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Lecture 1 Introduction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],International Operations (MGMT 6390) / International Business (MGMT 6350)
What This International Operations/ International Business Course is About ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business
International Transactions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Course   Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Course   Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Course Plan Logistics Management, Transportation and Communication 3 Project Reports  14 “ Quest for Global Dominance,” Globalization Backlash 13 Strategic and Political Implications Globalization of R&D 12 Semiconductors and Global Knowledge Networks 11 EU, Albany International 10 Industry Examples China, Color Kinetics 9 India 8 Mexico  7 US and Japan 6 Country Examples World Class Operations, Global vs National Mindsets  5 Productivity and Location Decisions 4 Global Supply Chains, Outsourcing and Offshoring 2 Introduction, History, Globalizaion and Jobs 1 General Principles Week
Cross Cutting Ideas ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Toyota in India Example
Course   Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Instructor Introductions ,[object Object],[object Object]
Student Contributions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Course   Limitations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Your challenge:  Expand the concepts in the course to cover the gaps.
History of International Business ,[object Object],[object Object],[object Object],[object Object]
History of International Business ,[object Object],[object Object],[object Object],[object Object]
Growth of Trade WTO and IMF and World Bank data Intra-EU trade in 2000 was 1.4T in 2000 Services was 20%, Merchandise was 80% in 2000 2004 data from a different series 27.0 10.06 37.3 2004 2000 1990 1980 1970 1960 1950 Year 21.7 7.88 36.3 15.1 4.30 28.5 12.2 2.54 20.8 2.7 0.39 14.3 2.0 0.17 8.6 1.6 0.09 5.4 Trade as a % of GDP World Trade (2000$ trillions) World GDP (2000$ trillions)
Growth of Foreign Direct Investment UNCTAD data
Globalization of Business Practices ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Diverse national cultures Global company culture Uniform home country culture
Why Does Geography Matter? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Market Seeking vs Resource Seeking International Operations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Dominate Factors Today ,[object Object],[object Object],[object Object]
Operations Foundations of  Globalization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Trade and Investment Barriers ,[object Object],[object Object],[object Object],[object Object],[object Object]
Tariffs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Other Barriers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
World Trade Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
International Agreements on Bribery ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Global Supply Chain  Fiber supplier in Australia Textile Maker in Italy Zipper Maker in China Apparel Maker in Mauritius Apparel Designer and Marketer in US Carriers and  Intermediaries Carriers and  Intermediaries Retailer in US ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Material flow Information flow Implies transport system details omitted
Trade in Goods and Labor
Trade in Beavers and Knives Europe 1 beaver = 3 knives North American Wilderness 3 beavers = 1 knife  Start Finish
Knife-Beaver Trade issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ Trade” in Labor US 1 labor hour = $22 China 1 labor hour = $0.60 Start Finish $  $$$$$ $ Unemployed worker Unemployed worker $$$$
Labor Trade issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Median Salaries ($K/year) In IT – India vs. US* ,[object Object],[object Object]
Professional Wages Business Week - Dec. 2005
Measure of Income Disparity % Households % GNI of lowest x% of households 0 100 100 0 Gini Coefficients:  a = 0, b~0.4, c~0.6 a b c
Increasing Income Disparity in the US From “Income Inequality in the United States” By Steven C. Deller* URL:   http://www.aae.wisc.edu/www/pub/cenews/ce308figures.pdf
Global R&D Resources I: Total Science and Engineering Doctorates  in Selected Asian Economies NSF Science Indicators – 2004 appendix table 2-39
Global R&D Resources II: Total Science and Engineering Doctorates  including US and Germany NSF Science Indicators – 2004 appendix table 2-39 and 2-37
Next Class ,[object Object],[object Object],[object Object],[object Object]
Guidance for Case Discussion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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01 Introduction V2

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.
  • 6. Course Plan Logistics Management, Transportation and Communication 3 Project Reports 14 “ Quest for Global Dominance,” Globalization Backlash 13 Strategic and Political Implications Globalization of R&D 12 Semiconductors and Global Knowledge Networks 11 EU, Albany International 10 Industry Examples China, Color Kinetics 9 India 8 Mexico 7 US and Japan 6 Country Examples World Class Operations, Global vs National Mindsets 5 Productivity and Location Decisions 4 Global Supply Chains, Outsourcing and Offshoring 2 Introduction, History, Globalizaion and Jobs 1 General Principles Week
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Growth of Trade WTO and IMF and World Bank data Intra-EU trade in 2000 was 1.4T in 2000 Services was 20%, Merchandise was 80% in 2000 2004 data from a different series 27.0 10.06 37.3 2004 2000 1990 1980 1970 1960 1950 Year 21.7 7.88 36.3 15.1 4.30 28.5 12.2 2.54 20.8 2.7 0.39 14.3 2.0 0.17 8.6 1.6 0.09 5.4 Trade as a % of GDP World Trade (2000$ trillions) World GDP (2000$ trillions)
  • 15. Growth of Foreign Direct Investment UNCTAD data
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. Trade in Goods and Labor
  • 28. Trade in Beavers and Knives Europe 1 beaver = 3 knives North American Wilderness 3 beavers = 1 knife Start Finish
  • 29.
  • 30. “ Trade” in Labor US 1 labor hour = $22 China 1 labor hour = $0.60 Start Finish $  $$$$$ $ Unemployed worker Unemployed worker $$$$
  • 31.
  • 32.
  • 33. Professional Wages Business Week - Dec. 2005
  • 34. Measure of Income Disparity % Households % GNI of lowest x% of households 0 100 100 0 Gini Coefficients: a = 0, b~0.4, c~0.6 a b c
  • 35. Increasing Income Disparity in the US From “Income Inequality in the United States” By Steven C. Deller* URL: http://www.aae.wisc.edu/www/pub/cenews/ce308figures.pdf
  • 36. Global R&D Resources I: Total Science and Engineering Doctorates in Selected Asian Economies NSF Science Indicators – 2004 appendix table 2-39
  • 37. Global R&D Resources II: Total Science and Engineering Doctorates including US and Germany NSF Science Indicators – 2004 appendix table 2-39 and 2-37
  • 38.
  • 39.