Half-Course: Globalization of Emerging Markets

Course Number 1245

Professor Tarun Khanna
Professor Krishna Palepu
Early Fall, 15 session half-course
1.5 credits
Exam

Overview

The course offers a comprehensive look at emerging markets, especially (but not only) the BRIC countries (Brazil, Russia, India, China), as they integrate with the global economy. We will offer a conceptual framework to analyze emerging markets from multiple perspectives-that of indigenous entrepreneurs struggling to overcome constraints to build world-class businesses, that of multinationals from developed countries tapping into emerging markets for their next growth spurt, and that of domestic and foreign investors seeking to profit from investment opportunities in emerging markets. The course builds on our past decade of research in emerging markets and draws on foundational material from first-year Strategy, Finance, and BGIE.

Educational Objectives

The course will provide a platform to discuss and debate the following set of issues related to the globalization of emerging markets:

  1. What is unique about the business context of emerging markets? What framework should one use to identify unique opportunities and challenges in operating in emerging markets? What is the impact of globalization on these markets?
  2. How should businesses from developed markets approach and exploit opportunities created by the globalization of emerging markets? What are lessons from companies operating in these markets? How should businesses in the advanced world deal with challenges from emerging market multinationals? How can outsourcing to emerging markets be used to gain competitive advantage?
  3. How does one build world-class companies in emerging markets? What are lessons from companies that are attempting to do so?
  4. What are the opportunities for portfolio investors, venture capitalists, and private equity investors in emerging markets? What are the lessons from current investment experiences? How do venture-backed entrepreneurs exploit emerging markets to gain competitive advantage?

Course Content and Organization

The course will be based on a mixture of cases and on non-case material (lectures, non-case readings, and guest speakers).
Module 1: Course Overview
Module 2: Multinationals in Emerging Markets
Module 3: Emerging Giants: Indigenous Entrepreneurs in Emerging Markets
Module 4: Investing in Emerging Markets

Course Requirements

Students will be asked to take a final exam, which will require them to analyze a case or a series of caselets to test various aspects of the course. Participation in class discussions and the exam will form the basis for the course grade.

Individual Student Research

Students are encouraged to consider simultaneously enrolling in an individual student research project on a topic related to the course. Students can use the ISR option to tailor the course to their particular interests. For example, ISR projects can apply course frameworks to emerging market regions and topics not covered in the course, such as particular countries of interest, topics of interest (e.g. social responsibility of multinationals in emerging markets; role that governments play in shaping the institutional context for business), or avenues for investing in emerging markets (e.g. real estate investing; hedge fund investing; et cetera), that we will not be able to cover in depth in the half-course. Students pursuing the ISR option will complete all course requirements in the first half of the term, but earn an additional 1.5 credits by completing an ISR paper either individually or in teams. The course is a prerequisite for this ISR option. Students who undertake ISR projects will have the opportunity to meet as a group with several guest lecturers with expertise in emerging markets-over and above the half-course class visitors-in the second half of the term. Note: The registration deadline for students to sign up for fall term ISR's is 8:30 AM on Thursday, September 6th-before the first class session of HC: GEM.

Career Focus

HC: GEM is designed for any student pursuing a career with a global dimension. The course and its frameworks would be particularly useful for students interested in working as entrepreneurs in emerging markets, for multinationals with operations in emerging markets, for domestic emerging market companies, or for investment firms or funds targeting emerging markets.