Course Syllabus

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“The International Economy and Business”

MGMT-S 2050

                                                CRN:  33137


Class starts on Monday June 19, 2017 and meets Mondays and Wednesdays through August 2, 2017. 

Class Room:   Sever Hall 206

Class Time: 3.15—6.15 PM   Mondays and Wednesdays

Section/Group Meetings: TBA


Professor: Dr. Lal C. Chugh                        



The International Economy and Business: Introduction

          The objectives of the course are to enhance our understanding of various economies of the world and their interdependence, and to analyze changing global financial and trade systems. The first few class sessions discuss macro economics, monetary and fiscal policies in order to lay the groundwork for issues related to country analyses, and interdependence. The course discusses different economic issues & policies of the US, China, Brazil, Mexico, Japan, Norway, Turkey and South Africa. It analyzes various models of integration (why disintegration?) such as EU, EURO, NAFTA and WTO, and others. The recent global credit and currency crises including sovereign risk (Iceland, Greece and Argentina) are discussed as well.  The thrust of the course is to provide an understanding of dynamism of global financial and economic environment facing businesses. The course relies heavily on case analyses and active class discussion.


Textbook and other Materials

  1. Required:
  2. List of cases is attached.


(“International Economy 2017”  14 cases)

  1. Course Pack (CPG) will be available at Gnomon Copy in

             Harvard Square 1308 Massachusetts Ave. 617-491-1111

  1. Regular reading of the WSJ, The Financial Times, The Economist and

      Other business periodicals is essential.





 Readings and Discussion Material particularly for the first three classes will be available in the course packet from Gnomon Copy (CPG).


1    Mon.  6/19           Introduction, Macroeconomics Model,

                                       GDP & components of GDP; Growth Accounting

                                               Readings: CPG

2    Wed.  6/21             Monetary and Fiscal Policies, and Exchange Rates

                                                Readings: CPG


3    Mon.  6/26             International Trade and Balance of Payments

                                                    Readings : CPG


                              Models of Integration/ Disintegration

                                      Issues of Globalization


 4   Wed.  6/28                   Cases: Distance Still Matters Article from HBR

                                               The Stalemate at the WTO

                                               To Trade or Not to Trade: NAFTA


 5     Mon.  7/3         Cases:  The German Export Engine

                                              Can EURO Zone survive?

                                               Brexit: Discussion


                                          Country Analyses

 6   Wed. 7/5             Cases:  China: “Unbalanced”


  7   Mon. 7/10           Case:  Japan: Betting on Inflation



  8   Wed. 7/12           Cases:   Norway: The Embarrassment of Riches

                                                  South Africa: A Fractured Rainbow




  1. Mon. 7/17 Cases:  Brazil’s Enigma---

                                            Mexican Crisis


10    Wed. 7/19           Case:   Turkey—Work in Progress

                                            Discussion on Role of State



                    Currency Crisis, Sovereign Defaults and Resolution


11 Mon.  7/24        Cases: Iceland (A)

                                       Presentation on Crises.

 12 Wed. 7/26        Case:    Barber of Buenos Aires: Argentina Default


                                     Examination Week


13 Mon. 7/31        Paper Presentations


14 Wed. 7/2         Paper Presentations


  Grading, Examination and Papers

  1. Come prepared for discussion for every single class and read the cases in advance of the class. Students will be expected to make in class presentations on the cases.
  2. 2. Case Write Ups: There is no formal in-class examination.  However, every student will be expected to do a write up of three cases – one each from Category A, B& C.  The write up should address the major issues.  The write up should be 2-3 pages single spaced. Also hand in your write up on the day of case discussion, not afterwards.

Category A

  1.    To Trade or Not to Trade---NAFTA and FTA
  2. WTO and Stalemate
  3.  German Export Engine
  4. Can EURO survive ?

Category B

  1. China
  2. Japan
  3. South Africa: A Fractured Rainbow
  4. Norway
  5. Brazil
  6. Mexico



 Category C

  1. Turkey: Work in Progress
  2. Iceland
  3. Barber of Buenos Aires- Argentina Default


  1. Research paper: Every student or a group of no more than three students is expected to prepare a research/position paper on a topic of current concern, country, or a Multinational Company that faces issues of currency fluctuations, credit crisis, trade and (de)globalization.  You may choose the country/company.  Provide a short description of your project with your name(s) by July 12, 2017. Submission Deadline for the final paper is August 2, 2017. I will provide guidelines in class later on.


  1. Grading Policy:

         Three Cases------------45%  (Each case=15%)

          Final Paper------------25%

          Class Presentations

           &Discussion----- ----30%

                   Total ---------  100%


  1. You are responsible for understanding Harvard Summer School policies on academic integrity ( and how to use sources responsibly. Not knowing the rules, misunderstanding the rules, running out of time, submitting the wrong draft, or being overwhelmed with multiple demands are not acceptable excuses. To support your learning about academic citation rules, please visit the Resources to Support Academic Integrity ( where you will find links to the Harvard Guide to Using Sources and two free online 15-minute tutorials to test your knowledge of academic citation policy. The tutorials are anonymous open-learning tools.


  1. 6. The Summer School is committed to providing an accessible academic community. The Accessibility Office offers a variety of accommodations and services to students with documented disabilities. Please visit for more information.
  2. Suggested Topics for Papers. You are welcome and encouraged to

     think of new topics and choose your own topic for the research


  Credit and Currency Crisis in general or as to how a country is being affected;

   Currency Flows amongst countries, and IMF as a regulator ??

   What kind of global/ international monetary system is needed? Relevance of IMF and World Bank; IMF’s Role as a lender;  Role of Asian  Infrastructure Investment Bank (AIIB). IMF, WORLD BANK;

Role of Dollar; Role of Yuan/ Renminbi;


Analyze a country-----Choose a country and evaluate the potential and the risks of investing $100 million in that country.


Analyze the impact of fluctuating FX rate on a particular company----its sales, costs, and location and financing decisions.


Should FTAA or other regional trade agreements be encouraged? What are the benefits and costs to a particular country? Choose any country.


You may choose any regional trade agreement to discuss economic issues in general or for a country.


Is  currency union amongst a group of countries desirable? What are the Benefits and Costs? What are desirable conditions for the adoption of a currency union? For example Euro ;

 Future of Euro and adoption of Euro; Adoption of a single currency for a block of countries in Africa/ South America/Asia.


Implications, Challenges and Policies related to any one of the following issues:

     Aging Population;

     Immigration across countries;

     Environmental Issues;

     Poverty, Inequality of Income and wealth across and within countries








             Harvard Summer School 2017   

                Course:  “  International Economy and Business”

                                    MGMT-S 2050 Course # 33137

                      List of Cases from HBS Publishing

        “International Economy 2017”                    


  1. “Distance Still Matters”    R0108K  Reprint from HBR Article  by                                             Pankaj Ghemawat
  2. Stalemate at the WTO 711-043
  3. To Trade or Not to 705-034


  1. The German Export Engine 715-045
  2. Can Eurozone Survive             713-034


  1. China : “Unbalanced”---- 711-010
  2.   Japan: Betting on Inflation- 714-040


  1. Norway: The Embarrassment of Riches    713-061
  2. South Africa: A Fractured Rainbow         716-069


  1. Brazil’s Engima: Sustaining

                 Long Term Growth             713-040

  1. Mexico: Crisis 710-058


  1. Turkey—Work in Progress 713-018
  2. Iceland (A)                709-011
  3. Barber of Buenos Aires  706-034       

               Argentina Default


Total= 14 cases. All cases are available at HBS Publishing. Link to buy these cases









  Please send me an email  ( to send  the new and updated syllabus.

I will put the syllabus on the Canvas in a day or so.


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