The course will tackle the strategic and organisational issues faced by local and global companies when they want/need to expand beyond their domestic market. The “why, when, where, how, and who” of international business will be addressed.
Since the beginning of the 21st century, there has been not only acceleration in globalization of the economy and companies, but competition has appeared from new players and from new directions. Going abroad is not anymore the playground and the battlefield reserved for US- and Europe-based companies. Foreign direct investments made by Chinese companies or sovereign-wealth funds are making the headlines almost every day.
If moving goods and providing services around the world have today become very easy through supply chain, technology (r)evolution, and digitalization, going global also requires specific human resources and organizational models which are one of the key success factors of international business and probably the most difficult to get it right.
The integration of many emerging economies into global trade, notably through participation in global value chains, boosted incomes and lifted millions of people out of poverty. At the same time, the benefits of globalisation have not been spread evenly, neither across nor within countries.
Since the financial crisis in 2008, unconditional support for globalization has started to be questioned by some citizens, industries, and thus politicians in some developed economies. With the election of Donal Trump in 2016, globalization has taken a second hit as the tariffs announced by the US administration, mainly against China, represent the first step towards a “trade war”, potentially leading to a broader reversal of globalisation. Another factor which could push global trade backward is the growing pressure to act against global warming by, among others, reducing the environment externalities associated with trade.
Objectives of the course are to:
- review the environment in which international business is taking place;
- understand the reasons pushing companies to go abroad;
- learn different ways to expand internationally, how to succeed and challenges to address;
- be aware of new competition facing companies in globalization;
- have a clear understanding of organizational and human resources aspects to address in general;
- encourage students to build an international business “culture” by being aware of economic, political, social, legal, technological, and environmental factors influencing it
The course will be divided in 2 parts, each taught by an adjunct professor:
- Part I by Frédéric POUCHAIN: Companies going global: why, when, where, how, which ones.
- Part II by Sunita MALHOTRA: Organizational strategy & international human resources Management.
- Teacher: Pouchain Frédéric