Sincere congratulations to the entire Wolverine team! 17 consecutive quarter of record revenue and earnings per share is no small feat. Your brand portfolio is strong and covers much competitive space. the company has not been content with its success; and is looking to leverage its brands beyond food rather than across apparel and accessories. You have set ambitious goals for the future.
Themes and Resources for Teaching International Business S. Tamer Cavusgil University Distinguished Faculty John W. Byington Endowed Chair in Global Marketing Michigan State University 7th Biennial International Business Institute for Community College Faculty East Lansing, Michigan, May 2007
Themes for Teaching IB Offshoring Culture Globalization Technology Diverse Participants Smaller Firms in IB Emerging Markets Strategy International Entrepreneurship Collaborative Ventures Service Sector Industry
Phases of Globalization 1 st Phase: 1830, peaking around 1880 Aided by railroads, ocean transport, rise of manufacturing and trading companies 2 nd Phase: 1900, peaking around 1920s Fueled by electricity and steel 3 rd Phase: 1948, peaking around 1970 GATT, end of WW II, Marshall Plan… 4 th Phase: 1980, peaking around 1997 Tech. advances, Internet, Emerging Markets…
20,400 55 26 5 South Korea 8,300 45 28 14 Thailand 8,200 45 32 10 Turkey 10,000 41 42 13 Mexico 8,400 35 65 22 Brazil 11,100 47 67 12 Russia 3,600 48 105 20 Indonesia 3,300 49 534 8 India 6,800 45 587 1 China GDP per capita ( PPP, US $ ) % of Income held by middle class Middle-class population (millions) Rank in MSU-CIBER’s EMPI Country
Why GDP Per Capita is a Poor Indicator of Market Potential for EMs?
Need to adjust for Purchasing Power Parity
Informal economy is often as large as the formal economy in developing countries
The “mean” is a poor indicator since income distribution is typically bi-modal in EMs
Household income several times larger than per capita income because of multiple wage earners
Developing country statistics may be unreliable
Typical exporter is more interested in a large enough “market niche” than huge potential
The concept of Purchasing Power Parity , the notion that a dollar should buy the same bundle of goods in all countries, is explained. Comparing actual exchange rates with PPP indicates whether a currency is under- or overvalued.
MSU-CIBER’s Market Potential Indicators for Emerging Markets
Four Types of Risks Commercial Risk Types of Risks in International Business Country (Political and Legal) Risk Cross-Cultural Risk Weak Partner Operational Problems Timing of entry Competitive intensity Poor execution of strategy Currency exposure Asset valuation Foreign taxation Inflationary and transfer pricing Global sourcing Social/political unrest and instability Economic mismanagement; inflation Distribution of income; size of middle class Government intervention, bureaucracy, red tape Market access; barriers; profit repatriation Legal safeguards for intellectual property right Cultural distance Negotiation patterns Decision-making styles Ethical practices Currency/Financial Risk
Internationalizing Business Education: Toward Meeting the Challenge, (Cavusgil), East Lansing, Michigan, MSU Press, 1993.
Internationalizing Business Education: Toward Meeting the Challenge , (Cavusgil), East Lansing, Michigan, MSU Press, 1993.
“ Expanding Horizons with E-Learning” in A Field Guide to Internationalizing Business Education , R. F. Scherer, S. T. Beaton, M.F. Ainina and J. F. Meyer (eds.), Second Edition, 2003, 183-194, Cavusgil, I. Kiyak and T. Kiyak.
Study Abroad Programs in Business Schools, Issues and Recommendations by Leading Educators, East Lansing, MI, MSU Press, 2002.
Publications on Internationalizing Business Education