Business and Economics

WEEK 2- THE INTERNATIONAL BUSINESS ENVIRONMENTLegal Systems, Transition Economies & Economic Development

MGF2351- INTERNATIONAL BUSINESS

GROUP PRESENTATION Groups of 3-4

Week 4: Culture in IB

Week 5: Theories of International Trade and Investment

Week 6: The Regulatory Framework

Week 7: FDI & the MNE

Week 8: Week 8: Cooperation among Nations

Week 9: Foreign Exchange & the International Monetary System

Week 10: The Structure & Strategy of International Business

Week 11: Entry Strategies for Internationalising

HOW TO GIVE A GREAT PRESENTATION…. Consult the evaluation criteria!! Content

-Covers the topic area.

-Reflects a good understanding of the relevant literature (REFERENCE)

-Use examples.

-Include practical implications (How does this affect business?). Well prepared

-Coherent presentation (rehearsed together as a group, not 3 separate presentations).

-Well presented slides. Speak up and out

-Engage and involve the audience .

-DO NOT READ FROM NOTES!! (Better yet don’t have ANY!).

http://www.youtube.com/watch?v=lpvgfmEU2Ck

QU 1- Amartya Sen argues that the concept of development should be broadened to include more than just economic development. What other factors does Sen think should be included in an assessment of development? How might adoption of Sen’s views influence government policy? Do you think Sen is correct that development is about more than just economic development?

Ultimate goal of economic life is freedom.

Removal of:

- poverty and tyranny

- poor economic opportunities & systematic social deprivation

- neglect of public facilities & intolerance of repressive states.

Democratization to give citizens a voice.

A country that is economically prosperous while still limiting or imprisoning its citizens will ultimately wither because it will be stifling the individual entrepreneurship that leads to economic vitality.

QU 2- What is the relationship between corruption in a country (e.g., bribe- taking by government officials) and economic growth? Is corruption always bad?

When government officials engage in corruption, they subordinate the interest of their country to their personal gain.

Reduce transparency.

Nations high in corruption tend to be underdeveloped.

In some countries (eg. France) bribery is apart of their accepted culture.

QU 3-What is a country's legal system? Why is it important to international businesses? Compare and contrast the three main types of legal systems in use around the world. What implications do each of these raise for international business?

The rules, or laws, that regulate behaviour along with the processes by which laws are enforced through which redress for grievances are obtained.

The legal system regulates business practice, defines the manner in which business transactions are to be executed, and sets down the rights and obligations of those involved in business transactions.

Common law is based on tradition, precedent, and custom.

Civil law is based on a very detailed set of laws organized into codes.

Theocratic law is based on religious teachings.

JAPAN’S ECONOMIC MALAISECLOSING CASE pg 95

QU 1- Why has the Japanese economy stagnated?

Stock market collapsed.

Property prices plunged.

Banks sharply curtailed the easy lending practices that had helped to finance the boom.

Consumers stopped spending Recession.

Deflation - Consumers expect prices to continue to fall, delaying their purchases

Gov efforts have been ineffective.

QU 2- What lessons does the history of Japan over the last 30 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan?

Sufficient regulation for lending practices

Maybe the gov should not have tried to spend its way out of the slump..

With Japan‘s debt now at 200% of its GDP the country has few options left to get back on track.

QU 3- What do you think would be required to get the Japanese economy moving again?

Supporting innovation and entrepreneurship- innovation leads to economic growth

Increase immigration – expand market and help support growing population

QU 4- What are the implications of Japan’s economic stagnation for the benefits, costs, and risks of doing business in this nation?

QU 4- What are the implications of Japan’s economic stagnation for the benefits, costs, and risks of doing business in this nation?

OPPORTUNITIES

Money is cheap .

Wages relatively low.

CHALLENGES

Consumers unwilling to spend.

Future government policies to spark economic growth could make could make it more difficult for businesses.

QU 5- As an international business, which economy would you rather invest in, that of Japan or that of India?

JAPAN

Fewer political and legal risks

Good time to gain market share and competitive advantage before economy begins to grow again

INDIA

Problems with laws governing business

However, huge market with long term potential

CULTURE IN INTERNATIONAL BUSINESS

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