GLOBAL BUSINESS MANAGEMENT
MANAGING GOVERNMENT RELATIONS IN THE GLOBAL ECONOMY

COURSE OUTLINE AND READING ASSIGNMENTS
This course is designed to prepare individuals to be advocates in the trade and
international investment field., with  primary emphasis on advocating specific private sector interests.   This course is specifically designed to train students to become prirvate sector commercial diplomats, an entirely new concept and phrase.  Virtually all courses in trade, particularly trade policy, are taught from a  perspective on governments, ie., how governments develop trade and investment policy, how governments reach trade agreements, and how governments ratify and implement those agreements. This course will address many of the same subjects that government-oriented courses approach, except it will develop those issues from a private sector commercial viewpoint.

The private sector, whether in the US, Europe, Asia, or elsewhere, has always had a large stake in the impact of their respective governments’ trade and investment policies..   This stake, over time, has changed from relative passivity to relatively strong attempts to shape and influence government trade policies.   Private sector activity in the trade and investment field reached its apex during the 5 years preceding those formal  negotiations of the Uruguay Round of the GATT, from l979 to l986, the years during the formal negotiations, from l986 to l993,  and, in the United States, Canada, and Mexico,  in the negotiation of the North American Free Trade Agreement (NAFTA) from l990 to l993.  Similarly, the private sectors in Asia are increasingly involved in shaping trade policies in such groupings as the ASEAN countries, and in broader country groupings such as APEC.  There are increased efforts to forge private sector business relationships on a Transatlantic, Transpacific, Asian only, and other bases, with bilateral and multilateral business councils already formed, or being formed, which take positions on trade and investment issues, and advocate the adoption of those positions. 

A new type of diplomat has evolved, developed and flourished during these years, mostly from senior management of transnational corporations and occasionally the chief executive officer of such corporations.  These new commercial diplomats from the private sector  worked the issues with many governments and many other corporations during the run-up to these negotiations and the negotiations themselves. Now, the private sector representatives, as commercial diplomats, regularly engage in a broad range of issues--trade policy, investment policy, multi-country trade disputes, etc. It  has become a world of three dimensional chess among very professional chessmasters.

In recognition of this fundamental change, this course will be taught from the perspective of  a private sector practitioner of  private commercial diplomacy.  That person may be an officer of a corporation, an attorney inside or outside the corporation , a trade association official, or in some other capacity involving advocacy of specific private sector commercial goals.  The private commercial diplomat works inside the firm or organization (typically a corporation) to help shape and develop succesful international business strategies which take into account existing trade and investment rules. At the same time, he or she seeks new opportunities abroad where new trade and investment rules might be developed which would advance the corporation’s commercial interests. The task then shifts to shape those new trade and investment rules, using diploamtic skills to the utmost. In a real sense the private sector comercial diplomat takes a role as counterpart to the public sector professional diplomat, occasionally working together, and occasionally working from opposite sides of the same table.  The private sector diplomat may be called upon to perform all kinds of tasks, from securing the release from custody of a corporate official  in another country,  to confronting hostile demonstrations towards a corporate office, to answer charges of corporate wrongdoing in foreign countries, to all kinds of human resources problems, to protecting intellectual property rights held by the diplomat’s corporation, while, at the same time engaging in intellectually challenging trade theoretical challenges.  This role in a major transnational is rarely boring.

The present outline of the course calls for 28 two-hour sessions. Because of the emphasis on the practical, during the year there will be a considerable number of  professional practitioners  from the private sector  and academia who will conduct the class.  The final examination will be in the form of a paper (the subject of which must be approved) written either by an individual student, or a self-formed student group.  These papers   will be presented to the class for debate and evaluation in the last two class sessions..

There will be no midterm examination.  The entire grade will be based on the paper submitted at the end of the course.  The paper may be prepared by one students, or a self-formed group of students (no more than 4 students per group without the consent of the instructor).  ,If the paper is by  more than one individual, the paper will be graded and all of the members of the group preparing the paper will get the same grade.  A draft of the final paper, in either outline or textual format, will be due March l8th.  The final papers will  be due no later than  Friday evening,, April 26th.  Office hours will be the balance of the day on which each session is held, excluding Noon to l PM for luncheon..

We know of no other course that is precisely the same as this course, in that it deals with both business government relations and is directed at one field, namely, international trade and investment. .  Therefore, there will bean element of both ingenuity and surprise in the format and conduct of the course. Obviously, the outline  may change during the semester, and, occasionally, the scheduled time of the course may change if there is a singular opportunity to bring in an accomplished commercial diplomatic practitioner to conduct a session.

With this course behind you, should you join a corporation that invests and/or exports abroad, and runs into difficulties, you will be in a better position to assist senior management in developing a comprehensive and detailed action plan to deal with the challenges and opportunities, as well as participate in implementing  that agreed plan.

In the course of preparing for classes, and during classes, the student will study  the mechanics...the inner workings...of some international organizations, such as the World Trade Organization and OECD, and some  government agencies, in the US and in other countries, since a knowledge of the workings of such organizations is critical to success. Just as important, the course will address the technique of learning quickly  how organizations dealing with trade issues---some government, some international institutions, some trade associations,  some in the US, some abroad--- typically work.  And, perhaps more important, students will study research techniques to learn how such organizations operate.  The student will find that the private sector perception of a government agency or international organization may differ markedly from the perceptions of the same organization held by those within the organization, or in the government.

During the course various questions will be posed  questioning the pros and cons of trade policies, practices and actions of individual countries.  While such  trade policies and actions may be debated, there will be no attempt to brand one country’s policies as superior or inferior to policies of other countries. The purpose of this course is to teach professionalism in advocacy, often involving of diverse viewpoints.

This course has a motto: “Nothing is impossible.”  Enjoy.
Course Reading Lists:
Books to be Read Completely:

Spero, The Politics of International Economic Relations, 4th Edition,  l990, St Martin’s Press. Copies on reserve in the library.

Destler, American Trade Politics, Third Edition,  Institute for Internatonal Economics, 1995.

Ostry, Governments and Corporations in a Shrinking World,  Council  on Foreign Relations, 1990.

Yoffie, Working Paper, A Rational Model of Corporate Political Strategies, Harvard Business School, l984.

Other required readings: (Books on reserve in the library)

The Manager in the International Economy, Vernon, Wells, and Rangan, Seventh Edition, Prentice Hall, l996

O’Halloran, Politics, Process and American Trade Policy, University of Michigan Press, 1994

Bonser, McGregor, and Oster, Policy Choices and Public Action, Prentice Hall, l996

Marcuss, Effective Washington Representation, Harcourt, Brace Jovanovich, l983 (See, in particular, Chapter 7.

SESSION I    January l9   HLF     INTRODUCTION TIME

General orientation to the course and discussion of business-government relationships both in theory and in practice.  The discussion will include the roles of governments and the roles of  for-profit corporations, including areas where governments and corporations have concurrent roles and areas where their roles may be at odds.  There will be a discussion of the elusive concept of “national interest”. Some time will be spent on  reviewing the meaning of  key trade terms with the use of a unique glossary designed for this course.

SESSION II    HLF      TRANSNATIONAL CORPORATIONS

The modern transnational corporation will be introduced, using the US style transnational corporation as the base case, but also examining other forms of  organization and operation of transnationals.  This session will concentrate on the development of  trade and investment strategies in  transnational corporations, and the beginning of a discussion of the commercial diplomacy strategies that might arise from the business strategies.   There will be a discussion of the role of the modern Chief Executive Officer (CEO)  and also corporate budgeting practice.  Work will continue on the glossary of trade and investment terms.

SESSION III   HLF    GOVERNMENTS

This class presents the how governments are organized for trade issues.  The US Government will be used as a base case but other governments will be discussed to show alternative organizations.  The discussion will be an examination of how governments work as seen from the private sector, including a description of each of the government agencies involved in trade and investment, their orientation to issues, and the viewpoints of a private sector commercial diplomat to dealing with those agencies.  Particular attention will be paid, in the case of the US Government, to the Office of the US Trade Representative, the US Department of Commerce, the Treasury, and the State Department. Japan’s Ministry of International Trade and Industry (MITI) will also be examined. The glossary review will conclude in this session.  Not to be overlooked is the US Congress and its committees relevant to trade and investment issues.

SESSION IV    HLF       THOSE INTERNATIONAL ORGANIZATIONS

This session will parallel to a great extent the previous session, except it will examine, from a private sector viewoint, the most important international organizations in the trade and investment areas.  The examination will include the World Trade Organization, the OECD, and UNCTAD, as well as APEC.

SESSION  V           DEALING WITH “DIPLOMATS”

The private sector interface with the diplomatic community, whether US diplomats, or diplomats from other countries is the primary focus of this session. .  This session is a practical guide on how to deal with the formal diplomatic community, whether in such locations as the Department of State in Washington, or at Embassies / Consulates abroad. The distinctions between economic, commecial and political officers  will be drawn.

SESSION VI         TRADE NEGOTIATIONS...A PRIVATE LOOK

We will present a tour of recent trade negotiations, including the Uruguay Round of the GATT and the NAFTA, as viewed from different elements of the private sector in terms of private sector goals, achievements and disappointments. 

SESSION VII  F    HLF     MASTER CLASS IN TRADE IN SERVICES

Case Study:  Trade in Services---an examination of how a few US Companies started a completely new subject, and worked with the US Government to get  favorable rules for trade in services in US trade laws, and bringing services into the Uruguay Round of the GATT. This session will include a step-by-step examination of the business strategies of the companies and the private sector diplomatic strategies that were developed to implement those business strategies.  It will also include an examination, in hindsight, of whether the efforts were successful, and how success can be measured.

SESSION VIII      HLF   MORE OF THE  MASTER CLASS

Same subject developed, continued from SESSION VII

SESSION  IX       INTERNATIONAL ORGANIZATIONS

International Organizations and how they operate..a continuation of the earlier Session but more intense in examining how private sector diplomats work with such organizations, using specific examples.

SESSION X       CASE STUDIES RE US AND JAPAN TRADE DISPUTES

Case study: A current trade/investment conflict involving the US and Japan, involving study of publically available documents, and studying alternative strategies on both sides of the table.

SESSION XI  F       MORE ON US AND JAPAN TRADE DISPUTES

Session X Continued...A Case Study US and Japan

SESSION  XII   February  26     THE US AND THE EU- TRADE DISPUTES

Case Study:  A current trade/investment conflict involving the US and the EU., using publically available documents and  studying alternative strategies.

SESSION XIII    March 1      OTHER GOVERNMENTS, OTHER WAYS

This class concerns governments other than the US Government, and concentrates on their organization for handling trade and investment issues.  The private sector commercial diplomat must have a working knwoeldge of the govrnments that are involved in the diplomat’s purview.  The class will stress the practicl differences between various governments.

SESSION  XIV   March ll   HLF     ORGANIZING THE ELEPHANT

This class explores/presents the ways in which transnational corporations organize to handle government relations issues domestically and internationally. It explores the concept of the private sector commercial diplomat in a transnational corporation and optional ways that the diplomatic function can be most effectively organized for  success.

The discussion will draw the distinctions between “public affairs” and “public relations”. There will be some discussion of how expatriate employees fit into the  mix of corporate employees.

SESSION XV   March l5    HLF     HOW TO LOBBY ANYWHERE...AND WIN

This is a “how to” class on lobbying on trade issues. The private sector diplomats gets an assignment to achieve a corporate goals which involves obtaining, or blocking, legislation in a legislative body; or, convincing the Executive Branch to take particular action or inaction on some pending issue.  Case examples will be drawn from actual experience in the US and in countries abroad.  The term “lobbying” is used in its broadest sense, a synonym for “advoacy” in a governmental context.

SESSION XVI  March l8   HLF      THE MEDIA, BLESS THEM

The private sector commercial diplomat meets the world press. How to establish relationships with the media, answering questions, seeking coverage, and the whole range of media relations, all in the context of trade and investment issues.  Good media coverage can be a “make or break” factor.  The term “media” includes all kinds of print and electronic media, and the purview is global 

SESSION  XVII     HLF       NGO’S, TRADE ASSOCIATIONS

The role of Non Government Organizations, such as trade associations, coalitions both permanent and an hoc, in advancing corporate goals through, or with, other organizations.   Case examples will be drawn from the trade and investment field, including general purpose business groups such as the Business Roundtable and the National Association of Manufacturers; and industry groupings such as the American Electronics Association and Pharmaceutical Manufacturers Association; and also special purpose coalitions formed to advocate a position on one issue, usually for a limited time,

SESSION XVIII      HLF    MORE ABOUT NGO’S

Continued from Session XVII on non-governmental organizations. also drawn from the field of trade and investment, including the AFL-CIO, member Unions, environmental advocacy groups, and other non-business groups.

SESSION  XIX       US AND CHINA: TRADE DISPUTES

Case Study: Actual current cases  involving trade and investment issues beween the US and China., most likely in the field of intellectual property. 

SESSION XX   April l      MORE OF THE SAME

Continued from Session XIX , a case study involving real current cases between the US and China.

SESSION  XXI      US AND KOREA: TRADE DISPUTES

Continued from prior sessions involving real world case studies involving the US and Korea  

SESSION  XXII       THE OTHER SIDE OF THE TABLE

Under the theory that it is always a good idea to know both your allies and your adversaries well, this class will examine the other side of the table, ie., : the government commercial diplomat. It examines the training of  such commercial officials, their viewpoints, their goals and problems, with particular reference to current issues (differs from Session V in that it gets into specific issues to indicate different backgrounds and different goals.)

SESSION XXIII          OTHER  COUNTRIES, OTHER WAYS

This class examines private sector organizations in counries other than the US which are involved in trade and investment issues. It will stress operational and strategic differences between the different countries privat sectors as well as differences between such organizations outsidethe US and comparable organizations within the US.

SESSION XXIV      DOWN THE ROAD

After a brief survey of emerging new issues in trade and investment such as rules for international investments and competition policy, and why these issues are developing at this time and other issues fade away, the class will examine--as a case-in-point--- the emerging issue of whether trade rules ought  be applied to some extent to essentially global environmental challenges.isues.  Particular attention will be given to the alternative ways various interests of the private sector are interwoven into the emerging issue and  how the private sector diplomat can impact the issue.

SESSION XXV   HLF    APPLYING WHAT WE HAVE LEARNED SO FAR

The course thus far has been a prologue to how a private sector diplomat can put all this knowledge to practical use, ie., how the practitioner can move an issue from A to B to C and to victory by such actions as (a) organizing allies in particular causes into coalitions, or leading existing trade associations to take positions favorable to your own cause, and (b) working with the key government players in a way that will facilitate favorable government action in your favor.  Such an action plan may involve working with several governments in parallel, often several agencies within governments. It often may involve creating support for your position in the private sectors of other countries which will, in turn, work with their own governments in parallel with your own government.   Helping key government officials do their job better may be included in the package of tasks before the private sector commercial diplomat.  In sum, this session will concentrate on the various elements which would, when put together, constitute a written plan of action with anywhere from l0  to l00 separate actions indicated.. Partcular attention will be paid to increasing globalization of business activities  and the implications of globalization  for the private sector commercial diplomat.

SESSION XXVI      HLF      MORE ON APPLYING WHAT YOU HAVE LEARNED AND DEFINING WHAT IS WINNIN

This class will continue the discussion of  how to develop and put into action a broad strategy to achieve a specific business goal through commercial diplomacy.  This session will focus on setting priorities in the action plan developed, address how funding may be secured to finance implementation of the action plan, defining goals and measuring success,  and other steps in winning the issue.  It will also address the practical challenges  in working an issue over a long period of time, with key actors in governments and in corporations coming and going.  It will also address the role of personal relationships in advancing the action plan, as well as ethical issues that might arise.

SESSION XXVII      HLF   THE CLASS ROARS BACK
Presentation and critique of Student Paper

SESSION  XXVIII        HLF   THE CLASS ROARS EVEN MORE
Presentation and critique of  Student Papers and  CONCLUSION