MULTINATIONAL ENTERPRISES & GOVERNMENT POLICY
FUNCTIONAL OPERATIONS

Place: CTCD, 411 Pacific St., Suite 215
Instructor: Dr. Andrew (Andy) Procassini

Office Hours: By appointment, before or after class, at instructor's office
P: 408-647-6424
F: 408-647-6435

Course Description

The goal of this module is to educate students in the functional activities of multinational enterprises (MNE) in global markets and their relationship to various government policies. It will provide them with the ability to communicate with both corporate executives and government officials in an informed manner regarding these activities as related to commercial diplomacy.

This goal is accomplished by explaining in detail the (1) capabilities, resources, and management of these corporate departments and (2) their relationship to government policies, laws, and agencies.

Required Texts:

Textbooks: There will be no single required text. The instructor will provide notes, readings, and cases as necessary.

The class, however, is expected to read a daily business journal or newspaper section on a regular basis to provide subjects for class discussions. (Wall Street Journal, Business Section of NY Times, or others)

Supplementary Texts: The following texts provide supplementary material which class members, at their discretion, may wish to read in order to broaden their understanding of the subject.

Wiedenbaum, Murray, Business and Government in the Global Marketplace (Englewood Cliffs, NJ: Prentice‑Hall, 1997).

Hill, C.W.L., International Business: Competing in the Global Marketplace (Chicago: Irwin, 1 997).

Yip, George S., Total Global Strategy: Managing for World Wide CompeWve Advantage (Englewood Cliffs, NJ: Prentice‑Hall, 1995).

Guest Lecturers: Business executives and/or government officials may be guest speakers during the course.

Progress of the Course Requirements:

1. Attendance and participation in class discussions is required. However it is not necessary for the instructor to be informed of an impending absence. (50% of grade)

2. A short presentation to the class for discussion on a current MNE ‑ government relationship (cooperation, conflict, etc.) indicating the basis of the relationship, its meaning, and how the MNE and home or host governments affect each other. (50% of grade)

Presentation will include: MNE / government relationship

Cause and/or purpose

Benefits and costs to MNE

Benefits and costs of home and host country

Students opinions/recommendations for MNE and governments

Schedule of Classes / Topics: The topics covered in this module, in order of discussion, will include but not be limited to the following. Bracketed subjects cover related government activities.

Class 1. Why multinational enterprises (MNEs) seek international business; world Jan. 16 markets, their size and characteristics; country selection by MNEs activity. [WTO, OECD, UN, Regional Markets, WIPO, Ex‑lm Bank, etc.]

Marketing, sales, services; standardization versus custom products; pricing issues and decisions; promotion issues and choices; distribution and service decisions. [Antitrust, FTC, FDA, USTR, ITA, ITC, etc.]

Class 2. Research and development; basic applied and pre‑competition research; Jan. 23 productivity and R&D; competitive advantage of R&D; location of R&D; linking R&D to marketing. [Technology Policy, NCR Act, ARPA, Federal Laboratories, National Laboratories, etc.]

Production, sourcing, logistics; context of international production operations; production management; location decisions; materials management; quality & reliability. [OSHA, EPA, ICC, FM, etc.]

Class 3. Human resources; recruitment, labor relations; training; expatriate policies; Jan. 30 finance and accounting for international operations; subsidiary operations as financial entities. [EEO, NLRB, Civil Rights Acts, IRS, SEC, etc.]

Staff functions; external affairs; government affairs; media relations, general counsel. [Federal branches and agencies, foreign agencies, etc.]

Class 4. Organizational designs for international business; corporate and subsidiary Feb. 6 governance; centralization vs. decentralization; cost pressures vs. local responsiveness. [Foreign Subsidiaries, FCPA]

Management control of the MNEs importance of control; control techniques; managing information, productivity; market value. [Government as data source, regulator, etc.]

Class 5. Presentations by class members on MNEs / government subjects. Feb. 13