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2012/2013  KAN-CM_U130  China, India and Global Business Revolution

English Title
China, India and Global Business Revolution

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Course period Autumn, First Quarter
Changes in course schedule may occur
Tuesday 12.35-15.10, week 36-41, week 43-46

Time Table Please see course schedule at e-Campus
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Michael Jacobsen - Department of International Economics and Management
Administrator: Birgit Dahlgren - bgd.int@cbs.dk
Main Category of the Course
  • Globalization, International Business, markets and studies
Last updated on 27-04-2012
Learning objectives
The course will provide the participants with an overview of the status of China and India in the global economy, assess the impact of emerging Asia’s growth on Africa as well as on Eastern Europe and Russia. Furthermore, the course participants will be able to assess the adaptation of mature market companies on emerging economies, in light of growing global environmental degradation and economic growth. The ultimate lessons from the course are whether multinationals from emerging economies pose a challenge for the established multinationals players in the global economy.
Prerequisite
The course is open to all Masters level students in International Economics and Management, who see working in an emerging economy or at an emerging markets desk or the Asia division of a multinational company as a real possibility. Previous graduate level coursework in Economics and Strategic Management would be desirable but is not absolutely essential.
Examination
China, India and the Global Business Revolution:
Type of test Home Assignment
Marking scale 7-step scale
Second examiner No second examiner
Exam period Autumn Term, Week 50
Aids Please, see the detailed regulations below
Duration Please, see the detailed regulations below
The grading for the course will be based on four main areas, consisting of 1) the fulfillment of reading assignments/class participation 2) fulfillment of risk assessment exercise and 3) submitting a final paper not exceeding 15 pages.
Course content
Introduction: Coverage of basic stylized facts. The framework of analysis will consist of evaluating the main features of the unfolding global business revolution prompted by the sustained economic growth taking place in China and India and a select number of emerging or developing regions of the world. Special focus will be given to the debate on the so called "Asian Model". What have we learned from these experiments?
Globalization of markets, economic growth and world economic integration will be three main issues that will link the various topics covered throughout the course. A broad outlook of the current state of the global economy, events and institutional condition that shape the main developing regions will be addressed. In addition issues such as those concerning, openness to trade, import substitution, the role of the State and contemporary economic growth policies will be covered in detail.
Through highlighting the rise of China and India, particularly over the past two decades, emphasis will be shown to examine what can be learned from the experience of economic reform in developing economies towards a market oriented and a more open approach. Attention will be given to the short term and long-term impact of macroeconomic growth on private business development and foreign direct investment. Focus will also be shown to the debate on the viability and sustainability of reforms. Additionally, policy and institutional issues are examined. Finally, an outlook on the more and the less successful regions will be presented, with specific reference on the impact of China and India on these developing regions. 
Main Emerging Areas and Countries: Diagnosis of problems, description and evaluation of policies, basic short-term and long-term results.
4.1. China and India: cross country comparison of distinct development models
4.2. Review and analysis of emerging Asia’s impact on Africa
4.3. Russia’s transition to a market economy and lessons from China and India
4.4. Latin America’s failure and East Asia’s success. China’s impact on the region
4.5. China and India’s sphere of influence and impact on Middle East economies
Has the globalization of markets gone too far? What are the effects of global trade on employment and disparity of earnings in industrial and developing regions and countries? What Impact does China and India’s growth and rising influence have on the global economy?
 
Progression:This course builds upon previous courses that all master level students have had in their respective programs such as: Emerging Markets, Corporate Finance, Finance, Micro-economics and Managerial Economics.
 
The course’s development of personal competences:
The course will provide the participants with an overview of the status of China and India in the global economy, assess the impact of emerging Asia’s growth on Africa as well as on Eastern Europe and Russia. Furthermore, the course participants will be able to assessthe adaptation of mature market companies on emerging economies, in light of growing global environmental degradation and economic growth. The ultimate lessons from the course are whether multinationals from emerging economies pose a challenge for the established multinationals players in the global economy.
Teaching methods
The teaching methods for this course will be made up of a combination of lectures, case studies and student presentations of their business plan-mini project.
Expected literature
Recommended literature:
Boorman, J. et al., 2008, “Emerging Market Economies and the Global Financial Crisis: Resilient or Vulnerable in Turbulent Times”.
 
Peters, S and Garcia-Herrero, Alicia: Asia’s Role in Global Economic Recovery. Unpublished Working Paper, Center for Emerging Markets, IESE Business School, 2009.
 
Peters, S. The Political Dimensions of the World Economic Crisis: A Perspective from the BRICs, 2010. The Elusive Quest Grown
 
Easterly, W.The Elusive Quest Grown - Economists' Adventures and Misadventures in the Topics, 2001, The MIT Press - (Book)
 
Krugman, P., 1994, Does Third World Growth Hurt First World Prosperity? Harvard Business Review, July-August.
 
Farrell, D., Khanna, T., Sinha, J., Woetzel, J. R., China and India: the race to growth? The McKinsey Quarterly, 2004 Special Edition: China today.
 
Huang, Y., 2006.What China could learn from India’s slow and quiet rise. FT. Peters, S. Adjustments to the Global Economic Crisis by India and China, 2010.
 
Abdelal, R., Khan, A., Khanna, T., “Where Oil-Rich Nations Are Placing Their Bets”, HBR
Case- Crossing Borders: MTC’s Journey through Africa. HBS, 9-708-477.
 
Alden, C., China in Africa, Survival Vol. 47, No.3, pp.147-164.
 
French, H., 2004, China in Africa: All Trade, With No Political Baggage, New York Times.

Singh, A., 1993, “Asian Economic Success and Latin American Failure in the 1980s: New Analyses and Future Policy Implications”, International Review of Applied Economics, Vol. 7, Issue 3, pp. 267 – 289.
 
OECD Development Centre Studies,  The Visible Hand of China in Latin America, chapter 5 Garcia-Herrero, A., Santabárbera, D., Does China Have an Impact on Foreign Direct Investment to Latin America?

Collins, S. M. & Bosworth, B. P., 1996, Economic Growth in East Asia: Accumulation versus Assimilation, Brookings Papers on Economic Activity, 2, pp. 135-191.
 
Krugman, P., 1994, The Myth of Asia's Miracle, Foreign Affairs, November/ December, pp. 62-73.
 
Chang, H.-J., 2000, “The Hazard of Moral Hazard: Untangling the Asian Crisis”, World Development, Vol. 28, No. 4, pp. 775-788.

Hitt, M., He, X., 2008, Firm Strategies in a changing global competitive landscape (CASE).

Russia: The End of a Time of Troubles. HBS October 3, 2002.
 
Last updated on 27-04-2012