International Trade and Latin American Business

Transcription

1 International Trade and Latin American Business 2014 Instructor: Ciro Luis Lavadenz, (MBA Heriot-Watt University) Contact Information: I. Content: The seminar focuses on providing the student an international vision of trade and business opportunities. It stresses the particularities of Latin American countries, local organizations and ways of doing business, in addition to discussing different trade theories and their applications to Latin American economies.. Topics help students to develop the ability to understand the complexities of international context and the way these scenarios facilitate or hinder business opportunities. Students will acquire basic knowledge of the different tools available to develop an international business strategy. II. Bibliography: International Business 7 th edition M Czinkota/I. Ronkainen/M. Moffett 7 ed (Cengage). Users Handbook for Documentary Credits under UCP ICC Incoterms 2010 ICC Other class materials will be distributed in class. Additional material for reference and class work: International organizations websites (World Trade Organization, World Bank, International Monetary Fund, International Chamber of Commerce).

2 III. Requirements and Grades Attendance is compulsory. There will be two questionnaires and, at least, one research assignment to be completed individually. A group research project and oral presentation will be also required. The guidelines for the research assignment, the group project and oral presentations will be distributed in class. The final grade will be calculated according to the following scale: Attendance: 15% Questionnaire 1:.20% Questionnaire 2:.20% Individual research assignment:.10% Group project: 10% Oral presentation:...25% Total: 100% IV. Classes and Contact Time Class Topic Contact Hours Class 1 Units 1 and 3 3 hours Class 2 Units 2 and 3 3 hours Class 3 Units 4 and 5 3 hours Class 4 Units 6 and 7 3 hours Class 5 Units 8 and 9 3 hours Class 6 Units 10, 11 and 12 4 hours Class 7 Students Presentations 4 hours Class 8 Students Presentations 4 hours Class 9 Business Visits and Cultural Activities 15 hours Total number of contact hours Credit Hours (USA) 42 hours 3 Credits

3 V. Course Topics: Unit 1: The organization and the global market. International Corporation influence. Human rights. Unit 2: Free trade or protectionism. Latin American perspective. Comparative and Competitive advantages: different approaches to International Trade. Unit 3: International organizations and their views on trade. From GATT to WTO. World Bank and International Monetary Fund. Unit 4: Cultural environment. How culture influence business?. Cultural features of Latin American countries. Unit 5: Political environment. Legal environment. Corruption and business. Trade policy: different policy instruments for trade protection: tariffs, quotas and other non-tariff protectionist policies. Unit 6: Economic Environment. Emerging countries. Their role in global trade. Policies fostering development and trade: import substitution; export oriented industrialization, and other arguments for activist policies. Unit 7: Market integration. The phenomenon of trade blocks. The political economy of trade policy. Unit 8: Products and services in the international context. Standarization versus adaptation strategies. Unit 9: Promotional strategies. Trade fairs. Unit 10: International pricing strategies. Incoterms. Unit 11: International logistics overview. Latin American Infrastructure. Unit 12: International transactions and modes of payment.

4 Latin America Economics Doing Business in Latin America Austral University Summer 2014 Instructors: Roberto Feeney, Ana Inés Navarro, Santiago Panvini Contact Information Roberto Feeney: Ana Inés Navarro: Santiago Panvini: I. Content The course focuses on a variety of issues regarding Latin America Economics. The topics covered in class include long term issues as development, economic and institutional determinants of productivity and inequality, new opportunities and strategic decisions that arise from the challenges and opportunities of global economic changes, especially the growing importance of Asian countries. Accordingly, there will be a mix of historical and contemporary economic issues for Latin American countries, which will be complemented by economic models and empirical evidence. II. Core Readings The core readings for each topic are listed below in section IV.. III. Requirements and Grades In addition to the required readings, there will be several assignments that will be part of the final grade: The final grade will be structured as follows: - Oral presentation of a Latin American country: 50% - Participation in the comments/remarks of the country s presentations made by other students: 20% - Participation in discussion articles to be analyzed for each class, which the students will study before the class: 30% - Total: 100% The instructions for the presentations are explained in the Appendix. IV. Classes and Contact Time Class Topic Contact Hours

5 Class 1 Introduction to Development in Latin America 4 hours Class 2 Latin American Economic Development from a Historical Perspective 4 hours Class 3 Poverty and Inequality in Latin America 4 hours Class 4 Privatizations in Latin America 4 hours Class 5 Economic ties between East Asian and Latin American countries 4 hours Class 6 Students Presentations 4 hours Class 7 Students Presentations 4 hours Class 8 Students Presentations 4 hours Class 9 Business Visits and Cultural Activities 10 hours Total number of hours Credit Hours (USA) 42 hours 3 Credits V. Course Schedule Class I: Introduction to Economics Development in Latin America -Ia. Describing Latin America -Ib. What is Development? Cardoso, Eliana and Ann Helwege. (2002) chapter 1 and 2. Discussion paper Alan Beattie Argentina: The superpower that never was Published in The Financial Times: May Class II: Latin American Economic Development from a Historical Perspective -IIa. Stages of Economic Development -IIb. Import substitution policies -IIc. Inflation, Stabilization, and Dollarization Cardoso, Eliana and Ann Helwege. (2002) chapter 4 Discussion paper Campante, Felipe Yet another tale of two cities: Buenos Aires and Chicago Harvard University Fraga, Arminio Latin Amercia since the 90s: Rising from the sickbed?. Journal of Economic Perspectives, Vol. 18, No 2, Pages

6 Taylor, Alan On the Costs of inward-looking Development: Price Distortions, Growth, and Divergence in Latin America. The Journal of Economic History, Vol. 58. No. 1, Pages 1-28 Class III: Poverty and Inequality in Latin America IIIa. Concepts and Facts. IIIb. Why Inequality Matters. IIIc. Why Inequality Matters in a Globalizing World. IIId. Social Assistance in Latin America Birdsall, Nancy (2005). The World is not Flat: Inequality and Injustice in our Global Economy UNU World Institute for Development Economics Research. (UNU-WIDER)-WIDER Annual Lecture 9. Birdsall, Nancy, Augusto de la Torre, and Rachel Menezes (2008). Fair Growth: Economic Policies for Latin America s Poor and Middle-Income Majority. Center for Global Development. Inter-American Dialogue. Washington, D.C. Chapter 3. Gasparini, Leonardo, Guillermo Cruces and Leopoldo Tornarolli (2009). Recent trends in income inequality in Latin America. Working Paper Series. ECINEQ WP IEG (Independent Evaluation Group) Social Safety Nets: An Evaluation of World Bank Support, Washington, DC: Independent Evaluation Group, the World Bank Group. Thorp, Rosemary (1998). Progress, Poverty and Exclusion: An Economic History of Latin America. Banco Interamericano de Desarrollo. Chapter 2 Discussion paper Birdsall, Nancy and Nora Lustig (2011). Declining Inequality in Latin America: Some Economics, Some Politics. Tulane Economics Working Paper Series Class IV: Privatizations in Latin America -Why do economies privatize public companies? Fiscal, efficiency and welfare aspects. - Which activities are able to be privitazed? The rol of the State. - Regulatory problems: rules (contracts) vs. discretion (economic equilibrium) - Privatizations in Latin America during the early 90s - Comparing performance between countries and activities - Losers and winners of privatizations, twenty years later - The return of nationalizations? Chong and Lopez-de-Silanes (2011), The truth about privatizations in Latin America, IDB Working Paper Nº 191. Chisari, Estache and Romero (1997), Winners and Losers from Utility Privatizations in Argentina, World Bank - Policy Research Working Paper Estache and Gomez Lobo (2001), Utilities Privatizations and the Poor: Lessons and Evidence from Latin America, World Development, Vol 29, Nº 7. Class V: Economic ties between East Asian and Latin American countries

7 Va. Economic objectives of increasing relations with East Asia Vb. Comparative Economic Indicators Vc. Trade ties Vd. Obstacles Ve. Agreements Medalla, Erlinda M.,Balboa, Jenny D (2010). Prospects for Regional Cooperation between Latin America and the Caribbean Region and the Asia and Pacific Region: Perspective from East Asia Kuwayama, Mikio; José Durán Lima; Marcelo LaFleur (2010) Latin America and Asia Pacific trade and investment a time of international financial crisis. Eclac, serie 97. Discussion paper China Interested in Free-Trade Deal With Mercosur Global food crisis: China land deal causes unease in Argentina Brazil and China Sign Trade Agreements

8 Bibliography: Readings and Topics Cardoso, Eliana and Ann Helwege. (2002) Latin America s Economy: Diversity, Trends and Conflicts. MIT Press: Cambridge, Mass. Edwards, Sebastian. (1995) Crisis and Reform in Latin America: From Despair to Hope, New York: Oxford University Press Franko, Patrice. (2003) The Puzzle of the Latin American Development. Second Edition. Rowman and Littlefield Publications Thorp, Rosemary. (2008) Progress, Poverty and Exclusion: An Economic History of Latin America, The Inter-American Development Bank Currency and Exchange Rate Frankel, Jeffrey A., No Single Currency Regime Is Right for All Countries or At All Times. (1999). Working Paper 7338, NBER, available at Eichengreen B., Hausmann, R., Exchange Rates and Financial Fragility. (1999). NBER Working Paper No. W7418, November Available at Eichengreen, Barry, and Ricardo Hausmann, eds. (2005). Other People's Money: Debt Denomination and Financial Instability in Emerging Market Economies. Chicago: University of Chicago Press, Long Term Determinants of Growth De Gregorio, José; Lee, Jong-Wha. (1999). Economic growth in Latin America: sources and prospects. Global Development Network. Barro, R. (1999). Notes on Growth Accounting, Journal of Economic Growth, Vol. 4, No. 2 (June 1999): Also available as NBER Working Paper No. W6654, available at Towards a Unified Theory of Economic Growth Oded Galor on the transition from Malthusian stagnation to modern economic growth An interview with introduction by Brian Snowdon. Hall, Robert and Jones, Charles I. (1999). Why Do Some Countries Produce So Much More Output per Worker than Others? The Quarterly Journal of Economics, vol. 114, no. 1, pp , February Available also as NBER Working Paper No. W6564 ( Populism and Liberalism Dornbusch, R; Edwards, S. (1989). Macroeconomic Populism in Latin America Working Paper No National Bureau of Economic Development Michael Walton. (2004). Neoliberalism in Latin America: Good, Bad, or Incomplete? Latin American Research Review. Vol. 39, No. 3, Pages Alan Knight (1998) Populism and Neo-Populism in Latin America. Journal of Latin American Studies, Vol. 30, No- 2, Pages José Antonio Ocampo (2005) Beyond reforms, Structural dynamics, macroeconomic vulnerability. Stanford University Press, World Bank Latin America in the 90s

9 José Antonio Ocampo. (Spring, 2004). Latin America's Growth and Equity Frustrations during Structural Reforms. The Journal of Economic Perspectives, Vol. 18, No. 2, pp Arminio Fraga (2004). Latin America since the 1990s: Rising from the sickbed?, JEP, Vol. 18, No. 2, Pages Institutions and Poverty and Inequality Sokoloff, Kenneth and Stanley L. Engerman. (2000) Institutions, Factor Endowments, and Paths of Development in the New World, Journal of Economic Perspectives, Vol. 14, no. 3, pp Nancy Birdsall. (2005). The World is not Flat: Inequality and Injustice in our Global Economy UNU World Institute for Development Economics Research (UNU-WIDER)-WIDER Annual Lecture 9 Galor, Oded; Moav, Omer; and Vollrathy, Dietrich.(2008). Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions and the Great Divergence. March 12, 2008 Appendix I: Model to make the country presentations Each student will join a group of students to make an oral presentation in the last two classes. The groups are of around 3-5 students, with a mix of Argentine and Foreing students, having a total maximum time of presentation and questions and answers of 40 minutes for each country. There going to be three to five groups presenting on Latin American countries and students can choose among: Argentina, Brazil, Chile, Mexico, Peru and Colombia. Students should send the PowerPoint or Prezi presentation to the instructors before the class begins (before 12:00 am of that day) The template to make the presentation is as follows: A. Overview of the geography, culture, demographics and political organization of the country B. Economic indicators (GDP, GDP growth, per capita GDP, unemployment, rate of inflation ) C. Strengths and weaknesses for growth and development (position of the country in international ranking of productivity, transparency, respect for law, legal certainty and business climate) D. Opinion regarding the challenges the country faces regarding their present and future development Guidance for the presentation The length of the presentation will not exceed 20 slides. Two minutes per slide. Forty minutes: 20 slides. Using default fonts (Arial, Times New Roman, Antiqua). Less than 24 is not read. (Is it clear?) Mention sources used in tables and charts. Few "bells and whistles" dynamic transitions, graphics, backgrounds. Find a comfortable rhythm, similar to that one used naturally. High volume, ask the attendees of the classroom if you listen. Talk "up". Formal language but not solemn. Complementing the visual oral version. Oral-visual conflict. Do not read. Improvise little (almost nothing) Practice the presentation before exposing

10 Some useful data sources