Smith Experience Abroad: 2011-12

Doing Business in China: Manufacturing & the Impact of the Impending Yuan Appreciation

Fall term one-credit BUSI788C and Winter term two-credits BUSI798C

Cities Beijing, Hong Kong, and Macau
Faculty Dr. Gurdip Bakshi
Dates Abroad Depart January 2nd, 2012 US (arrive in Beijing January 3rd, 2012)
Depart Hong Kong January 13th, 2012 (arrive in US January 13th, 2012)
January 2nd – 3rd and January 13th are both travel days and there are no course activities planned. Education Abroad requests that you purchase refundable fares; courses may be cancelled due to unexpected circumstances.
Mandatory BUSI788 pre-departure meetings First pre-departure meeting: Sunday October 30th at 10AM - 4 PM, in 1335 Van Munching Hall, CP
Second pre-departure meeting: Sunday December 4th at 10AM - 4 PM, in 1505 Van Munching Hall, CP
How to Register Register on Testudo for fall BUSI788C section BA01 at the same time as your other fall courses. You will automatically be registered for the associated two-credit course abroad.

To date in the 21st century, no other country provides the manufacturing might of China. However, as worker unrest manifests in suicides and employee compensation slowly rises, companies keep their eyes on other sourcing options.

China has won the world competition for low-cost manufacturing in part because the renminbi is thought to be held at an artificial low. While countries including America have cried foul, the situation may partially resolve itself with the onset of inflation in China; inflation could ease trade and currency tensions by bringing America’s huge trade deficit more into line. China’s inflation is running 5 percent at the consumer level, according to official measures, but many economists describe these measures as based on flawed and outdated calculation methods and the real figure may be up to twice as high. As the price of Chinese goods rises 20-50%, Americans are cancelling orders. Up to 25% of shipping orders were cancelled for spring 2011.

This class will learn more about the yuan and what currency imbalances mean for trade and international relations. We will also look at China’s options for control of the currency market. We’ll examine current events, and look to see whether American consumers accept higher prices of traditionally low-cost goods, or whether they balk and implement other options.

Dr. Gurdip Bakshi will lead this class. He is an expert on currency and currency trades, and international finance.

Note:
In-country travel is expected to be about $150.
There is a $500 penalty if you drop the course after October 31st.
Please do not purchase any airline tickets until enrollment for the class is confirmed through Blackboard, around September 15th. Students are advised by UMD Education Abroad to purchase refundable airline tickets.
Program fee is $3000 plus three credits tuition (total for BUSI788 and BUSI798), which includes shared hotel room, local transportation to company visits and required cultural activities, any tickets or fees for required cultural activities, 1-2 group meals, and professor and partner fees. There is an additional $250 study abroad fee which goes directly to the campus office to maintain the emergency plan.