Course description
Traditionally, foreign markets were destinations for firms exporting domestically produced goods or sourcing raw materials. However, modern businesses often produce goods abroad, deliver local services, and conduct research and development in multiple countries, reflecting the era of business globalization. The role of foreign markets has transformed significantly, as firms now navigate complex global supply chains and increasingly blurred national borders.

Global business has a long history of overcoming boundaries—whether geographic, cultural, or institutional. Historical examples such as the trade networks of the Roman Empire, the expansive commercial zones of the Mongol Empire, and the trading rules of the Hanseatic League demonstrate how ingenuity in crossing boundaries has driven prosperity. Since the 19th century, the Industrial Revolution, advancements in transportation and communication technologies, and the development of ICT have enabled firms to globalize their operations. These advancements have significantly altered the role of national borders in business activities.

The 21st century has introduced new challenges such as geopolitical risks, pandemics, and anti-globalization movements, creating fresh boundaries and divisions. These emerging barriers intersect with pressing global issues such as sustainability and the realization of circular economies through the use of regional resources, compelling multinational firms to adopt innovative strategies.

As firms globalize their activities and organizations across national borders, challenges emerge that cannot be fully addressed by traditional academic fields like economics and business administration, which assume companies operate within national boundaries. Global business has therefore evolved as an interdisciplinary field, drawing on knowledge from business administration, economics, politics, sociology, and psychology to address the complex issues unique to globalization.

This course introduces key concepts and definitions essential for understanding firm globalization, including multinational companies and foreign direct investment (FDI). Students will explore the historical evolution of firm globalization, from ancient trade networks to modern global supply chains, assess current trends, and analyze potential future developments. Theoretical frameworks such as the market-power approach, product cycle model, transaction cost economics, and the eclectic paradigm will be employed to understand how firms globalize and the principles underlying their efficiency and societal benefits.

The course also addresses how firms organize and manage global business activities, focusing on ethical considerations and human rights. Topics include market entry strategies, global organizational structures, supply chain responsibility, technology transfer, diversity and inclusive management, and codes of conduct for multinational corporations. Case studies from resource, manufacturing, and service industries will illustrate sector-specific dynamics in global business.

Finally, the course explores the broader implications of firm globalization, such as its effects on home and host economies, workers, global cities, and socio-economic inequalities. Contemporary issues such as global supply chain disruptions caused by the COVID-19 pandemic, the impact of geopolitical risks, tensions between different forms of capitalism, and conflicts between globalization end anti-globalization will also be discussed.

Learning outcomes of the course
By the end of this course, students will:
• Develop the ability to analyze how changes in environmental factors influence firm globalization.
• Gain theoretical and empirical insights into the behavior and development of international business, particularly focusing on Japanese firms operating abroad and foreign firms in Japan.
• Understand the principles guiding global business organization and management, addressing essential cross-border challenges.
• Enhance logical and empirical problem-solving skills related to global business dynamics.

Teaching and evaluation methods

- Teaching Methods
Each class includes a 50-minute lecture followed by a 40-minute group discussion. In the second half of the course, students will give individual presentations on lecture topics.

- Evaluation Methods
• Class participation: 20%
• Group and individual presentations: 50%
• Final report: 30%

Syllabus
- What is Global Business?
• Definition and Scope of Global Business
• Key Characteristics of Globalization in Business
- History of Global Business
• Origin of global business: Ancient trade networks, empires, and early multinational practices
• Evolution of Global Business: From the Industrial Revolution to the modern digital economy
- Why Business Crosses Boundaries: Theoretical Frameworks
• Market Power Approach
• Product Cycle Model
• Oligopolistic Reaction Model
• Transaction Costs Economics and Internalization
• Eclectic Paradigm
- How Business Crosses Boundaries
• Strategic Response to Global Environment
• Organizational Response in Global Business
- Global Business and Nation-States
• Sovereignty at Bay or Storm over the Multinationals
• Interactions between MNCs and Governments
- Global Business and Ethics
• Human Rights and Social Justice
• Diversity Management and Inclusive Practices
- New Boundaries and Global Business in the 21st Century
• Growing Geopolitical Risks
• Diversity of Capitalism Systems
• Tensions Between Globalization and Anti-Globalization Movements
- Pandemics and Global Business
• Impact of COVID-19 on Global Business
• Lessons for Resilience and Sustainability in Global Operations

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Last updated: January 10, 2025