Today, virtually every country in the world is affected by what happens in other countries. Some of these effects result from political events. But a great deal of interdependence

among nations is economic in nature, based on the productionand trading of goods and services.

Dr. Poorna Pal inviting YOU to apply for the Busad-170 (Introduction to International Business) class at Glendale Commu-nity College

The course has no prerequisites, as the primary objective here is to provide you with an introduction to the world economy that will help you be an effective manager in business – whether or not you actually work in a global corporation.

You will therefore need to not only be up-to-date with all the current developments worldwide but should be also able to analyze and examine how they affect your daily life.

The course will seek to both explain the theoretical and conceptual dimensions of international business

and explore the ways international business concepts effect the operations of both large and small businesses as also the employability and quality of life at the individual level.

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0

2

4

6

8

10

1950-60 1960-70 1970-80 1980-90 1990-00 2000-07 2001 2002 2003 2004 2005 2006 2007

Volume of total ex ports GDP

Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm

International trade holds the key to economic prosperity. Notice how, worldwide, the annual changes in gross domestic product have moved in tandem with those in the volume of world merchandise exports.

The U.S. is the largest trading nation in the world, exporting and importing more goods and services than any other country. Some people worry that such extensive levels of international trade may have hurt the U.S. economy. But the data show otherwise.

Overall, all the trading partners gain, total level of production and consumption in the world rises, the costs of production and the prices that consumers pay decreases, and the standards of living increase.

18.2

1.5

1.5

1.5

1.6

1.7

2.2

2.7

2.7

3.4

3.5

3.9

6.4

10.4

15.2

17.4

0 5 10 15 20 25 30 35

Other Members

Australia

Malaysia

Saudi Arabia

Sw itzerland

India

Taipei, Chinese

Singapore

Mexico

Hong Kong, China

Korea, Republic of

Canada

Japan

China

United States

European Union

U.S. holds the largest share of world merchandise trade.

Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm

32.9

2.2

2.2

2.3

2.3

2.6

2.7

2.9

3.6

3.6

3.9

4.1

4.3

7.2

7.3

12.4

0 5 10 15 20 25 30 35

Other Members

Singapore

Canada

Korea, Republic of

Belgium

India

Netherlands

Ireland

Spain

Italy

China

France

Japan

Germany

United Kingdom

United States

U.S. also holds the largest share of world trade in commercial services.

Source: http://www.wto.org/english/res_e/statis_e/its2008_e/its08_charts_e.htm

http://stats.unctad.org/FDI/TableViewer/tableView.aspx

2.2%39472422920143752169598158210164Developed economies: Oceania

20.6%3648577148753299621538085965244456004Developed economies: America

17.6%3120583129883278323531399753960148422 United States

1.5%271399158317287815280143261943Developed economies: Asia

45.3%80378133783882440336724878807253104415Developed economies: Europe

42.0%7447904361949232212769822476020897309European Union (EU)

29.0%5146806276181162046750175553203962934Euro area

69.6%12352514565892565318111379761555605172526Developed economies

2.3%41222961620544445286 Commonwealth of Independent States

0.7%1250855696434518879207-78South Africa

1.7%309523125229717018098224242633Mexico

2.3%400808259491222503277937143989Brazil

0.9%163959346131633935881657237India:

2.7%4730839500019334840715206913487China:

27.6%4893490478349172845525646552452635096Developing economies

100.0%177434081114189744254814014662081782207697World

StockStockFlowStockFlowStockFlow

World FDI200920001990US Dollars at current prices and current exchange rates in millions

% of 2009Major FDI indicators (WIR 2010)

Above all, U.S. is the single most important destination for world’s investments.

This course on International Business will help you understand the global economic develop-ments and trends, and learn about the ways businesses adapt to them.

This matters to you because

the economic future of a diverse and multi-cultural region like Southern California depends on how well we harness them to our advantage; and

your own employability and quality of life increasingly depend on how well you adapt to them, no matter what your professional choices, goals and objectives.

This course is designed for non-business majors as well as majors. Business is global. Therefore, an understanding of the global economy has become a foundation for nearly all business activity.

The course is structured to provide a basic, integrated understanding of the complexity of the international business environment and the challenges it poses for businesses which are engaged in cross-border activities. The course introduces concepts and processes of global trade and foreign direct investment, the international monetary system, regional economic integration and foreign exchange markets.

In a global economy it is especially important to study differences between countries and understand how these differences are linked to the various strategic choices businesses adopt in order to compete internationally. Therefore, this course puts a special emphasis on national differences. By the end of the course, students will enhance their ability to understand and explain international business practices.

In today’s global economy, business people must understand the relationships, institutions, and environment that underlie international commerce. The primary objective of IB 320F is to provide an introduction to the global economy that will help you be effective in business – whether you actually work in a global corporation or not. I hope it will also help you to be an educated citizen, understanding the major issues impacting government policy and globalization. The topics in the class have been selected to address both theoretical and practical dimensions of the global economy. The following are the specific objectives, therefore.

The students will recall and be able to define the basic tools to understand the global economy and the business environments. These tools include:

theories related to international trade and investmentmajor indicators of global business activityknowledge of the major organizations which influence international tradediffering legal systems, economic systems, political systems and economic philosophiescultural forces including what the theory has to say, language, and communications

Course Objectives (continued)

• Global and regional impacts of the current economic melt-down• continuing globalization and its impact on the economy, both positive and

negative• European expansion and general economic integration,• world trading blocs (EU, NAFTA, CAFTA, MERCOSUR),• the expansion of emerging markets – particularly in China and India, and the

growing importance of developing countries in the global economy

The students will recognize and be able to define basic international business concepts.The students will be able describe and explain current global business environment. This knowledge base includes:

The students will be able to explain and distinguish among the different organizations and institutions This includes: IMF, UN, WTO and GATT, OECD, NATO, OPEC.

The students will be able to develop an understanding of the evolution of the global monetary system and the resulting mechanisms and factors that influence currency exchange rates.

Course Objectives (continued)The students will be able to explain the understanding that global interdependence as a compelling factor in the global business environment, which is creating demands on international managers to take a positive stance on issues of social responsibility, economic development, and ethical behavior.The students will develop an understanding that much of today’s trade takes place in a global environment The majority of trade is within three regional free-trade blocs (Western Europe, Asia, and North America), called the TRIAD market, and grouped around the three dominant currencies (the euro, the yen, and the dollar). The student will develop the knowledge and understanding of the unique aspects and problems involved in international business. This is will only help to serve in honing in particular skills. The students will develop an understanding of the theory, and read the real life application of this concept.

The students will develop throughout the course, the ability to analyze and do critical thinking using IB terminology through class discussions and questions. This will lead to the development a strong knowledge base which you will use to keep abreast of the many changes that will occur in global business during your life and professional career.

The class Textbook:

International BusinessChallenges in a Changing Worldby Janet Morrison Palgrave Macmillan, December 2008ISBN: 978-1-4039-4563-1, ISBN10: 1-4039-4563-2

1. The business enterprise in the international environment 2.. Perspectives on globalization 3. The economic environment 4. The cultural environment 5. The political and legal environment 6. International trade and regional integration 7. Strategy and organization

8. Marketing 9. Human resource management10. Supply chains11. Finance and accounting12. Innovation and strategy

13. Ecological challenges for business and society14. Corporate social responsibility15. Global governance

Fall 2010 Schedule of lectures and tests