New Course Announcement for Term 2, 2000-2001

This course will not be offered for the 2002/2003 year.

C490E (Section 203, catalogue # 36166)

Commerce 490E (Section 203) Business in East Asia

MW 8:30-10:00 am. Second term, 2001-2002. HA 223.

Professor Masao Nakamura

Office HA 261

Office Hours: MW 10-11am or by appointment

e-mail masao@pacific.commerce.ubc.ca

Tel. 822-8434, Fax 822-8477

Business and economic systems in East Asia have attracted much attention in recent years. They have experienced both an outstandingly high economic growth and also major economic crises in the last few decades. This course will address these issues and discuss the mechanisms underlying East Asian economies and business practices. Comparison between Western, Japanese and other Asian business systems will be emphasized. Cultural factors underlying Western and East Asian business and economic practices will also be emphasized. Group presentations (dates to be arranged in class). A term paper (individual) on a topic of your interest will be required.

There is a reading package for sale for this course. The package contains required readings given in bold letters below. Some additional articles and books are on reserve under Commerce 490E at the DL Library. There will be additional handouts in class.

Course Outline

I. Contemporary Issues in East Asia: An Introduction [Aprx. date: Weeks 1,2 Jan 3-17]

1. Asian economic crises [Samelson(1998), Economist(1997), BW(1996Dec.2)]

2. Economic growth in Asia: a miracle or mirage? [Krugman.web(1997)]

3. Forms of capitalism: Asian capitalism? [BW(1998Sept.28),BW(1998Sept.14)]

4. Comparison of business systems in Asia, North America, Europe and elesewhere:

How do we evaluate different business systems?

A. Industrial relations and labour markets

B. Interfirm relationships

C. Corporate governance

D. Government-business relationships (legal framework, enforcement, corruption)

II. Business Systems in East Asia

For each country (A)-(D) will be covered by lectures, readings and class presentations.

Japan [Nakamura&Vertinsky(1994), Nakamura(1993),Lifson(1985)]

[Weeks 3-6 Jan.22-Feb.14]

1. Production management and industrial relations

-employment practices, skill formation,teams/shopfloor practices

-compensation schemes, bonus payments

-female workers

2. Interfirm relationships: corporate groups

-Horizontal and vertical keiretsu groups: banks and suppliers

-Applications in technology management: Just-in-Time (JIT) system, new product development

3. Corporate governance

-main bank system, cross shareholding

4. Government-business relationships

-industrial policy, joint R&D consortiums

-personnel connections and corruption

Korea [Chang and Chang(1994)] [Weeks 7,8 Feb.26-Mar.7]

1. Chaebol

2. Governemnt-business relationships

3. Firms and society

China [Weeks 8,9 Mar.12-21]

1. Open door policy [Head and Ries ( 0), BW(1997May26,1997June9)]

2. Understanding the bamboo network [Weidenbaum and Hughs(1996)]

3. The paradox of China's industrial reform [Jefferson and Rawski(**)]

4. State-owned enterprises [Dornbush(1997), BW96Oct]

Other countries [Weeks 10- Mar.26- ]

III. Globalization and other topics (time permitting)

1. Inward and outward foreign direct investment

2. Issues in technology and environment

Grading (tentative): Quiz 1 (Feb.5, Mon.-tent.) 20%

Final Quiz 20%

Presentation (Group) 20%

Term Paper (Individual) 40%

-----------

100%

The reading package for this course contains the following.

1. R.J.Samuelson, "It's still a depression," BW 1998, Sept.18, p.53.

2. The Economist, "How far is down?," 1997.

3. "Time for a reality check in Asia," BW 1996, Dec.2, pp.58-66.

4. "Two steps forward, one step back," BW 1998, Aug.31, 1998, pp.116-119.

5. P.Krugman, "What ever happened to the Asian miracle?," Krugman's webpage.

6. P.Engardio, "Where capitalism isn't capitalism," BW 1998, Sept.28, p.38.

7. "Capital controls: lifeline or noose?," BW 1998, Sept.28, pp.36-37.

8. "Global capitalism,R.I.P.?," BW 1998, Sept.14, pp.40-42.

9. "Asia's social backlash," BW 1998, Aug.17, pp.46-51.

10. M.Nakamura and I.Vertinsky, Japanese economic policies and growth: Implications for businesses in Canada and North America, Univ. of Alberta Press, 1994, pp.23-87.

11. M.Nakamura, "Japanese industrial relations in an international business environment," North American J. of Economics and Finance 4, 1993, pp.225-251.

12. T.Lifson,"What do Japanese corporate customers want? A guide for American firms selling to Japan," in Harvard University Program in U.S. Japan Relations's U.S.-Japan Relations: Learning from Competition, Transaction Books, 1985.

13. C.C.Chang and N.J.Chang, The Korean Management System, Quorum Books, 1994, pp.9-17, 27-34, 59-81, 173-184.

14. K.Head and J.Ries, "Appendix: the open door policy," 1995.

15. "How can you win in China?," BW 1997, May26, pp.66-68.

16. "Jittery dragon," BW 1997, June9, pp.60,62.

17. R.Dornbusch,"An Archilles' heel that could cripple China," BW 1997, Sept.15, p.24.

18. "Hard soft landing," BW 1996, OCt.21, pp.50-51.

19. "Understanding the bamboo network," in M.Weidenbaum and S.Hughs (Eds.), The bamboo network: how expatriate Chinese entrepreneurs are creating a new economic superpower in Asia, Martin Kessler Books, 1996, pp.23-59.

20. G.H.Jefferson and T.G.Rawski, "The paradox of China's industrial reform," G.H.Jefferson and T.G.Rawski, 1996, pp.45-90.

The following books and articles are also on reserve at DL for your use for presentations and term papers.

1. A.MacIntyre (Ed.), Business and Government in Industrializing Asia, Cornell University Press, 1994. HF1591 B87 1994.

2. R.Hodder, Merchant Princes of the East: Cultural Delusion, Economic Success and the Overseas Chinese in Southeast Asia, Wiley, 1996. HF3790.8 Z5 H63.

3. G.Murray and A.Perera, Singapore: The Global City-State, St.Martin's Press, 1996. HF3800.67 M87 1996.

4. J.P.Alston and Y.He, Business Guide to Modern China, Michigan State Univ. Press, 1997. HF3836.5 A47 1997.

5. R.Hodder, The Creation of Wealth in China, Belhaven Press, 1993. HF3836.5 H63 1993.

6. China External Trade Development Council, Doing Business with Taiwan, 1992. HF3847.5 D64 1992.

7. T.W.Dunfee and Y.Nagayasu (Eds.), Business Ethics: Japan and the Global Economy, Kluwer, 1993. HF5387 B8724 1993.

8. Japan Human Relations Assoc. (Ed.), Kaizen Teian I, Productivity Press, 1989. HF5549.5 S8 K3513 V.1 1989.

9. S.Khan and H.Yoshihara, Strategy and Performance of Foreign Companies in Japan, Quorum Books, 1994. HD2907 K474 1994.

10. C.S.Chang and N.J.Chang, The Korean Management System, Quorum Books, 1994. HD70 K6 C437 1994.

11. K.H.Chung and H.C.Lee, Korean Managerial Dynamics, Praeger, 1989. HD70 K6 K67 1989.

12. D.Brown and R.Porter (Eds.), Management Issues in China, Routledge, 1996. HD70 C5 M338 1996.

13. M.Nakamura and I.Vertinsky, Japanese Economic Policies and Growth: Implications for Businesses in Canada and North America, Univ. of Alberta Press, 1994. HC462.9 N34 1994.

14. P.Koo,et al "Prospects for Post-Reversion Hong Kong and China," Japan Echo, Oct.1997, 27-32.

15. "What it would take for the tigers to rock back," BW 1997, Sept.15.

16. "Unlocking Japan - at last?," BW 1997, Apr.14.

17. P.Krugman, "The myth of the Asia's miracle," Foreign Affairs, Nov./Dec.1994.

18. M.Nakamura and R.Korkie,"Block holding and keiretsu in Japan," J. of International Money and Finance 16, 1997.

19. M.Nakamura, I.Vertinsky and C.Zietsma, "Does culture matter in inter-firm cooperation?: research consortia in Japan and the U.S.A." Managerial and Decision Economics18, 1997.

20. M.Nakamura et al, "Adoption of JIT manufacturing methods at U.S.- and Japanese0owned plants," IEEE Trans. on Engineering Management 45, 1998.

21. "Rediscovering Asia," BW 1997, Sept.15.

22. "Two Japans," BW 1997, Jan.27.

23. J.Lorine, "A delicate balance," Report on Business Mag., Sept.1998.

24. "Hong Kong," BW 1997 June9.

25. M.Nakamura and R.Morck, "Banks and corporate control in Japan," J. of Finance, February 1999.

26. "Time for a reality check," BW 1996 Dec.2.

27. "A tycoon under siege," BW 1998 Sept.28.

28. "The road after Ramos," BW 1996 Oct.28.

29. "Beyond hitory's shadow," Newsweek 1998 June29.

30. Y.Takeuchi, "End of the line for Japan's corporate feudalism," Japan Echo, Oct.1997.

31. S.Sato, "Clash of civilization or cross-fertilization of civilization?," Japan Echo, Oct.1997.

32. "Global investing: Asia, no sign of the bottom," BW 1998 Sept.14.

33. T.Sakaiya, "The myth of the competent bureaucrat," Japan Echo, Feb.1998.

34. J.McDonald, "The mochiai effect: the Japanese corporate cross-holdings," J. of Portfolio Management, Fall 1989.

35. "Levi Strauss and Co. in China," in D.Baron, Business and its environment, 2nd ed., Prentice-Hall, 1996.

The following UBC Library books (not on reserve, mostly in DL) may have material which is of interest to you.

1. K.Iwai and R.Komiya (Eds.), Business Enterprises in Japan, MIT Press. HD70 J3 N49613 1994.

2. Dong-Sung Cho, The general trading company, Heath. HF1009.5 C52 1987.

3. China: a guide for Canadian business. HF1480.15 C45 A35 1994.

4. D.Kim and M.Shin (Eds.), Korea-Canada in emerging Asia-Pacific community, Institute of East and West Studies. HF1480.15 K67 1988.

5. Thai-Canadian Chamber of Commerce Handbook of Directory. HF1480.15 T45 T362 1994.

6. Canada-Japan Trade Council, Japan's market for Canadian software. HF1480.5 J3 J36 1995.

7. J.Tiessen, Canada-Japan Trade Perspective, Canada-Japan Trade Council. HF1480.5 J3 T559 1996.

8. N.Akrasanee (Ed.), Asean-Japan relations: trade and development, ISEAS. HF1592 J3 A83 1983.

9. Proceedings of a conference on ASEAN-EEC economic relations, ISEAS. HF1591C653 1981.

10. Business conditions in Malaysia. HF1594.6 B874.

11. R.Steven, Japan and the new world order. HF1601 S74 1996.

12. C.H.Kwan, Economic interdependence in the Asia-Pacific region, Routledge. HF1642 B4 J34 1994.

13. C.Boyd, Structural competitiveness in the pacific, Edward Elgar. HF1642.55 S77 1996.

14. K.Miyashita and O.russell, Keiretsu:inside the modern Japanese conglomerates. HD2756.2 J3 M59 1994.

15. E.Reischauer, The Japanese Today, Harvard Univ. Press. DS806.R35 1985.

16. M.Gerlach, Alliance capitalism, Univ. of California Press. HD69.S8G47 1992.

17. W.C.Kester, Japanese Takeover. HD2907 K45 1991.

18. China Trade Report. HF3771 C47 1988.

19. Malaysia: commerce and industry. HF3800.6 Z5 M353 1987/1988.

20. Singapore Business and Industrial Directory, Mart-Info Enterprises. HF3800.67 S5 1987/88.

21. Y-P Ho, Trade, industrial restructuring and development in Hong Kong, Univ. of Hawai Press. HF3862.3 H6 1992.

22. JETRO, Japan trade directory. HF5256 J362 1996/97.

23. T.Yui and K.Nakagawa (Eds.), Japanese management in historical perspective, Univ. of Tokyo Press. HF5349 J3 I67 1989.

24. The best of Japan:innovations, Kodansha. HF5415.153 B47 1987.

25. O.H.M.Yau, Consumer behaviour in China, Routlege. HF5415.33 C6 Y38 1994.

26. M.J.Marquardt and D.W.Engel, Global human resource development, Prentice-Hall. HF5549.5 E45 M37 1993.

27. R.Tung, Key to Japan's economic strength: human power. HF5549.5 E45 T86 1984.

28. C.McMillan, The Japanese industrial system, Walter de Gruyter. HD70 J3 M4 1985.

29. R.March, Working for a Japanese company, Kodansha International. HD70 J3 M284 1992.

30. J.Abegglen and G.Stalk,Jr., Kaisha: the Japanese company, Basic Books. HD70 J3 A26 1985.

31. Y.Lu, Chinese enterprises, St.Martin's Press. HD70 C5 L82 1996.

32. T.P.Rohlen, For harmony and strength: Japanese white-collar organization in anthropological perspective, Univ. of California Press. HD70 J3 R64 1974.

Data sources and WWW resources for this course. If you find useful links for various countries in Asia or elsewhere, please let me know.

Japan Company Handbook (to 1999). HC461 J351. DL 2F.

Asian Company Handbook (to 1999). HC441 A85. DL 2F.

www.jetro.go.jp Japan External Trade Organization

www.stern.nyu.edu/~nroubini/asia/AsiaHomep age.html

New York Univ. Asia crisis page