Upon completion of the course, you will be able to:
1. Explain the basic ideas, concepts and frameworks developed in the course in writing.
2. Use coherent and theoretically informed arguments to apply the basic ideas, concepts, tools and
frameworks developed in the course to case studies.
3. Verbally present your understanding of the basic ideas, concepts, tools and frameworks
developed in the course to peers.
4. Provide feedback on peers' presentations of the course material.
5.Cooperate with peers to develop your knowledge of the course material.
6. Evaluate your ability to develop the skills that are required to study independently.
Content
International business deals with economic transactions amongst individuals, groups or
organizations across national geographical borders. It deals with issues such as: why does a
particular country produce particular goods or services? Why and when does a company in one
country deal with companies in other countries? What is a multinational enterprise and how are
these firms different from domestic enterprises? This course introduces the core concepts related
to globalization and global business, with a focus on developments in the triad, i.e. the US, the EU
and Japan and in emerging markets. The perspective of this course is that of the multinational firm
in its economic environment, addressing issues of primary importance to multinational enterprises
(MNEs) such as the international competitive environment, the internal resources of multinational
enterprises, and the origins of their competitive advantage, which are embedded in combinations
of country-specific and firm-specific advantages. This course thus serves as an introduction to the
domain of international business strategy.
Topics
Topic 1: Introduction to International Business & Pillar 1 - The institution-based view
Material: Chapters 1, 2 and 3
Topic 2: Pillar 2 - The resource-based view
Material: Chapters 4 and 11
Topic 3: Trade and foreign exchange
Material: Chapters 5 and 7
Topic 4: Foreign direct investment
Material: Chapters 6 and 10
Topic 5: Entrepreneurial firms, alliances and acquisitions
Material: Chapters 9 and 12
Topic 6: Global strategy, marketing and supply chain management
Material: Chapters 13 and 14
Topic 7: Corporate governance and Corporate Social Responsibility
Material: Chapters 16 and 17
Week 1-
1. Define the concept of International Business (IB).
2. Discuss two IB perspectives: the institution-based view and the resource-based view.
3. Discuss three understandings of globalization: as a new force, an evolution and a pendulum.
4. Explain the difference between formal and informal institutions.
5. Explain how institutions reduce uncertainty.
6. Discuss the two core propositions underpinning the institution-based view.
7. Describe differences between political, judicial and economic systems.
,8. Discuss systemic differences between cultures using the context, cluster and dimension
approaches.
9. Discuss firms' strategic responses to ethical challenges.
IB Hoofdstuk 1
,1.1 Explain the concepts of international business and global business, with a focus on
emerging economies.
IB is typically defined as
● (1)a business (firm) that engages in international (cross-border) economic activities, and/or
● (2)the action of doing business abroad.
Global business is defined in this book as business around the globe.
Multinational enterprise: bedrijf dat zich bezighoudt met directe buitenlandse investeringen, door
rechtstreeks te investeren in controle uitoefenen en activiteiten met toegevoegde waarde beheren
in andere landen.
Emerging economies: developing countries, opkomende economieën.
Overall, emerging economies contribute approximately 50% of the global gross domestic product
(GDP). Note that this percentage is adjusted for purchasing power parity (PPP) (wisselkoers),
which is an adjustment to reflect the differences in cost of living (see In Focus 1.1). Using official
(nominal) exchange rates without adjusting for PPP, emerging economies contribute about 30% of
the global GDP. Why is there such a huge difference between the two measures? Because the
cost of living (such as housing and haircuts) in emerging economies tends to be lower than that in
developed economies. For instance, US$1 spent in Mexico can buy a lot more than US$1 spent in
the United States. De PPP tussen twee landen is het tarief waartegen de valuta van een land moet
worden omgerekend naar die van een tweede land om ervoor te zorgen dat een bepaald bedrag
van de valuta van het eerste land hetzelfde volume aan goederen en diensten in het tweede land
koopt.
Gross Domestic Product (GDP): De som van alle toegevoegde waarden die in één jaar tot de
productie van goederen en diensten in een land kan worden gerekend. Het wordt als maatstaf
gebruikt bij het vergelijken van de omvang van de economie van een land met die van andere
landen. Optelling van consumentenbestedingen, investeringen, overheidsaankopen en de waarde
van de export minus de waarde van de import.
Gross National Product: GDP + inkomens van bijv. Nederlanders die niet in Nederland
wonen/werken.
More Western MNEs, such as General Electric (GE), are investing aggressively in the BoP
(onderste laag van de piramide) and leveraging their investment to tackle markets in both
emerging and developed economies.
An interesting recent development out of emerging economies is reverse innovation.
reverse innovation—an innovation that is adopted first in emerging (opkomende) economies and
then diffused (verspreid) around the world. When such multinationals entered lower-income
economies, they tended to simplify the product features and lower prices. In other words, the
innovation flow is top-down. The reverse innovation movement suggests that emerging economies
are no longer merely low-cost production locations or attractive new markets (hence the term
“emerging markets”). They are also sources of new innovations that may not only grow out of BoP
markets, but also have the potential to go uphill to penetrate into the top of the global economic
pyramid.
1.2 Give three reasons why it is important to study global business.
, - Verbeter uw inzetbaarheid en bevorder uw carrière in de wereldeconomie
- Betere voorbereiding op mogelijke expat-opdrachten in het buitenland
- Sterkere bekwaamheid in het omgaan met buitenlandse leveranciers, partners en
concurrenten, en in het werken voor werkgevers in buitenlandse handen in uw eigen land
1.3 Articulate one fundamental question and two core perspectives in the study of global
business.
One fundamental question: What determines the success and failure of firms around the globe?
Two core perspectives:
Institutional based-view: suggereert dat het succes en falen van bedrijven wordt mogelijk
gemaakt en beperkt door instellingen. By institutions, we mean the rules of the game. Doing
business around the globe requires intimate knowledge about both formal rules (such as laws) and
informal rules (such as values) that govern competition in various countries.
Formal institutions include laws, regulations, and rules. Zo heeft Hong Kong dezelfde regels voor
elk bedrijf uit elk land en is het dus erg aantrekkelijk voor buitenlandse bedrijven.
Informal institutions include cultures, ethics, and norms.
Overall, an institution-based view suggests that institutions shed a great deal of light on what
drives firm performance around the globe and that they are largely determined by their
environments. Maar nadeel aan this point of view is dat het dan lijkt of het success/failure compleet
afhangt van omgeving en dat is nog te betwijfelen.
While the institution-based view primarily deals with the external environment, the resource-based
view focuses on a firm’s internal resources and capabilities.
liability of foreignness, which is the inherent disadvantage that foreign firms experience in host
countries because of their non-native status.
Aansprakelijkheid wegens vreemdheid, het onafscheidelijk verbonden nadeel dat buitenlandse
bedrijven in gastlanden ervaren vanwege hun buitenlandse status.
Om tegen die nadelen op te kunnen vechten hebben de buitenlandse bedrijven overweldigende
middelen en capaciteiten. Zo kunnen ze hun aansprakelijkheid van de vervreemding (van andere
landen) compenseren.
Dit is een belangrijk thema van de resource-based view, die zich richt op hoe winnende bedrijven
zulke unieke en benijdenswaardige middelen en capaciteiten verwerven en ontwikkelen, en hoe
concurrerende bedrijven imiteren en vervolgens innoveren in een poging om de winnende
bedrijven te verslaan.
1.4 Identify three ways of understanding what globalization is.
● a new force sweeping through the world in recent times
● a long-run historical evolution since the dawn of human history
