Bard MBA

Globalization and Emerging Markets

Spring 2013
3 Credits

Objectives:
The key learning objectives for the course are to understand:
  • How globalization has redefined the stakeholder community: customers, employees, capital sources, and suppliers
  • The economic drivers of globalization: not comparative advantage in trade, rather technology and transport creating a global labor market, undermining traditional geographic advantage
  • The fundamentals of money, banking and the role of the central bank
  • How these roles have rapidly evolved with technology, leading to an intertwined global system, with weak international financial governance
  • Theories of financial fragility, policy responses, and business strategies
  • The evolution and function of global economic structures
  • Localization and models for local business networks
Student Outcomes:
The class provide students with an understanding of drivers of globalization, the demands this process places on business development, and the opportunities created as well for successful local business models. Students also develop knowledge of national and international financial systems, problems of financial fragility, business strategies to manage financial cycles, and governance systems for international trade and finance.

Texts
  • McKibben, Bill, Deep Economy, Times Books, 2007.
  • Papadimitriou, Dimitri and Randall Wray, The Elgar Companion to Hyman Minsky, Edward Elgar, 2010.
  • Rodrick, Dani ,The Globalization Paradox: Democracy and the Future of the World Economy, Norton, 2011
  • Sorkin, Andrew, Too Big to Fail, Penguin, 2009.
  • Wright, Robert and Vincenzo Quadrini, Money and Banking, Flat World Knowledge: 2009.
  • • Mishkin, Frederic, The Federal Reserve After the Crisis, American Enterprise Institute 2010.
  • Eichengreen, Barry, Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System, Oxford University Press, 2011.
  • We will also include some key articles and chapters from texts such as:
    • Bhagwati, Jagdish, In Defense of Globalization: With a New Afterword, Oxford University Press, 2007.
    • Stiglitz, Joseph, Globalization and Its Discontents, W.W. Norton & Company, 2002.
  • Additional readings TBD.
Grading:
The course will be a combination of lectures, case studies, group discussions, and student projects. Active participation in class discussions will be essential. Grading will be determined by participation in in-class exercises, group presentations, completion of homework, and multiple exams.

Course Outline:
The Bard MBA curriculum is modular, with each module topic corresponding to a residency. The outline below provides the Globalization and Emerging Markets set of topics for each of the semester’s modules, with each set of topics corresponding to three to four weeks of conventional instruction.

Module

Topics

Systems Thinking

Economic Drivers of Globalization. We begin with a history of globalization, and then focus on the proximal drivers of the recent wave: technology and transport costs. We also discuss the relevance of comparative advantage and more advanced trade theory, as well as traditional explanations for industry concentration and clusters.

Firm Costs and Finance

Money and Banking.  Here we review the basics of money and the banking system at the national level, and the traditional role of the central bank. We update our understanding of this role by examining the non-traditional strategies employed by the Fed in the wake of the recent crisis, and the new international nature of the financial system. 

System Dynamics

 

Financial Systems and Fragility. Bard’s Levy Economics Institute is an international center for the study of financial fragility. We bring Levy’s expertise to bear to understand the underlying nature of financial systems, continuous “financial innovation”, potential policy responses, and the implications for business management in the coming decades.

Global Structures and Regulations

Global Structures. Here we focus on the national and global structures regulating trade and finance. How do these structures touch the day-to-day operations and HR requirements of businesses? We will also consider the ethics surrounding “payment for access” in different cultural contexts.

Distance and Ethics

Localization. Is local business more sustainable? We will focus on this question, and on  strategies to develop successful local businesses in the face of continuing globalization pressures. Comparative policy frameworks of different countries and communities will be explored.