee Radebaugh , Daniel Sullivan, International Business, Prentice Hall , 2010
John J. Wild, Kenneth L. Wild, International Business, Prentice Hall, 2009