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Because of globalization, the U.S.-owned corporation headquartered in the United States is no longer the vehicle for achieving U.S. competitiveness. Foreign-owned corporations that invest heavily in U.S.-based production facilities and their workers may actually contribute more. U.S. government policy should open the borders to foreign investment and promote human capital rather than assuming that corporations will lead the way. This is true for a number of reasons: corporate ownership is less important today; control is less important; work force skills are critical; and foreign-owned corporations help U.S. workers add value.

This hypothetical case is a paradigm of the privatization decision facing many jurisdictions as they struggle with budget pressures. It tells the story of the town manager of a small Texas municipality who has reason to believe that, if she were to accept the bid of a private firm to pick up and dispose of trash, she could balance the town's budget and save enough money to avoid cutting back the hours of the town's lone social worker. Privatization, however, will mean firing two popular long-time town sanitation employees who also do assorted maintenance tasks once they've finished hauling the trash. The case calls on students to take the role of the town manager and decide, after analyzing the town's current budget and costs, as well as the private trash collection bid, whether or not to "go private." HKS Case Number 1033.0.

The Mumias project in Kenya represents the best exchange of a private firm providing economic development leadership in a particular commodity project to examine the whole commodity system and the country.

The owner of the Fan Pier site in South Boston has been found legally responsible for blocking the efforts of his development partner in attaining the approval necessary to build the $800 million megaproject they had planned together. It was believed that the owner hoped to structure a new relationship with some other partner who would share more of the economic benefits. The feuding partners need to decide how to handle the recent ruling. This case provides an opportunity to expose students to megaprojects: issues of partnership, design, architecture, changing marketing, and local politics play large roles.

Covers the history of Tylenol from the autumn of 1982 through the second tampering incident in February 1986. Also deals with other developments in the history of Johnson & Johnson, especially the acquisition and divestiture of Technicare.

Explores the "new" theories of international trade--also called strategic trade policy--which were developed in the 1980s. Examines why economists and policy makers thought new approaches were necessary to explain international trade, the contributions of industrial organization to these theories, and the implications of these theories for firm strategies and government policies.

Updates Motorola and Japan (A) and Motorola and Japan (A), Supplement. A rewrite of two earlier supplements.

Focuses on the origins of economic decline and the problems of economic management in Great Britain, the oldest industrial state. Reviews the formation of macroeconomic policy, welfare policy, and industrial policy in the postwar period. Examines Prime Minister Margaret Thatcher's diagnosis of Britain's ills and explores the effectiveness of her cure.

As "1992" approaches, Europeans must compete in world markets or see their businesses fail. Wisse Dekker looks at the forces that have led Europeans to realize that it is companies, not countries, which must compete. He foresees widespread industry shakeouts and heightened competition for all companies. Dekker does not envision a European "fortress" closed to Japanese and U.S. companies, but believes that reciprocity should be the guiding principle in trade negotiations and that value added and the transfer of technology should be paramount in evaluating investments.

In today's borderless economy managers must see and think globally. Increasingly, managers and consumers all over the world speak a common language, and people everywhere can see what choices and preferences are in other countries. Companies must learn to become insiders in each market of the Triad--North America, Europe, and Japan. A headquarters mentality often prevents this; managers want to apply a home-country solution to a foreign situation or intervene in the management of the foreign market. This is reinforced by entrenched systems, structures, and behaviors. The key is to develop an equidistant view of all customers.

Concerns a 1983 joint venture between General Motors and Toyota to produce small cars in the United States. Describes the globalization of the auto industry and the competitive positions of the two companies.

Supplements the (A) case.

Presents an historical overview of the professional career of James E. Burke, chairman and CEO of Johnson & Johnson. Examines the corporation's handling of three major occurrences--the Tylenol poisonings in 1982 and 1986 and the acquisition and subsequent sale of Technicare, a maker of diagnostic imaging equipment.

Western observers of global business, impressed with how much Asian cultures differ from those of North America and Europe, tend to think of Japan, China, and Korea as practicing much the same forms of business relationships. But although East Asian cultures have in common an emphasis on personal relationships as the foundation of business practices, the forms and values of these relationships differ markedly among the Japanese, Chinese, and Koreans. For the Japanese, the important concept is wa, or the emphasis on group loyalty, harmony, and consensus; emotional support and a long-term perspective are important. The Chinese, on the other hand, think in terms of guanxi, the special arrangements of favor-sharing that an individual has with other individuals; personal loyalties within such arrangements are more important than loyalty to an organization. Koreans emphasize inhwa, which relates to harmony between unequals and derives from the Confucian ideal of loyalty to parents, elders, and authority figures. Non-Asians hoping to do business effectively in East Asia need to understand how these concepts all translate into quite different norms of business practice.

In 1988, the Du Pont Co. is abruptly confronted with solid scientific evidence that chlorofluorocarbons are destroying the earth's ozone shield. Du Pont, with its Freon brand product line serving markets for foam insulation, electronics solvents, and especially refrigeration, was the world's leading producer of these chemicals. Although no substitutes were currently commercially available, or even proven, Du Pont had to decide what to do. The purpose of the case is to examine how changing science and environmental problems affect competitive conditions and corporate strategy. In particular, the case examines the criteria by which companies formulate policy.

Supplements the (A) case.

The microwave oven was invented in the United States 40 years ago, but it is a Korean company that now produces the most ovens. Samsung's story is told in this article adapted from The Silent War: the Global Battles Shaping America's Future, and it's a lesson on how companies in developing countries are becoming world-class competitors. Dedicated people, company policy that encourages investment in minds as well as technology, and timely opportunity all helped Samsung's rise.

Presents basic framework for country analysis as used in Business, Government, and the International Economy course.

To be competitive in an increasingly complex international environment, companies with worldwide operations must achieve global coordination and national flexibility simultaneously. Traditional organizational forms, however, have tended to provide one or the other attribute. The authors illustrate this point through the experience of two major competitors in consumer electronics: Philips, a classic "multinational" company whose decentralized federation structure is well-suited to facilitating national flexibility, and Matsushita, a "global" company with a centralized hub configuration that provides it with great efficiency. The authors then describe an emerging model--the "transnational" organization whose structure is based on an integrated network of worldwide operations. The transnational firm requires both effective corporate management that does not impede national flexibility and efficient country management that does not prevent global coordination.

Synthesizes a wide range of literature and experience concerning comparative government-business relations, focusing especially on Japan, Europe, and the United States with some references to Brazil and Mexico. Designed for discussion in two consecutive class sessions. The first class should address the first 26 pages which relate to the different conceptions of the role, purpose, and structure of governments. The second class should consider pages 26 to 40 which concern the different roles, purposes, and structures of business. At the end are some discussion questions. Makes use of ideology as an analytical concept and as a framework for comparing different national systems.