International Business Relations Spring 2016 Hwy-Chang Moon Professor of International Business & Strategy The Graduate School of International Studies Seoul National University cmoon@snu.ac.kr Office: Bldg. 140-2, Rm 201 Class Thur 2:30 – 5:30 pm Office Hours Wednesday & Thursday 1:25 - 2:25 pm or by Appointment Teaching Assistant Yeonwoo Lee (yeonlee.snu@gmail.com)

Course Description Part 1 deals with the basics of international business and national competitiveness that will help formulate effective strategies. This part covers the most fundamental aspects of international business relations. Emphasis is on the theoretical understanding of the diamond model followed by its applications to different units of analysis. Part 2 deals with the newly developed ABCD model. As the business environments become more global and complicated than ever, traditional theories and approaches have become less effective. To fill this gap, this new competitiveness paradigm is introduced. This part demonstrates the model’s comprehensiveness and strengths by explaining Korea’s growth strategy and suggesting implications for other countries and firms.

Course Materials Grading [Total 100%] Required: Moon, H.C. (2016). The Strategy for Korea’s Economic Success. New York: Oxford University Press [to be published in April] Other readings provided and suggested. Recommended: Cho, D.S. and Moon, H.C. (2013). From Adam Smith to Michael Porter: Evolution of Competitive Theory, extended addition. Singapore: World Scientific Students should read the materials before class, so class meetings can be used for discussion rather than for lecture. Grading [Total 100%] Professional behavior: attitude, attendance, participation (20%) One page summary of readings for each class (20%) Presentations: Class presentation and project presentation (20%) PPT reports: Class presentation and project presentation (20%) Final Exam (20%)

Presentations and Reports There are two presentations and their PPT reports. Detailed information about the projects will be given later. Students are expected to choose their own topics and group members. Assignments All assignments must be completed in the form of either Word or PowerPoint. No hand-written material will be accepted. All assignments are due at the beginning of class on the due date. Any late submission without a valid reason will be penalized. Attendance Students must attend all classes in order to receive full attendance credit and will lose points for absences regardless of the reasons. Students who miss more than two classes may not receive a grade. Latecomers and those chatting with other people distract the class and may be penalized.

Part 1: International Business and National Competitiveness Class 1: (Mar 3) Introduction Why do we have to study International Business? What is competitiveness and how can we enhance it? Class 2: (Mar 10) The Diamond Model: Theory [Five groups will be formed] Porter 1990, The Competitive Advantage of Nations Porter 2003, Building the Microeconomic Foundations of Prosperity: BCI Class 3: (Mar 17) Application: Industry and Firm Level [Group 1] Porter Students 2007, Taiwan: Semiconductor Cluster Porter Students 2007, The Transport and Logistics Cluster in the UAE Moon and Lee 2004, The Competitiveness of Multinational Firms: Samsung vs Sony Class 4: (Mar 24) The Generalized Double Diamond (GDD) Model [Group 2] Cho and Moon 2013 (Chapter 4), Debate: Porter vs. Rugman Moon, Rugman and Verbeke 1998, A Generalized Double Diamond Approach to the Global Competitiveness of Korea and Singapore Jin and Moon 2006, Diamond Approach to the Competitiveness of Korea’s Apparel Industry Class 5: (Mar 31) Individual Project Guidelines Manuscript & Presentation Guidelines

Part 2: A New Approach to Competitiveness – ABCD Model Class 6: (Apr 7) Understanding Korea’s Economic Development [Group 3] Moon 2016, Introduction, Chapter 1 The Economist (10/26/2013), The great decompression Class7: (Apr 14) Government and Business Leadership [Group 4] Moon 2016, Chapter 2,3 McKinsey & Company (2010), South Korea: Finding its place on the world stage Project: Due One-Page Proposal Class 8: (Apr 21) Introduction to the ABCD Model [Group 5] Moon 2016, Chapter 4 Carnegie Endowment for International Peace (09/01/2013), Unbalanced but in a good way Foreign Policy (06/07/2012), Korea as number one Class 9: (Apr 28) The ABCD Model and Its Theories [Group 1] Moon 2016, Chapter 5, 6 Fortune (2011/10/24), When Steve met Bill: It was a kind of weird seduction visit The Washington Post (06/08/2012), 2012 Hyundai Azera: An uncommon touch No Class on May 5 (National Holiday) Class 10: (May 12) The Role of Internationalization [Group 2] Moon 2016, Chapter 7 Porter, M.E. and Rivikin, J.W. (2012), Choosing the United States

Class 11: (May 19) Internationalization at the Firm Level [Group 3] Moon 2016, Chapter 8, 9 UNCTAD (2013), Global value chains: Investment and trade for development (Chapter 4), in UNCTAD, World Investment Report, New York and Geneva: United Nations Class 12: (May 26) New Challenges in Korea and Solutions [Group 4] Moon 2016, Chapter 10 The Economist (10/26/2013), The 54th parallel The Economist (2011/11/12), South Korea’s economy: What do you do when you reach the top? The Economist (01/08/2015), Economic boom, population bust (Video) Class 13: (Jun 2) New Challenges and Generalization of the ABCD Model [Group 5] Moon 2016, Chapter 11, 12 Krugman 1994, The myth of Asia’s miracle Bloomberg 2016, These are the world’s most innovative economies Class 14: (Jun 9) Individual Project Project Presentations Critical Comments and Discussions Class 15: (Jun 16) Final Exam Final Exam (Open book/note)

Class number Your name Article author & title Summary of the article(s) Uniqueness Main points Evaluation (the last one paragraph) Any constructive opinion Possible extension