T C 357 • Emerging Economies and Implications
Unique 42840 • Konana, Prabhudev
Meets Th 2-5pm, CRD 007B
“The likely emergence of China and India, as well as others, as new major global players—similar to the advent of a united Germany in the 19th century and a powerful United States in the early 20th century—will transform the geopolitical landscape, with impacts potentially as dramatic as those in the previous two centuries.”
— Mapping the Global Future, National Intelligence Council, 2004
There is unprecedented energy and optimism in many emerging economies like China and India. These economies seem to confirm the benefits of free trade and economic liberalization in a highly inter-connected world. The growth and optimism of these economies have created enormous wealth that are leading to global changes in prices, demand for raw materials and natural resources, financial markets, and national debate around the world. Even more striking is that these emerging giants are touting science and technology for growth. Further, they provide global companies comparatively low-cost human resources for the entire spectrum of activities – from knowledge-intensive R&D, design, and software services, to labor-intensive manufacturing activities and business/knowledge processes raising numerous questions for developed economies. Are these emerging giants a threat or an opportunity to developed economies? What are those threats and opportunities? What are the social, economic, and political challenges for various nations? How can developed countries compete in this new world order? What are the fundamental differences in the growth strategies of various emerging economies vis-à-vis of developed nations? Thomas Friedman’s The World in Flat aptly raises attention to the emerging new economic, social, and political orders that are important for future leaders to recognize and understand.
Further, the economic transition and growth of these nations and global trade rules (e.g., World Trade Organization) that govern international trade have been endlessly debated and criticized for environmental concerns, unfair trade regulations, job losses in developed countries, intellectual property rights, inequitable growth, human rights violation, etc. How do these issues impact economic, social and foreign policies?
As firms from developed world continue to expand to these emerging economies, what strategies should they adopt and why? What are some risks and other considerations that need to be carefully evaluated? For instance, should firms address corporate social responsibility? Or, how to deal with corruption that are endemic in most countries?
This survey class explores the above issues for major emerging economies in an interactive setting and discussions.
Thomas Friedman, The World in Flat
Joseph Stiglitz, Fair Trade for All: How Trade Can Promote Development
Class participation and summary notes: 25%
Project Presentation: 25%
Final project: 50%
Final project will comprise of studying a particular issue about emerging markets and/or implications to developed economy like the U.S.
About the Professor:
Dr. Prabhudev Konana is the William H. Seay Centennial Professor in Business and Distinguished Teaching Professor in the Department of Information Management, Risk, and Operations Management at the McCombs School of Business, the University of Texas at Austin. He received his MBA and Ph.D. in management information systems from the University of Arizona, Tucson in 1991 and 1995, respectively. His research interests are in IT business value assessment, virtual communities and implications on market efficiency (some initial work), outsourcing and offshoring decision variables, and effects of IT in developing economy. He has published over 60 articles in major journals, magazines and conference proceedings. He is a frequent speaker on emerging economies with particular focus on China and India.