Slides accompanying first tutorial for IBUS2301, International Business Management. The first tutorial goes over the basic concepts and institutions concerning our globalized society. The WTO, IMF, and World Bank are covered in particular detail, including the controversies surrounding these institutions.

1. IBUS2301:
International Business Management
Tutorial #1, March 10 and 11
Chapter 1: Globalization
Tutor: Preston Teeter, p.teeter@business.uq.edu.au

2. Class Rules
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Mobiles/laptops/etc: silent, off, and away!
Be on time, every time
Courteous to others at all times
Come prepared and participate
IBUS2301:
Int’l Business Mgmt

3. Outline
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Overview of tutorials
The globalization debate
World Trade Organization (WTO)
Bretton Woods Institutions (IMF/World Bank)
IBUS2301:
Int’l Business Mgmt

4. OVERVIEW OF TUTORIALS
IBUS2301:
Int’l Business Mgmt

5. Structure
• 50 minutes
– 15 minute case presentation
– 35 minute seminar on previous week’s lecture
• Purpose of seminar
– Review and test knowledge
– Analyze and debate theories and policies
– Go beyond the text
IBUS2301:
Int’l Business Mgmt

6. Case Analysis
• Form 10 groups of 2-3 students
• Purpose of presentation
– analyze case in depth
– engage audience
IBUS2301:
Int’l Business Mgmt

7. Grading
• Case analysis = 15%
– Presentation notes = 10%
– Weekly assessment = 5%
• Grading
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4 (50-64): “demonstrates adequate understanding”
5 (65-74): “demonstrates substantial understanding”
6 (75-84): “frequent evidence of originality”
7 (85+): “consistent evidence of substantial originality”
IBUS2301:
Int’l Business Mgmt

8. THE GLOBALIZATION DEBATE
IBUS2301:
Int’l Business Mgmt

9. Globalization
• 3 groups:
– For globalization
– Against globalization
– Three or five judges
• 7 minutes to prepare
• 3 minutes to present your case
3/6/2014
IBUS2301:
Int’l Business Mgmt

10. Globalization
For
Against
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Lower prices of G&S
Creates jobs
Higher incomes
Stimulates growth
– See Chapters 6, 7, & 8
• Success stories
– East Asia and South America
3/6/2014
Global sweatshops
Job losses
Lower incomes
Resource plundering
“Cultural imperialism”
Hot money flows
IBUS2301:
Int’l Business Mgmt

11. Source: Seattle PI (URL in notes)

12. Source: Flickr (URL in notes)

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1999 Seattle WTO Protests
Largest U.S. demonstration against world
meeting
• At least 40,000 protesters
Participants: NGOs, unions, students, etc.
Outcomes
• Resignation of police chief
• 157 arrests (released and paid $250k total)
Known as “The Battle in Seattle”
• Film of events by this name

14. WORLD TRADE ORGANIZATION
IBUS2301:
Int’l Business Mgmt

15. WTO
What is the WTO’s origin and purpose?
• Preceded by GATT (1948)
– General Agreement on Tariffs and Trade
• Responsible for policing the world trading
system
• Promotes lowering barriers to trade
• 159 nations as of 2013, HQ: Geneva
IBUS2301:
Int’l Business Mgmt

16. Source: WTO (URL in notes)

17. WTO
What are the main debates concerning the WTO?
• Loss of national sovereignty
• Too many voices
– Failure of Doha Round since 2001 to free
agricultural trade
• “Promoter of globalization”
IBUS2301:
Int’l Business Mgmt

18. BRETTON WOODS INSTITUTIONS
IBUS2301:
Int’l Business Mgmt

19. IMF & World Bank
What is the purpose of the IMF and World Bank?
IMF
• Maintain order in int’l
monetary system
• Lender of last resort
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Argentina, Indonesia,
Mexico, Russia, etc.
World Bank
• Promote economic
development
• Low-interest loans to
developing nations
• HQ: Washington, DC
HQ: Washington, DC
IBUS2301:
Int’l Business Mgmt

20. IMF & World Bank
Why are these organizations somewhat controversial?
• Strings attached  Loss of sovereignty
• Claims of misguided economic theory
• Large % of voting rights to developed countries
• Sovereign immunity
• Prefer large-scale investments when sometimes smallscale investments would better suit conditions
IBUS2301:
Int’l Business Mgmt

21. Sources (clockwise from top right):
Economicoutlook.net, alternativeeconomics,
CNN, Dailymail (URL in notes)

22. Questions?