You are on page 1of 12

MG1054 – INTERNATIONAL BUSINESS ENVIRONMENT

MG1054 is a compulsory module in the Diploma of Business and


Management. The Diploma is offered in association with Brunel University as
an alternative pathway to undergraduate studies. The Diploma consists of
Year 1 modules offered in the BSc at Brunel University.

COURSE STRUCTURE

The Diploma of Business & Management comprises six modules (120 credit
points). Students must complete and pass all six modules to be awarded the
Diploma.

nd
Diploma of Business & Management Brunel University – 2 Year

Students must complete the


following six modules: BSc(Hons) Business and Management
• MG1011 Introduction to (IHR)
Management Enquiry
• MG1016 Managing Information with BSc(Hons) Business and Management
Technology (Accounting)
• MG1017 Marketing and the Legal
Environment of Business BSc(Hons) Business and Management
• MG1051 Organisational Theory and (Computing)
Analysis
• MG1052 Introduction to Accounting BSc(Hons) Business and Management
• MG1054 International Business (Marketing)
Environment
BSc(Hons) International Business

POLICY ON PROGRESSION TO YEAR 2 OF BRUNEL UNIVERSITY

The following policy applies to the transfer from London IBT LTD to Brunel
University:

“On completion of the study of six designated modules of your Diploma of


Business & Management programme at London IBT LTD, you are eligible to
enter the second year of your related degree programme at Brunel University,
provided that you pass five of the six modules at first attempt, and no module
has been failed more than once, and you have met the University’s English
language requirement of IELTS 6.5 or the equivalent”.

MG1054 1
PRE-REQUISITES FOR MG1054

None

AIMS

To provide students with a broad and deep understanding of the external


drivers of change and the opportunity and challenges presented to
businesses operating in an international context, including the macroeconomic
& regulatory factors in which concepts like globalisation have to be examined
and managed. A specific focus will be on understanding the European
business environment, including the organisation of the European Union and
the Single European Market, and its associated policies and their impact upon
the business and marketing strategies of business organisations in the UK
and elsewhere in Europe

CONTENT

• Theories of international economics, trade & development


• Theories of economic integration
• Globalisation in national, regional & international contexts
• Comparative & competitive advantage
• Emergence of the audit & regulatory state
• Investigating the new economy
• Development of the European Community & the European Union
• The Single Market & its associated policies
• The European Monetary Union
• European Community law
• Member States
• Regions & regional policy
• Competition policy
• Workplace issues and changing industrial organisation
• Strategies for success in Europe
• Culture in Europe
• Central & Eastern European economies in transition
• Environmental issues
• Europe in the world economy

LEARNING OUTCOMES

A Knowledge and understanding

Key theories, concepts, principles and means of economic change as


a framework for analysing the international business environment
Understanding of consumption, production, exchange and distribution
in international business relations
Knowledge and understanding of the European business
environment of firms; the implications of Single Market policies and
the impact of European integration on business strategies and their

MG1054 2
implementation, changes occurring in Central & Eastern Europe and
their implications for future business activity in the EU
Knowledge and understanding of business implications of EU
environmental legislation

B Cognitive Skills

Critical analysis of the international (inc. European) business


environment

C Other Skills and Attributes

Application of knowledge and understanding of the international (inc.


European) business environment to current topical issues/cases in
order to formulate business policy decisions
Application of business analysis and evaluation methods to
understand/solve particular business problems
Gather research data related to the international business
environment, inc. the European Union, Single Market, Central &
Eastern European businesses
Writing brief reports

MODULE DELIVERY

4 hours per week for 12 weeks. In addition, students are expected to devote
a similar amount of time each week to preparation and completion of
assignments

ASSESSMENT METHODS

Assessment comprises 50% coursework and 50% for a final examination.


Students must achieve a minimum of 40% to be given a pass in the module.

(a) Weighting (50%) Coursework 1500 WORD LIMIT.


Group work (5 in a group). Each group is expected to choose one topic
only from the selected topics given below.

(b) Weighting (50%) Examination: (2 hours) A Two Hour Written


Examination comprising of two parts.

Part A contains 10 short questions (Answer All questions). The


questions will be based on what we cover in both lectures and
seminars. TWO MARKS are awarded for each question answered
correctly.

Part B contains Three essay type questions – Answer One question


only. All questions carry equal marks. Marks will be awarded for
diagrammatic representation where relevant. This will apply to a range
of micro and macro economic principles and concepts relating to the

MG1054 3
international business environment. Subject areas of questions will be
communicated to students ONE MONTH prior to the exams.

PRESCRIBED TEXT

Core Text Books


John Sloman (JS) (et al) “Economics for Business” (2nd edition) FT Prentice
Hall, (2001)
Neil Harris (NH) “European Business” (2nd edition) MacMillan Business.

Recommended texts
Welford R. & Prescott K.(WR & PK) “European Business: An Issue Based
Approach” (2nd edition) Pitman.
Dermot Mcleese (DM) “Economics for Business” (2nd edition) FT Prentice
Hall, (2001).
Rugman A.M. (RAM) (et al) “International Business” (3rd edition) FT Prentice
Hall, (2000).
Jeff Madura (JM) “Financial Markets and Institutions” (5th edition) South
Western Thomson Learning, (2001).

ASSESSMENT REQUIREMENTS

If you are having problems with completing assignments, it is essential that


you talk to your lecturer. You will not be given extra time unless you have a
legitimate reason and apply well before the due date. Assignments submitted
after the due date (without prior approval) will incur a penalty for every
working day that the assignment is overdue. Assignments that are more than
one week late will be given 0%. A medical certificate must be presented to
the lecturer for test and exam absences or late submission of assignments if
the student is away for medical reasons.

The LIBT Assignment Cover Sheets (available on line from the LIBT Student
Portal) must be attached to all coursework.

PRESENTATION OF WRITTEN ASSIGNMENTS

In all the written assignments, it is important that you present your work in a
way that communicates a professional attitude. Below are some general rules
that should be followed for each written assignment.

Type or word-process your assessment.


Number pages clearly.
Staple the pages together in the top left hand corner.
Keep a copy of your submitted assessments.
Cover the assessment with a title page, showing: assessment title,
name and student number, course title, lecturer’s name, and date
submitted.

MG1054 4
PLAGIARISM

Copying another person' s work and presenting it as though it was your own
work is cheating. Collusion is also considered to be cheating. Collusion is an
agreement and subsequent cooperation between two or more people for
fraudulent purposes.

Some examples of cheating are:

Looking at a classmate’s answers during a test.


Allowing a classmate to look at your answers during a test.
Borrowing a classmate’s assignment for the purpose of modifying it and
presenting it as though it was your own work.
Allowing a classmate to look at an assignment that you have already
done so that they can copy it.
Using cheat notes during an exam.
Using calculators or dictionaries in exams when you have been
informed that they are not allowed.
Whispering answers to your classmate during an exam.

These examples are not exhaustive and so are meant as a guide only. If you
are unsure about whether some activity would be considered cheating, you
should seek immediate clarification from your teacher.

Students who are found guilty of cheating may get zero marks or an equally
severe penalty. All people involved with cheating will be penalised. This
means that even if you allow another person to copy your work and present it
as their own, then you will both be considered guilty of cheating. Rather than
take the risk of failing this unit, it is far better to concentrate your efforts on
actually learning the course material.

Finally, it must be stated that in many instances it can actually be a good idea
to study in groups, especially where discussion may help to solve a problem
or aid in better understanding a concept. However, for this subject, all group
work should stop as soon as assignments start being written. This means that
all discussion should cease as soon as your fingers start typing answers on a
keyboard, or you start writing your answers on paper.

PERFORMANCE CRITERIA

A (Excellent) – Distinctive level of demonstrating an authoritative grasp of the


concepts and principles in relation to the tasks being tested and the
communication of the answer. Indications of originality in application of ideas,
graphical representations, personal insights reflecting depth and confidence of
understanding of issues raised in the assessment tasks.

B Very Good) – Level of competence shows a coherent grasp of knowledge


and understanding of the assessment tasks. Displays originality in interpreting
concepts and principles. The work uses graphs and tables to illustrate answer

MG1054 5
where relevant. Ideas and conclusions are expressed clearly. Many aspects of
the student’s application and result can be commended.

C (Good) – Level of competence shows an acceptable knowledge and


understanding and sufficient to indicate that the student is able to make
further progress. The outcome shows satisfactorily understanding and
performance of the requirements of the assessment tasks. Clear expression
of ideas, draws recognisable and relevant conclusions.

D (Pass) – Evidence of limited awareness of assessment tasks. Evidence of


limited acquaintance with relevant source of material. Limited attempt to
organise the response. Some attempt to draw relevant conclusions.

E (Referral) – Very limited grasp of the assessment tasks. Very limited


attempt to organise the response.

F Fail) – The student’s application and result shows that the level of
competence being sought has not yet been achieved. The assessed work
shows a less than acceptable grasp of knowledge and understanding of the
requirements of the assessment tasks.

ATTENDANCE REQUIREMENTS

You are required to attend 80% of your classes. It is therefore essential that
you take class attendance seriously. Attendance records will be kept.

It is your responsibility to attend classes regularly and punctually. Missing


class usually results in a student falling behind and can cause unnecessary
stress and confusion. Poor attendance will result in poor performance.

IMPORTANT RULES

Mobile Phones
Mobile telephones are to be switched off before you enter a lecture or the
computer laboratory. A ringing mobile telephone causes embarrassment to
the owner and a distraction to the teacher and other students. Those students
whose mobile telephones ring during class times, or even worse, those who
answer them, may not be allowed back into the class for that session.
Students who continually break this rule may be subject to disciplinary action.

LECTURER DETAILS

If you have any module queries or wish to make an appointment, please e-


mail: through the LIBT Portal using eNotes.

LIBT STUDENT PORTAL

All notes and additional materials will be made available on the LIBT Portal:
http://libtstudynet.brunel.ac.uk/

MG1054 6
TIMETABLE
Please bring this course programme with you to each lecture. It is imperative
that students attend both lectures and seminars and that we ((lecturers
included) know exactly which stage in the course we have managed to reach
on a week basis.

WEEK TOPIC
1. A brief Descriptive Overview of the Structure of the Course.
Choice and the Competitive International Business Environment
Economics for Business (JS, et al Ch 1-2

2. Market Structures, Firms and Competitive Advantage


Types of Businesss Organisation Perfect Competition,
Monopoly and Oligopoly and Benefits of Competition. Models of
Competition Economics for Business (JS, et al) Chps 11 and
& 12 FM

3. International Firms and Decision Making: Costs of Production


The meaning of costs, production in the short run, costs in the
short run, production in the long run, costs in the long run.
International Envirnment and costs Economics for Business
(JS, et al) chp 9. FM

4. Gains from Specialisation and International Trade


Brief descriptive overview of the Classical perspective on trade.
Absolute advantage, comparative advantage and gains from
specialisation and international trade. Growth of trade
.Economics for Business (JS, et al) – Chp 22.1 – 22.3 FM

5. Multinational Corporations and Globalisation


The nature of multinational enterprises, characteristics and why
business organisations become multinationals and the problems
multinationals face, Global Strategic Planning. Economics for
Business (JS, et al) Chp 23 & International Business (AR, et
al) Chp 8

6. The European Business Environment


Development of EU. Trade Blocs/Regional Policy(Harris
~~Chp. 1, Slowman Ch 24 )

7. The Management of Labour-The Labour Market/Europe and


Employment.
(Welford & Prescott – Chp. 3, Slowman Ch 17 )

8. Environmental Issues and Environmental Management-the role of


Government. (Welford & Prescott Ch 9) Slowman Ch 21

MG1054 7
9. Pricing Decisions
Demand, supply and equilibrium concepts. The Role of the
market and the determination of price mechanism. Price
Regulation Economics for Business (JS, et al) Chps 4 and 16

10. Consumer Decision Making and Markets


Price , elasticity, advertising and marketing. Product
differentiation ( Economics for Business (JS, et al) Chps 5-8)

11. Money Management: European Monetary System and the European


Monetary Union
Euro. Role of Central Bank (Harris Chp.

12. Revision

SEMINAR ACTIVITIES

You are required to work in groups of 5 and prepare answers to the following
and present your answers to the class for discussions.

SEMINAR GROUP ONE

Question 1
Outline the main economic advantages that India may have in comparison to
the economic endowments of the UK”

Question 2
Briefly discuss the main difference between the concept of absolute
advantage and comparative cost advantage. Why is the difference important
to trade?

Question 3
What are the reasons for the growth of international trade and what do we
mean by the term “gains from trade”. Support your answer with data.
Give a brief answer, drawing on country examples.

Question 4
Provide an economic justification of public monopolies in any economy of your
choice. Use case material.

Question 5
Outline the reasons why a country may want to restrict trade with other
countries?

MG1054 8
SEMINAR TWO

Questions 6
Choose any one industry and provide an illustration of the Porter model of
competitive advantage.

Question 7
Examine the importance of the continued importance of the small/medium
size business.

Question 8
Explain why economies of scale are important to the international
business?Use case material.

Question 8A
Explain why Governments may wish to regulate the activities of international
businesses.Discuss using case examples.

Question 8B
Outline the reasons why Governments may wish to restrict the flow of trade
into an economy.How are businesse affected by this?

SEMINAR THREE

Question 9
What do we mean by the term “Multinational Enterprise” (MNE)? Examine the
reasons behind joint ventures.

Question 10
Give reasons how businesses become multinational corporations.

Question 11
What are some of the problems multinational enterprises are likely to face in
their geographical expansion to other economies.?

Question 12
What benefits do multinational enterprises bring to a host country?

Question 12a
Why might an international business engage in a takeover ?Use case
material.

SEMINAR FOUR
Question 13
Explain why companies charge different prices in different regional markets .

MG1054 9
Question 14
Discuss why a European business needs to have a strategy rather than
merely respond to events as and when they occur.

Question 15
What do mean by the term “European Business Environment”? Examine the
factors affecting the EU business environment.

Question 16
Give three examples of businesses which operate in Europe and explain what
economic challenges they face.

Question 17
What constitutes the environment in which the European business currently
operates?

Question 18
Outline the factors which will influence pricing decisions by European
businesses.

SEMINAR FIVE

Question 19
Outline the reasons for a minimum wage.
Provide an explanation of both the advantages and disadvantages of the
minimum wage for European businesses.

Question 20
What Are the main economic grouping within Europe? Explain the advantages
and disadvantages of enlargement of the EU for international business.

Question 21
What are the economic advantages and disadvantages to European
business of the free movement of labour?

Question 21a
Outline the factors affecting the growth of business in the enlarged EU
Market.

Question 21b
Explain the impact of trade restrictions on the development of EU business.

SEMINAR SIX

Question 22
A Should the United Kingdom join the single currency? Give your reasons
,with supporting evidence.

MG1054 10
B Discuss the impact of the single currency on UK business.

Question 23
Name three international organisations (bodies) which have a major influence
on EU countries? Show how they might influence the economies of the EU.

Question 24
What is meant by CAP? What are the main advantages and disadvantages of
CAP? Provide data to support your answer.

Question 25
Explain why the EU should have an environmental policy? State how this
policy might work?

SEMINAR 6A

1 Outline the reasons for the growth of international trade .

2 Discuss the impact of the Multinational Corporation-both positive and


negative effects..

3 Outline the impact of the World Bank.

4 Discuss the effects of the IMF on international business development.

SEMINAR 6B

1 Outline the benefits of the Single market for EU business.

2 Provide a justification for the enlarged EU market.

3 Provide an assessment of the single market for labour in the EU.

4 Give an economic justification for the development of the privatisation


of industry in any country of your choice.

MG1054 11
ASSIGNMENT TOPICS(WEIGHTING 50%)

Students are instructed to write a 1500-word review ON ONE


of the following topics. TO BE HANDED IN BY WEEK 7.
1. Assess the economic advantages of the EU for international business.

2. Describe and critically assess the European Union Common


Agricultural Policy.(EU).

3. With reference to appropriate case material, examine the factors that


have led to this increased growth in international business in recent
decades.

4. Assess the impact of the international monopolistic firm in any business


sector with which you are familiar.

5 Critically examine the Porter Model of Competitive Advantage

6. Examine the economic impact both on the UK and EU of the Euro.

7. Examine the economic consequences of the growth of multinational


enterprises on UK business.

8. Assess the impact of the enlargement of the European Union from


2004 on UK businesses.

MG1054 12