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Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Course Outline Module Code Module Title Description BSP2005 Asian Business Environments This module builds an understanding of business environments in Asia. The first part of the course focuses on macroeconomic fundamentals, politics, culture, and institutions in Asian countries and regions. The second part of the course explores relationships between national and regional characteristics and business operations. The aspects of business may include business groups, trade and foreign direct investment.

Learning outcomes On completion of this unit, you would have acquired: 1. An overview of economic, political and cultural aspects of doing business in Asia. 2. Good knowledge of how various multinational corporations adapt and operate in Asias business environments 3. Knowledge and understanding of business environments in at least two Asian countries. Instructors: Isabel Sim for Weeks 1 to 7 and Peter Zeitz for Weeks 8 to 13. Course Structure and Pedagogy This unit is a combination of lectures, tutorial discussions and group project. Students are expected to be prepared for lectures and tutorials by reading the assigned chapters in the text, journal articles and cases. They are required to engage and contribute in tutorial discussions as part of the course requirement. Students are required to engage in peer-to-peer learning through their group project. Communications with the class will be through email and IVLE.

Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Recommended Textbooks International Business: An Asia Pacific Perspective By Andrew Delios, Paul W. Beamish, Jane W. Lu. Publisher: Pearson Education; Second edition (January 18, 2010) ISBN-10: 9810684207 ISBN-13: 978-9810684204 Asia's Turning Point: An Introduction to Asia's Dynamic Economies at the Dawn of the New Century By Ivan Tselichtchev, Philippe Debroux Publisher: John Wiley & Sons (Asia) Pte Ltd 1st edition (April 2009) ISBN: 978-0-470-82360-6 Why Nations Fail: The Origins of Power, Prosperity, and Poverty. By Acemoglu, Daron and James Robinson. 2012. Publisher Crown Publishing Readings Supplementary course materials include journal articles, articles from the Economist, Harvard Case Study materials, films and videos. These materials may be made available through IVLE. Due to copy right issues, some materials may have to be downloaded through E-Reserve and others may be given in hard copy.

Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Assessment Types and Breakdown (1st half semester Isabel / 2nd half semester Peter) Nos Component 1 Tutorial Participation Tutorial Participation 2. 3. Group Case Study Final Exam Type % Submission Date Weeks 3 to 7 (Isabel) Weeks 9 to 13 (Peter) Due after Recess Week (Isabel) Finals Week (Peter)

Individual 20% Individual 10% Group 30%

Individual 40%

Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Lecture Outlines Week Starting Mon, 12 Aug 2013 Mon, 19 Aug 2013 Mon, 26 Aug 2013 Mon, 2 Sep 2013 Mon, 9 Sep 2013 Mon, 16 Sep 2013 Lecturer(s) Introduction to course. Introduction to Business Environment in Asia / Business Groups in Asia Political and Cultural Environments Country Studies Country Studies Guest Lecture by SHELL Introduction to Multinational Management and Corporate Social Responsibility Isabel & Peter Isabel

Wk 1 Wk 2

Wk 3 Tute 1/IS Wk 4 Tute 2/IS Wk 5 Tute 3/IS Wk 6 Tute 4/IS

Isabel Isabel Isabel Isabel

Wk 7 Tute 5/IS

Recess Week @ Week Starting Sat, 21 Sep 2013 Mon, 30 Foreign Sep 2013 Subsidiary Management and Human Resource Policies Mon, 7 Oct Productivity, Inputs, and Economic Growth 2013 Mon, 14 Institutions Part 1 Oct 2013 Mon, 21 Institutions Part 2 Oct 2013 Mon, 28 Trade and Commodity Chains Oct 2013 Mon, 4 Nov Asian Financial Crisis Part 1 2013 Mon, 11 Asian Financial Crisis Part 2 Nov 2013 Reading Week @ Week Starting Sat, 16 Nov 2013 Examination @ Week Starting Sat, 23 Nov 2013

Isabel

Wk 8 Tute 6/PZ Wk 9 Tute 7/PZ Wk 10 Tute 8/PZ Wk 11 Tute 9/PZ Wk 12 Tute 10/PZ Wk 13 Tute11/PZ

Peter Peter Peter Peter Peter Peter

*The syllabus and its contents are subject to revisions and information on the changes will be distributed in class or posted on IVLE.

Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Assessment 1

Tutorial Participation ( total = 30%)

(20 % for Tutorial 1 to 5; 10% for Tutorial 6 to 11) Your active participation in tutorial discussion is integral to this course. Participation in tutorial, whether it is listening to presentation or contributing to class discussions, is an important part of the learning process. Prior preparation of the assigned reading and cases by everyone is essential. Students may be assigned to carry out the general discussions of readings and cases during Week 3 to 13. These discussions will be evaluated; hence preparation by individual students is required. Attendance is mandatory and does not itself equate to participation. Students should obtain tutors approval to miss class under exceptional circumstances, such as medical illness or other emergency. The grading system for the weekly tutorial participation is as follows: Student who did not attend Student who attended, but did not participate. Student who attended and participated in tutorial discussions. Student who provided good discussion in tutorial discussions. Student who provided excellent contributions in tutorial discussions. 0 1 2 3 4

Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Tutorial Schedule and Topics Part 11 Sem1/AY2013 Tutorial 1(IS) (Wk 3) BSP 2005 Tutorial Topics Asias dynamic growth in the new century Required Readings Ch. 1, 2 and 6 of Tselichtchev and Debroux. The State and Business Groups in Asia Required Readings Ch. 3 and 4 of Tselichtchev and Debroux. Porter, M. (1990 "The competitive advantage of nations", Harvard Business Review, Mar/Apr, Vol.68(2), p.73-93.

Tutorial 2 (IS) (Wk 4)

Supplementary Reading: ASEANCompetitivenessReport2010.Seeweblink:

http://www.spp.nus.edu.sg/docs/ASEAN_Competitiveness_Report_2010 .pdf Tutorial 3 (IS) (Wk 5) Harvard Case Study: Singapore Inc. Discussion Questions: 1. How do you explain Singapores economic performance since 1965? How, in particular, have business-government relations contributed? 2. What is the role of saving and investment? 3. Do you approve of Singapores new strategy for getting the economy growing? Please download case from IVLE.

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Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Tutorial Schedule and Topics Part 1 (contd) Sem1/AY2013 Tutorial 4 (IS) ( Wk 6) BSP 2005 Tutorial Topics Harvard Case Study : Special Economic Zones in India Property (A) Discussion Questions: 1. Should the Indian government change the law on eminent domain, so that they can acquire land for Special Economic Zone? 2. Is setting up Special Economic Zones the right development strategy for India? 3. Under what circumstances and to what extent should the government intervene in market transactions? Please download case from IVLE. Tutorial 5 (IS) ( Wk 7) Harvard Case Study : Google in China Discussion Questions: 1. Why did Google issue the statement of January 12? 2. Can Google take comfort from the reactions of stakeholders so far? 3. Did you expect Google to exit China? Please download case from IVLE.
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Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Tutorial Schedule and Topics Part 2 Sem2/AY2013 Tutorial 7 (Wk 9) Required Reading The East Asian Miracle: Four Lessons For Development Policy. Study Questions a. What are the authors four lessons for development policy? b. The article discusses the following features of East Asian countries in 1960: i) GDP per Capita ii) Savings Rates iii) Average Years of Schooling in the Population iv) Primary School Enrollment Rate. Based on the article, how are (i), (ii), (iii), and (iv) related to subsequent economic growth in Asia? c. What is total factor productivity? What are factor inputs? How are they calculated? According to the article, how do the views of fundamentalists and mystics differ? Would you consider the author a fundamentalist or a mystic? Why?
Please Download Paper from IVLE

BSP 2005 Tutorial Topics

Tutorial 8 (Wk 10)

Required Reading Why Nations Fail: The Origins of Power, Prosperity, and Poverty (Assigned selections to be announced) Study Questions a. What are institutions? Based on Why Nations Fail, present some evidence that suggest that institutions matter for economic growth. b. How are institutions determined? List some events in the distant past and describe their relationship to institutions we see today. c. Based on Why Nations Fail, how has colonialism affected economic outcomes in Asia? Do you agree or disagree with their analysis? Why?
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Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Tutorial 9 (Wk 11)

Required Reading The Fundamental Institutions of Chinas Reforms and Development. Study Questions a. What does Xu mean by China Puzzle? Based on Why Nations Fail and the Xu article, in what ways are Chinese institutions good? In what ways are they bad? Do you think there is a Singapore Puzzle? b. Xu describes China as a regionally decentralized authoritarian (RDA) regmie? In what sense is China regionally decentralized? In what sense is China authoritarian? c. According to Xu, how are Chinese bureaucrats evaluated for promotion? Discuss positive and negative consequences of this evaluation scheme.
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Tutorial 10 (Wk 12)

Required Readings Integration of Trade and Disintegration of Production in the Global Economy. International Trade and Upgrading in the Apparel Commodity Chain. Study Questions a. What does Feenstra (1998) mean by the disintegration of production? How is this concept distinct from trade? b. Describe changes in the merchandise trade to GDP ratio during the 20th century among major economies. Based on Feenstra (1998), list factors that explain these changes. Compare these to changes in the merchandise trade to merchandise GDP ratio. Why to the two differ? c. For a high wage economy such as Singapore or the US, what are the likely effects of outsourcing on the ages of skilled and unskilled workers? Do these wage effects differ from those associated with automation? Explain why or why not. d. Compare and contrast buyer-driven and producer-driven commodity chains. Provide examples of industries fitting each type. What types of proprietary knowledge are important for competitiveness of firms in each type of chain?
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Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Tutorial 11 (Wk 13)

Required Readings: The Onset of the East Asian Financial Crisis. Economic Crises: Evidence and Insights from East Asia. Study Questions a. Describe the relationship between the capital account and the current account. How are international capital flows related to international trade. How do countries repay foreign borrowing? How are the types of investment activities undertaken relevant to a countries ability to repay foreign debts? (e.g. why might heavy investment into the real estate or services be a bad thing) b. Radelet and Sachs describe the East Asian Crisis as a Crisis of Success. What do they mean by this? What role do changes in volume of international capital flows play in financial crises? c. Why does a central banks interest rate affect demand for its currency? What is meant by a speculative attack on a fixed exchange rate? What role do foreign currency reserves play in defending against a speculative attack? If a country has a fixed exchange rate and the fixed exchange rate comes under speculative attack, why would the central bank raise interest rates? d. The IMF acts as a lender of last resort, issuing loans to countries which cannot obtain loans on private markets. The supply of IMF loans is typically conditional on implementation of a set of policies recommended by the IMF. What policies did the IMF recommend to countries affected by the East Asian Crisis? How did the implementation of these policies affect economic growth and unemployment in East Asian economies? Why did the IMF recommend these policies? Based on the readings, do you think the policies were appropriate?
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Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Assessment 2 Group Case Study (30%) (To be submitted during Tutorial 5 (i.e. Week 7, starting 30 Sept 2013 during tutorials) The group will be given a case that will examine issues relating to how multinational corporations do business in Asia. Group Case Study Requirements: A 10-page written report (inclusive of cover page and appendices) on the assigned business case study. Font size 12 Times New Roman, with 1 line spacing and standard report margins. A printed copy of the report has to be submitted to the Dept. of Strategy and Policys office (C/o Mdm Teo Woo Kim). Cover page must display students tutorial group, group no., Students names, student card, email and contact no. Electronic copy of report must be uploaded via IVLE. File Name: Tutorial group_name of case_Gp case study

The Cases and Questions are listed as below : Case 4: Majestica Hotel Questions: 1. How many issues require resolution between Majestica and CPS? 2. As Majestica, where, if anywhere, would you make concessions? 3. As CPS, if Majestica refuses to make concessions, will you walk away?

Case 6: Eli Lily in India Questions: 1. Did Eli Lilly pursue the right strategy to enter the Indian market? 2. How would you assess the overall performance of the JV? What did the partners learn from IJV? 3. What action would you recommend regarding the Ranbaxy partnership? What are the implications of your recommendation? How would you implement this?

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Isabel&Peter/NUSBusinessSchool_2013 BSP2005AsianBusinessEnvironments/Syllabus,LectureandTutorialGuide

Case 7: Giant Questions: 1. Why was the A-Team established? Why could it be formed by Taiwanese firms? 2. What kind of activities/mechanisms contributed to the mutual learning among A-Team members? 3. Is cooperating with a direct competitor (such as between Merida and Giant) a viable prospect for the A-Team in the long term?

Case 8: Reinventing the San Miguel Corporation Questions: 1. What recommendation do you have for Eduardo Cojuangco? a. Would you recommend a strategy of regional expansion using existing products? b. Would you recommend a strategy of local expansion into unrelated product lines? 2. How does the contextual environment of San Miguel influence your recommendation? How do the capital, product, labor and contractual markets in the Philippines influence your recommendation? 3. What are the main risks or challenges to your recommendation? What action will you take to mitigate these risks and challenges?

Case 9: Tata motors acquisition 1. Why did TM acquire DCVC, and what did DCVC want in a buyer? 2. Why did TM emerge as the successful bidder of DCVC? 3. What explains the success of this acquisition? Case 10: ING Insurance Asia/Pacific Questions: 1. As Jacques Kemp, what is your size-up of ING Insurance Asia/Pacific? 2. What kind of changes do you propose? 3. What major challenges are you likely to encounter in trying to implement your changes?

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IsabelSIMandPeterZEITZ NUSBusinessSchool CourseOutlineBSP2005AsianBusinessEnvironments/Semester_AY2012to2013

Case 15: Mattel and the Toy Recalls (Case A) Questions: 1. What are the characteristics of the toy industry and how do they affect toy making? 2. What challenges do toy companies face in managing offshoring? 3. What can Mattel do to enhance product quality?

Assessment 3 Final Exam (40%; Finals Week (Week of Nov 23)) The final exam covers lectures and readings from the second half of the course. Questions will be a mixture of multiple choice and short answer. The short answer questions will need to be completed using 50 words or less. To prepare for the exam: 1) Review the lecture slides. 2) Write clear, concise answers to the study questions associated with each weeks reading. 3) Have done the reading. About 10% of exam questions will cover aspects of the readings that were not covered in lecture or tutorial. List of Reading Materials Covered on Exam:
Page,John.1994.TheEastAsianMiracle:FourLessonsforDevelopmentPolicyJohnPage,NBER MacroeconomicsAnnual1994(9):219282

Acemoglu, Daron and James Robinson. 2012. Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Publishing
Xu,Chenggang.2011.TheFundamentalInstitutionsofChinasReformsandDevelopment.Journal ofEconomicLiterature49(4):10761151 Feenstra, Robert C. 1998. Integration of Trade and Disintegration of Production in the Global Economy. The Journal of Economic Perspectives 12(4): 31-50 Gereffi,Gary.1999.InternationalTradeandUpgradingintheApparelCommodityChain.Journal ofInternationalEconomics48(1):3770 Radelet, Steven and Jeffery Sachs. 2000. The Onset of the East Asian Financial Crisis in Paul Krugman (ed.) Currency Crises (Chicago: University of Chicago Press). Furman,JasonandJosephE.Stiglitz.1998.EconomicCrises:EvidenceandInsightsfromEastAsia BrookingsPapersonEconomicActivity,1998,2:1135
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