BEMM116 Principles of International Business Management
Choose one global industry from those covered in Global Shift. Answer one question of the following three options.
First assess the extent to which the chosen industry can be characterised as: (a) ‘globalised’ or ‘regionalised’ (as per Rugman) or (b) ‘core Triad’-dominated or ‘multi-polar’. Then, explore and analyse the underlying factors and forces behind the observed patterns.
For the chosen industry, select one prominent emerging economy, and conduct a comparative investigation of the major entry modes used by foreign firms in the past decade. Carefully assess (and illustrate with examples) the key motivations behind the choice of the entry modes under consideration.
For the chosen industry, select and investigate one prominent geographical industry cluster, account for the cluster’s international prominence (drawing on relevant theories) and explain the role it plays within wider global production networks.
Seminar 1: introduction to the module
Introduction to the module and assessment briefing
Small group discussion activity: Brainstorming on the nature of the Global Business Environment using the LoNG PESTEL Framework.
Supplementary Seminar discussion questions
Who are the different groups of ‘key actors’ in the global economy and business environment?
What are the key ‘big picture’ trends and issues in today’s global business environment?
What is FDI? How is FDI different from foreign portfolio investment?
What is an MNE? What are the characteristics of MNEs?
Seminar 2: globalisation and regionalisation
Tutors to assign students to small groups of 4-6 students for Seminar tasks ***
Seminar discussion questions on globalisation
What do you understand the term ‘globalisation’ to mean? How can we define globalisation?
What have been the main ‘drivers’ or ‘enablers’ of globalisation?
How far has globalisation gone? How can we ‘measure’ the extent of globalisation?
What have been (are) the implications of globalisation for business? Does the answer depend on the type of firm and the nationality of the firm?
Seminar 3: triad dominance vs. Multi-polarity
Explain what is meant by the Triad and outline how and why the definition of the term has evolved over time (e.g. from Ohmae’s original ‘core Triad’ to today’s wider conception)?
What kinds of indicators and measures of economic activity could be used to assess the extent of Triad dominance in a particular industry?
What evidence is there for the existence of a global Triad? To what extent does the answer to this question depend on the indicators chosen and the industry being considered?
To what extent has the emergence of the BRIC countries and other emerging economies undermined the relevance of the Triad concept? What sort of evidence could be used to answer this question?
Seminar 4:theories on international business
Why do firms engage in FDI?
What is Dunning’s OLI framework and how can we use it to understand the ways in which firms internationalise?
What is ‘internalisation’? How does it enable an MNC to access international markets?
Please assign a ‘Next-11’ emerging economy to each student group and explain the required preparation for next week’s Seminar. Depending on the number and ‘mix’ of students, assign 4 or 5 of the following countries: Mexico, Turkey, Nigeria, Egypt, Iran, Vietnam, Philippines, Indonesial.
Seminar 5: emerging markets
Focus: research task and group activity on Next-11 Emerging markets.
This Seminar activity involves all students.
You must undertake preparatory research before coming to this class.
For this Seminar, all students are required to conduct some individual research (as outlined below) and bring some summary notes to the Seminar. During the Seminar you will be required to work in small groups to deliver a brief presentation, based on your research.
To introduce you to some of the key emerging markets (beyond the BRIC countries) and highlight some of the key features of their national economies and business environments.
To introduce you to some of the key online data sources that will be useful for the final group presentation and individual assignment tasks.
Using online data sources, such as globalEDGE and Doing Business, you are required to research and compile a summary country profile of your assigned Next-11 emerging market as follows:
General country characteristics: key information about history, culture, demographics, political and legal system, etc.
Key economic attributes: recent economic performance, leading industries, trade position, openness to foreign investment, etc.
Opportunities and challenges for doing business in the country.
This wide-ranging site has links to a variety of data sources about countries’ history, economy and political conditions. If you click on ‘global insights’ then select a country from the drop-down menu under ‘insights by country’, this will take you to a page with a variety of key indicators for the chosen country (use the left hand menu to navigate) and links to external sites. You can also click on the ‘country comparator’ and ‘country rankings’ tabs to directly compare the chosen country with other countries on a variety of economic indicators.
Doing Business an annual report and data series produced bythe World Bank and International Finance Corporation. The Doing Business project aims to provideobjective measures of the business environment in 185 economies, with a focus on 10 areas of business regulation. The website provides data comparison tools, country rankings and individual country reports.
Supplementary Seminar discussion questions on emerging market economies
How can we define ‘emerging market economies’ and distinguish them from advanced/developed economies and developing/less developed economies?
What forces or processes have led to the emergence of emerging market economies?
What kinds of opportunities and threats do emerging markets present to established multinational firms from Western/Triad economies?
How do emerging market multinationals (EMNEs) differ from more established Triad multinationals? And to what extent do EMNEs present a credible threat to Triad MNEs?
To what extent is the term ‘emerging markets’ still relevant today?
Seminar 6: the nation-state
Informal presentation by Group 2 (based on the themes provided below). Although the Seminar will be led by one student group, it is important that all students prepare by doing the suggested topic readings (see reading list).
Using examples from the extractive industries, outline a number of ways in which nation-states (through their various economic policies) shape the global pattern of production and trade? [See relevant industry chapter in Dicken (2015) and consult other sources]
What factors determine the relative ‘bargaining power’ between multinational corporations and nation-states in this industry? Present one or more examples to illustrate your arguments.
1.What are the 4 roles of the nation-state in the global economy, according to Dicken?
2.To what extent has national (economic) sovereignty been challenged or undermined by the globalisation process?
3.To what extent, and in what ways, has national sovereignty been re-asserted since the global financial crisis of 2008? [See Rodrik (2013) on reading list]
4.In what ways might the objectives of nation-states and multinational firms be in conflict?
5.What factors influence the relative bargaining power of multinationals and nation-states? [see Dicken, Ch.6]
Seminar 7: varieties of capitalism
What are the main arguments of the ‘varieties of capitalism’ approach and on which main variables are countries classified into the different varieties?
Compare/contrast the main characteristics of the varieties of capitalism found in the United States and Germany.
What are said to be the key economic implications of this variation among different models? (e.g. in terms of the type of innovation or industrial specialisation in different countries)
To what extent do the BRIC economies and other parts of emerging Asia fit within the established ‘varieties of capitalism’ framework? Highlight any areas of difference.
How do the models of capitalism found in leading emerging economies – such as China – differ from those observed in the developed economies of the core Triad?
What pressures for change have been exerted on the various national models of capitalism over the last two decades and how do these relate to globalisation? To what extent has there been a convergence between the different models?
Seminar 8: fdi & market entry modes
Outline the major motivations for undertaking FDI?
Delineate the types of firms involved in FDI. Are there any types of firms which can internationalise only via FDI?
What factors should management consider when deciding where in the world to establish a factory? A marketing headquarters? A regional headquarters?
Seminar 9: global production networks
Informal presentation by Group 4 (based on the questions below). Although the Seminar will be led by one student group, it is important that all students prepare by doing the suggested topic readings (see reading list).
You are advised to consult the Chapter 14 in Dicken (2015) when preparing your presentation.
Explain some of the key features of the GPN or GVC structures that are typically observed in the textile and clothing industry.
Why do different countries perform different roles or functions within the textile and clothing global production network? Give some examples.
How have Western retailers and brand owners been able to exert so much influence over the geography of production in the clothing industry? And why is clothing (garment manufacturing) apparently one of the most ‘footloose’ global industries?
What is meant by the terms ‘global production network’ and ‘global value chain’?
Why has the GPN or GVC phenomenon only recently come to prominence in discussions of international trade?
What particular insights can be gleaned from adopting a GPN or GVC perspective on international business and international trade and investment issues?
What ‘forces’ (factors and processes) have encouraged the emergence of global production networks in certain global industries?
Seminar 10: assignment workshop
We will be going over the assignment questions in this Seminar so please bring any research materials you have gathered for your assignment.