INTERNATIONAL BUSINESS AND TRADE

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN225825
Module Leader Thomas Peschken
School School of Computing, Engineering and Built Environment
Subject GCU London
Trimesters
  • A (September start)
  • B (January start)
  • C (May start)

Summary of Content

The international environment in which companies and governments have to operate is changing dramatically. As a result, this module will provide essential knowledge about the transformations that are happening in the economic, financial and monetary world. As well, it will distinguish structural developments from cyclical developments. In the second part of the module, the focus will be on understanding the trend of global sourcing as an enabler to increasing internationalisation of companies and their choice for foreign locations and their mode of entry. It will elaborate on the interaction between government and the business community for example regarding unemployment issues, responsibility in the value chain. The module will also deal with the impact of increasing global sourcing activities on the relationship between developed and developing nations.

Syllabus

The first lectures of the module create the theoretical framework and are based on economic theories of international business related to international trade theory and entry mode as well as theoretical concepts explaining Foreign Direct Investments (FDI's). Furthermore, it elaborates on the three pillars of the international environment: the real world, the monetary world and the financial world. Trends and developments in the real world are related to trade and direct investments. The monetary world refers to exchange rates, exchange rate systems, the role of the International Monetary Fund and the balance of payments. The financial world refers to developments in the financial markets and to financial instruments. A common element in these three pillars of the international environment is an increasing integration with its pros and cons attached. Emphasis will be given to this process of integration and in particular related to international trade and FDI's. This part of the module deals extensively with the issue of globalisation versus regionalism and the present interrelationship between countries and trade blocks. The module will elaborate on the shift of balance of power and competitiveness between emerging and other countries e.g. mature economic powers such as the United States, the European Union and Japan witness increased competition of emerging markets including Brazil, Russia, India and China [BRIC countries]. Class sessions will focus in particular in China's development and its impact on Western economies and companies. In the second part of the module, the focus will be on understanding the trend of global sourcing as an enabler to increasing internationalisation of companies and their choice for foreign locations and their mode of entry. It will elaborate on the interaction between government and the business community for example regarding unemployment issues, responsibility in the value chain. This part of the module will also deal with the impact of increasing global sourcing activities on the relationship between developed and developing nations.

Learning Outcomes

On successfull completion of the module the students should be able to:-1. Demonstrate a critical understanding and awareness of international business and trade key concepts (e.g. FDI), the role of multilateral trade organisations (e.g. WTO) and other stakeholders. (CW01)2. Critically analyse the dynamics of globalisation, international business and trade and appraise its challenges and advantages. (CW01)3. Analyse the impact of global sourcing, offshoring and outsourcing on the interaction between government and the business community incl. responsibility in the value chain and formulate sustainable as well as responsible solutions. (CW01)

Teaching / Learning Strategy

The teaching and learning strategy includes the use of a variety of techniques including guided independent study, lectures, and seminars conducted by academic staff to develop efficient and effective understanding of International Business and Trade. The module delivery will in parts be facilitated by senior practitioners from the field of International Business and Trade to establish practical understanding of academic topics/issues as the aim is to bridge the gap between theory and practice. Weekly Lectures provide the theoretical aspect of this module, while seminars, case studies, simulation exercises and tutorials are in place to support individual learning. There will also be extensive use of case studies to give students the opportunity of learning from real-time examples. Some of these case studies will be required to resolve in groups to focus on joint/group understanding. The use of cases set in different contexts intends to promote 'situated learning' and to view problems from the perspective of those who are confronted with strategic challenges, choices, and decisions frequently. This is reflected in the assessment strategy of the module. Students have to compile a critical analysis and risk assessment for trade and business with a chosen market/ region as well as propose appropriate routes for trade and investment in this market reflecting responsibilities in the supply chain. Such a report would support trade missions or chambers of commerce in advising actors in international business and trade.

Indicative Reading

Due to its integrative nature, there is no core text for this module. Background reading (Indicative) b7 Baschuk, B.(2018) 'The Five Biggest Threats to the WTO' [Accessed 06/01/2019] Available from: <https://www.bloomberg.com/news/articles/2018-04-11/five-big-threats-to-the-global-trade-cop-trump-deems-unfair> b7 Campbell, J. 'WTO rules: What happens if there's a no-deal Brexit?' [Accessed 12/02/2019] Available from: <https://www.bbc.com/news/uk-northern-ireland-46892372> b7 Calori, R.; Atamer, T.; Nunes, P. (2009) The Dynamics of International Competition: From Practice to Theory (SAGE Strategy series) London, UK: Sage Publications Series. b7 Carpio, A. 'The answer to nationalist fervour isn't less globalisation. It's more.' [Accessed 12/02/2019] Available from: <https://www.weforum.org/agenda/2019/01/the-answer-to-nationalist-fervour-isnt-less-globalism-its-more/> b7 Kedia, B. and Mukherjee, D. (2009) 'Understanding offshoring: A research framework based on disintegration, location and externalisation advantages'. Journal of World Business , 44: 250-261. b7 Kgosana, C. 'BRICS countries vow to work even closer together to increase already lucrative $102bn trade relations' [Accessed 12/02/2019] Available from: <https://www.timeslive.co.za/politics/2018-07-26-brics-countries-vow-to-work-even-closer-together-to-increase-already-lucrative-102bn-trade-relations/> b7 Levy, D. (2005) 'Offshoring in the new global political economy'. Journal of Management Studies , 42(3): 685-693. b7 Mahbubani, K. (2008) The Rise of Asia, "The new Asian hemisphere; the irresistible shift of global power to the East", chapter 2 "Why Asia is rising now", page 51-66. New York, NY, US: Public Affairs. b7 Mahbubani, K. (2018) Has the West Lost It? A Provocation London, UK: Penguin Books b7 Nanda, N. (2009) Expanding Frontiers of Global Trade Rules: The Political Economy Dynamics of the International Trading System London, UK: Routledge b7 Renwick, R. (2018) How To Steal A Country: State Capture in South Africa London, UK: Biteback Publishing b7 Smith, D. (2006) 'Offshoring: Political myths and economic reality'. World Economy , 29(3): 249-256. b7 UNCTAD/ World Investment Report 2018: Investment and New Industrial Policies (2018) United Nations conference on trade and development World Investment Report. New York, US: United Nations Publications b7 World Trade Report 2018: The future of world trade: How digital technologies are transforming global commerce (2018) [Accessed 06/01/2019] Available from: <https://www.wto.org/english/res_e/publications_e/world_trade_report18_e.pdf>

Transferrable Skills

-360b7 Communication and presentation skills b7 Problem solving b7 Critical thinking and evaluation b7 Information retrieval Data analysis b7 Data interpretation b7 Teamwork b7 Peer learning b7 Interpersonal skills b7 Negotiation b7 Written and oral communication skills b7 Independent learning and self-management b7 Ethical conduct b7 Time management b7 Reflective learning

Module Structure

Activity Total Hours
Seminars (FT) 4.00
Independent Learning (FT) 72.00
Assessment (FT) 40.00
Lectures (FT) 32.00
Tutorials (FT) 2.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 01 n/a 100.00 n/a Report - Critical analysis of opportunities, barriers and risk associated with trade, investment and corporate responsibility in a chose market/ region and proposal of appropriate approaches to business and trade including structures and responsibility in supply chains.