Business 495: Global Business Issues & Developing Countries:  Mexico & Beyond

 

Co-Instructors

Marc de Sousa-Shields, M.A. in Regional Economics:  (01-52) 777-313-0438;    PRIVATE HREF="mailto:mdess@esglobal.com" MACROBUTTON HtmlResAnchor mdess@esglobal.com

 

Antonio Ortega, *Licenciatura in Public Accounting & M.A. in History (to be completed by June 2007):   (612) 605-7230, ext. 106 or (01-52) 777-312-3578, ext. 106;    PRIVATE HREF="mailto:antonioCGE@laneta.apc.org" MACROBUTTON HtmlResAnchor antonioCGE@laneta.apc.org

 

* = A Licenciatura in Mexico is a 5-year undergraduate degree that includes a thesis & internship

 

Course Description

This course examines global economic conditions today and explores vital issues, such as globalization, tariffs, trade barriers, exchange rates, trade balances, international joint ventures, use of agricultural and mining resources, government regulations, social responsibility, and ethics in international business.  Emphasis is on global corporate citizenship and understanding issues from the perspective of both developed and developing countries, using Mexico as a case study.  The course will include many guest lecturers and field trips that expose students to diverse segments of society, businesses, international trade partners, and a range of perspectives on global business.  (Prerequisites: either Principles of Macroeconomics (ECO 112) or Principles of Microeconomics (ECO 113), Principles of Management (BUS 242) or Principles of Marketing (MKT 252), or the consent of the instructor.)

 

Purpose & Rationale of the Course

The purpose of this course, which will be taught as an integral part of the Augsburg CGE Business  Semester Program in Cuernavaca, Mexico, is to provide students with an introduction to the theory and practice of international business within the context of the global economy, using international business in and with Mexico as a case study.  We will begin with an overview of Mexican history, culture, politics, and economics in order to understand the context of international businesses in Mexico.  We will then discuss important cultural issues to be taken into consideration when conducting international business, providing examples from Mexico. The rest of the course examines the development of global economic conditions today and how to manage a global business in the complex, ever changing nature of an increasingly homogenized global economy that is still fragmented by businesses practice and law, culture and religion. 

 

Given that the world economy is moving towards greater integration, it is essential for global business mangers to understand issues from both the perspective of developed and developing countries.  International businesses are also affected by big and longer term issues, such as access to energy and political conflict, global warming and regulatory change, governance and corruption issues, and social inequities underpinning the ever present threat of political and economic crisis. Within this context, day to day management and organizational challenges strain large and small global companies in the bid to develop and maintain a unified culture, efficient operations, and effective strategy.

 

Learning Objectives/Outcomes 

Learners will:

  1. Describe some of the opportunities and challenges faced by international businesses in Mexico and other developing countries, given the historical, political, economic , and cultural contexts of such countries.

  2. Discuss important cultural issues to be taken into consideration when conducting international business, providing examples from Mexico.

  3. Identify strategic motivations for companies to do business internationally.

  4. Analyze basic elements of the global business environment; such as exchange rates, convertibility of currencies, shipping terms, and payment methods.

  5. Discuss the role played by marketing, operations, and human resource management within an international business.

  6. Explain key challenges of managing global businesses, particularly in and with emerging markets.

  7. Articulate their understanding of the impacts and related challenges of global business, focusing on the impact of global economic development on national economic, social, cultural, and environmental life.

  8. Make connections between theory and real-world business practice through field visits in Mexico.

  9. Discuss key ethical issues in international business, drawing on case studies from Mexico and other developing countries.

  10. Articulate their understanding of global corporate citizenship.

Required Readings

* = You will read only selected chapters of the books marked with an *.  Please note that the Hill book will be used to provide technical background information.

*Becker, Thomas H.  Doing Business in the New Latin America:  A Guide to Cultures, Practices, and Opportunities.  Praeger

          Publishers, 2004.

Condon, John C.  Good Neighbors: Communicating with the Mexicans.  2nd edition. Intercultural Press, 1996.

Foster, Lynn.  A Brief History of Mexico, Revised edition.   Checkmark Books, 2004.

*Hill, Charles W. L.  International Business:  Competing in the Global Marketplace; 5th edition.  McGraw-Hill, 2005.

Crouch, Ned.  Mexicans and Americans:  Cracking the Cultural Code.  Nicholas Brealey Publishing, 2004.

*Deaton, Gary L. The Guide to Mexico for Business, 11th Edition.  American Chamber of Commerce of Mexico; 11th edition,

          2003.

*Kline, John M.  Ethics for International Business:  Decision-Making in a Global Political Economy. Routledge, 2005.

*Wood, Donna J. Jeanne M. Logsdon, Patsy G. Lewellyn, and Kim Davenport.  Global Business Citizenship:  A Transformative

          Framework for Ethics and Sustainable Capitalism.  M.E. Sharpe, 2006.

You will also be provided with a supplementary reading packet in Cuernavaca

 

Teaching Methodology

The instructors use a student-centered methodology.  Students are given a course interest survey and/or an ungraded quiz to assess their prior knowledge as well as their level of interest in specific course topics.  Teaching strategies include lectures by instructors; small and large group discussions of required readings and experiences; films; field trips; and guest lectures.  The course will usually meet twice/week.  One class session will be an “internal” session involving lecture and discussion, while the other will involve a guest speaker and/or excursion.  Guest speakers and excursions may include the following:

  • Visit archeological and historic sites in Mexico to develop an understanding of Mexican history and culture

  • Participate in a market basket survey to gain an understanding of the cost of living in Cuernavaca

  • Talk with economic officers at the U.S. Embassy about U.S.-Mexico relations and the impact of NAFTA

  • Talk with Mexican government officials at the Secretary of Commerce about U.S.-Mexico relations and the impact of NAFTA

  • Discuss the pros and cons of the Panama-Puebla-Plan with both advocates and opponents

  • Visit the Mexican stock exchange in Mexico City

  • Visit a maquiladora (assembly plant) and talk with the managers and workers about international business

  • Meet with the CEO of an international business and talk with him about U.S.-Mexico trade relations

  • Visit small businesses and talk with small business owners

  • Talk with the director of the Mexican Women’s Business Association

  • Discuss ethical issues with international business managers

  • Visit the internationally famous Mexican-owned hotel and restaurant Las Manańitas and talk with managers about their decision not to sell to an international chain

  • Talk with the Secretary of Tourism for the State of Morelos and local business leaders involved in international tourism

  • Visit Boing, a Mexican worker-owned company, and discuss the challenges of running a socially responsible business with the management

  • Visit an ecotourism project and talk with managers about corporate responsibility regarding environmental issues

  • Visit businesses in an indigenous village and talk with members of the land council about ethical issues related to doing business in an indigenous community.

  • Talk with diverse groups of people about the impact of globalization and their understandings of global corporate citizenship

Course Requirements (100% = 100 points)

  1. Class Participation (20% = 20 points):  Effective class participation includes not only regular attendance but also active participation in class sessions involving guest lectures, other experiential activities, and internal class sessions.  Please note that class participation is required for a passing grade .  Because participation is essential to the learning process, a student who misses class activities for any reason must speak to the instructors prior to class and make arrangements to complete a short assignment.  2 points will be deducted from students’ participation grade for each class missed unless the student makes arrangements in advance with the instructors to write a short paper to make up for the material missed in class. The length and deadline for the make-up assignment will be determined between the instructors and the student.  Absences due to religious holidays and illness are considered excused absences.  However, students still must inform the instructors of such absences in advance and talk to the instructors about how to make up the missed session/s.  Students are also responsible for obtaining notes, handouts, and announcements from other students if they arrive late to class or miss a class session.  Absences for personal travel or visits from family or friends are not excused absences.  Your class participation grade includes the following: 

  • Active Participation in Class Sessions Involving Guest Speakers &/or Excursions (10% = 10 points)  This includes engaging in informed dialogue with speakers, asking probing questions related to required readings or other speakers, and sharing their own thoughts and experiences, as appropriate.  Although you will receive a grade on this that is separate from your class participation, you will be expected to keep a log of your notes from all community-based research (ie. guest speakers, excursions, and interviews, etc.) for your own use in writing papers and exam questions and for use in internal class discussions.  Be sure to make notes that respond to the following types of questions:  What are the speaker’s main points or arguments?  What insights have you gained from this talk?  What is confusing to you?  What do you need clarified?  What inspires you and/or angers you? How does it support and/or contradict previous notions you have had and/or articles and books you have read?  About what would you like to learn more? What questions for further exploration do you have as a result of this talk?

  • Active Participation in In-House Class Sessions (10% = 10 points)  Students will be expected to demonstrate their comprehension of assigned readings by participating in class discussions, debates, role plays, in-class writing exercises,  short oral presentations on assigned readings, and/or completing other assignments in class that will not receive a specific grade but are considered part of class participation.  Failure to come prepared to class by completing required readings in advance will seriously affect your class participation grade.

  1. Reflection & Analysis Papers (30% = 30 points):  Students will write 3 short papers (3-4 typed pages) about cultural and historical issues related to doing business in Mexico, drawing on examples from required readings, guest lectures, and excursions in Mexico. Each paper is worth 10 points.

  • Reflection & Analysis Paper #1 on the Cultural Context of Doing Business in Mexico

  • Reflection & Analysis Paper #2 on the Historical Context of Doing Business in Mexico

  • Reflection & Analysis Paper #2 on the Impact of Economic Globalization on Mexico and Other Developing Countries

  1. Exams (30% = 30 points):  All students will take 3 exams demonstrating their mastery of required readings and accomplishment of course objectives.  Each test is worth a total of 10 point

  1. Research Paper & Oral Presentation on Profitable Global Corporate Citizenship: Doing Well and Doing Good (20% = 20 points)  All students will conduct independent research on an issue related to the topic of profitable global corporate citizenship.  All topics must be approved by the course instructors.  Students will then write a 8-10 page paper and present an oral presentation on their research findings. 

Tentative Weekly Calendar 

 

Week

Topics

Internal Class Session with Lecture & Discussion

Readings for this Week

Assignments due in Class this Week

1

Introduction to the Course & to Mexico

What is the global economy and what do we know about it? What are some of the cultural issues facing international businesses in Mexico? The objectives of this first class session is to determine what students understand about key course themes, such as the topics of business in a global economy & doing business in Mexico. Students will take an ungraded quiz on the global economy & a pre-test regarding their knowledge about Mexico. We will also discuss the following:

  • Course objectives (both internal class work & site visits):

  • Course requirements

Condon, Chapters 1-14.

 

 

2

Doing Business in Mexico:  Cultural Issues

This session will introduce students to key issues in intercultural communication facing international businesses today. We will discuss:

  • High-Context vs. Low-Context Cultures

  • Cultural Communication Patterns

  • The Role of History

Crouch, selected chapters.

Deaton, selected chapters.

Foster, Chapters 1-4.

Reflection & Analysis Paper #1 on the Cultural Context of Doing Business in Mexico

3

Mexico in the Global Economy

 

This class session will continue to situate Mexico in the emerging global economy by examining the social, cultural, political and economic development of the country and its institutions. We will discuss:

  • Pre-Columbian Mexico

  • The Spanish Conquest

  • The Colonial Period

  • Mexican Independence

  • The Porfiriato

  • The Mexican Revoloution

  • Political economy since the 1920s;

Foster, Chapters 5-10.

 

4

Mexico in the Global Economy

 

This class session will situate Mexico in the emerging global economy by examining the social, cultural, political and economic development of the country and its institutions. We will discuss:

  • Economic institutions and international trade; and

  • The Mexican economy today.

Foster, Chapters 11-12.

Deaton, selected chapters.

Assigned articles.

Reflection & Analysis Paper #2 on the Historical Context of Doing Business in Mexico

 

5

Globalization from Top to Bottom

This class session confronts the emergence and deepening of globalization and what it means for countries, companies, and people in both the developed and developing worlds. Globalization from Homer Simpson to Tanzanian coffee growers to Mexican cement companies to Islamic mutual fund managers.  

What are the forces of globalization: institutions, policies, demand and more.

  • What are the opportunities and challenges for developed and developing countries?

  • Can globalization work for all given different political and legal systems, cultures and social structures?

Hill, Chapters Chapter 1 – 3.

Deaton, selected chapters.

 

 

6

The Impact of Economic Globalization on Mexico (includes 3-day seminar in Mexico City)

This class session will take place after a 3-day seminar on economic globalization in Mexico City.  We will discuss the pros and cons of economic globalization and its impact on Mexico.

  • What are some of the competing perspectives on the impact of globalization and free trade in Mexico?

  • What are some of the ethical issues involved in international business?

  • What does global business citizenship look like?

Wood, Chapters 1-4

Deaton, selected chapters.

Assigned articles.

 

 

Debate on Globalization in class.

7

Global Trade: How it Works and How it Doesn’t

This class session seeks to answers the question: Are we all better off or just a few given current global trade practice?  We will discuss:

  • How we got to where we are: trade practice through ages (the good, the bad and the ugly); &

  • Political economy of international trade: why the price of wheat does not add up for Ecuadorian farmers but does for US wheat growers. Protecting interests and international trade and just what is free trade?

  • Ethical issues in international business

Hill, Chapters 4 & 5

Wood, Chapter 12.

Kline, Chapters 1-2.

 

Reflection & Analysis Paper #3:  the Impact of Economic Globalization on Mexico & Other Developing Countries

8

Global Trade: How it Works and How it Doesn’t, Part II

This class session seeks to answers the question:

  • Are we all better off or do just a few benefit given current global trade practice? 

  • What are the different and comparative advantages trade agreements, foreign direct investment, international portfolio investment, national economic development for the development of the global and national economies and specific opportunities for national and international companies?

  • How do developments in trade affect the livelihoods and well-being of nations?

Hill, Chapters 6 & 7

Kline, Chapter 3.

Assigned articles

Proposals for Research Papers due

9

Global Trade and corporate global citizenship.

Ethics and business – or following established national and international rules of the game -- emerged in the 1990s as an important concern corporate citizenship. More recently, what constitutes corporate citizenship has been enlarged to include a variety of issues which can be summed up as a companies responsibility to a broad set of sustainability issues – considerations that include the environment, local culture, education, gender issues, and more. Not minding these issues can result in a variety of negative, often significant, impacts on corporate brand, share price, operating income etc.  Minding corporate citizenship while engaging in global Trade from -- fair trade to commodity trading -- is an inevitable outcome of the global economy, one that companies ignore at their great peril.

Kline, Chapters 4 & 8?

Assigned articles

 

 

 

 

Augsburg Honesty Policy 

All students are expected to follow the Augsburg Honesty Policy which is printed in the program manual. It is assumed that all students have read the honesty policy, understand it, and are following it.  Except when the assignment expressly encourages group work, it is assumed that all course work will be one’s own. Students are not to copy the work of others.  The first occurrence of plagiarism will result in the failure of the assignment. A student who commits plagiarism a second time will fail the course.

 

Student's Rights and Responsibilities

Students with formally diagnosed learning or physical differences have legal rights to course modifications. Those who qualify should identify themselves to the instructor as soon as possible in order to obtain extra assistance.

 

Late Assignments

In the case of illness, you may request an extension of the deadline for a particular assignment.  Requests for extensions, however, must be made to the course instructor(s) BEFORE the assignment is due and you must propose a new deadline.  Assignments turned in after the deadline on the due date (or after the re-negotiated deadline in cases of illness) will lose 1/2 grade every 24 hours until submitted.  (i.e., a 4.0 quality paper turned in one day late without approval will receive a 3.5.)

 

Rewriting Assignments

If you receive a grade of 3.0 or lower on a major paper or take-home exam and would like to revise it, you may do so as long as you resubmit it within one week of the date it was returned to you.