BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr.

Malesky, S2 2013-2014

BSP2005 Asian Business Environments Outline (S2, Academic Year 2013-14) I. INTRODUCTION

This module builds an understanding of the diverse range of business environments in Asia. The course is built around a basic idea: a good understanding of doing business in any specific country involves consideration of two separate levels of analysis, the country perspective and the firm perspective. While these two levels of analysis significantly influence one another, it is very important to consider them separately and acknowledge how they differ from one another. As such, the course is organized so as to move back and forth across the semester between the macro country level and the micro firm level. In other words, we will study each issue in the class through the eyes of the firm and those of policymakers. Students will be expected to have done assigned readings in advance of lectures and tutorials. Knowledge based on the reading will be tested on a weekly basis through a pre-class survey on IVLE and through class participation. Student participation, especially in the tutorials, will be rewarded. Communications with the class will occur primarily through IVLE, including an online Discussion Board where students can ask one another for clarifications and post comments on course content. Tutorials will be the best opportunity for asking clarifying questions, while office hours can be used to go into greater depth in areas of particular intellectual interest. II. EVALUATION WEIGHTS 20% 20% 20% 5% 35%

Pre-class surveys on weekly reading Group presentations - Specific country business environment - Specific weekly reading challenge Tutorial participation Final exam III. EVALUATION COMPONENTS

Pre-Class Surveys Students will be required to fill in a pre-class survey by 11:59pm on the Sunday before each lecture. Questions will be multiple-choice and related to the weeks reading. There will also be some questions that do not have a correct answer that, instead of testing students, are intended to gather information about the class that the lecturers can discuss during class. Group Presentations Presentations will last approximately 10 minutes and be followed by a Question and Answer period. Presentations have multiple purposes. First, these will be opportunities for students to go extra deep into particular areas and to use both

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

what theyve learned in class and their own initiative to go beyond the content presented in the lectures. Second, delivering good presentations involves development of an important skill set. Learning to put together a concise, entertaining, and well-organized presentation is an increasingly important skill in todays world. The same is true for learning to stand in front of others to do the presentation. Third, and related to the other two, student presentations will help frame our discussions in the tutorial sessions, which are meant to reinforce concepts from the weeks lecture and raise points of confusion among students or complexity that was neglected in the lecture. The main criteria on which presentations will be judged will be disseminated by Week 3. Presentation on specific countrys business environment. All students will be involved in a group that does extra research on the environment for doing business in a particular Asian country. Details on what should be included in the country report will be provided by Week 3. Groups will be determined during the Week 3 Tutorial. Presentation on specific weekly reading challenge. All students will be involved in a group that does extra work thinking through how to respond to an assigned question on the weekly reading. Groups will be determined during the Week 3 Tutorial. Grades for each presentation will be based on an aggregation of the following equally-weighted criteria: 1) Organization; 2) Time management; 3) Public Speaking Style; 4) Factually correct; 5) Incorporation of themes from readings; 6) Provided information that was new to instructor; 7) Creative analysis or interpretation; 8) Raised interesting questions for further group discussion. Presentation grades will be provided to students before the final exam. Tutorial Participation Participation is important both for development of confidence with public speaking and learning how to organize ones thoughts and think on ones feet. Participation will also help students learn from one another and help the tutorial instructors to address confusion or misunderstanding around key concepts. As such, students should not be overly fearful of making mistakes or critical of others for doing so. Students will be scored on the below 0-5 scale for their participation in each weeks Tutorial. The final participation grade will result from the sum of these scores across the full semester. 0 1 2 3 4 5 Did not attend Attended, but did not participate Participated Good participation Very good participation Excellent participant (this will be very rare)

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

Quality and relevance of participation are more important than quantity, though quantity does matter as well. Effective class participation is based on relevant, insightful and appropriately timed comments. Facts in the case are tools: dont just restate them, but try to use them in analytical ways that explore relevant ideas. Every student is a co-producer of class discussion, so please listen carefully to one another and attempt to build on or constructively critique prior comments. In grading participation, the following questions will be considered: Is the student considerate of other class members and a careful listener? Do comments reflect careful analysis? Do comments move discussion forward and add to understanding of the issue at hand? Do comments display a willingness to try new ideas (beyond repeating case facts)?

Students will be informed during the Recess Week which quintile they are in along the class distribution for the participation grade. Final participation grades will then be provided to students ahead of the final exam. Final Exam The final exam will be multiple choice and will review key concepts and content learned across the semester. IV. LECTURERS

This course will be team co-taught by Dr. Markus Taussig and Dr. Edmund Malesky: Dr. Taussig is an Assistant Professor in the Strategy and Policy Dept. at NUS Business School, where he also teaches the MBA level version of Asian Business Environments. He obtained his B.A. in Politics from Oberlin College, M.A. in International Economics and Southeast Asian Studies from John Hopkins University and DBA in Strategy from Harvard Business School. Prior to joining academia, Markus worked in Vietnam for 11 years in both public and private sector consulting projects and as an entrepreneur, and maintains deep connections to thhe country. He has published in leading business and area studies journals, including Journal of Law, Economics, and Organization, and the Journal of East Asian Studies. In 2010, he won the Best Paper Award from the Alliance for Research on Corporate Social Responsibility and in 2012 the Barry Richman Best Dissertation Award at the Academy of Management. Dr. Malesky is an Associate Professor of Political economy at Duke University and is spending Academic Year 2013-14 on sabbatical as a Visiting Associate Professor at NUS Business School. Dr. Malesky is a noted specialist in economic development, authoritarian institutions, and comparative political economy in Southeast Asia. He 3

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

has published in leading political science and economic journals, including the American Political Science Review, Journal of Politics, Quarterly Journal of Political Science, British Journal of Politics, and Journal of Law, Economics, and Organization. Dr. Malesky has been awarded the Harvard Academy Fellowship, the Gabriel Almond Award for best dissertation, the International Political Economy Society Best Paper Award, the Rockefeller Bellagio Residency Fellowship. He also received a state medal from the Government of Vietnam in 2012 for his role in promoting economic development as the lead researcher for the US-AIDs Vietnam Provincial Competitiveness Index and was appointed in 2013 by US President Barack Obama to serve on the board of the Vietnam Education Foundation, a program dedicated identifying talented Vietnamese for doctoral training in the United States. Both faculty members, as well as the course Teaching Assistant, Yan Jackie Zheng, will be present at the first weeks lecture. In following weeks, however, Dr. Malesky and Dr. Taussig will alternate lectures. V. COMMUNCATION

Each Monday, the faculty member who is doing that weeks lecture will be available to meet with students in his office from 1-2pm. Students who wish to meet in person, but cannot make this time can speak with the lecturer before or after class to arrange an alternative time. For most issues, however, students will find that the most effective means of communication is through the Discussion Forum on IVLE. In fact, even when issues of likely interest to others in the class are sent by email, the lecturers are likely to then post the question and response on the Discussion Forum to ensure everyone benefits. VI.
Date Jan. 13 Jan. 20 Jan. 27 Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 3 Mar. 10 Mar. 17

CLASS LECTURE SCHEDULE, SEMESTER 2, ACADEMIC YEAR 2013-14

Class Lecture Intro to Class and Country v. Firm Perspectives Geography, History, Culture, Growth: Focus on the Asian Miracle Firm Structure, Growth, and Innovation in a Market Economy Fundamental Institutions of Economic Growth: Property Rights, Contracting Institutions, and the Market National Development Strategy and the Firm Political Institutions and Economic Performance 1: The Democratic State NO CLASS Firm Structure, Growth, and Innovation in Weak Institutional Settings Political Institutions and Economic Performance 1: The Authoritarian State Firm Connections with the Representatives of the State Lecturer Taussig & Malesky Malesky Taussig Malesky Taussig Malesky Taussig Malesky Taussig

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

Mar. 24 Mar. 31 Apr. 7 Apr. 14

The Law-Finance Growth Nexus Financing Firm Growth in Emerging Asia International Trade Institutions in Asia Multinational Corporations and Global Value Chains

Malesky Taussig Malesky Taussig

VII.

READING ASSIGNMENTS AND TUTORIAL SCHEDULE

Meaning of Symbols: *** Most important reading, read carefully! Also required
Wk 1 Tutorial Focus Introduction *** Friedman (2005). Its a Flat World, After All, New York Times Magazine, April 3. http://www.nytimes.com/2005/04/03/magazine/03 DOMINANCE.html?_r=0 *** Ghemawat (2007). Why the World Isnt Flat. Foreign Policy, March/April, pp. 54-60. http://www.foreignpolicy.com/articles/2007/02/14 /why_the_world_isnt_flat The Asian Miracle *** Krugman (1994), "The Myth of Asia's Miracle." Foreign Affairs. Specific Country Specific Challenge None

None

http://web.ebscohost.com.libproxy1.nus.edu.sg/ehost /results?sid=962e05cf-bb18-4be7-88ef749790d05895%40sessionmgr198&vid=1&hid=103 &bquery=(the+AND+myth+AND+of+AND+asia% 27s+AND+miracle)+AND+(AN+9411180052)&bda ta=JmRiPWJ1aCZ0eXBlPTEmc2l0ZT1laG9zdC1sa XZl

*** Doner, Slater and Ritchie (2005), "Systematic Vulnerability and the Origins of Developmental States: Northeast and Southeast Asia in Comparative Perspective," International Organization. http://web.ebscohost.com.libproxy1.nus.edu.sg/ehos t/detail?sid=100157c3-aa5b-41d7-8fbb2b75ca71f6a0%40sessionmgr110&vid=1&hid=103& bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh &AN=17123241 - Hill (1997), Towards a political economy explanation of rapid growth in ASEAN: a survey and analysis, ASEAS Economic Bulletin. http://www.jstor.org.libproxy1.nus.edu.sg/stable/2577 3479 (Optional) - Doner (1991), "Approaches to the Politics of Economic Growth in Southeast Asia. Journal of

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

Asian Studies. http://www.jstor.org.libproxy1.nus.edu.sg/stable/20 58543 Introduction to the Firm Orientation and assignment *** Porter (1990) What is Strategy, Harvard Business of presentation groups Review. http://web.ebscohost.com.libproxy1.nus.edu.sg/ehos t/results?sid=09ee44a9-6154-4660-956b0b346bf9cef8%40sessionmgr114&vid=1&hid=103&b query=(TI+(what+AND+%22is%22+AND+strategy))+ AND+(AU+(Porter))+AND+(SU+(strategic+AND+plan ning))&bdata=JmRiPWJ1aCZjbGkwPURUMSZjbHYwP TE5OTAwMS0yMDAwMTImdHlwZT0xJnNpdGU9ZWh vc3QtbGl2ZQ%3d%3d *** Coase (1937), The Nature of the Firm, Economica. http://www.jstor.org.libproxy1.nus.edu.sg/stable/26 26876 - Aoki (1990). "Toward an economic model of the Japanese firm." Journal of economic literature 28.1 http://www.jstor.org.libproxy1.nus.edu.sg/stable/27 27189 Institutions of Growth Japan What *** Rodrik and Subamanian (2003), The Primacy of matters Institutions, Finance and Development, June, 40(2). more for http://search.proquest.com.libproxy1.nus.edu.sg/doc economic view/209412386 growth: *** Sachs (2003), Institutions Matter, But Not For history, Everything, Finance and Development, June, 40(2). geography, http://search.proquest.com.libproxy1.nus.edu.sg/doc or policy? view/209428358 - Zhu, Xiaodong (2012), Understanding Chinas Growth: Past, Present, and Future, Journal of Economic Perspectives, 26:4, Fall, pp. 103-124 http://www.aeaweb.org.libproxy1.nus.edu.sg/articles .php?doi=10.1257/jep.26.4.103 - Acemoglu et al (2001). Colonial Origins of Comparative Development: An Empirical Investigation. American Economic Review, Vol. 91, No. 5, pp. 1369-1401. http://web.ebscohost.com.libproxy1.nus.edu.sg/ehos t/detail?sid=fdc0c4dd-c38f-4fde-98aacbf7e31b13b3%40sessionmgr115&vid=1&hid=103& bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh &AN=5776485 National Development Strategy and the Firm China Is China *** Porter (1990), The Competitive Advantage of benefitting Nations, Harvard Business Review, March/April. from its http://web.ebscohost.com.libproxy1.nus.edu.sg/ehos government t/results?sid=e4b7bcd5-bafa-4596-944cefforts to

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

d391b81a6d81%40sessionmgr198&vid=1&hid=103 &bquery=(The+AND+competitive+AND+advantage+A ND+%22of%22+AND+nations)+AND+(AU+(Porter% 2c+AND+Michael+AND+E.))+AND+(SU+(Internationa l+AND+business+AND+enterprises))&bdata=JmRiPW J1aCZjbGkwPUZUJmNsdjA9WSZjbGkxPURUMSZjbHYx PTE5OTAwMS0xOTkxMTImdHlwZT0xJnNpdGU9ZWh vc3QtbGl2ZQ%3d%3d *** Hout and Ghemawat (2010), China vs. the World: Whose Technology Is It? Harvard Business Review. http://web.ebscohost.com.libproxy1.nus.edu.sg/ehos t/results?sid=2b5c81f8-6634-4eba-9d749bd837d61d5e%40sessionmgr114&vid=1&hid=103 &bquery=(china+AND+%22vs%22+AND+the+AND+ world)+AND+(AN+55461905)&bdata=JmRiPWJ1aCZ 0eXBlPTEmc2l0ZT1laG9zdC1saXZl - Krugman (1994), Competitiveness: A Dangerous Obsession, Foreign Affairs, March/April. http://web.ebscohost.com.libproxy1.nus.edu.sg/ehos t/results?sid=8538244c-8d28-4234-87b839d6c5d967bc%40sessionmgr115&vid=1&hid=103& bquery=(competitiveness+AND+a+AND+dangerous+ AND+obsession)+AND+(AN+9404111589)&bdata=Jm RiPWJ1aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZl Democratic Institutions Thailand *** Hicken and Kasuya (2003). A Guide to the Constitutional Structures and Electoral Systems of Southeast Asia. Electoral Studies. http://www.sciencedirect.com.libproxy1.nus.edu.sg/s cience/article/pii/S0261379401000531 *** Hicken (2006) Party Fabrication: Constitutional Reform and the Rise of Thai Rak Thai, Journal of East Asian Studies. http://journals.rienner.com.libproxy1.nus.edu.sg/doi /pdf/10.5555/jeas.2006.6.3.381 -Reilly (2007), Democratization and Electoral Reform in the Asia-Pacific Region: Is There an Asian Model of Democracy? Comparative Political Studies. http://cps.sagepub.com.libproxy1.nus.edu.sg/content /40/11/1350 - Pepinsky and Wihardja (2011), Decentralization and Economic Performance in Indonesia, Journal of East Asian Studies. http://search.proquest.com.libproxy1.nus.edu.sg/doc view/910558348 NO CLASS The Firm in a Weak Institutional Context India *** Bloom et al. (2013), Does Management Matter? Evidence from India, Quarterly Journal of Economics,

access foreign technology?

How did changes to the Thai Constitution affect the countrys economy?

Why do business groups play

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

128:1, February, pp. 1-51 http://qje.oxfordjournals.org.libproxy1.nus.edu.sg/co ntent/128/1/1.full.pdf+html *** Khanna and Yafer (2007), Business Groups in Emerging Markets: Paragons or Parasites?, Journal of Economic Literature. http://www.jstor.org.libproxy1.nus.edu.sg/stable/27 646796 - Karnani (2007), Fortune at the Bottom of the Pyramid: A Mirage, California Management Review, Summer. http://web.ebscohost.com.libproxy1.nus.edu.sg/e host/detail?sid=6d28f99d-0a75-4302-a9c7e7e431055ae0%40sessionmgr115&vid=1&hid=1 03&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d# db=buh&AN=25995889 Authoritarian Institutions Vietnam *** Geddes (1999), What do We Know About Democratization After Twenty Years, Annual Review of Political Science. http://www.annualreviews.org.libproxy1.nus.edu.sg/ doi/abs/10.1146/annurev.polisci.2.1.115 *** Malesky, Abrami, and Zheng. 2011. Institutions and Inequality in Single Party Regimes: A Comparative Analysis of Vietnam and China. Comparative Politics.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=166970 8

such important roles in Asia? What is their net effect on society?

What is the Beijing Consensus? Why should we care?

*** Case (1996), Can the Halfway House Stand? Semi-Democracy and Elite Theory in Three Southeast Asian Countries, Comparative Politics 28(4): 437-464. http://www.jstor.org.libproxy1.nus.edu.sg/stable/42 2052 - Brownlee (2008), Bound to Rule: Party Institutions and Regime Trajectories in Malaysia and the Philippines, Journal of East Asian Studies 8(1) Fun Suggested Readings:

http://search.proquest.com.libproxy1.nus.edu.sg /docview/198692028
- Li (2013), The Life of the Party, Foreign Affairs.

http://www.foreignaffairs.com/articles/138476 /eric-x-li/the-life-of-the-party

- Huang (2013), Why democracy still wins: A critique of Eric X. Lis A tale of two political systems. http://www.ted.com/talks/eric_x_li_a_tale_of _two_political_systems.html Political Connections South *** Fisman (2001), Estimating the Value of Political Korea Connections, American Economic Review.

How do political connections

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http://www.jstor.org.libproxy1.nus.edu.sg/stable/26 77829 *** Guriev and Rachinsky (2005), The Role of Oligarchs in Russian Capitalism, Journal of Economic Perspectives Vol. 19, No. 1, Winter, pp. 131-150. http://www.jstor.org.libproxy1.nus.edu.sg/stable/41 34996 - Siegel (2007), "Contingent political capital and international alliances: Evidence from South Korea." Administrative Science Quarterly 52.4: 621-666. http://www.jstor.org.libproxy1.nus.edu.sg/stable/20 109946 Law and Finance Growth Nexus *** Beck and Levine (2003), Legal Institutions and Financial Development, in Claude Menard and Mary M. Shirley, eds., Handbook of New Institutional Economics. The Netherlands: Springer 25178. http://www.nber.org.libproxy1.nus.edu.sg/paper s/w10126.pdf?new_window=1 *** MacIntyre (2001), Institutions and Investors: The Politics of the Economic Crisis in Southeast Asia, International Organization. http://www.jstor.org.libproxy1.nus.edu.sg/stable/30 78598 - Pepinsky (2008), Capital Mobility and Coalitional Politics: Authoritarian Regimes and Economic Adjustment in Southeast Asia, World Politics. http://muse.jhu.edu.libproxy1.nus.edu.sg/journals/w orld_politics/v060/60.3.pepinsky.html Financing Firms *** Allen, Qian, and Qian (2005), Law, Finance, and Economic Growth in China., Journal of Financial Economics, Vol. 77, pp. 57116. http://www.sciencedirect.com.libproxy1.nus.edu.sg/s cience/article/pii/S0304405X0500036X *** Malesky and Taussig (2009), Where Is Credit Due? Legal Institutions, Connections, and the Efficiency of Bank Lending in Vietnam, Journal of Law, Economics, and Organization. http://jleo.oxfordjournals.org.libproxy1.nus.edu.sg/c ontent/25/2/535.full.pdf+html - Abraaj Capital and the Karachi Electric Supply Company, (2012) HBS 9-812-019. https://cb.hbsp.harvard.edu/cb/pl/23615042 /23615063/17531f788bcbf02dc007a39e3a67 1e91 Asian Trade Institutions *** Webber (2010), The regional integration that didn't happen: cooperation without integration in

affect investment behavior?

Indonesia

What caused the 1997 Asian Financial Crisis?

Pakistan

Why did Abraaj Capital invest in KESC? Was it a good decision? Why?

Myanmar

Will the Trans-Pacific Partnership

BSP2005 Asian Business Environments Syllabus Dr. Taussig and Dr. Malesky, S2 2013-2014

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early twenty-first century East Asia, The Pacific Review. http://www.tandfonline.com.libproxy1.nus.edu.sg/do i/abs/10.1080/09512748.2010.481051#.UtSpof3Bpj A *** Lewis (2011), The Trans-Pacific Partnership (TPP) New Paradigm or Wolf in Sheeps Clothing, Boston College International and Comparative Law Review. http://search.proquest.com.libproxy1.nus.edu.sg/doc view/896624217 - Stubbs (2002), ASEAN Plus Three: Emerging East Asian Regionalism? Asian Survey. http://www.jstor.org.libproxy1.nus.edu.sg/stable/10. 1525/as.2002.42.3.440 Local Stakeholders *** Porter and Kramer (2006), Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review. http://web.ebscohost.com.libproxy1.nus.edu.sg/ehos t/results?sid=108fa860-df52-4359-ad573e0d7b487f76%40sessionmgr198&vid=1&hid=103& bquery=(strategy+AND+society+AND+the+AND+link +AND+between+AND+competitive+AND+advantage+ AND+corporate+AND+social+AND+responsibility)+A ND+(AU+(Porter))&bdata=JmRiPWJ1aCZjbGkwPURU MSZjbHYwPTIwMDYwMS0yMDA2MTImdHlwZT0xJn NpdGU9ZWhvc3QtbGl2ZQ%3d%3d *** IKEAs Global Sourcing Challenge: Indian Rugs and Child Labor (A), (2006) HBS 9-906-414. https://cb.hbsp.harvard.edu/cb/pl/23615042 /23615044/3152c30ccfd42743f54a627b3217 883e - Gereffi (1999),"International trade and industrial upgrading in the apparel commodity chain." Journal of international economics 48.1: 37-70. http://www.sciencedirect.com.libproxy1.nus.edu.sg/s cience/article/pii/S0022199698000750

improve economic performance in Asia?

Wrap up and Q&A for Final Exam

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