ISG investment theory chapter 1

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ISG BBA PROGRAM Fall semester
BUS 450 European Business
LECTURE 1 Module presentation Chapter 1
Business location decision
Tuesday, October 3rd 2006
Guillaume Sarrat de Tramezaigues
www.gstblog.com
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Course Presentation

• - 10 cessions 30 hours
• - 8 chapters
• - 1 dedicated website www.gstblog.com
• - Teaching method lecture, discussion and case
  study
• - 2 courseworks 1 participation mark 1 prep
• - 1 mid term exam
• 1 final exam
• 1 mandatory text book for both european business
  and international business modules
• Charles W.L. Hill, International Business,
  McGraw-Hill International Edition, 6th edition
  2006

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Course Presentation
Coursework 1 15 Coursework 2 15 Midterm
exam 20 Readings - preps 10 Participation 10
Final exam 30 100
The attendance is mandatory. You are responsible
for all the material covered in class as well as
announcements, whether you are present or not.
Readings and papers will be corrected at least
once per student.
Courseworks must be submitted at the beginning of
the class and no delay will be tolerated. If not
in class the day of submission, students can send
it by e-mail the previous day at midnight, last
deadline at guillaumesarrat_at_yahoo.fr
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Course content
3rd lecture Coursework 1 10.17.2006 5th
lecture Midterm exam 10.31.2006 8th
lecture Coursework 2 11.28.2006
Final exam Week 01.08-13.2007
And worldwide business next semester with the
international business module China, India,
Brazil, Russia!
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Chapter 1 Business location decision process in
Europe
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EU new members vs. old members
EU members Austria, Belgium, Cyprus, Czech Rep.,
Denmark, Estonia, France, Finland, Germany,
Greece, Holland, Hungary, Ireland, Italy, Latvia,
Lithunia, Luxembourg, Malta, Poland, Portugal,
Spain, Slovenia, Slovakia, Sweden, United
Kingdom From 2007 Bulgaria, Roumania Candidats Cro
atia, FYR of Macedonia, Turkey
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EU new members vs. old members
European developed countries outside EU Iceland,
Norway, Switzerland Other european countries in
transition Albania, Bosnia Herzegovina, Kosovo,
Montenegro, Serbia, Ukraine
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Decisions decisions
The lower the GDP, the higher the eco bus
output gap ? New members, candidats, Balkan
countries and Ukraine Highest economic growth
and positive outlook ? Iceland? Denmark, Sweden
and Norway
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Decisions decisions
The less developed markets ? New members,
candidats, Balkan countries and Ukraine The
biggest markets ? Turkey, Germany, Poland, G.B.
and France
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Decisions decisions
The best business environments ? Estonia, Czech
Rep., Slovenia, Croatia, Ireland Adventure ?
Balkan countries, Malta, Cyprus, Bulgaria,
Roumania, Ukraine Closest to new outside EU
markets ? Ukraine, Turkey
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Decisions decisions
Logistics ? Poland, Germany, Turkey, Ukraine,
Finland Qualified labor force ? Ireland, UK,
Luxembourg, Germany, France Labor force cost and
productivity ? Ireland, Slovenia, Germany,
Bulgaria, Roumania, Balkan countries
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Decisions decisions
Dividends and taxes ? Belgium, Ireland, Baltic
countries Flat tax will be yours ? CEEC The
closest to EMU enlargement Slovenia, Estonia,
Malta, Cyprus, Czech Rep., Latvia, Lithuania
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You said marketing?
? High value added goods for developed
countries? ? Services Ireland ? Industrial
sector developing countries  Tell me what you
sell and I will tell you where you are 
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First group work

• ? By group of 3 to 4 students, choose a good or
  service to produce and sell and explain
• - in which country you would decide to settle
  your company and
• which countries would be your primary targets as
  exports destination.

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First case study
? Car Price differentials in the European
Union From Charles W.L. Hill, International
Business, McGraw Hill Extra questions - If a
business were to be settled in the EU in the car
market, what and where would it be?