The course covers different aspects of the globalization with the special attention to the role of the multi national corporations (MNC). Part of the course create instructions delivered by the representatives of the MNC active in the CR.

The aim of the course is to help students to understand the process of globalization and its influence on the world and European economy. To explain the creation and functioning of MNC. The process of cross-cultural communication and its importance for the future managers. Case studies, internet and articles from press are used for in order to support active participation of the students.

Content:

1. The Challenge of Globalization /1 session/

• The Proactive Environmental Forces Supporting Globalization
• Global Sourcing
• New and Evolving Markets
• Economies of Scale
• Movement towards Homogenous Demand
• Lowered Transportation Costs
• Telecommunications
• Homogenous Technical Standards
• Government Tariffs and Taxes
• Anti- Globalization Forces

2. The Porter’s Diamond Model of the Nations Competitiveness /2 sessions/

• Factor Conditions
• Demand Conditions
• Related and Supporting Industries
• Firm Strategy, Structure, and Rivalry
• The Role of Chance
• The Role of Governmental Policy
• The measurement of the Competitiveness
• Case: Airbus vs. Boeing

3. The Globalization of the Economy /4 sessions /

• Commanding Heights in the Global Economy
• Economic Theories of International Business
• Theory of Comparative Advantage
• Heckscher-Ohlin Theory of Factor Endowment
• Enjoying the Fruits of Globalization- Have and Have- not Nations
• The Globalization of Finance
• The Role of FDI - Hanson`s Formula
• Global Specialization in Location of Production
• The Social Problems of Outsourcing
• The Role of MNC
• The Globalization of the Office Function
• The Globalization of the Tertiary Sector
• Global Tourism

4. The Entry Mode for Interational Business /3 sessions/

• The Stages of Internationalization
• Domestic Operations
• Export Operations
• Subsidiaries or Joint Ventures
• Multinational Operations
• Global Operations
• Strategic Alliances

Mid Term Test /1 session/

5. Management Philosophy of Business Activities of MNC /3 sessions/

• Evolution and Changes in a MNC Organizational Structure
• Basic Organizational Decisions
• Integrated Global Structures
• Global Functional Structure
• Global Product Structure / Divisional/
• Global Geographic Structure
• Organizing for Globalization
• Differentiation and Integration - Opposing Forces
• The New Business Models and How Can Domestic Firms Participate
• Corporate Governance

6. The Role of Culture in International Management /3 sessions/

• Culture and its Effects on Organizations
• Culture and Management Styles around the World
• American, German, French, British and Czech
• Case: Comparative Cases of American and European Styles, Czech Saving Bank

7. The Corporate Social Responsibility of MNC /2 sessions/

• The Social Responsibility of MNCs
• Ethics in International Management
• Codes of Conduct
• The Sustainable Development Theory
• Case: Levi-Strauss Co. Global Sourcing Guidelines

8. Other Dimensions of Globalization /1 session/

• International Flows of Humanity
• Accelerating the Achievement of Social Agendas
• Managing transitions

9. Final Exam /1 session/

10. Grading /1 session/

Reading material:

Literature:

Bhagwati Jagdish, In Defense of Globalization, Oxford University Press, 2004

Stieglitz J.E., Globalization and Its Discontents, W. W. Norton&Company, Inc, 2002

Reader and Handouts

Instructor:

Ass. Prof. Ing. Mikuláš Pichanič, Ph.D.,
Department of Management
University of Economics Prague
Office: New Building, Room 311
Phone: 00420 224 095 383
E-mail: pichanic@vse.cz

Associate Professor in International Business, International Management and Globalization. Graduate of the University of Economics in Prague. Received his Ph.D. in Trade at the University of Economics in Prague. Worked and acquired experience with international companies - Baxter, (position: Country Manager for Czech Republic), CPMp Berlin (Director of the Czech Branch), Austro Invest. 1998-2001 Academic Dean of the University of New York in Prague (UNYP). Teaches in the graduate and undergraduate programs at UNYP. Active as a consultant for numerous Czech business companies. The President of the Senate of the University of Economics, Prague.

How to Obtain Credits

Grading scheme:

Class attendance and active paricipation   - 30%
Midterm test				   - 20%
Final test				   - 20%
3 Assignments (each 10%)                   - 30%

Grading scale:

93 - 100%  A  (Excellent)
85 -  92%  B  (Very Good)
77 -  84%  C  (Average)
69 -  76%  D  (Below Average)
61 -  68%  E  (Failure)
55 -  60%  Fx (Fail - possible to retake the exam)
54% - less F  (Fail)