International Studies Project
C45.0100.008
Spring 2005

Professor Ryuzo Sato
C.V. Starr Professor of Economics and Director
The Japan–U.S. Center for Business and Economic Studies
Leonard N. Stern School of Business

 

T&Th: 2 - 3:15 p.m.

Room: Tisch 201

 

Office: KMC 7–190
Phone: (212) 998–0750
Fax: (212) 995–4219
E–mail: rsato@stern.nyu.edu
Office Hours: T&Th 3:30–5pm
or by appointment

 

TF
Partha Chatterjee
pc604@stern.nyu.edu

 

Course Description
The International Study Project (ISP) course is a follow-on to the Global Business Environment (GBE) course. The central objective of the GBE course was to introduce students to the causes and consequences of economic globalization. Towards the end of the GBE course, however, the fact of wide differences in the institutional contexts within which business is conducted in different national settings was pointed out. These differences are driven by historical, politico-legal, social, and cultural forces as well as economic realities, and can result in significant divergence in actual national goals, policies, and economic achievements compared to what would be predicted by global economic reasoning alone.

The main objective of the ISP course is to enrich students' understanding of variations in the institutional contexts of nations and the impact of these variations on national economic growth, globalization, and the management of multinational firms. Pursuit of that objective will start by developing a framework for country analysis that can be applied to understanding the economic performance of any country in the world, and the challenges, opportunities, and risks to multinational firms of doing business in any country in the world. Classroom time will be spent applying this framework to Japan.

Pursuit of the main objective of the course will then proceed with a visit to Japan during which students will be able to observe directly how the institutions there impact how business is done there compared to in other countries, particularly the U.S. While in Japan students will participate in presentations and discussions with multinational company managers headquartered there, with faculty and students teaching and studying there, and with local government officials. In addition, students will have time on their own to explore the history, cultural sites, and local customs of Japan.

The course will culminate in a school-wide competition among student teams from all sections of the International Study Project course. The competition will require that each team prepare and present a report that diagnoses the major performance problems and opportunities facing the company visited, and makes strategic recommendations to its management addressing those problems and opportunities. Shortly after returning from the trip to Japan, students will be required to complete an individual written report that analyzes the role of the national setting of the company visited in its international competitiveness.

Evaluation
Midterm Quiz (March 8)
Individual Report (March 31)
Class and Group Participation

Team Report (March 1)
Group Presentation
    PowerPoint (April 12 - 15%)
    Written report (April 21- 15%)


35%
10%
15%

10%
30%

100%

Class Trip and Participation (15%)

Attendance during class activity and the trip to Japan is a very important component of the learning process in this course. You are only allowed to miss the trip after obtaining written permission from the Dean's office. For those missing the trip, you will be given a make-up assignment whose weight would be equal to that of your trip participation grade. In addition, you are expected to do additional research work on your group project so that there is an equitable distribution of work among the members of your group on the project. For those traveling to Japan, you are required to adhere to the Code of Conduct given below:

ISP Travel and the Stern Undergraduate Code of Conduct

While on the ISP trip, students will have a significant amount of time on their own to explore the history, cultural sites, and local customs of Japan. During this unsupervised time, students are expected to behave in a manner consistent with the Stern Undergraduate Code of Conduct. Behavioral violations include, but are not limited to physical assault, harassment (including sexual and verbal), and property damage.

Accusations of behavioral violations will be investigated by faculty and administrative staff accompanying the students on the trip, and may result in students being immediately sent home to prevent further damage. In all cases, behavioral violations will be reported to the Office of Academic Affairs for further investigation and determination of sanctions by the Honor Committee.

Failure to attend and actively participate in the scheduled events while on the trip is also a violation of the Code. Such failures will result in penalty in the class participation portion of the course grade. Frequent failure to attend and actively participate while on the trip could result in as much as a two-letter reduction in the course grade.

Midterm Quiz (35%)

The Midterm Quiz will take place in class on Tuesday, March 8th. The quiz will be a combination of multiple choice and/or short-answer type questions. More details on the quiz will be provided in class.

Country Impact on Company Report: Individual Assignment (10%)

What features of the historical, political-legal, social, economic, and cultural institutions in the home country/region help the company achieve competitive advantage? What features seem to lead to competitive disadvantages? Can management leverage the former, and overcome the latter? (Suggested length is 4-5 typewritten pages, double-spaced). This report is due by noon on Thursday, March 31. This report is worth 10% of your grade.

 

Competitive Analysis and Company Questions: Team Assignment (10%)

In a short report, (1) outline industry structure and main competitors, (2) identify competitive issues facing the company, and (3) list questions to ask presenters at the company visit. (Suggested length is 5-6 typewritten pages, double-spaced). This report is due by noon on Tuesday, March 1, and is worth 10% of your grade.

Company Report and Presentation: Team Assignment (30%)

Outline your company's strategic situation, i.e., its strengths/advantages over competitors, and the major challenges and weaknesses it will have to overcome in the next few years. Develop a strategic plan for the next 3-5 years to maintain and or improve the firm's performance. (Specifically, what significant changes in the firm's geographic scope, product scope, product development policies, marketing policies, operations policies, finance policies, organization structure, and/or human resource management policies would you recommend?)

The presentation slides are due by noon on Tuesday, April 12th. The presentation, which will be evaluated by classmates, the TA and Professor Sato will be worth 15% of your grade. Each group will have 13 minutes for their presentation, followed by 2 minutes for Q&A.

The project report (suggested length is 10-12 typewritten pages, double-spaced), which will build on your (and other) presentation(s), is due by noon on Thursday, April 21. This report will count for 15% of your grade.

 

International Study Project:

C45.0100.008

Section 8

Tuesday & Thursday

2:00 – 3:15 p.m.

Tisch Hall, Room 201

Spring, 2005 (1/18/05 Starting)

Session

Day

Date

Topic

Assignment

1

Tuesday

1/18

Introduction

 

2

Thursday

1/20

An Introduction to Japan:

Its Economic, Social and Political

History and Institutions

 

Sato’s Powerpoint

A General Overview of Japan

 

Sato’s Handout #1 & 2

3

Tuesday

1/25

A Framework for Country Analysis – Underpinning of Sustained Economic Growth

Read:  Chapter 1.1,

The Global Competitiveness Report

4

Thursday

1/27

A Framework for Country Analysis – The Microeconomic Foundations of Prosperity

Read:  Chapter 1.2,

The Global Competitiveness

Report

5

Tuesday

2/1

Applying Country Analysis: 

The Bubble Economy

 

Structural Change and the “Lost Decade”

1) Handout #3 and

 

2) “Structural Changes for Future of Japan” R. Sato, Japan and the World Economy Vol. 7, 1995

 

3) H. Yoshikawa,

Japan’s Lost Decade, 2002,

Chapters 1 & 2

6

Thursday

2/3

Applying Country Analysis:

Budget Deficit & Trade Surplus

Handout #4

7

Tuesday

2/8

Applying Country Analysis:

Banking & Financial Systems

 

History of Yen

 

 

1) Handout #5 and

 

2) E. Sakakibara,

(See Supplementary Reading)

8

Thursday

2/10

Applying Country Analysis:

Distinctive Institutions: 

The Japanese Government Distribution System – Keiretsu, etc.

Japanese Management

1) Presentation by Mr. Mori , Ministry of Finance

(2/10 or 2/15)

 

2) Presentation on “Japanese Postal Savings”

9

Tuesday

2/15

Applying Country Analysis:

Technological Change and Emergence of High Tech. Industry

1) Handout #6

 

2) R. Sato “Nothing New?  An Historical Perspective on Japanese Technology Policy”

Session

Day

Date

Topic

Assignment

10

Thursday

2/17

Global Strategy: 

Strategic Trade Policy

 

Trade Conflict

C. Freeman and L. Soete,

The Economics of Industrial Innovation, 1997,

Chapters on Product and Process Innovations

(See Supplementary Reading)

 

Sato’s Handout

“Technology Game”

11

Tuesday

2/22

Global Strategy: 

 

Comparative Analysis of Industrial Policy:  Explicit vs. Implicit

D. Collis “The Machine Tool Industry and Industrial Policy” in International Competitiveness, ed. By

M. Spence and H. Hazard 1988.

12

Thursday

2/24

Team Meeting:

Competitive Analysis and Company Questions

13

Tuesday

3/1

Company Workshop:

 

Presentation by NEC New York Representative

Team Report Due by Noon:

Competitive Analysis and Company Questions

14

Thursday

3/3

Company Workshop:

 

NEC’s Industry and ‘Competitive Strategy Issues

NEC Website

15

Tuesday

3/8

Mid-term Quiz &

Travel Preparation

16

Thursday

3/10

NO CLASS

3/11 – 3/17 JAPAN TRIP

(Professor Masahiro Matsushita of Aoyama Gakuin University, Japan)

17

Tuesday

3/22

TRAVEL DECOMPRESSION

18

Thursday

3/24

Debrief Japan/NEC Visit in Class

19

Tuesday

3/29

Team Meeting:  Presentation and Report Preparation

 

20

Thursday

3/31

Team Meeting:  Presentation and Report Preparation

Individual Report Due by Noon 

How does Japan impact NEC’s global competitiveness?

21

Tuesday

4/5

Team Meeting:  Presentation and Report Preparation

 

22

Thursday

4/7

Team Meeting:  Presentation and Report Preparation

 

23

Tuesday

4/12

Company Presentations (4 per day)

Team Powerpoint Due by Noon

24

Thursday

4/14

Company Presentations (4 per day)

 

25

Tuesday

4/19

Company Presentations (4 per day)

 

26

Thursday

4/21

Final Report

Team Written Report Due by Noon

27

Friday 4/22 Section Wide Competition

 

Tentative Schedule in Japan

Friday – 3/11                                       Leave for Japan

Saturday – 3/12                                    Arrive in Japan (Asakusa View Hotel)

Sunday – 3/13                                      Touring Tokyo

Monday – 3/14                                    Macro Presentation 9:00 a.m. – 1:00 p.m.

Tuesday – 3/15                                    Company Visit

Wednesday – 3/16

Thursday – 3/17                                   Leave Japan

Thursday – 3/17                                   Arrive in New York (same day)


Course Materials

Supplementary:

Collis, David, “The Machine Tool Industry and Industrial Policy, 1955–1982,” International Competitiveness, eds. M. Spence and H. Hazard, Cambridge, MA: Ballinger, 1988.

Freeman, Chris and Luc Soete, The Economics of Industrial Innovation, Third Edition, Cambridge, MA: MIT Press, 1997.

Katz, Richard, Japanese Phoenix: The Long Road to Economic Revival, M.E. Sharpe, 2002.

Sakakibara, Eisuke, Structural Reform in Japan: Breaking Through the Iron Triangle, Brookings Institution Press, 2004.

Sato, Ryuzo, “Technology Game and U.S.–Japan Competition," Japan and the World Economy, 2002.

Sato, Ryuzo, “Structural Change for the future of Japan,” Japan and the World Economy, Vol. 7, p 211–232, 1995.

Sato, Ryuzo, The Chrysanthemum and the Eagle: The Future of U.S.–Japan Relations, NYU Press, 1994.

Sato, Ryuzo and Gilbert Suzawa, “Comparative Productivity Analysis: U.S. vs Japan,” Research and Productivity, Chapter 9, Auburn House, 1983, revised 1993.

Sato, Ryuzo. “Japan’s Challenge to Technological Competition and Its Limitations,” in Fragile Interdependence: Economic Issues in U.S. Japanese trade and Investment, eds. T. Pugel and R. Hawkins, Lexington, MA: Lexington Books, 1986.

Sato, Ryuzo, “Nothing New? An Historical Perspective on Japanese Technology Policy,” Economic Policy and Development, eds. T. Shishido and R. Sato, Auburn House, 1985.

Suzumura, K and M. Okuno–Fujiwara, “Industrial Policy in Japan: Overview and Evaluation,” Trade Friction and Economic Policy: Problems and Prospects for Japan and the United States, eds. R. Sato and P. Wacthel, New York: Cambridge University Press, 1987.

Watanabe, C. and Y. Honda, “Japanese Industrial Science and Technology Policy in the 1990s,” Japan and the World Economy, vol. 4, p 47–67, 1992.

Yoshikawa, H., Japan’s Lost Decade, International House of Japan, 2002, Chapters 1&2.