Center: 
London
Discipline(s): 
International Business
Course code: 
IB 340
Terms offered: 
Fall
Spring
Credits: 
3
Language of instruction: 
English
Instructor: 
Dr. Andrey Jichev
Description: 

This course will give students a better understanding of the business environment in the EU and the challenges and opportunities for companies operating within its borders. Whether a small enterprise or a global business, every commercial endeavour is influenced by EU political and economic developments. The EU continues to be the most important market for U.S. businesses, as well as the biggest investor in the United States and the biggest recipient of U.S. investments. The EU will play a major role in the efforts toward a global economic recovery; and for this reason, its strategies for sustainable development and increased competitiveness will be carefully analysed. The business opportunities resulting from deregulation and the liberalisation of European industries, the completion of the Single market, and the liberalisation of the financial services markets will be discussed as well as the issues of energy security and the EU’s relations with its immediate neighbours. A special emphasis will be placed on the evolution and the challenges facing the Economic and Monetary Union. The opportunities arising from the emerging markets in Europe and the EU enlargement will be scrutinised carefully. Special attention will be paid to the European environmental policy, the challenges of climate change and the way Europe is responding to these threats. The issues of sustainable international development and fair global trade will be covered extensively. The course work is participative and interactive.

Prerequisites: 

None; however, some background in micro/macro economics; international relations; and/or business is desirable.

Learning outcomes: 

A broad knowledge and understanding of European institutions and the European business environment. Students will also be able to identify the most topical issues in European integration and the business opportunities arising from them. Students will also be in a position to outline effective strategies for U.S. businesses in Europe.

Method of presentation: 

The course involves a combination of lectures, discussions and student presentations. Study visits to the EBRD (European Bank for Reconstruction and Development) and other financial institutions will be included in the course programme. Students will prepare a project that will consist of an analysis of the business opportunities in the EU, and the formulation of a strategy for investment in a particular sector or country.

Required work and form of assessment: 
  • Mid-term paper (30%)
  • Individual case studies (including written and oral presentation) (15%)
  • Class Participation (15%)
  • Final Paper/Course project (40%)

The mid-term paper is a take home exam allowing students to choose from one of three questions that will be distributed a week in advance. The paper is “open book” and will allow students to draw on required and supplemental reading.

The individual case studies will assess the student’s ability to discuss real life situations and companies.

Participation in discussion is a key component of the course. Students’ contributions should reflect their reading and thoughts about the relevant topical issues. The style of the discussion will be informal, questioning and participative.

The final paper/course project will give students the opportunity to showcase their acquired knowledge of European business.

content: 

Week 1: What is the European Union?
Course Introduction
Discussion: Student Interests, Aspirations, Relevant Prior Course/Work Experience

  • Member States, Institutions and Decision Making
  • The Lisbon treaty and its impact on the EU
  • The current economic environment and the EU

Readings: Relevant articles and other relevant readings as assigned by the professor

Week 2: The Common, Internal and Single Markets

  • What is a Common Market?
  • The European Single Market: How it works
  • The Achievements and the Challenges Facing The European Single Market

Readings: Relevant articles and case studies as assigned by the professor

Week 3: Business Strategy and the Single European Market

  • Analyzing the European Business Environment
  • Establishing European and Global Objectives
  • U.S. Companies in European Markets: Successes and Problem Areas
  • Choice of Market Entry Model(s)

Readings: Relevant articles and case studies as assigned by the professor

Week 4: EU Economic Policy
The role of Europe in the Global Economy during the recent economic downturn

  • The Liberalization of the European Energy and Utilities markets, Financial Services and Telecommunications Markets and U.S. businesses

Field Trip: European Bank for Reconstruction and Development, London

Week 5: The EMU (€)
What is the European Monetary Union? History, Current State of Affairs, Future Prospects

  • Macroeconomic, Political and Constitutional Issues
  • The Euro, the Dollar and the prospects for a Global Currency
  • What is the Impact of the EMU on the British Economy and British Businesses?
  • Is there a case for UK withdrawal from the EU and what would be the consequences of such a decision?

Readings: Relevant articles and case studies as assigned by the professor

Week 6: The Prospects for a Short, Medium, and Long Term Economic Recovery, and the Role for the EU?

  • The impact of the global economic downturn on the EU
  • EU measures to combat recession and to improve European competitiveness
  • Possible venues for EU-US cooperation and interaction in achieving financial stability

Field Trip: the Bank of England

Week 7: Mid-Term papers due

Week 8: EU Key Policies and their Impact on U.S. Companies operating in Europe (I)

  • The impact of EC law on U.S. businesses operating in Europe
  • EU competition policy: prominent cases and decisions
  • What lessons did Jack Welch and Bill Gates learn about EU competition policy?
  • EU labor market and policies: an opportunity or an obstacle for U.S. companies?
  • Regional and Cohesion funds
  • Common Agricultural Policy

Readings: Relevant articles and case studies as assigned by the professor

Week 9: EU Key Policies (2)

  • EU and energy security
  • Sustainable energy
  • EU and climate change: real challenges and opportunities
  • EU Industrial Policy

Readings: Relevant articles and other readings as assigned by the professor

Week 10: External Trade Policy and Sustainable Development

  • European Economic Area, bilateral and multilateral agreements
  • The EU and Fair Trade: achievements and missed opportunities
  • WTO, G7/8, OECD agreements

Readings: Relevant articles and other readings as assigned by the professor

Week 11: Enlargement of the European Union and its Implications for doing Business in the EU

  • The EU Enlargement: history, state of affairs, future trends
  • Emerging markets in the EU: what opportunities are there for US companies?
  • EU enlargement and the EU Good Neighborhood Policy
  • The Future of the EU: How Big is Enough?

Readings: Relevant articles and other relevant readings as assigned by the professor

Week 12: EU-U.S. Relations

  • The current and future Agenda of the Transatlantic relations
  • Current debates in the EU-U.S. trade relations
  • The role of the combined EU–U.S. efforts for a lasting economic recovery
  • The re-invention of the Transatlantic Alliance

Field Trip: The US Commercial Office, EBRD

Week 13: Submission of Course Project and Presentations

Required readings: 
  • Johnson, Debra and Turner, Colin European Business, (Routledge, 2008, 2006) Somers France European Business Environment. Doing Business in the EU. Routledge, 1st edition, 2010
  • Harris, Neil European Business and Marketing, Sage Publications, 2004
  • Country strategies and Transition reports of the EBRD
  • Monitoring reports of the European Commission on the state of preparedness for EU membership
  • The McKinsey Quarterly articles and case studies
  • The Economist Intelligence Unit reports
Other Resources: 
Brief Biography of Instructor: 

Dr. Andrey Jichev has spent twenty years in the diplomatic service. Educated in the Russian Federation and UK, he has both an M.A. and Ph.D from the Moscow University of International Relations (MGIMO); postgraduate diploma in EC Law from King’s College, London; and an MBA from Richmond, the American International University in London. Since 2003, Dr. Jichev has been an adviser at the European Bank for Reconstruction and Development, London.