Slide 1

International Business ConceptsINTL 220 - 002Summer 2015ReviewWhat are two key elements of culture?What does it mean to be a high context culture? Example?How would you describe the cluster approach for cultural classification?What are the 5 dimensions identified in Hofstedes dimensional approach?

ReviewWhat are some strategic responses to ethical challenges?What is CSR?What is meant by sustainability?Who are stakeholders?What are some options for managing CSR?

ReviewWhat some examples of tangible resources? Intangible?What is a value chain? How can understanding the value chain be useful in firm decision making?What is outsourcing? Pros? Cons? Types?ReviewDescribe the VRIO framework. How is it useful to firms?Class ScheduleWEEKCLASS DATEREADINGSEVALUATIONS 17-MayChapter 1, Course Outline214-MayChapter 2In-class Assignment #1 Quiz #1321-MayChapter 3In-class Assignment #2 Quiz #2428-MayChapter 14In-class Assignment #3 Group Discussion #1 Quiz #354-JunChapter 4In-class Assignment #4 Group Discussion #2 Quiz #4611-JunChapter 5In-class Assignment #5 Group Discussion #3 Quiz #5718-JunChapter 8Test #125-JunChapters 6 & 7In-class Assignment #6 Group Discussion #4 Quiz #682-JulReading Week99-JulChapter 10In-class Assignment #7 Group Discussion #5 Quiz #71016-JulChapter 11Group Presentations1123-JulChapter 9In-class Assignment #8 Quiz #81230-JulChapter 12In-class Assignment #9 Quiz #9 GC&E Assignment136-AugChapter 13In-class Assignment #10 Quiz #101413-AugCourse SummaryTest #2Group Discussion #3 (2%)Share your initial research findings with your group. Each group member should create an annotated bibliography with at least 5 sources dealing with the part of the project they are responsible for.Members should comment on each others research, make suggestions as to other places to look etc. June 8th 14th Group Discussion #4 (2%)Prepare ppt slides (with notes) for your group presentation. Each group member will upload their portion of the presentation. Members should comment on one anothers slides, making suggestions. Members should particularly focus on content, and how the information being presented should be expanded upon. June 15th 28th

Chapter 5Apply the theories of international trade toexplain its economic rationaleCatalogue the most commonly used tradebarriersProvide economic and political arguments against free tradeDiscuss how a knowledge of economictheories of trade plus political realities can assist global managersTradeWho are Canadas major trading partners?What does Canada trade?

https://atlas.media.mit.edu/en/profile/country/can/

TradeExportImport

Trade DeficitTrade SurplusTradeTrade Deficit = Exports > ImportsTrade Surplus = Exports < Imports

Does Canada have a trade deficit or surplus?http://www.tradingeconomics.com/canada/balance-of-trade

Why trade?

Why Trade?International trade brings three main economic gains:product varietycompetitionspecialization13Trade TheoriesMercantilismAbsolute AdvantageComparative AdvantageProduct life cycleStrategic tradeNational competitive advantage of industriesMercantilismTrade is a zero-sum gameWealth is fixedExports > imports = increased wealth

High tariffs (protectionism)Fueled imperialismAbsolute AdvantageBeing more efficient than any one else in the production of a good or service

Ex. Portugal and wine v. England and woolAllows specializationTrade is a win-win gameAbsolute AdvantageWithout tradePortugalEngland1 shirt20 minutes15 minutes1 bottle of wine10 minutes60 minutesTotal time spent30 minutes70 minutesWith trade2 shirts-30 minutes2 bottles of wine20 minutes-Total time spent20 minutes30 minutesHow does this differ from Comparative Advantage?Absolute and Comparative AdvantageAbsolute advantage is exhibited by a producer who can supply a certain quantity of an item more efficiently than can other producers.

Comparative advantage is exhibited by a producer who can supply a certain item with a lower opportunity cost than can other producers.18Comparative AdvantageOpportunity cost the cost of pursuing one activity at the expense of anotherComparative AdvantageWithout tradePortugalEngland1 shirt20 minutes30 minutes1 bottle of wine10 minutes60 minutesTotal time spent30 minutes90 minutesWith trade2 shirts-60 minutes2 bottles of wine20 minutes-Total time spent20 minutes60 minutesComparative AdvantageStems from factor endowmentsEx. Brazil has land, water and warm weather Product life-cycleTrade patterns change over time Regardless of factor endowmentsEx. US and PCsProducts have three life stagesNewMaturing Standardized

Strategic TradeStrategic government intervention aids successCapital intensive industries (Boeing and Airbus)

What industries deserve govt subsidies support?National Competitive Advantage of IndustriesDiamond TheoryCompetitive Advantage depends on:Factor endowmentsFirm strategy/domestic rivalrySupporting industriesDomestic demandTradeFree tradeTrade barriersTrade BarriersTariffSubsidiesImport QuotasVoluntary Export RestraintLocal content requirementsAdministrative PoliciesAntidumping dutiesFree TradePros & Cons?

Why encourage protectionism?Arguments against Free TradeDomestic employmentInfant industriesNational securityConsumer protectionForeign policy objectives (trade embargoes)Environmental/social responsibilityTest #1Covers chapters 1-5 & 14Multiple ChoiceShort Answer

TestsCentennial College IDNo sharing materialsSimple Calculators (No cell phones)Bags will be placed in the front of the roomNo bathroom breaks

If students are unable to write a test they should immediately contact their professor or program Chair for advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious illness, or death of a close family member), students may be able to write a make-up test.

When writing tests, students must be able to produce official College photo identification or they may be refused the right to take the test or test results will be void.For Next ClassTest #1Quiz #5 (over Chapter 5) Due June 17thGroup Discussion #3 (Available June 8th to June 14th)Group Discussion #4 (Available June 15th to 28th)In-class Assignment #5 Due June 17th

In-class Assignment #5What are tariffs? What are some arguments in favor of tariffs? What is the impact of a tariff on the domestic economy?What is the difference between competitive advantage and absolute advantage? Provide an example. What is meant by factor endowments? What are some factor endowments that Canada possesses?

Completed assignments should be uploaded to the digital dropbox on e.centennial by June 17th.