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Globalization of Business

Course developer

Prior knowledge

Ekon1024, Microeconomics

Course abstract

Study course provides knowledge of business development opportunities and risks in the context of economic globalization. During the course, students learn about the essence of the globalization process, its causes, evolution and the latest dimensions of its transformation, by studies of the impact of geopolitical, technological development, economic liberalization, as well as the impact of social and climate change on the development of different profile enterprises. Students gain an understanding of the causes of macroeconomic instability as well as of the geopolitical interests of countries, the role of various international organizations and companies in global economic processes. At the end of the course, students understand the basic functions of international business and their interconnection and are able to critically evaluate various international cooperation opportunities for activities in domestic and international markets.

Learning outcomes and their assessment

Knowledge
Theoretical knowledge of globalization nature, its driving forces, regularities and impact on business development. Understanding of the basic functions of international business, their mutual interaction. Knowledge of countries’ global competitiveness indicators, sources of the relevant and practically usable information for researching issues related to international business. The knowledge is assessed in a written test.
Skills
Ability to identify and analyse the driving forces of business globalization in different business sectors. Ability to explain the causes of problems in international businesses with arguments; to identify the most common mistakes made by companies; to determine the factors of success and failure of international businesses. Skills are evaluated in group discussions and presenting of prepared research results.
Competences

Ability to use theoretical and practical knowledge; to conduct qualitative and quantitative data analysis; to critically evaluate the export potential of the product; to justify the attractiveness of the target market. Based on a variety of information sources, ability to independently assess the preconditions for starting operations in a new market, summarizing the potential risks and opportunities for the use of various cooperation models with foreign partners. Competences are assessed in scope of individual research work development and its presenting.

Course Content(Calendar)

1. The concept of globalization and its theoretical framework. (2 lectures)
2. Transformation of basic postulates of economic theory and values of society caused by scientific and technological progress. (2 lectures, 1 practical work)
3. The stakeholders of the globalization process. (1 lecture, 1 practical work)
4. Historical development of countries' international trade. (2 lectures)
5. Characterization of basic functions of international business and their interaction. (1 lecture, 2 practical works)
6. Prerequisites for starting the export. (1 lecture, 2 practical works)
7. Concepts and legal aspects of licensing, copyright and intellectual capital. (2 lectures, 2 practical works)
8. Possibilities of vertical and horizontal cooperation of international companies. (1 lecture, 2 practical works)
9. The concept and essence of corporate governance in international business. (1 lecture, 1 practical work)
10. The role of international financial and trade organizations in the processes of economy globalization. (1 lecture, 2 practical works)
11. Anti-globalization movement, its causes, goals, means, participants, consequences. (1 lecture, 1 practical works)

12. State aid opportunities for export facilitation. (1 lecture, 2 practical works)

Requirements for awarding credit points

Passed test on the course theoretical issues; positive evaluation for participation in group work; positive evaluation for presentation of intermediate results; positive evaluation for presentation of the final results.

Description of the organization and tasks of students’ independent work

Evaluation of the export potential of specific companies' products and development of export promoting measures. Research of information sources related to international business, data analysis and interpretation.

Criteria for Evaluating Learning Outcomes

Four activities are evaluated in the course: written test (20%); participation in the practical group works (10%), presenting of inter-results (20%); individual work with information analysis and its presentation to the audience (50%).

Compulsory reading

1. Hill C.W.L., Udayasankar K., Wee.C.H. Global Business Today. McGraw Hill-Education, 2014, 544p.
2. Rugman A.M., Collinson S. International Business. Harlow, England; New York: Prentice Hall Financial Times, 2009, 716p.

3. Šmits E., Koens Dž. Jaunais digitālais laikmets: kā nākotnē mainīsies mūsu dzīve, valstis un bizness. Rīga : Zvaigzne ABC, 2017, 399 lpp.

Further reading

1. Bakari M. The Dilemma of Sustainability in the Age of Globalization. Lanham: Lexington Books, 2017, 225p.
2. Business in a Changing Society: Festschrift for Peter Brabeck-Letmathe / edited by Andreas Koopmann. Zurich, Neue Zürcher Zeitung, 2014, 295p.
3. Larcker D., Tayan B. Corporate Governance Matters. 2nd Edition, Pearson Education, 2016, 441p.

4. Pauli G. Zilā ekonomika 3.0: zinātnes, inovāciju un uzņēmējdarbības apvienojums rada jaunu biznesa modeli, kas pārveido sabiedrību. Rīga: Zvaigzne ABC, 2018, 319 lpp.

Periodicals and other sources

1. Dienas Bizness: nedēļas laikraksts: ISSN 1407-2041
2. Kapitāls. Rīga: Lietišķās informācijas dienests. ISSN 1407-2505

3. Latvijas Investīciju un attīstības aģentūra. Pieejams: www.liaa.gov.lv

Notes

ESAF professional bachelor’s programme “Entrepreneurship and Business Management”.