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With growth of global air traffic expected to continue into the 21st century, governments around the world are showing increased interest in the option of privatizing airport operations. This case examines challenges and opportunities for governments, airlines, the traveling public, as well as private sector airport investors and operators. Will airport privatization lead to improved services and prices, or might there be long-term repercussions? Presents the options for airport ownership and operation and examines the arguments in favor and against privatization. Provides privatization experiences from around the world for added perspective.

At the October 2000 Association of Southeast Asian Nations (ASEAN) Economic Ministers meeting in Chiang Mai, Thailand, the Malaysian delegation proposed an extension to the ASEAN Free Trade Area (AFTA) tariff reduction scheme in an effort to protect Malaysia's auto industry. Given that the development of Proton and Perodua, the country's national cars, has received extensive government support, protection, and preferential treatment, there was concern whether Malaysia's cars would be competitive with other automakers in the region. Malaysia's request for the extension, however, has been a setback for AFTA, which had hoped that a strong push for further liberalization and Asian globalization would reenergize foreign direct investment in the region, following the devastating Asian financial crisis of 1997-99.

Daewoo Motors, South Korea's second largest car maker, was on the verge of bankruptcy in September 2000. The once proud Daewoo Group (the parent company of Daewoo Motors) has been charged with not only being reckless in its investments but also fraudulent in its practice. The government must decide whether to bail out the company or let it fail. Given the importance of the company's contribution to the South Korean economy, however, the decision would have a profound impact on the direction of ongoing market reforms as well as the livelihood of its workforce at home and abroad. This case traces the origins and growth of the Daewoo chaebol within the context of South Korea's economic development framework and highlights the advantages and disadvantages of such a system. Designed for an MBA level course in International Business.

Indonesia was hit hard by the Asian economic crisis. By October 8, 1997, its currency, the rupiah, was down 60% from its pre-floatation value. The rupiah fell to a historic low of 16,500 against the dollar on January 23, 1998. Capital flight accelerated and social unrest was widespread. On February 4, Professor Steve Hanke suggested to President Suharto that a currency board system could stabilize the currency. While Suharto was highly receptive to the idea, the IMF was not. It threatened to withdraw all its support to Indonesia. It was up to Suharto to decide which way to go.

After taking office, South Africa's new president, Nelson Mandela, must decide whether to dismantle or support Armscor, South Africa's state-owned arms company, which has been a pillar of the apartheid regime. Complicating matters is the fact that the arms industry was South Africa's leading manufacturing exporter and a major employer. If Mandela chooses to support Armscor, the company must develop a strategy to obtain a much larger share of a rapidly declining world market.

Antoni Subira, the Minister of Industry in Catalonia, Spain, must decide whether to impose strict European Union environmental guidelines on the local leather industry. Failure to impose new regulations would result in substantial fines. Imposition, on the other hand, could lead to a further decline in an industry already buffeted by foreign competition.

Antmobel is presented with a plan to enter the French market. The company must weigh the costs and potential benefits of such a move in the context of its international strategy and the firm's capabilities.

In the midst of a sales slump brought on by a recession in Spain, Antmobel's managers are presented with an opportunity to sell a substantial quantity of furniture in Uzbekistan. Management must decide whether the order fits with the company's strategy, capabilities, and internationalization plans.

Addresses the role of geographic scope in competition and strategy. Makes distinctions between the geographic scope of competition (or the effective area over which firms compete), the geographic scope of competitive advantage (or the geographic area from which a firm can draw locational advantages), and the geographic scope of strategy (the area over which a firm chooses to compete and locate its activities). The geographic scope of competition is influenced by technology, tastes, governments, and company strategy. Locational advantages are the result of favorable factor conditions, demand conditions, related and supporting industries, firm strategy, structure, and rivalry. The firm may choose to compete in a single market (a geographically focused strategy), in all markets (a global strategy), or some combination of markets. The firm can choose the configuration (location) and coordination of its activities. The firm adds value to geographically dispersed units through the choice of markets to serve, the location and coordination of activities, and the active management of economies of scale, scope, and learning.

Supplements the case.

In April 1987 the management team of CFM International, Inc. (CFMI) was considering developing a new jet engine for the Airbus A340. The withdrawal of a competitor's engine had created an unforeseen opportunity for CFMI to re-enter a competition it had apparently lost several months earlier. Complicating the decision was the fact that CFMI was a corporation jointly and equally owned by General Electric (U.S.) and the Societe Nationale d'Etude et de Construction de Moteurs d'Aviation, or SNECMA (France), both of which had to approve any new programs. Both General Electric and SNECMA, the owning companies, had already moved on to other projects. Allows for discussion of international alliances in a high stakes, politically salient, global industry. Also addresses large investment decisions in an uncertain environment.

Japanese firms dominate the facsimile machine industry, accounting for more than 90% of worldwide sales. This case explores the reasons for this dominance.

Describes the structure of the insulin industry, a treatment for diabetes and Novo's strategy and competitive position in early 1982. The industry is undergoing significant change and Novo must decide how to defend and build its international position. Designed as an early case in global strategy. The class can understand how Novo has competed internationally in the past, how that relates to industry structure, and how industry changes will alter the appropriate way of competing globally. Coalitions of alliances factor into the list of strategic alternatives.