BUS 510 I NTERNATIONAL B USINESS Welcome Notes, Course Outline, Lesson plan and Lecture One

M EET YOUR FACULTY Mahreen Mamoon, Assistant Professor, BBS. BRAC University Teachers’ Trainer for British Council- Connecting Classrooms Project. PhD Research Fellow, University of Dhaka MSc International Management and Marketing, Queen Mary, University of London, UK BBA Marketing, Dhaka City College, Holy Cross School. Past Employers NSU, AIUB,, British Council, DHL Express [ ] QMUL, CPM Marketing, A240 Chiropractic Clinic, TfL, London Paper [ ] Life= Family+Career+Fun Flexible, Accommodating, Listening, Expects mutual respect

BUS 510- I NTERNATIONAL B USINESS This is an introductory course in international business. The objectives of this course are to provide students with an understanding of the key concepts of international business and to provide an insight into the role of international business in a multinational organization. In meeting these objectives, this course will: Knowledge and Understanding 1. Broaden their appreciation of international business topics in advanced markets and emerging markets as they relate to regional integration and globalisation and re-globalisation; 2. Enhance their understanding of how organizations go about entry and market location decisions; 3. Develop their necessary skills so as to be able to be involved in international operations within large and smaller firms; 4. Appreciate multiple perspectives of culture, business arrangements and organizational structure; and 5. Understand the ethics and environmental impact of global business activities. Communication Skills Provide students with the opportunity for continuing development of good inter-personal and communication skills, which is widely recognized as important for Business graduates; and Develop students’ abilities to analyse documentary material, to work in groups, and to write a group management report.

T OPICS Drivers of Globalization Ethics in International Business Business Across Culture International Negotiation MIDTERM Market Entry Strategies Foreign Direct Investment and Regional Integration International Strategies Marketing and Communication Strategies

Core Texts: Charles W L Hill. International Business. Recent Edition. Bring Lecture Printouts, take notes, refer to book chapters for examples that you can analyze local business All things related to the course – !!!

S ILLY L ITTLE Q UIZ

1. I N ALL BUT ONE OF THE FOLLOWING COUNTRIES IT IS EXPECTED THAT YOU BRING A GIFT TO A BUSINESS MEETING. I N WHICH COUNTRY IS IT NOT EXPECTED ? China Japan Czech Republic Denmark Bolivia

1. I N ALL BUT ONE OF THE FOLLOWING COUNTRIES IT IS EXPECTED THAT YOU BRING A GIFT TO A BUSINESS MEETING. I N WHICH COUNTRY IS IT NOT EXPECTED ? China Japan Czech Republic Denmark Bolivia

2. I N S AUDI A RABIA, WHICH IS CONSIDERED A POPULAR GESTURE OF FRIENDSHIP BETWEEN MEN ? a high-five holding hands while walking a handshake winking a hug or kiss on the cheek

2. I N S AUDI A RABIA, WHICH IS CONSIDERED A POPULAR GESTURE OF FRIENDSHIP BETWEEN MEN ? a high-five holding hands while walking a handshake winking a hug or kiss on the cheek

3. I N G REAT B RITAIN, TAPPING YOUR NOSE INDICATES THAT SOMETHING IS : confidential smelly inappropriate very important incredibly boring

3. I N G REAT B RITAIN, TAPPING YOUR NOSE INDICATES THAT SOMETHING IS : confidential smelly inappropriate very important incredibly boring

4. W HICH OF THE FOLLOWING IS / ARE ASSOCIATED WITH DEATH AND SHOULD NOT BE GIVEN AS GIFTS IN THE C HINESE CULTURE ? clocks straw sandals a handkerchief a stork or a crane all of the above

4. W HICH OF THE FOLLOWING IS / ARE ASSOCIATED WITH DEATH AND SHOULD NOT BE GIVEN AS GIFTS IN THE C HINESE CULTURE ? clocks straw sandals a handkerchief a stork or a crane all of the above

5. W HEN TREATING A CLIENT TO A BUSINESS MEAL IN C HINA, THE MOST APPROPRIATE TIPPING STRATEGY WOULD BE : 15% tip the more the better 20% tip no tip at all 50% tip

5. W HEN TREATING A CLIENT TO A BUSINESS MEAL IN C HINA, THE MOST APPROPRIATE TIPPING STRATEGY WOULD BE : 15% tip the more the better 20% tip no tip at all 50% tip

6. W HEN DOING BUSINESS IN I RAN, A WOMAN SHOULD COVER THEIR : Mouth Feet Eyes Arms and Legs Arms, Legs and Hair

6. W HEN DOING BUSINESS IN I RAN, A WOMAN SHOULD COVER THEIR : Mouth Feet Eyes Arms and Legs Arms, Legs and Hair

M ORE ?

You are trapped in a room. The room has only two possible exits: two doors. Through the first door there is a room constructed from magnifying glass. The blazing hot sun instantly fries anything or anyone that enters. Through the second door there is a fire-breathing dragon. How do you escape?

S EMESTER P LAN One topic one quiz Each Class contain a mini presentation Class to be seated in group settings at all times [round] Mid-Term after the end of 4 topics Final after 4 topics and group presentation

F INAL P ROJECT /P RESENTATION Each group will be given a random country to represent Make poster with house-hold items/hand made ONLY Pick a product/service of that country Pitch the Audience of your intension to do business in Bangladesh [If you got Sri Lanka youcan Propose to do Business of Ceylon Tea/Art/Tourism/Education/Outsourcing etc] Poster 10 marks+ Presentation 10 marks [20 marks]

Range of MarksGrade in LetterGrade Point A <90A <85B <80B <75B <70C <65C <60C <57D <55D <52D-0.7 <50F0.0 Grading Procedure ModesWeight Class Attendance5% Quiz20% Midterm examination20% Business Project15% Final Examination40% Total Marks100% Assessment

G ROUND R ULES Mutual Respect for the course, faculty, materials, quiz, presentations and ATTENDANCE Limited use of electronic gazettes [smart phones, unsmart phones, TAB, and the likes MUST not be on your desk/hand] Stay connected- No Facebook requests

G LOBALIZATION

G LOBALISATION Definition: An economic phenomenon? A social phenomenon? A cultural phenomenon? The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.

G LOBALISATION Globalisation could involve all these things!

C LASS A CTIVITY Go through your belongings List down the ‘international’ items you are carrying Where did you get them from What are the local alternatives? Why didn’t you get the local alternatives?

W HAT IS G LOBALIZATION ?  The shift toward a more integrated and interdependent world economy  Two components:  The globalization of markets  The globalization of production

G LOBALIZATION OF P RODUCTION  Vizio flat panel TV is  designed in a small office in California  assembled in Mexico  From  panels made in South Korea  electronic components made in China  microprocessors made in the U.S.

N OT JUST MANUFACTURING …  Globalization of production has historically been about manufacturing  Increasingly companies are using modern communications to outsource service activities to low-cost nations

G LOBALIZATION OF MARKETS  In the past, each country had its own companies in many industries and its own products  I never saw Japanese media (and I saw little non-US media) in college

T ODAY EVERYONE KNOWS … Nintendo Starbucks Coca-Cola Ikea McDonald’s Samsung

B UT THE MOST GLOBAL MARKETS ARE FOR STANDARD GOODS  Aluminum  Wheat  Microprocessors  Aircraft  For many consumer end-products, huge differences still exist among national markets  Entertainment, food, clothing

D RIVERS OF G LOBALIZATION Two factors underlie globalization “Decline in barriers to the free flow of goods, services, and capital” that has occurred since the end of World War II Technological change Two factors underlie globalization “Decline in barriers to the free flow of goods, services, and capital” that has occurred since the end of World War II Technological change

D ECLINING T RADE AND I NVESTMENT B ARRIERS During the 1920s and ‘30s, many of nations erected formidable barriers to international trade and foreign direct investmentinternational trade foreign direct investment Advanced industrial nations of the West committed themselves after World War II to removing barriers to the free flow of goods, services, and capital between nations. During the 1920s and ‘30s, many of nations erected formidable barriers to international trade and foreign direct investmentinternational trade foreign direct investment Advanced industrial nations of the West committed themselves after World War II to removing barriers to the free flow of goods, services, and capital between nations.

T HE R OLE OF T ECHNOLOGY  Lowering of trade barriers made globalization possible;  Technology has made it a transforming movement

G LOBALIZATION IS ACCELERATION OF TRENDS OF THE LAST 10,000 YEARS People lived for 250,000 years in hunter-gatherer bands Rise of agriculture 10,000 years ago led to rise of empires and nation-states Science and ‘enlightenment’ after 1680 produced global trade and empires Free trade and tech after 1980 produced globalization

T HE G LOBALIZATION D EBATE  Pro  Lower prices for goods and services  Economic growth  Increase in consumer income  Creates jobs (for many)  Countries specialize in production of goods and services that are produced most efficiently  Pro  Lower prices for goods and services  Economic growth  Increase in consumer income  Creates jobs (for many)  Countries specialize in production of goods and services that are produced most efficiently  Con  Destroys manufacturing jobs in wealthy nations  Wage rates of unskilled in advanced countries decline  Companies move to countries with fewer labor and environment regulations  Loss of sovereignty  Homogenized cultures  Con  Destroys manufacturing jobs in wealthy nations  Wage rates of unskilled in advanced countries decline  Companies move to countries with fewer labor and environment regulations  Loss of sovereignty  Homogenized cultures

M ANAGING IN THE G LOBAL M ARKETPLACE  Much of this course is concerned with managing an international business  i.e., any business with international  sales,  sourcing, or  Investment

M ANAGING AN INTERNATIONAL BUSINESS IS DIFFERENT  Countries are different  International transactions involve converting money into different currencies  Range of problems in an international business is wider and problems are more complex  International business must cope with different, conflicting government rules and systems  Different strategic approaches required

K EY TERMS An international business – any business with international sales, sourcing, or investment A multinational business – any business with productive activities in 2 or more countries A global business – a business that takes a global approach to production and sourcing (Coca-Cola, Intel)

T HE E MERGENCE OF G LOBAL I NSTITUTIONS  the World Bank which promotes economic development  the United Nations (UN) which maintains international peace and security, develops friendly relations among nations, cooperates in solving international problems and promotes respect for human rights, and is a center for harmonizing the actions of nations

F UN R EADING - Z E L ANGADZH OF ZE U ROP The European Commission has just announced an agreement whereby English will be the official language of the European Union rather than German, which was the other possibility. As part of the negotiations Her Majesty's Government conceded that English spelling had some room for improvement and has accepted a 5 year phase-in plan that would be known as "Euro-English". In the first year, 's' will replace the soft 'c'. Sertainly, this will make the sivil servants jump with joy. The hard 'c' will be dropped in favour of the 'k'. This should klear up konfusion and keyboards kan have one less letter. There will be growing publik enthusiasm in the sekond year when the troublesome 'ph' will be replased with the 'f'. This will make words like 'fotograf' 20% shorter. In the third year, publik akseptanse of the new spelling kan be expekted to reach the stage where more komplikated changes are possible. Governments will enkourage the removal of double leters which have always been a deterent to akurate speling. Also al wil agre that the horibl mes of the silent 'e' in the languag is disgrasful and it should go away. By the 4th yer peopl will be reseptiv to steps such as replasing 'th'with 'z' and 'w' with 'v'. During ze fifz yer, ze unesesary 'o' be dropd from vords kontaining 'ou' and similar changes vud of kors be aplid to oza kombinations of letas. After ziz fifz yer ve vil have a rali sensibl riten styl. Zer vil be no mor trubl or difikultis and evrivun vil find it ezi tu anderstand ech oza. Ze drem of an united Urop vil finali kum tru!

L ET ’ S S TART Age is just a few random numbers… Don’t be bothered