("International Comparisons of Industrial Organization")

Chong Ju CHOI
Winter, 1995
Department of Economics

Course Description

The purpose of this course is to analyse the various important ideas and trends affecting industrial organization, especially making comparisons among the three major economic systems today: the United States, Europe and Asia. Some of the topics covered in this course include:

- What are the differences between the Anglo-Saxon versus German communitarian approach to industrial organization?
- Why is Japan's industrial organization so successful but yet so different from the "western" systems?
- What is the role of strategic thinking in industrial organization?
- What "models", approaches have been used by countries such as Japan, Korea, and China to develop their national economies?

There is a main textbook, along with certain addition readings. But the majority of the lectures are based on my own research, which will be presented as overhead slides during the lectures Copies of these slides will of course be made available to the students.

WEEK 1: "Thinking Strategically and Internationally"

The purposes of this first week are threefold. The first is to provide an overview of the course and the need to think "internationally". The second is to discuss the meaning of thinking "strategically", and how this particular style of thinking can help in analyzing strategic management in a global context. The third is to think about different types of capitalism, and how they affect industrial organization.

- Redding, G. "Capitalist Cooking Lessons", Asian Business, November 1992.
- Nalebuff, B. and A. Dixit. Thinking Strategically, chapter 1,2,3. Norton, New York, 1992.
- Milgrom and Roberts: Chapters 1, 2, 3.

WEEK 2: "Competitive versus Co-operative Strategy"

The majority of industrial organization research focus on the "competitive" aspects of firm and industry behavior. But in reality, in the international economy, there is an increasing prevalence of, "co-operative" behavior between firms and across industries.

- Porter, M. "From Competitive Advantage to Corporate Strategy", Harvard Business Review, May/June 1987.
- Nalebuff, B. and A. Dixit. Thinking Strategically, chapters 4, 5, 6.
- Milgrom and Roberts: Chapters 4, 5, 6.

WEEK 3: "Global Competition"

This week we shift to the increasing competition in global markets, and its effects on national industrial organization structure. There is an increasing competition among the three major economic blocks of the world: the United States, Europe and Asia.

- Thurow, Lester. "Who Owns the Twenty-First Century?", Sloan Management Review, Spring 1992.
- Porter, M.E. "The Competitive Advantage of Nations", Harvard Business Review, March/April 1990.
- Milgrom and Roberts: Chapters 7, 8, 9

WEEK 4: "Japan-US/Europe Frictions"

This week we focus on what could be called the Asian approach to competition in world markets, with the lecture on the friction between Japan and the United States, and increasingly Europe. Laura D'Andrea Tyson, President Clinton's Chairman of Economic Advisers believe that the United States should change to a "managed trade" approach similar to Japan's.

- Tyson, Laura D'Andrea. "Managing Trade by Rules and Outcomes", California Management Review, Fall 1991.
- Choi C.J. "ASEAN's Role in Japan's Economic Policy in East Asia." International Executive, May/June, 1993.
- Reich, Robert. "Who is Us", Harvard Business Review, January-February, 1990
- Milgrom and Roberts: Chapters 10, 11, 12.

WEEK 5: "Resource Based Approach to Industrial Organization"

This week we shift to the resource-based approach, which had existed since the 1950's, but since the late 1980's in industrial organization, but also in strategic management.

Prahalad, C.K and G. Hamel. "The Core Competence of the Corporation", Harvard Business Review, 1990.
- Bleeke, J. and D. Ernst. "The Way to Win in Cross-Borders Alliances", Harvard Business Review,November/December, 1991.
- Milgrom and Roberts: Chapters 13, 14, 15.

WEEK 6: "Industrial Organization Science"

This week we analyze the evolution of international corporations, from multinational; international; global; to transnational.

- Williamson, O. "Strategizing, Economizing and Economic Organizaton", Strategic Management Journal, 1991.
- Bartlett, C. and S. Ghoshal. "What is a Global Manager?", Harvard Business Review, September-October 1992

CRC-Curriculum Resource Center
CEU Budapest, Hungary
Modified: May, 1996


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