International Business Fundamentals (IBS 9600):

1.5 Credits
Professor Rajeev J. Sawant
Aaronson Department of Marketing & International Business
Tel. 646 312 3410
E-mail: Rajeev.sawant@baruch.cuny.edu
Office VC-13 249
Course Description
The global macro-economic environment of business, and strategic responses to its challenges;
foreign trade and investment: problems, patterns, and opportunities; the language of international
business.
Course Objectives
Managers of all companies, regardless of the geographic scope of their own activities, are
exposed to the impact of developments in the global environment, on which they usually have no
control. Environmental influences like politics, economics, social trends, technology,
environment and laws affect business strategies. Companies operating internationally are directly
affected by such developments, which shape the environment in which they operate. Examples
include rapidly changing economic and institutional environments, monetary and fiscal
government policies, currency fluctuations, trade agreements, stock market booms and busts,
activities of international organizations and NGOs, and social and labor unrest. These
phenomena often confront firms with formidable challenges, and at the same time, also create
business opportunities. Because these influences occur on a large, global scale, their impacts can
be difficult to assess, predict and handle. Effective managers need to develop tools and
techniques to analyze their business environment. Appreciation of these complexities of national
institutions and multiple stakeholders helps managers allocate resources efficiently to sustain and
grow their businesses.
This course will enable you to better evaluate the associated risks and opportunities of such
global phenomena, and will deepen your understanding of the strategic consequences of global
macro-economic, political and social developments. It will equip you with tools and frameworks
to make informed managerial choices in response to these challenges and opportunities, and to
adopt sustainable and profitable strategies . You will learn how to respond effectively to these
external developments, not controlled by firms, and turn them into proprietary competitive
advantage. Firms that possess an understanding of these developments, and have the tools and
means to analyze their strategic consequences perform better in global markets.
Cases of multinational companies, drawn from a wide set of geographic regions and industrial
backgrounds, will be used to illustrate the strategic importance of explicitly incorporating the
macroeconomic environment in strategy of firms operating internationally. We will also
incorporate in our discussions contemporary developments taking place at the intersection of the
macroeconomic environment and international strategy. We will discuss these issues with a

combination of data and lingo. Dont be put off by these. They are the primers you need to know
in order to follow markets and economies.
What you will get from the course depends on what you put in. Come prepared so you can get
the most out of the course. As a start, avoid absentees from class to the extent possible. Your
presence in class is essential to your ability to understand and apply the material covered in this
course. And please note that excessive absences are perceived indicative of a lack of
commitment and will be reflected in your course evaluation. Your presence in class alone will
not be sufficient. It is essential that you thoroughly read the reading material and articulate your
views of the issues of the day prior to the class. I also expect you to effectively contribute to
class discussions. The ability to present one's ideas concisely and persuasively, and to respond
effectively to those of others, are key success factors in any managerial position. One of the
goals of this course is to help you sharpen these abilities. I encourage you to regularly follow the
business press as a matter of habit that goes beyond the course and share relevant news
articles and company examples with the class.
By the end of the course, you can expect to:
- Understand the macro environment within which international business activity takes
place and gain tools to analyse the strategic and managerial consequences of changes in
this environment.
- Understand the impact of government policies on the economic and financial
environments confronting firms operating internationally, and their impact on the range
of strategic alternatives available for these firms.
- Deepen your understanding of the relationships between firms and foreign governments,
and the drivers of government policies towards foreign firms.
- Gain an understanding of the major modes of cross-border activity, including capital
(portfolio investment), goods (trade), and companies (FDI), and the managerial
challenges and opportunities associated with them.
MBA Learning Goals:
This course will address the following MBA learning goals:
- Global Awareness: You will develop understanding of differences in political, economic,
legal and institutional environments in different countries, which will assist you operating
effectively in a global economy.
- Knowledge Integration: You will gain knowledge of how the different functional areas in
business are applied to create and implement effective solutions to international business
problems.
- Ethical Awareness: You will develop sensitivity to ethical issues across countries, and an
understanding of ethical conflicts across countries and the challenges they represent for
companies that operate internationally.
Course Material
Textbook: Charles Hill, Global Business Today. McGraw-Hill, 7th edition, 2013. A few copies are
on reserve in the Newman Library.

Course Structure and underlying Principles

We will use the Socratic method which is a Q and A format and requires intensive class
participation. Class overheads are posted on Blackboard before classes. Please read the chapter
and the slides before coming to class. I follow the slide structure in general but do not conduct
the class through slides. Please note the class participation grade.
Make sure that you have full access to Blackboard, and you are accessible via Blackboard (so
you receive my e-mails). Any difficulties with Blackboard should be addressed to Blackboard
helpdesk: bbhelp@baruch.cuny.edu
Prerequisites
There are no prerequisites for this course.
Performance Evaluation:
First exam 40%
Final exam 40%
Both exams are multiple-choice exams. You are allowed one sheet of notes for the exam.
They cover all the course material, including the readings, cases and class discussions.
Samples questions will be distributed in advance.
Class participation 20%
Grades will be posted on Blackboard a few days after the exams. The final grades will be posted
on Blackboard shortly after finals week, and before being submitted to the Registrar Office.
Other Administrative Issues
Try to avoid missing classes. It is understandable that there might be circumstances that are
beyond your control, but please try to keep these to a minimum. Given the nature of this course,
where learning is largely based on class discussions, it is difficult, if not impossible, to complete
the course successfully without attending classes regularly.
Zicklin School of Business students are requested to read the Written and Oral Communication
Assessment Criteria. Students are additionally expected to adhere to writing standards described
in of The Little, Brown Writing Handbook, (10th edition) by Fowler and Aaron.
Academic Integrity:
Plagiarism is not tolerated and our school has a very strict policy for such behaviour, which
I fully endorse. Baruch College's policy on Academic Honesty is outlines in
http://www.baruch.cuny.edu/academic/academic_honesty.html).
I trust there will be no need for such actions in our class.
Meeting outside class: According to a previously agreed appointment. I encourage you to get in
touch so that I can help you get the most out of this course and reach your highest possible
achievements. The best way to reach me is via e-mail. The worst is showing up in my office
without notice. Please try to avoid it.

Course Plan
Class Date

Topics Covered

Introduction: Firms in a global world

Textbook
Chapter
1

National differences in political economy

Differences in culture
Ethics in international business
International trade theory

3
4
5

The political economy of international trade

Foreign Direct Investment

The foreign exchange market

International monetary system

10

First exam

1,2,3,4,5,6,7,9,10

The strategy of international business

11

Entering foreign markets

12

Global production, outsourcing and logistics

14

MNEs versus governments: The political economy of

international business
Review

15

Final exam

9,10,11,12,14,15

2
3
4
5
6
7
8
9
10
11
12

Thu, Aug
28
Tue, Sep
2
Thu, Sep
4
Tue, Sep
9
Thu, Sep
11
Tue, Sep
16
Thu, Sep
18
Tue, Sep
30
Thu, Oct
2
Tue, Oct
7
Thu, Oct
9

Tue, Oct
14
13
Thu, Oct
16
14
Tue, Oct
21
Exam Tue, Oct
week 23

(*) A few copies of the textbook are on reserve in the Newman Library for students taking this
course.