part 7: Global entrepreneurship class - culture

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part 7: Global entrepreneurship class - culture

Transcript

Global EntrepreneurshipDeveloping Global Mindset for Entrepreneurs

Brian David Butler

TeachingBrian Butler is currently a professor with Forum-Nexus which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona and the Catholic University of Milan He teaches classes on International Finance and Global Entrepreneurship in Europe every July and January

In Miami Brian has taught Finance Economics and Global Trade at Thunderbirdrsquos Global MBA program in Miami

He previously worked as a research analyst at the Columbia University Business School in New York City

brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

Brian David Butler

InternationalA global citizen Brian was born in Canada raised in Switzerland (where he attended international British school) educated through university in the US started his career with a Japanese company moved to New York to work as an analyst married a Brazilian and has traveled extensively in Latin America Asia Europe and North America

Brian currently lives in Recife Brazil where he is teaching classes on ldquoGlobal Entrepreneurshiprdquo at the university ldquoFaculdade Boa Viagemrdquo

brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

Brian ButlerFounder of ldquoKookyPlancomrdquo ndash the wiki for Entrepreneurs

Exam

Review ndash gradesnext week (sorry)

Schedule for today

1 Entrepreneurship ideas2 Cross-cultural issues for Global

Entrepreneurs3 Homework review4 International IQ

Greece ndash whats happening

New Ideas

What new business ideasbullDiscusshellip

bull+1 point for participation grade for students with original ideas (not previously discussed in class)

bull Include 3-questions analysis of ideaWhat problem What trend What

transferrable (so start with idea then use 3 questions to evaluate)

Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

Also curious

bullWho works with family businessbullWhat are your plans after graduation

Global Entrepreneurship developing the global mindset for entrepreneurs

Class 7Saturday May 22nd 2010bullCross cultural issues for

Global entrepreneurs

Why study Culture

bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

Rather than a ldquolaundry listrdquo

bullBetter to develop a framework for analyzing cultural differences

bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

Preview of upcoming lectures

Cross cultural lessons will be useful when talking about

1 Using outsourcing to build global teams (4hww)

2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

development

Examples to discuss

bullForum-Nexus Study AbroadExample with teachers ndash American vs

Italian Relation with students

Your own examples

bullIn class assignmentWith a partner discuss an instance of

cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

Take 5 minutes to discuss1 person will present to the classhellip

Cultural Orientation Index

COI

Cultural Orientations Indicator- COI

NOTE

bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

Homeworkndash due Wednesday for feedback or at next class

bull Each student is to make their own COI analysisEach factor ndash what type are you

bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

potential conflict)What could you do (style switching) to lesson the

potential problems

Handouts emails

1 Culture Summary document- Dimensions Orientations

2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

Mini case studies

bullSee other slides bullUse other projectorhellip

Resources to learn more

Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

ues-in-Brazil

bullSourcesThunderbird here Download the PDF raquosee the TMC site here

httpwwwtmcorpcom

COI amp Entrepreneurship

Entrepreneurship and COI

1 Development issue Which cultural traits probably lead to more

entrepreneurship hence more economic development

Which factors are most important for entrepreneurship + level of entrepreneurship in different places

2 Personal issue What style switching should you do to

promote entrepreneurship

Entrepreneurship and COI

1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

on many ideas at same time3 Individualism

Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

Entrepreneurship and COI4 Competitiveness

Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

Entrepreneurship and COI

6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

Inductive is better for big-company (systematic process) innovations

Deductive is better for entrepreneurs and big changes

7 Future orientation (time)

Steps to take

bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

ldquostyle switchingrdquo for results4 Stay alert over time

Stop cultural ldquocruise controlrdquo

Style switching

bullWho should switch You ThembullConsider

Power relationship Buyer supplier Salesperson purchasing agent Customer client

Who must change Style switch

International IQ moment

What is happening in Greece - discussion

Athens GreeceAthens Greece ndash at the heart of a European Crisis

Athens Greece

bullWhat is happening in Greece ndash

Greek economy Euro Zone

Negatives

bull No control of monetary policy

bull Can not devalue currency to regain competitiveness

Positives

bull Low borrowing costs

Greek economy ndash boom years

httpenwikipediaorgwikiEconomy_of_Greece

Summary of problem + why importantbull In recent history

First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

consumer demand ndash deficit spending Keynes stimulus

Credit continues to contract ndash less money to go around

Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

External funding + current accounts

bullLesson from past- current account deficits = dangerous

bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

It is also what happed to Greece

National ldquoBalance Sheetrdquo

bull3 Important parts (for our class discussion)

Current accountFlow of goods and services Roughly= exports -

imports

Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

ReservesForeign currency gold etcUsed to finance gap between current amp capital

accountsldquobelow the linerdquo

Martin Wolf book ldquoFixing Global Financerdquo

Must Balance

If deficithellip

pay out reserves

If surplus

Build up reserves

National ldquoBalance Sheetrdquo

bullKey must ldquobalancerdquo

If ldquocurrent accountrdquo deficit

thenhellip by definitionhellip

ldquocapital accountrdquo = surplus

National ldquoBalance Sheetrdquo

bullGROUP

SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

Answerhellip

SURPLUS Money must be coming in from abroad to

finance the current account deficits

National ldquoBalance Sheetrdquobull Buthellip

What happens if you do NOT have money coming in from abroad

Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

Group assignment What happens What must you do (hint 3rd part of national

accounts mentioned before)hellip

Answer

You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

Follow up questionWhat if you donrsquot have enough reserves Then what

What can you do

(What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

Call for help

bullIMFbullOr for Greecehellip call the other Euro

countries and ask for loans

bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

Recent struggles

bullGreek shipping industry was hit hard by the decline in world trade

bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

Fears- Contagion

bullThere are many other countries that are running deficits

bullWhat happens if credits stop fundingbullPIIGS of Europe

Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

bullUS UK are the big ones

Other countries ndash BIGGER Debts

httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

Other countries ndash BIGGER Debts

httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

Other countries ndash BIGGER Debts

httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

Other countries ndash BIGGER Debts

httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

Other countries ndash BIGGER Debts

httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

Seehellip

bullSee economist article ndash history ndash credit crunch

bullI will send it by email hellip and will discuss next week

Homework

Sorry

Homeworkndash due Wednesday for feedback or at next class

bull Each student is to make their own COI analysisEach factor ndash what type are you

bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

potential conflict)What could you do (style switching) to lesson the

potential problems

  • Global Entrepreneurship
  • Brian David Butler
  • Brian David Butler (2)
  • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
  • Exam
  • Schedule for today
  • New Ideas
  • What new business ideas
  • Also curious
  • Global Entrepreneurship developing the global mindset for ent
  • Why study Culture
  • Rather than a ldquolaundry listrdquo
  • Preview of upcoming lectures
  • Examples to discuss
  • Your own examples
  • Cultural Orientation Index
  • Cultural Orientations Indicator- COI
  • NOTE
  • Homeworkndash due Wednesday for feedback or at next class
  • Handouts emails
  • Mini case studies
  • Resources to learn more
  • COI amp Entrepreneurship
  • Entrepreneurship and COI
  • Entrepreneurship and COI (2)
  • Entrepreneurship and COI (3)
  • Entrepreneurship and COI (4)
  • Steps to take
  • Style switching
  • International IQ moment
  • Athens Greece
  • Athens Greece (2)
  • Greek economy
  • Greek economy ndash boom years
  • Summary of problem + why important
  • External funding + current accounts
  • National ldquoBalance Sheetrdquo
  • National ldquoBalance Sheetrdquo (2)
  • National ldquoBalance Sheetrdquo (3)
  • Answerhellip
  • National ldquoBalance Sheetrdquo (4)
  • Answer
  • Call for help
  • Recent struggles
  • Understanding Greek challenges
  • Understanding Greek challenges (2)
  • Understanding Greek challenges (3)
  • Fears- Contagion
  • Other countries ndash BIGGER Debts
  • Other countries ndash BIGGER Debts (2)
  • Other countries ndash BIGGER Debts (3)
  • Other countries ndash BIGGER Debts (4)
  • Other countries ndash BIGGER Debts (5)
  • Seehellip
  • Homework
  • Homeworkndash due Wednesday for feedback or at next class (2)

    Brian David Butler

    TeachingBrian Butler is currently a professor with Forum-Nexus which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona and the Catholic University of Milan He teaches classes on International Finance and Global Entrepreneurship in Europe every July and January

    In Miami Brian has taught Finance Economics and Global Trade at Thunderbirdrsquos Global MBA program in Miami

    He previously worked as a research analyst at the Columbia University Business School in New York City

    brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

    Brian David Butler

    InternationalA global citizen Brian was born in Canada raised in Switzerland (where he attended international British school) educated through university in the US started his career with a Japanese company moved to New York to work as an analyst married a Brazilian and has traveled extensively in Latin America Asia Europe and North America

    Brian currently lives in Recife Brazil where he is teaching classes on ldquoGlobal Entrepreneurshiprdquo at the university ldquoFaculdade Boa Viagemrdquo

    brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

    Brian ButlerFounder of ldquoKookyPlancomrdquo ndash the wiki for Entrepreneurs

    Exam

    Review ndash gradesnext week (sorry)

    Schedule for today

    1 Entrepreneurship ideas2 Cross-cultural issues for Global

    Entrepreneurs3 Homework review4 International IQ

    Greece ndash whats happening

    New Ideas

    What new business ideasbullDiscusshellip

    bull+1 point for participation grade for students with original ideas (not previously discussed in class)

    bull Include 3-questions analysis of ideaWhat problem What trend What

    transferrable (so start with idea then use 3 questions to evaluate)

    Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

    Also curious

    bullWho works with family businessbullWhat are your plans after graduation

    Global Entrepreneurship developing the global mindset for entrepreneurs

    Class 7Saturday May 22nd 2010bullCross cultural issues for

    Global entrepreneurs

    Why study Culture

    bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

    Rather than a ldquolaundry listrdquo

    bullBetter to develop a framework for analyzing cultural differences

    bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

    bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

    Preview of upcoming lectures

    Cross cultural lessons will be useful when talking about

    1 Using outsourcing to build global teams (4hww)

    2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

    development

    Examples to discuss

    bullForum-Nexus Study AbroadExample with teachers ndash American vs

    Italian Relation with students

    Your own examples

    bullIn class assignmentWith a partner discuss an instance of

    cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

    Take 5 minutes to discuss1 person will present to the classhellip

    Cultural Orientation Index

    COI

    Cultural Orientations Indicator- COI

    NOTE

    bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

    Homeworkndash due Wednesday for feedback or at next class

    bull Each student is to make their own COI analysisEach factor ndash what type are you

    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

    potential conflict)What could you do (style switching) to lesson the

    potential problems

    Handouts emails

    1 Culture Summary document- Dimensions Orientations

    2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

    Mini case studies

    bullSee other slides bullUse other projectorhellip

    Resources to learn more

    Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

    ues-in-Brazil

    bullSourcesThunderbird here Download the PDF raquosee the TMC site here

    httpwwwtmcorpcom

    COI amp Entrepreneurship

    Entrepreneurship and COI

    1 Development issue Which cultural traits probably lead to more

    entrepreneurship hence more economic development

    Which factors are most important for entrepreneurship + level of entrepreneurship in different places

    2 Personal issue What style switching should you do to

    promote entrepreneurship

    Entrepreneurship and COI

    1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

    2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

    on many ideas at same time3 Individualism

    Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

    Entrepreneurship and COI4 Competitiveness

    Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

    5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

    Entrepreneurship and COI

    6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

    constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

    Inductive is better for big-company (systematic process) innovations

    Deductive is better for entrepreneurs and big changes

    7 Future orientation (time)

    Steps to take

    bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

    ldquostyle switchingrdquo for results4 Stay alert over time

    Stop cultural ldquocruise controlrdquo

    Style switching

    bullWho should switch You ThembullConsider

    Power relationship Buyer supplier Salesperson purchasing agent Customer client

    Who must change Style switch

    International IQ moment

    What is happening in Greece - discussion

    Athens GreeceAthens Greece ndash at the heart of a European Crisis

    Athens Greece

    bullWhat is happening in Greece ndash

    Greek economy Euro Zone

    Negatives

    bull No control of monetary policy

    bull Can not devalue currency to regain competitiveness

    Positives

    bull Low borrowing costs

    Greek economy ndash boom years

    httpenwikipediaorgwikiEconomy_of_Greece

    Summary of problem + why importantbull In recent history

    First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

    consumer demand ndash deficit spending Keynes stimulus

    Credit continues to contract ndash less money to go around

    Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

    External funding + current accounts

    bullLesson from past- current account deficits = dangerous

    bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

    This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

    It is also what happed to Greece

    National ldquoBalance Sheetrdquo

    bull3 Important parts (for our class discussion)

    Current accountFlow of goods and services Roughly= exports -

    imports

    Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

    ReservesForeign currency gold etcUsed to finance gap between current amp capital

    accountsldquobelow the linerdquo

    Martin Wolf book ldquoFixing Global Financerdquo

    Must Balance

    If deficithellip

    pay out reserves

    If surplus

    Build up reserves

    National ldquoBalance Sheetrdquo

    bullKey must ldquobalancerdquo

    If ldquocurrent accountrdquo deficit

    thenhellip by definitionhellip

    ldquocapital accountrdquo = surplus

    National ldquoBalance Sheetrdquo

    bullGROUP

    SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

    Answerhellip

    SURPLUS Money must be coming in from abroad to

    finance the current account deficits

    National ldquoBalance Sheetrdquobull Buthellip

    What happens if you do NOT have money coming in from abroad

    Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

    Group assignment What happens What must you do (hint 3rd part of national

    accounts mentioned before)hellip

    Answer

    You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

    Follow up questionWhat if you donrsquot have enough reserves Then what

    What can you do

    (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

    Call for help

    bullIMFbullOr for Greecehellip call the other Euro

    countries and ask for loans

    bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

    Recent struggles

    bullGreek shipping industry was hit hard by the decline in world trade

    bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

    exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

    Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

    Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

    assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

    Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

    As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

    importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

    2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

    Fears- Contagion

    bullThere are many other countries that are running deficits

    bullWhat happens if credits stop fundingbullPIIGS of Europe

    Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

    bullUS UK are the big ones

    Other countries ndash BIGGER Debts

    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

    Other countries ndash BIGGER Debts

    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

    Other countries ndash BIGGER Debts

    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

    Other countries ndash BIGGER Debts

    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

    Other countries ndash BIGGER Debts

    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

    Seehellip

    bullSee economist article ndash history ndash credit crunch

    bullI will send it by email hellip and will discuss next week

    Homework

    Sorry

    Homeworkndash due Wednesday for feedback or at next class

    bull Each student is to make their own COI analysisEach factor ndash what type are you

    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

    potential conflict)What could you do (style switching) to lesson the

    potential problems

    • Global Entrepreneurship
    • Brian David Butler
    • Brian David Butler (2)
    • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
    • Exam
    • Schedule for today
    • New Ideas
    • What new business ideas
    • Also curious
    • Global Entrepreneurship developing the global mindset for ent
    • Why study Culture
    • Rather than a ldquolaundry listrdquo
    • Preview of upcoming lectures
    • Examples to discuss
    • Your own examples
    • Cultural Orientation Index
    • Cultural Orientations Indicator- COI
    • NOTE
    • Homeworkndash due Wednesday for feedback or at next class
    • Handouts emails
    • Mini case studies
    • Resources to learn more
    • COI amp Entrepreneurship
    • Entrepreneurship and COI
    • Entrepreneurship and COI (2)
    • Entrepreneurship and COI (3)
    • Entrepreneurship and COI (4)
    • Steps to take
    • Style switching
    • International IQ moment
    • Athens Greece
    • Athens Greece (2)
    • Greek economy
    • Greek economy ndash boom years
    • Summary of problem + why important
    • External funding + current accounts
    • National ldquoBalance Sheetrdquo
    • National ldquoBalance Sheetrdquo (2)
    • National ldquoBalance Sheetrdquo (3)
    • Answerhellip
    • National ldquoBalance Sheetrdquo (4)
    • Answer
    • Call for help
    • Recent struggles
    • Understanding Greek challenges
    • Understanding Greek challenges (2)
    • Understanding Greek challenges (3)
    • Fears- Contagion
    • Other countries ndash BIGGER Debts
    • Other countries ndash BIGGER Debts (2)
    • Other countries ndash BIGGER Debts (3)
    • Other countries ndash BIGGER Debts (4)
    • Other countries ndash BIGGER Debts (5)
    • Seehellip
    • Homework
    • Homeworkndash due Wednesday for feedback or at next class (2)

      Brian David Butler

      InternationalA global citizen Brian was born in Canada raised in Switzerland (where he attended international British school) educated through university in the US started his career with a Japanese company moved to New York to work as an analyst married a Brazilian and has traveled extensively in Latin America Asia Europe and North America

      Brian currently lives in Recife Brazil where he is teaching classes on ldquoGlobal Entrepreneurshiprdquo at the university ldquoFaculdade Boa Viagemrdquo

      brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

      Brian ButlerFounder of ldquoKookyPlancomrdquo ndash the wiki for Entrepreneurs

      Exam

      Review ndash gradesnext week (sorry)

      Schedule for today

      1 Entrepreneurship ideas2 Cross-cultural issues for Global

      Entrepreneurs3 Homework review4 International IQ

      Greece ndash whats happening

      New Ideas

      What new business ideasbullDiscusshellip

      bull+1 point for participation grade for students with original ideas (not previously discussed in class)

      bull Include 3-questions analysis of ideaWhat problem What trend What

      transferrable (so start with idea then use 3 questions to evaluate)

      Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

      Also curious

      bullWho works with family businessbullWhat are your plans after graduation

      Global Entrepreneurship developing the global mindset for entrepreneurs

      Class 7Saturday May 22nd 2010bullCross cultural issues for

      Global entrepreneurs

      Why study Culture

      bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

      Rather than a ldquolaundry listrdquo

      bullBetter to develop a framework for analyzing cultural differences

      bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

      bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

      Preview of upcoming lectures

      Cross cultural lessons will be useful when talking about

      1 Using outsourcing to build global teams (4hww)

      2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

      development

      Examples to discuss

      bullForum-Nexus Study AbroadExample with teachers ndash American vs

      Italian Relation with students

      Your own examples

      bullIn class assignmentWith a partner discuss an instance of

      cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

      Take 5 minutes to discuss1 person will present to the classhellip

      Cultural Orientation Index

      COI

      Cultural Orientations Indicator- COI

      NOTE

      bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

      Homeworkndash due Wednesday for feedback or at next class

      bull Each student is to make their own COI analysisEach factor ndash what type are you

      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

      potential conflict)What could you do (style switching) to lesson the

      potential problems

      Handouts emails

      1 Culture Summary document- Dimensions Orientations

      2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

      Mini case studies

      bullSee other slides bullUse other projectorhellip

      Resources to learn more

      Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

      ues-in-Brazil

      bullSourcesThunderbird here Download the PDF raquosee the TMC site here

      httpwwwtmcorpcom

      COI amp Entrepreneurship

      Entrepreneurship and COI

      1 Development issue Which cultural traits probably lead to more

      entrepreneurship hence more economic development

      Which factors are most important for entrepreneurship + level of entrepreneurship in different places

      2 Personal issue What style switching should you do to

      promote entrepreneurship

      Entrepreneurship and COI

      1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

      2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

      on many ideas at same time3 Individualism

      Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

      Entrepreneurship and COI4 Competitiveness

      Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

      5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

      Entrepreneurship and COI

      6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

      constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

      Inductive is better for big-company (systematic process) innovations

      Deductive is better for entrepreneurs and big changes

      7 Future orientation (time)

      Steps to take

      bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

      ldquostyle switchingrdquo for results4 Stay alert over time

      Stop cultural ldquocruise controlrdquo

      Style switching

      bullWho should switch You ThembullConsider

      Power relationship Buyer supplier Salesperson purchasing agent Customer client

      Who must change Style switch

      International IQ moment

      What is happening in Greece - discussion

      Athens GreeceAthens Greece ndash at the heart of a European Crisis

      Athens Greece

      bullWhat is happening in Greece ndash

      Greek economy Euro Zone

      Negatives

      bull No control of monetary policy

      bull Can not devalue currency to regain competitiveness

      Positives

      bull Low borrowing costs

      Greek economy ndash boom years

      httpenwikipediaorgwikiEconomy_of_Greece

      Summary of problem + why importantbull In recent history

      First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

      consumer demand ndash deficit spending Keynes stimulus

      Credit continues to contract ndash less money to go around

      Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

      External funding + current accounts

      bullLesson from past- current account deficits = dangerous

      bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

      This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

      It is also what happed to Greece

      National ldquoBalance Sheetrdquo

      bull3 Important parts (for our class discussion)

      Current accountFlow of goods and services Roughly= exports -

      imports

      Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

      ReservesForeign currency gold etcUsed to finance gap between current amp capital

      accountsldquobelow the linerdquo

      Martin Wolf book ldquoFixing Global Financerdquo

      Must Balance

      If deficithellip

      pay out reserves

      If surplus

      Build up reserves

      National ldquoBalance Sheetrdquo

      bullKey must ldquobalancerdquo

      If ldquocurrent accountrdquo deficit

      thenhellip by definitionhellip

      ldquocapital accountrdquo = surplus

      National ldquoBalance Sheetrdquo

      bullGROUP

      SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

      Answerhellip

      SURPLUS Money must be coming in from abroad to

      finance the current account deficits

      National ldquoBalance Sheetrdquobull Buthellip

      What happens if you do NOT have money coming in from abroad

      Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

      Group assignment What happens What must you do (hint 3rd part of national

      accounts mentioned before)hellip

      Answer

      You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

      Follow up questionWhat if you donrsquot have enough reserves Then what

      What can you do

      (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

      Call for help

      bullIMFbullOr for Greecehellip call the other Euro

      countries and ask for loans

      bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

      Recent struggles

      bullGreek shipping industry was hit hard by the decline in world trade

      bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

      exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

      Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

      Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

      assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

      Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

      As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

      importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

      2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

      Fears- Contagion

      bullThere are many other countries that are running deficits

      bullWhat happens if credits stop fundingbullPIIGS of Europe

      Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

      bullUS UK are the big ones

      Other countries ndash BIGGER Debts

      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

      Other countries ndash BIGGER Debts

      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

      Other countries ndash BIGGER Debts

      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

      Other countries ndash BIGGER Debts

      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

      Other countries ndash BIGGER Debts

      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

      Seehellip

      bullSee economist article ndash history ndash credit crunch

      bullI will send it by email hellip and will discuss next week

      Homework

      Sorry

      Homeworkndash due Wednesday for feedback or at next class

      bull Each student is to make their own COI analysisEach factor ndash what type are you

      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

      potential conflict)What could you do (style switching) to lesson the

      potential problems

      • Global Entrepreneurship
      • Brian David Butler
      • Brian David Butler (2)
      • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
      • Exam
      • Schedule for today
      • New Ideas
      • What new business ideas
      • Also curious
      • Global Entrepreneurship developing the global mindset for ent
      • Why study Culture
      • Rather than a ldquolaundry listrdquo
      • Preview of upcoming lectures
      • Examples to discuss
      • Your own examples
      • Cultural Orientation Index
      • Cultural Orientations Indicator- COI
      • NOTE
      • Homeworkndash due Wednesday for feedback or at next class
      • Handouts emails
      • Mini case studies
      • Resources to learn more
      • COI amp Entrepreneurship
      • Entrepreneurship and COI
      • Entrepreneurship and COI (2)
      • Entrepreneurship and COI (3)
      • Entrepreneurship and COI (4)
      • Steps to take
      • Style switching
      • International IQ moment
      • Athens Greece
      • Athens Greece (2)
      • Greek economy
      • Greek economy ndash boom years
      • Summary of problem + why important
      • External funding + current accounts
      • National ldquoBalance Sheetrdquo
      • National ldquoBalance Sheetrdquo (2)
      • National ldquoBalance Sheetrdquo (3)
      • Answerhellip
      • National ldquoBalance Sheetrdquo (4)
      • Answer
      • Call for help
      • Recent struggles
      • Understanding Greek challenges
      • Understanding Greek challenges (2)
      • Understanding Greek challenges (3)
      • Fears- Contagion
      • Other countries ndash BIGGER Debts
      • Other countries ndash BIGGER Debts (2)
      • Other countries ndash BIGGER Debts (3)
      • Other countries ndash BIGGER Debts (4)
      • Other countries ndash BIGGER Debts (5)
      • Seehellip
      • Homework
      • Homeworkndash due Wednesday for feedback or at next class (2)

        Brian ButlerFounder of ldquoKookyPlancomrdquo ndash the wiki for Entrepreneurs

        Exam

        Review ndash gradesnext week (sorry)

        Schedule for today

        1 Entrepreneurship ideas2 Cross-cultural issues for Global

        Entrepreneurs3 Homework review4 International IQ

        Greece ndash whats happening

        New Ideas

        What new business ideasbullDiscusshellip

        bull+1 point for participation grade for students with original ideas (not previously discussed in class)

        bull Include 3-questions analysis of ideaWhat problem What trend What

        transferrable (so start with idea then use 3 questions to evaluate)

        Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

        Also curious

        bullWho works with family businessbullWhat are your plans after graduation

        Global Entrepreneurship developing the global mindset for entrepreneurs

        Class 7Saturday May 22nd 2010bullCross cultural issues for

        Global entrepreneurs

        Why study Culture

        bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

        Rather than a ldquolaundry listrdquo

        bullBetter to develop a framework for analyzing cultural differences

        bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

        bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

        Preview of upcoming lectures

        Cross cultural lessons will be useful when talking about

        1 Using outsourcing to build global teams (4hww)

        2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

        development

        Examples to discuss

        bullForum-Nexus Study AbroadExample with teachers ndash American vs

        Italian Relation with students

        Your own examples

        bullIn class assignmentWith a partner discuss an instance of

        cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

        Take 5 minutes to discuss1 person will present to the classhellip

        Cultural Orientation Index

        COI

        Cultural Orientations Indicator- COI

        NOTE

        bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

        Homeworkndash due Wednesday for feedback or at next class

        bull Each student is to make their own COI analysisEach factor ndash what type are you

        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

        potential conflict)What could you do (style switching) to lesson the

        potential problems

        Handouts emails

        1 Culture Summary document- Dimensions Orientations

        2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

        Mini case studies

        bullSee other slides bullUse other projectorhellip

        Resources to learn more

        Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

        ues-in-Brazil

        bullSourcesThunderbird here Download the PDF raquosee the TMC site here

        httpwwwtmcorpcom

        COI amp Entrepreneurship

        Entrepreneurship and COI

        1 Development issue Which cultural traits probably lead to more

        entrepreneurship hence more economic development

        Which factors are most important for entrepreneurship + level of entrepreneurship in different places

        2 Personal issue What style switching should you do to

        promote entrepreneurship

        Entrepreneurship and COI

        1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

        2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

        on many ideas at same time3 Individualism

        Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

        Entrepreneurship and COI4 Competitiveness

        Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

        5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

        Entrepreneurship and COI

        6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

        constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

        Inductive is better for big-company (systematic process) innovations

        Deductive is better for entrepreneurs and big changes

        7 Future orientation (time)

        Steps to take

        bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

        ldquostyle switchingrdquo for results4 Stay alert over time

        Stop cultural ldquocruise controlrdquo

        Style switching

        bullWho should switch You ThembullConsider

        Power relationship Buyer supplier Salesperson purchasing agent Customer client

        Who must change Style switch

        International IQ moment

        What is happening in Greece - discussion

        Athens GreeceAthens Greece ndash at the heart of a European Crisis

        Athens Greece

        bullWhat is happening in Greece ndash

        Greek economy Euro Zone

        Negatives

        bull No control of monetary policy

        bull Can not devalue currency to regain competitiveness

        Positives

        bull Low borrowing costs

        Greek economy ndash boom years

        httpenwikipediaorgwikiEconomy_of_Greece

        Summary of problem + why importantbull In recent history

        First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

        consumer demand ndash deficit spending Keynes stimulus

        Credit continues to contract ndash less money to go around

        Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

        External funding + current accounts

        bullLesson from past- current account deficits = dangerous

        bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

        This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

        It is also what happed to Greece

        National ldquoBalance Sheetrdquo

        bull3 Important parts (for our class discussion)

        Current accountFlow of goods and services Roughly= exports -

        imports

        Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

        ReservesForeign currency gold etcUsed to finance gap between current amp capital

        accountsldquobelow the linerdquo

        Martin Wolf book ldquoFixing Global Financerdquo

        Must Balance

        If deficithellip

        pay out reserves

        If surplus

        Build up reserves

        National ldquoBalance Sheetrdquo

        bullKey must ldquobalancerdquo

        If ldquocurrent accountrdquo deficit

        thenhellip by definitionhellip

        ldquocapital accountrdquo = surplus

        National ldquoBalance Sheetrdquo

        bullGROUP

        SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

        Answerhellip

        SURPLUS Money must be coming in from abroad to

        finance the current account deficits

        National ldquoBalance Sheetrdquobull Buthellip

        What happens if you do NOT have money coming in from abroad

        Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

        Group assignment What happens What must you do (hint 3rd part of national

        accounts mentioned before)hellip

        Answer

        You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

        Follow up questionWhat if you donrsquot have enough reserves Then what

        What can you do

        (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

        Call for help

        bullIMFbullOr for Greecehellip call the other Euro

        countries and ask for loans

        bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

        Recent struggles

        bullGreek shipping industry was hit hard by the decline in world trade

        bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

        exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

        Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

        Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

        assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

        Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

        As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

        importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

        2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

        Fears- Contagion

        bullThere are many other countries that are running deficits

        bullWhat happens if credits stop fundingbullPIIGS of Europe

        Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

        bullUS UK are the big ones

        Other countries ndash BIGGER Debts

        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

        Other countries ndash BIGGER Debts

        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

        Other countries ndash BIGGER Debts

        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

        Other countries ndash BIGGER Debts

        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

        Other countries ndash BIGGER Debts

        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

        Seehellip

        bullSee economist article ndash history ndash credit crunch

        bullI will send it by email hellip and will discuss next week

        Homework

        Sorry

        Homeworkndash due Wednesday for feedback or at next class

        bull Each student is to make their own COI analysisEach factor ndash what type are you

        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

        potential conflict)What could you do (style switching) to lesson the

        potential problems

        • Global Entrepreneurship
        • Brian David Butler
        • Brian David Butler (2)
        • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
        • Exam
        • Schedule for today
        • New Ideas
        • What new business ideas
        • Also curious
        • Global Entrepreneurship developing the global mindset for ent
        • Why study Culture
        • Rather than a ldquolaundry listrdquo
        • Preview of upcoming lectures
        • Examples to discuss
        • Your own examples
        • Cultural Orientation Index
        • Cultural Orientations Indicator- COI
        • NOTE
        • Homeworkndash due Wednesday for feedback or at next class
        • Handouts emails
        • Mini case studies
        • Resources to learn more
        • COI amp Entrepreneurship
        • Entrepreneurship and COI
        • Entrepreneurship and COI (2)
        • Entrepreneurship and COI (3)
        • Entrepreneurship and COI (4)
        • Steps to take
        • Style switching
        • International IQ moment
        • Athens Greece
        • Athens Greece (2)
        • Greek economy
        • Greek economy ndash boom years
        • Summary of problem + why important
        • External funding + current accounts
        • National ldquoBalance Sheetrdquo
        • National ldquoBalance Sheetrdquo (2)
        • National ldquoBalance Sheetrdquo (3)
        • Answerhellip
        • National ldquoBalance Sheetrdquo (4)
        • Answer
        • Call for help
        • Recent struggles
        • Understanding Greek challenges
        • Understanding Greek challenges (2)
        • Understanding Greek challenges (3)
        • Fears- Contagion
        • Other countries ndash BIGGER Debts
        • Other countries ndash BIGGER Debts (2)
        • Other countries ndash BIGGER Debts (3)
        • Other countries ndash BIGGER Debts (4)
        • Other countries ndash BIGGER Debts (5)
        • Seehellip
        • Homework
        • Homeworkndash due Wednesday for feedback or at next class (2)

          Exam

          Review ndash gradesnext week (sorry)

          Schedule for today

          1 Entrepreneurship ideas2 Cross-cultural issues for Global

          Entrepreneurs3 Homework review4 International IQ

          Greece ndash whats happening

          New Ideas

          What new business ideasbullDiscusshellip

          bull+1 point for participation grade for students with original ideas (not previously discussed in class)

          bull Include 3-questions analysis of ideaWhat problem What trend What

          transferrable (so start with idea then use 3 questions to evaluate)

          Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

          Also curious

          bullWho works with family businessbullWhat are your plans after graduation

          Global Entrepreneurship developing the global mindset for entrepreneurs

          Class 7Saturday May 22nd 2010bullCross cultural issues for

          Global entrepreneurs

          Why study Culture

          bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

          Rather than a ldquolaundry listrdquo

          bullBetter to develop a framework for analyzing cultural differences

          bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

          bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

          Preview of upcoming lectures

          Cross cultural lessons will be useful when talking about

          1 Using outsourcing to build global teams (4hww)

          2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

          development

          Examples to discuss

          bullForum-Nexus Study AbroadExample with teachers ndash American vs

          Italian Relation with students

          Your own examples

          bullIn class assignmentWith a partner discuss an instance of

          cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

          Take 5 minutes to discuss1 person will present to the classhellip

          Cultural Orientation Index

          COI

          Cultural Orientations Indicator- COI

          NOTE

          bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

          Homeworkndash due Wednesday for feedback or at next class

          bull Each student is to make their own COI analysisEach factor ndash what type are you

          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

          potential conflict)What could you do (style switching) to lesson the

          potential problems

          Handouts emails

          1 Culture Summary document- Dimensions Orientations

          2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

          Mini case studies

          bullSee other slides bullUse other projectorhellip

          Resources to learn more

          Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

          ues-in-Brazil

          bullSourcesThunderbird here Download the PDF raquosee the TMC site here

          httpwwwtmcorpcom

          COI amp Entrepreneurship

          Entrepreneurship and COI

          1 Development issue Which cultural traits probably lead to more

          entrepreneurship hence more economic development

          Which factors are most important for entrepreneurship + level of entrepreneurship in different places

          2 Personal issue What style switching should you do to

          promote entrepreneurship

          Entrepreneurship and COI

          1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

          2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

          on many ideas at same time3 Individualism

          Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

          Entrepreneurship and COI4 Competitiveness

          Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

          5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

          Entrepreneurship and COI

          6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

          constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

          Inductive is better for big-company (systematic process) innovations

          Deductive is better for entrepreneurs and big changes

          7 Future orientation (time)

          Steps to take

          bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

          ldquostyle switchingrdquo for results4 Stay alert over time

          Stop cultural ldquocruise controlrdquo

          Style switching

          bullWho should switch You ThembullConsider

          Power relationship Buyer supplier Salesperson purchasing agent Customer client

          Who must change Style switch

          International IQ moment

          What is happening in Greece - discussion

          Athens GreeceAthens Greece ndash at the heart of a European Crisis

          Athens Greece

          bullWhat is happening in Greece ndash

          Greek economy Euro Zone

          Negatives

          bull No control of monetary policy

          bull Can not devalue currency to regain competitiveness

          Positives

          bull Low borrowing costs

          Greek economy ndash boom years

          httpenwikipediaorgwikiEconomy_of_Greece

          Summary of problem + why importantbull In recent history

          First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

          consumer demand ndash deficit spending Keynes stimulus

          Credit continues to contract ndash less money to go around

          Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

          External funding + current accounts

          bullLesson from past- current account deficits = dangerous

          bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

          This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

          It is also what happed to Greece

          National ldquoBalance Sheetrdquo

          bull3 Important parts (for our class discussion)

          Current accountFlow of goods and services Roughly= exports -

          imports

          Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

          ReservesForeign currency gold etcUsed to finance gap between current amp capital

          accountsldquobelow the linerdquo

          Martin Wolf book ldquoFixing Global Financerdquo

          Must Balance

          If deficithellip

          pay out reserves

          If surplus

          Build up reserves

          National ldquoBalance Sheetrdquo

          bullKey must ldquobalancerdquo

          If ldquocurrent accountrdquo deficit

          thenhellip by definitionhellip

          ldquocapital accountrdquo = surplus

          National ldquoBalance Sheetrdquo

          bullGROUP

          SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

          Answerhellip

          SURPLUS Money must be coming in from abroad to

          finance the current account deficits

          National ldquoBalance Sheetrdquobull Buthellip

          What happens if you do NOT have money coming in from abroad

          Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

          Group assignment What happens What must you do (hint 3rd part of national

          accounts mentioned before)hellip

          Answer

          You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

          Follow up questionWhat if you donrsquot have enough reserves Then what

          What can you do

          (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

          Call for help

          bullIMFbullOr for Greecehellip call the other Euro

          countries and ask for loans

          bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

          Recent struggles

          bullGreek shipping industry was hit hard by the decline in world trade

          bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

          exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

          Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

          Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

          assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

          Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

          As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

          importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

          2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

          Fears- Contagion

          bullThere are many other countries that are running deficits

          bullWhat happens if credits stop fundingbullPIIGS of Europe

          Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

          bullUS UK are the big ones

          Other countries ndash BIGGER Debts

          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

          Other countries ndash BIGGER Debts

          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

          Other countries ndash BIGGER Debts

          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

          Other countries ndash BIGGER Debts

          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

          Other countries ndash BIGGER Debts

          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

          Seehellip

          bullSee economist article ndash history ndash credit crunch

          bullI will send it by email hellip and will discuss next week

          Homework

          Sorry

          Homeworkndash due Wednesday for feedback or at next class

          bull Each student is to make their own COI analysisEach factor ndash what type are you

          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

          potential conflict)What could you do (style switching) to lesson the

          potential problems

          • Global Entrepreneurship
          • Brian David Butler
          • Brian David Butler (2)
          • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
          • Exam
          • Schedule for today
          • New Ideas
          • What new business ideas
          • Also curious
          • Global Entrepreneurship developing the global mindset for ent
          • Why study Culture
          • Rather than a ldquolaundry listrdquo
          • Preview of upcoming lectures
          • Examples to discuss
          • Your own examples
          • Cultural Orientation Index
          • Cultural Orientations Indicator- COI
          • NOTE
          • Homeworkndash due Wednesday for feedback or at next class
          • Handouts emails
          • Mini case studies
          • Resources to learn more
          • COI amp Entrepreneurship
          • Entrepreneurship and COI
          • Entrepreneurship and COI (2)
          • Entrepreneurship and COI (3)
          • Entrepreneurship and COI (4)
          • Steps to take
          • Style switching
          • International IQ moment
          • Athens Greece
          • Athens Greece (2)
          • Greek economy
          • Greek economy ndash boom years
          • Summary of problem + why important
          • External funding + current accounts
          • National ldquoBalance Sheetrdquo
          • National ldquoBalance Sheetrdquo (2)
          • National ldquoBalance Sheetrdquo (3)
          • Answerhellip
          • National ldquoBalance Sheetrdquo (4)
          • Answer
          • Call for help
          • Recent struggles
          • Understanding Greek challenges
          • Understanding Greek challenges (2)
          • Understanding Greek challenges (3)
          • Fears- Contagion
          • Other countries ndash BIGGER Debts
          • Other countries ndash BIGGER Debts (2)
          • Other countries ndash BIGGER Debts (3)
          • Other countries ndash BIGGER Debts (4)
          • Other countries ndash BIGGER Debts (5)
          • Seehellip
          • Homework
          • Homeworkndash due Wednesday for feedback or at next class (2)

            Schedule for today

            1 Entrepreneurship ideas2 Cross-cultural issues for Global

            Entrepreneurs3 Homework review4 International IQ

            Greece ndash whats happening

            New Ideas

            What new business ideasbullDiscusshellip

            bull+1 point for participation grade for students with original ideas (not previously discussed in class)

            bull Include 3-questions analysis of ideaWhat problem What trend What

            transferrable (so start with idea then use 3 questions to evaluate)

            Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

            Also curious

            bullWho works with family businessbullWhat are your plans after graduation

            Global Entrepreneurship developing the global mindset for entrepreneurs

            Class 7Saturday May 22nd 2010bullCross cultural issues for

            Global entrepreneurs

            Why study Culture

            bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

            Rather than a ldquolaundry listrdquo

            bullBetter to develop a framework for analyzing cultural differences

            bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

            bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

            Preview of upcoming lectures

            Cross cultural lessons will be useful when talking about

            1 Using outsourcing to build global teams (4hww)

            2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

            development

            Examples to discuss

            bullForum-Nexus Study AbroadExample with teachers ndash American vs

            Italian Relation with students

            Your own examples

            bullIn class assignmentWith a partner discuss an instance of

            cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

            Take 5 minutes to discuss1 person will present to the classhellip

            Cultural Orientation Index

            COI

            Cultural Orientations Indicator- COI

            NOTE

            bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

            Homeworkndash due Wednesday for feedback or at next class

            bull Each student is to make their own COI analysisEach factor ndash what type are you

            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

            potential conflict)What could you do (style switching) to lesson the

            potential problems

            Handouts emails

            1 Culture Summary document- Dimensions Orientations

            2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

            Mini case studies

            bullSee other slides bullUse other projectorhellip

            Resources to learn more

            Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

            ues-in-Brazil

            bullSourcesThunderbird here Download the PDF raquosee the TMC site here

            httpwwwtmcorpcom

            COI amp Entrepreneurship

            Entrepreneurship and COI

            1 Development issue Which cultural traits probably lead to more

            entrepreneurship hence more economic development

            Which factors are most important for entrepreneurship + level of entrepreneurship in different places

            2 Personal issue What style switching should you do to

            promote entrepreneurship

            Entrepreneurship and COI

            1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

            2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

            on many ideas at same time3 Individualism

            Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

            Entrepreneurship and COI4 Competitiveness

            Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

            5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

            Entrepreneurship and COI

            6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

            constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

            Inductive is better for big-company (systematic process) innovations

            Deductive is better for entrepreneurs and big changes

            7 Future orientation (time)

            Steps to take

            bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

            ldquostyle switchingrdquo for results4 Stay alert over time

            Stop cultural ldquocruise controlrdquo

            Style switching

            bullWho should switch You ThembullConsider

            Power relationship Buyer supplier Salesperson purchasing agent Customer client

            Who must change Style switch

            International IQ moment

            What is happening in Greece - discussion

            Athens GreeceAthens Greece ndash at the heart of a European Crisis

            Athens Greece

            bullWhat is happening in Greece ndash

            Greek economy Euro Zone

            Negatives

            bull No control of monetary policy

            bull Can not devalue currency to regain competitiveness

            Positives

            bull Low borrowing costs

            Greek economy ndash boom years

            httpenwikipediaorgwikiEconomy_of_Greece

            Summary of problem + why importantbull In recent history

            First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

            consumer demand ndash deficit spending Keynes stimulus

            Credit continues to contract ndash less money to go around

            Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

            External funding + current accounts

            bullLesson from past- current account deficits = dangerous

            bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

            This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

            It is also what happed to Greece

            National ldquoBalance Sheetrdquo

            bull3 Important parts (for our class discussion)

            Current accountFlow of goods and services Roughly= exports -

            imports

            Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

            ReservesForeign currency gold etcUsed to finance gap between current amp capital

            accountsldquobelow the linerdquo

            Martin Wolf book ldquoFixing Global Financerdquo

            Must Balance

            If deficithellip

            pay out reserves

            If surplus

            Build up reserves

            National ldquoBalance Sheetrdquo

            bullKey must ldquobalancerdquo

            If ldquocurrent accountrdquo deficit

            thenhellip by definitionhellip

            ldquocapital accountrdquo = surplus

            National ldquoBalance Sheetrdquo

            bullGROUP

            SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

            Answerhellip

            SURPLUS Money must be coming in from abroad to

            finance the current account deficits

            National ldquoBalance Sheetrdquobull Buthellip

            What happens if you do NOT have money coming in from abroad

            Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

            Group assignment What happens What must you do (hint 3rd part of national

            accounts mentioned before)hellip

            Answer

            You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

            Follow up questionWhat if you donrsquot have enough reserves Then what

            What can you do

            (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

            Call for help

            bullIMFbullOr for Greecehellip call the other Euro

            countries and ask for loans

            bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

            Recent struggles

            bullGreek shipping industry was hit hard by the decline in world trade

            bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

            exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

            Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

            Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

            assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

            Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

            As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

            importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

            2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

            Fears- Contagion

            bullThere are many other countries that are running deficits

            bullWhat happens if credits stop fundingbullPIIGS of Europe

            Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

            bullUS UK are the big ones

            Other countries ndash BIGGER Debts

            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

            Other countries ndash BIGGER Debts

            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

            Other countries ndash BIGGER Debts

            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

            Other countries ndash BIGGER Debts

            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

            Other countries ndash BIGGER Debts

            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

            Seehellip

            bullSee economist article ndash history ndash credit crunch

            bullI will send it by email hellip and will discuss next week

            Homework

            Sorry

            Homeworkndash due Wednesday for feedback or at next class

            bull Each student is to make their own COI analysisEach factor ndash what type are you

            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

            potential conflict)What could you do (style switching) to lesson the

            potential problems

            • Global Entrepreneurship
            • Brian David Butler
            • Brian David Butler (2)
            • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
            • Exam
            • Schedule for today
            • New Ideas
            • What new business ideas
            • Also curious
            • Global Entrepreneurship developing the global mindset for ent
            • Why study Culture
            • Rather than a ldquolaundry listrdquo
            • Preview of upcoming lectures
            • Examples to discuss
            • Your own examples
            • Cultural Orientation Index
            • Cultural Orientations Indicator- COI
            • NOTE
            • Homeworkndash due Wednesday for feedback or at next class
            • Handouts emails
            • Mini case studies
            • Resources to learn more
            • COI amp Entrepreneurship
            • Entrepreneurship and COI
            • Entrepreneurship and COI (2)
            • Entrepreneurship and COI (3)
            • Entrepreneurship and COI (4)
            • Steps to take
            • Style switching
            • International IQ moment
            • Athens Greece
            • Athens Greece (2)
            • Greek economy
            • Greek economy ndash boom years
            • Summary of problem + why important
            • External funding + current accounts
            • National ldquoBalance Sheetrdquo
            • National ldquoBalance Sheetrdquo (2)
            • National ldquoBalance Sheetrdquo (3)
            • Answerhellip
            • National ldquoBalance Sheetrdquo (4)
            • Answer
            • Call for help
            • Recent struggles
            • Understanding Greek challenges
            • Understanding Greek challenges (2)
            • Understanding Greek challenges (3)
            • Fears- Contagion
            • Other countries ndash BIGGER Debts
            • Other countries ndash BIGGER Debts (2)
            • Other countries ndash BIGGER Debts (3)
            • Other countries ndash BIGGER Debts (4)
            • Other countries ndash BIGGER Debts (5)
            • Seehellip
            • Homework
            • Homeworkndash due Wednesday for feedback or at next class (2)

              New Ideas

              What new business ideasbullDiscusshellip

              bull+1 point for participation grade for students with original ideas (not previously discussed in class)

              bull Include 3-questions analysis of ideaWhat problem What trend What

              transferrable (so start with idea then use 3 questions to evaluate)

              Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

              Also curious

              bullWho works with family businessbullWhat are your plans after graduation

              Global Entrepreneurship developing the global mindset for entrepreneurs

              Class 7Saturday May 22nd 2010bullCross cultural issues for

              Global entrepreneurs

              Why study Culture

              bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

              Rather than a ldquolaundry listrdquo

              bullBetter to develop a framework for analyzing cultural differences

              bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

              bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

              Preview of upcoming lectures

              Cross cultural lessons will be useful when talking about

              1 Using outsourcing to build global teams (4hww)

              2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

              development

              Examples to discuss

              bullForum-Nexus Study AbroadExample with teachers ndash American vs

              Italian Relation with students

              Your own examples

              bullIn class assignmentWith a partner discuss an instance of

              cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

              Take 5 minutes to discuss1 person will present to the classhellip

              Cultural Orientation Index

              COI

              Cultural Orientations Indicator- COI

              NOTE

              bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

              Homeworkndash due Wednesday for feedback or at next class

              bull Each student is to make their own COI analysisEach factor ndash what type are you

              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

              potential conflict)What could you do (style switching) to lesson the

              potential problems

              Handouts emails

              1 Culture Summary document- Dimensions Orientations

              2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

              Mini case studies

              bullSee other slides bullUse other projectorhellip

              Resources to learn more

              Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

              ues-in-Brazil

              bullSourcesThunderbird here Download the PDF raquosee the TMC site here

              httpwwwtmcorpcom

              COI amp Entrepreneurship

              Entrepreneurship and COI

              1 Development issue Which cultural traits probably lead to more

              entrepreneurship hence more economic development

              Which factors are most important for entrepreneurship + level of entrepreneurship in different places

              2 Personal issue What style switching should you do to

              promote entrepreneurship

              Entrepreneurship and COI

              1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

              2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

              on many ideas at same time3 Individualism

              Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

              Entrepreneurship and COI4 Competitiveness

              Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

              5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

              Entrepreneurship and COI

              6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

              constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

              Inductive is better for big-company (systematic process) innovations

              Deductive is better for entrepreneurs and big changes

              7 Future orientation (time)

              Steps to take

              bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

              ldquostyle switchingrdquo for results4 Stay alert over time

              Stop cultural ldquocruise controlrdquo

              Style switching

              bullWho should switch You ThembullConsider

              Power relationship Buyer supplier Salesperson purchasing agent Customer client

              Who must change Style switch

              International IQ moment

              What is happening in Greece - discussion

              Athens GreeceAthens Greece ndash at the heart of a European Crisis

              Athens Greece

              bullWhat is happening in Greece ndash

              Greek economy Euro Zone

              Negatives

              bull No control of monetary policy

              bull Can not devalue currency to regain competitiveness

              Positives

              bull Low borrowing costs

              Greek economy ndash boom years

              httpenwikipediaorgwikiEconomy_of_Greece

              Summary of problem + why importantbull In recent history

              First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

              consumer demand ndash deficit spending Keynes stimulus

              Credit continues to contract ndash less money to go around

              Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

              External funding + current accounts

              bullLesson from past- current account deficits = dangerous

              bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

              This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

              It is also what happed to Greece

              National ldquoBalance Sheetrdquo

              bull3 Important parts (for our class discussion)

              Current accountFlow of goods and services Roughly= exports -

              imports

              Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

              ReservesForeign currency gold etcUsed to finance gap between current amp capital

              accountsldquobelow the linerdquo

              Martin Wolf book ldquoFixing Global Financerdquo

              Must Balance

              If deficithellip

              pay out reserves

              If surplus

              Build up reserves

              National ldquoBalance Sheetrdquo

              bullKey must ldquobalancerdquo

              If ldquocurrent accountrdquo deficit

              thenhellip by definitionhellip

              ldquocapital accountrdquo = surplus

              National ldquoBalance Sheetrdquo

              bullGROUP

              SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

              Answerhellip

              SURPLUS Money must be coming in from abroad to

              finance the current account deficits

              National ldquoBalance Sheetrdquobull Buthellip

              What happens if you do NOT have money coming in from abroad

              Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

              Group assignment What happens What must you do (hint 3rd part of national

              accounts mentioned before)hellip

              Answer

              You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

              Follow up questionWhat if you donrsquot have enough reserves Then what

              What can you do

              (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

              Call for help

              bullIMFbullOr for Greecehellip call the other Euro

              countries and ask for loans

              bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

              Recent struggles

              bullGreek shipping industry was hit hard by the decline in world trade

              bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

              exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

              Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

              Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

              assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

              Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

              As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

              importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

              2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

              Fears- Contagion

              bullThere are many other countries that are running deficits

              bullWhat happens if credits stop fundingbullPIIGS of Europe

              Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

              bullUS UK are the big ones

              Other countries ndash BIGGER Debts

              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

              Other countries ndash BIGGER Debts

              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

              Other countries ndash BIGGER Debts

              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

              Other countries ndash BIGGER Debts

              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

              Other countries ndash BIGGER Debts

              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

              Seehellip

              bullSee economist article ndash history ndash credit crunch

              bullI will send it by email hellip and will discuss next week

              Homework

              Sorry

              Homeworkndash due Wednesday for feedback or at next class

              bull Each student is to make their own COI analysisEach factor ndash what type are you

              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

              potential conflict)What could you do (style switching) to lesson the

              potential problems

              • Global Entrepreneurship
              • Brian David Butler
              • Brian David Butler (2)
              • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
              • Exam
              • Schedule for today
              • New Ideas
              • What new business ideas
              • Also curious
              • Global Entrepreneurship developing the global mindset for ent
              • Why study Culture
              • Rather than a ldquolaundry listrdquo
              • Preview of upcoming lectures
              • Examples to discuss
              • Your own examples
              • Cultural Orientation Index
              • Cultural Orientations Indicator- COI
              • NOTE
              • Homeworkndash due Wednesday for feedback or at next class
              • Handouts emails
              • Mini case studies
              • Resources to learn more
              • COI amp Entrepreneurship
              • Entrepreneurship and COI
              • Entrepreneurship and COI (2)
              • Entrepreneurship and COI (3)
              • Entrepreneurship and COI (4)
              • Steps to take
              • Style switching
              • International IQ moment
              • Athens Greece
              • Athens Greece (2)
              • Greek economy
              • Greek economy ndash boom years
              • Summary of problem + why important
              • External funding + current accounts
              • National ldquoBalance Sheetrdquo
              • National ldquoBalance Sheetrdquo (2)
              • National ldquoBalance Sheetrdquo (3)
              • Answerhellip
              • National ldquoBalance Sheetrdquo (4)
              • Answer
              • Call for help
              • Recent struggles
              • Understanding Greek challenges
              • Understanding Greek challenges (2)
              • Understanding Greek challenges (3)
              • Fears- Contagion
              • Other countries ndash BIGGER Debts
              • Other countries ndash BIGGER Debts (2)
              • Other countries ndash BIGGER Debts (3)
              • Other countries ndash BIGGER Debts (4)
              • Other countries ndash BIGGER Debts (5)
              • Seehellip
              • Homework
              • Homeworkndash due Wednesday for feedback or at next class (2)

                What new business ideasbullDiscusshellip

                bull+1 point for participation grade for students with original ideas (not previously discussed in class)

                bull Include 3-questions analysis of ideaWhat problem What trend What

                transferrable (so start with idea then use 3 questions to evaluate)

                Mine water cup ndash airports ndash transfer from Brazil Problem is price size Trend is economic crisis

                Also curious

                bullWho works with family businessbullWhat are your plans after graduation

                Global Entrepreneurship developing the global mindset for entrepreneurs

                Class 7Saturday May 22nd 2010bullCross cultural issues for

                Global entrepreneurs

                Why study Culture

                bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

                Rather than a ldquolaundry listrdquo

                bullBetter to develop a framework for analyzing cultural differences

                bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

                bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

                Preview of upcoming lectures

                Cross cultural lessons will be useful when talking about

                1 Using outsourcing to build global teams (4hww)

                2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

                development

                Examples to discuss

                bullForum-Nexus Study AbroadExample with teachers ndash American vs

                Italian Relation with students

                Your own examples

                bullIn class assignmentWith a partner discuss an instance of

                cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                Take 5 minutes to discuss1 person will present to the classhellip

                Cultural Orientation Index

                COI

                Cultural Orientations Indicator- COI

                NOTE

                bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                Homeworkndash due Wednesday for feedback or at next class

                bull Each student is to make their own COI analysisEach factor ndash what type are you

                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                potential conflict)What could you do (style switching) to lesson the

                potential problems

                Handouts emails

                1 Culture Summary document- Dimensions Orientations

                2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                Mini case studies

                bullSee other slides bullUse other projectorhellip

                Resources to learn more

                Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                ues-in-Brazil

                bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                httpwwwtmcorpcom

                COI amp Entrepreneurship

                Entrepreneurship and COI

                1 Development issue Which cultural traits probably lead to more

                entrepreneurship hence more economic development

                Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                2 Personal issue What style switching should you do to

                promote entrepreneurship

                Entrepreneurship and COI

                1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                on many ideas at same time3 Individualism

                Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                Entrepreneurship and COI4 Competitiveness

                Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                Entrepreneurship and COI

                6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                Inductive is better for big-company (systematic process) innovations

                Deductive is better for entrepreneurs and big changes

                7 Future orientation (time)

                Steps to take

                bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                ldquostyle switchingrdquo for results4 Stay alert over time

                Stop cultural ldquocruise controlrdquo

                Style switching

                bullWho should switch You ThembullConsider

                Power relationship Buyer supplier Salesperson purchasing agent Customer client

                Who must change Style switch

                International IQ moment

                What is happening in Greece - discussion

                Athens GreeceAthens Greece ndash at the heart of a European Crisis

                Athens Greece

                bullWhat is happening in Greece ndash

                Greek economy Euro Zone

                Negatives

                bull No control of monetary policy

                bull Can not devalue currency to regain competitiveness

                Positives

                bull Low borrowing costs

                Greek economy ndash boom years

                httpenwikipediaorgwikiEconomy_of_Greece

                Summary of problem + why importantbull In recent history

                First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                consumer demand ndash deficit spending Keynes stimulus

                Credit continues to contract ndash less money to go around

                Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                External funding + current accounts

                bullLesson from past- current account deficits = dangerous

                bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                It is also what happed to Greece

                National ldquoBalance Sheetrdquo

                bull3 Important parts (for our class discussion)

                Current accountFlow of goods and services Roughly= exports -

                imports

                Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                ReservesForeign currency gold etcUsed to finance gap between current amp capital

                accountsldquobelow the linerdquo

                Martin Wolf book ldquoFixing Global Financerdquo

                Must Balance

                If deficithellip

                pay out reserves

                If surplus

                Build up reserves

                National ldquoBalance Sheetrdquo

                bullKey must ldquobalancerdquo

                If ldquocurrent accountrdquo deficit

                thenhellip by definitionhellip

                ldquocapital accountrdquo = surplus

                National ldquoBalance Sheetrdquo

                bullGROUP

                SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                Answerhellip

                SURPLUS Money must be coming in from abroad to

                finance the current account deficits

                National ldquoBalance Sheetrdquobull Buthellip

                What happens if you do NOT have money coming in from abroad

                Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                Group assignment What happens What must you do (hint 3rd part of national

                accounts mentioned before)hellip

                Answer

                You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                Follow up questionWhat if you donrsquot have enough reserves Then what

                What can you do

                (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                Call for help

                bullIMFbullOr for Greecehellip call the other Euro

                countries and ask for loans

                bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                Recent struggles

                bullGreek shipping industry was hit hard by the decline in world trade

                bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                Fears- Contagion

                bullThere are many other countries that are running deficits

                bullWhat happens if credits stop fundingbullPIIGS of Europe

                Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                bullUS UK are the big ones

                Other countries ndash BIGGER Debts

                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                Other countries ndash BIGGER Debts

                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                Other countries ndash BIGGER Debts

                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                Other countries ndash BIGGER Debts

                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                Other countries ndash BIGGER Debts

                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                Seehellip

                bullSee economist article ndash history ndash credit crunch

                bullI will send it by email hellip and will discuss next week

                Homework

                Sorry

                Homeworkndash due Wednesday for feedback or at next class

                bull Each student is to make their own COI analysisEach factor ndash what type are you

                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                potential conflict)What could you do (style switching) to lesson the

                potential problems

                • Global Entrepreneurship
                • Brian David Butler
                • Brian David Butler (2)
                • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                • Exam
                • Schedule for today
                • New Ideas
                • What new business ideas
                • Also curious
                • Global Entrepreneurship developing the global mindset for ent
                • Why study Culture
                • Rather than a ldquolaundry listrdquo
                • Preview of upcoming lectures
                • Examples to discuss
                • Your own examples
                • Cultural Orientation Index
                • Cultural Orientations Indicator- COI
                • NOTE
                • Homeworkndash due Wednesday for feedback or at next class
                • Handouts emails
                • Mini case studies
                • Resources to learn more
                • COI amp Entrepreneurship
                • Entrepreneurship and COI
                • Entrepreneurship and COI (2)
                • Entrepreneurship and COI (3)
                • Entrepreneurship and COI (4)
                • Steps to take
                • Style switching
                • International IQ moment
                • Athens Greece
                • Athens Greece (2)
                • Greek economy
                • Greek economy ndash boom years
                • Summary of problem + why important
                • External funding + current accounts
                • National ldquoBalance Sheetrdquo
                • National ldquoBalance Sheetrdquo (2)
                • National ldquoBalance Sheetrdquo (3)
                • Answerhellip
                • National ldquoBalance Sheetrdquo (4)
                • Answer
                • Call for help
                • Recent struggles
                • Understanding Greek challenges
                • Understanding Greek challenges (2)
                • Understanding Greek challenges (3)
                • Fears- Contagion
                • Other countries ndash BIGGER Debts
                • Other countries ndash BIGGER Debts (2)
                • Other countries ndash BIGGER Debts (3)
                • Other countries ndash BIGGER Debts (4)
                • Other countries ndash BIGGER Debts (5)
                • Seehellip
                • Homework
                • Homeworkndash due Wednesday for feedback or at next class (2)

                  Also curious

                  bullWho works with family businessbullWhat are your plans after graduation

                  Global Entrepreneurship developing the global mindset for entrepreneurs

                  Class 7Saturday May 22nd 2010bullCross cultural issues for

                  Global entrepreneurs

                  Why study Culture

                  bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

                  Rather than a ldquolaundry listrdquo

                  bullBetter to develop a framework for analyzing cultural differences

                  bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

                  bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

                  Preview of upcoming lectures

                  Cross cultural lessons will be useful when talking about

                  1 Using outsourcing to build global teams (4hww)

                  2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

                  development

                  Examples to discuss

                  bullForum-Nexus Study AbroadExample with teachers ndash American vs

                  Italian Relation with students

                  Your own examples

                  bullIn class assignmentWith a partner discuss an instance of

                  cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                  Take 5 minutes to discuss1 person will present to the classhellip

                  Cultural Orientation Index

                  COI

                  Cultural Orientations Indicator- COI

                  NOTE

                  bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                  Homeworkndash due Wednesday for feedback or at next class

                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                  potential conflict)What could you do (style switching) to lesson the

                  potential problems

                  Handouts emails

                  1 Culture Summary document- Dimensions Orientations

                  2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                  Mini case studies

                  bullSee other slides bullUse other projectorhellip

                  Resources to learn more

                  Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                  ues-in-Brazil

                  bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                  httpwwwtmcorpcom

                  COI amp Entrepreneurship

                  Entrepreneurship and COI

                  1 Development issue Which cultural traits probably lead to more

                  entrepreneurship hence more economic development

                  Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                  2 Personal issue What style switching should you do to

                  promote entrepreneurship

                  Entrepreneurship and COI

                  1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                  2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                  on many ideas at same time3 Individualism

                  Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                  Entrepreneurship and COI4 Competitiveness

                  Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                  5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                  Entrepreneurship and COI

                  6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                  constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                  Inductive is better for big-company (systematic process) innovations

                  Deductive is better for entrepreneurs and big changes

                  7 Future orientation (time)

                  Steps to take

                  bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                  ldquostyle switchingrdquo for results4 Stay alert over time

                  Stop cultural ldquocruise controlrdquo

                  Style switching

                  bullWho should switch You ThembullConsider

                  Power relationship Buyer supplier Salesperson purchasing agent Customer client

                  Who must change Style switch

                  International IQ moment

                  What is happening in Greece - discussion

                  Athens GreeceAthens Greece ndash at the heart of a European Crisis

                  Athens Greece

                  bullWhat is happening in Greece ndash

                  Greek economy Euro Zone

                  Negatives

                  bull No control of monetary policy

                  bull Can not devalue currency to regain competitiveness

                  Positives

                  bull Low borrowing costs

                  Greek economy ndash boom years

                  httpenwikipediaorgwikiEconomy_of_Greece

                  Summary of problem + why importantbull In recent history

                  First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                  consumer demand ndash deficit spending Keynes stimulus

                  Credit continues to contract ndash less money to go around

                  Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                  External funding + current accounts

                  bullLesson from past- current account deficits = dangerous

                  bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                  This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                  It is also what happed to Greece

                  National ldquoBalance Sheetrdquo

                  bull3 Important parts (for our class discussion)

                  Current accountFlow of goods and services Roughly= exports -

                  imports

                  Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                  ReservesForeign currency gold etcUsed to finance gap between current amp capital

                  accountsldquobelow the linerdquo

                  Martin Wolf book ldquoFixing Global Financerdquo

                  Must Balance

                  If deficithellip

                  pay out reserves

                  If surplus

                  Build up reserves

                  National ldquoBalance Sheetrdquo

                  bullKey must ldquobalancerdquo

                  If ldquocurrent accountrdquo deficit

                  thenhellip by definitionhellip

                  ldquocapital accountrdquo = surplus

                  National ldquoBalance Sheetrdquo

                  bullGROUP

                  SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                  Answerhellip

                  SURPLUS Money must be coming in from abroad to

                  finance the current account deficits

                  National ldquoBalance Sheetrdquobull Buthellip

                  What happens if you do NOT have money coming in from abroad

                  Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                  Group assignment What happens What must you do (hint 3rd part of national

                  accounts mentioned before)hellip

                  Answer

                  You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                  Follow up questionWhat if you donrsquot have enough reserves Then what

                  What can you do

                  (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                  Call for help

                  bullIMFbullOr for Greecehellip call the other Euro

                  countries and ask for loans

                  bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                  Recent struggles

                  bullGreek shipping industry was hit hard by the decline in world trade

                  bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                  exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                  Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                  Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                  assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                  Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                  As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                  importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                  2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                  Fears- Contagion

                  bullThere are many other countries that are running deficits

                  bullWhat happens if credits stop fundingbullPIIGS of Europe

                  Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                  bullUS UK are the big ones

                  Other countries ndash BIGGER Debts

                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                  Other countries ndash BIGGER Debts

                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                  Other countries ndash BIGGER Debts

                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                  Other countries ndash BIGGER Debts

                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                  Other countries ndash BIGGER Debts

                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                  Seehellip

                  bullSee economist article ndash history ndash credit crunch

                  bullI will send it by email hellip and will discuss next week

                  Homework

                  Sorry

                  Homeworkndash due Wednesday for feedback or at next class

                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                  potential conflict)What could you do (style switching) to lesson the

                  potential problems

                  • Global Entrepreneurship
                  • Brian David Butler
                  • Brian David Butler (2)
                  • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                  • Exam
                  • Schedule for today
                  • New Ideas
                  • What new business ideas
                  • Also curious
                  • Global Entrepreneurship developing the global mindset for ent
                  • Why study Culture
                  • Rather than a ldquolaundry listrdquo
                  • Preview of upcoming lectures
                  • Examples to discuss
                  • Your own examples
                  • Cultural Orientation Index
                  • Cultural Orientations Indicator- COI
                  • NOTE
                  • Homeworkndash due Wednesday for feedback or at next class
                  • Handouts emails
                  • Mini case studies
                  • Resources to learn more
                  • COI amp Entrepreneurship
                  • Entrepreneurship and COI
                  • Entrepreneurship and COI (2)
                  • Entrepreneurship and COI (3)
                  • Entrepreneurship and COI (4)
                  • Steps to take
                  • Style switching
                  • International IQ moment
                  • Athens Greece
                  • Athens Greece (2)
                  • Greek economy
                  • Greek economy ndash boom years
                  • Summary of problem + why important
                  • External funding + current accounts
                  • National ldquoBalance Sheetrdquo
                  • National ldquoBalance Sheetrdquo (2)
                  • National ldquoBalance Sheetrdquo (3)
                  • Answerhellip
                  • National ldquoBalance Sheetrdquo (4)
                  • Answer
                  • Call for help
                  • Recent struggles
                  • Understanding Greek challenges
                  • Understanding Greek challenges (2)
                  • Understanding Greek challenges (3)
                  • Fears- Contagion
                  • Other countries ndash BIGGER Debts
                  • Other countries ndash BIGGER Debts (2)
                  • Other countries ndash BIGGER Debts (3)
                  • Other countries ndash BIGGER Debts (4)
                  • Other countries ndash BIGGER Debts (5)
                  • Seehellip
                  • Homework
                  • Homeworkndash due Wednesday for feedback or at next class (2)

                    Global Entrepreneurship developing the global mindset for entrepreneurs

                    Class 7Saturday May 22nd 2010bullCross cultural issues for

                    Global entrepreneurs

                    Why study Culture

                    bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

                    Rather than a ldquolaundry listrdquo

                    bullBetter to develop a framework for analyzing cultural differences

                    bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

                    bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

                    Preview of upcoming lectures

                    Cross cultural lessons will be useful when talking about

                    1 Using outsourcing to build global teams (4hww)

                    2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

                    development

                    Examples to discuss

                    bullForum-Nexus Study AbroadExample with teachers ndash American vs

                    Italian Relation with students

                    Your own examples

                    bullIn class assignmentWith a partner discuss an instance of

                    cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                    Take 5 minutes to discuss1 person will present to the classhellip

                    Cultural Orientation Index

                    COI

                    Cultural Orientations Indicator- COI

                    NOTE

                    bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                    Homeworkndash due Wednesday for feedback or at next class

                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                    potential conflict)What could you do (style switching) to lesson the

                    potential problems

                    Handouts emails

                    1 Culture Summary document- Dimensions Orientations

                    2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                    Mini case studies

                    bullSee other slides bullUse other projectorhellip

                    Resources to learn more

                    Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                    ues-in-Brazil

                    bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                    httpwwwtmcorpcom

                    COI amp Entrepreneurship

                    Entrepreneurship and COI

                    1 Development issue Which cultural traits probably lead to more

                    entrepreneurship hence more economic development

                    Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                    2 Personal issue What style switching should you do to

                    promote entrepreneurship

                    Entrepreneurship and COI

                    1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                    2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                    on many ideas at same time3 Individualism

                    Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                    Entrepreneurship and COI4 Competitiveness

                    Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                    5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                    Entrepreneurship and COI

                    6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                    constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                    Inductive is better for big-company (systematic process) innovations

                    Deductive is better for entrepreneurs and big changes

                    7 Future orientation (time)

                    Steps to take

                    bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                    ldquostyle switchingrdquo for results4 Stay alert over time

                    Stop cultural ldquocruise controlrdquo

                    Style switching

                    bullWho should switch You ThembullConsider

                    Power relationship Buyer supplier Salesperson purchasing agent Customer client

                    Who must change Style switch

                    International IQ moment

                    What is happening in Greece - discussion

                    Athens GreeceAthens Greece ndash at the heart of a European Crisis

                    Athens Greece

                    bullWhat is happening in Greece ndash

                    Greek economy Euro Zone

                    Negatives

                    bull No control of monetary policy

                    bull Can not devalue currency to regain competitiveness

                    Positives

                    bull Low borrowing costs

                    Greek economy ndash boom years

                    httpenwikipediaorgwikiEconomy_of_Greece

                    Summary of problem + why importantbull In recent history

                    First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                    consumer demand ndash deficit spending Keynes stimulus

                    Credit continues to contract ndash less money to go around

                    Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                    External funding + current accounts

                    bullLesson from past- current account deficits = dangerous

                    bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                    This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                    It is also what happed to Greece

                    National ldquoBalance Sheetrdquo

                    bull3 Important parts (for our class discussion)

                    Current accountFlow of goods and services Roughly= exports -

                    imports

                    Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                    ReservesForeign currency gold etcUsed to finance gap between current amp capital

                    accountsldquobelow the linerdquo

                    Martin Wolf book ldquoFixing Global Financerdquo

                    Must Balance

                    If deficithellip

                    pay out reserves

                    If surplus

                    Build up reserves

                    National ldquoBalance Sheetrdquo

                    bullKey must ldquobalancerdquo

                    If ldquocurrent accountrdquo deficit

                    thenhellip by definitionhellip

                    ldquocapital accountrdquo = surplus

                    National ldquoBalance Sheetrdquo

                    bullGROUP

                    SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                    Answerhellip

                    SURPLUS Money must be coming in from abroad to

                    finance the current account deficits

                    National ldquoBalance Sheetrdquobull Buthellip

                    What happens if you do NOT have money coming in from abroad

                    Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                    Group assignment What happens What must you do (hint 3rd part of national

                    accounts mentioned before)hellip

                    Answer

                    You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                    Follow up questionWhat if you donrsquot have enough reserves Then what

                    What can you do

                    (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                    Call for help

                    bullIMFbullOr for Greecehellip call the other Euro

                    countries and ask for loans

                    bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                    Recent struggles

                    bullGreek shipping industry was hit hard by the decline in world trade

                    bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                    exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                    Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                    Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                    assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                    Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                    As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                    importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                    2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                    Fears- Contagion

                    bullThere are many other countries that are running deficits

                    bullWhat happens if credits stop fundingbullPIIGS of Europe

                    Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                    bullUS UK are the big ones

                    Other countries ndash BIGGER Debts

                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                    Other countries ndash BIGGER Debts

                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                    Other countries ndash BIGGER Debts

                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                    Other countries ndash BIGGER Debts

                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                    Other countries ndash BIGGER Debts

                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                    Seehellip

                    bullSee economist article ndash history ndash credit crunch

                    bullI will send it by email hellip and will discuss next week

                    Homework

                    Sorry

                    Homeworkndash due Wednesday for feedback or at next class

                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                    potential conflict)What could you do (style switching) to lesson the

                    potential problems

                    • Global Entrepreneurship
                    • Brian David Butler
                    • Brian David Butler (2)
                    • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                    • Exam
                    • Schedule for today
                    • New Ideas
                    • What new business ideas
                    • Also curious
                    • Global Entrepreneurship developing the global mindset for ent
                    • Why study Culture
                    • Rather than a ldquolaundry listrdquo
                    • Preview of upcoming lectures
                    • Examples to discuss
                    • Your own examples
                    • Cultural Orientation Index
                    • Cultural Orientations Indicator- COI
                    • NOTE
                    • Homeworkndash due Wednesday for feedback or at next class
                    • Handouts emails
                    • Mini case studies
                    • Resources to learn more
                    • COI amp Entrepreneurship
                    • Entrepreneurship and COI
                    • Entrepreneurship and COI (2)
                    • Entrepreneurship and COI (3)
                    • Entrepreneurship and COI (4)
                    • Steps to take
                    • Style switching
                    • International IQ moment
                    • Athens Greece
                    • Athens Greece (2)
                    • Greek economy
                    • Greek economy ndash boom years
                    • Summary of problem + why important
                    • External funding + current accounts
                    • National ldquoBalance Sheetrdquo
                    • National ldquoBalance Sheetrdquo (2)
                    • National ldquoBalance Sheetrdquo (3)
                    • Answerhellip
                    • National ldquoBalance Sheetrdquo (4)
                    • Answer
                    • Call for help
                    • Recent struggles
                    • Understanding Greek challenges
                    • Understanding Greek challenges (2)
                    • Understanding Greek challenges (3)
                    • Fears- Contagion
                    • Other countries ndash BIGGER Debts
                    • Other countries ndash BIGGER Debts (2)
                    • Other countries ndash BIGGER Debts (3)
                    • Other countries ndash BIGGER Debts (4)
                    • Other countries ndash BIGGER Debts (5)
                    • Seehellip
                    • Homework
                    • Homeworkndash due Wednesday for feedback or at next class (2)

                      Why study Culture

                      bullMarket entrybullPESTbullInternational business JOBS (FUTURE)bullGlobal citizen

                      Rather than a ldquolaundry listrdquo

                      bullBetter to develop a framework for analyzing cultural differences

                      bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

                      bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

                      Preview of upcoming lectures

                      Cross cultural lessons will be useful when talking about

                      1 Using outsourcing to build global teams (4hww)

                      2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

                      development

                      Examples to discuss

                      bullForum-Nexus Study AbroadExample with teachers ndash American vs

                      Italian Relation with students

                      Your own examples

                      bullIn class assignmentWith a partner discuss an instance of

                      cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                      Take 5 minutes to discuss1 person will present to the classhellip

                      Cultural Orientation Index

                      COI

                      Cultural Orientations Indicator- COI

                      NOTE

                      bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                      Homeworkndash due Wednesday for feedback or at next class

                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                      potential conflict)What could you do (style switching) to lesson the

                      potential problems

                      Handouts emails

                      1 Culture Summary document- Dimensions Orientations

                      2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                      Mini case studies

                      bullSee other slides bullUse other projectorhellip

                      Resources to learn more

                      Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                      ues-in-Brazil

                      bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                      httpwwwtmcorpcom

                      COI amp Entrepreneurship

                      Entrepreneurship and COI

                      1 Development issue Which cultural traits probably lead to more

                      entrepreneurship hence more economic development

                      Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                      2 Personal issue What style switching should you do to

                      promote entrepreneurship

                      Entrepreneurship and COI

                      1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                      2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                      on many ideas at same time3 Individualism

                      Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                      Entrepreneurship and COI4 Competitiveness

                      Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                      5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                      Entrepreneurship and COI

                      6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                      constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                      Inductive is better for big-company (systematic process) innovations

                      Deductive is better for entrepreneurs and big changes

                      7 Future orientation (time)

                      Steps to take

                      bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                      ldquostyle switchingrdquo for results4 Stay alert over time

                      Stop cultural ldquocruise controlrdquo

                      Style switching

                      bullWho should switch You ThembullConsider

                      Power relationship Buyer supplier Salesperson purchasing agent Customer client

                      Who must change Style switch

                      International IQ moment

                      What is happening in Greece - discussion

                      Athens GreeceAthens Greece ndash at the heart of a European Crisis

                      Athens Greece

                      bullWhat is happening in Greece ndash

                      Greek economy Euro Zone

                      Negatives

                      bull No control of monetary policy

                      bull Can not devalue currency to regain competitiveness

                      Positives

                      bull Low borrowing costs

                      Greek economy ndash boom years

                      httpenwikipediaorgwikiEconomy_of_Greece

                      Summary of problem + why importantbull In recent history

                      First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                      consumer demand ndash deficit spending Keynes stimulus

                      Credit continues to contract ndash less money to go around

                      Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                      External funding + current accounts

                      bullLesson from past- current account deficits = dangerous

                      bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                      This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                      It is also what happed to Greece

                      National ldquoBalance Sheetrdquo

                      bull3 Important parts (for our class discussion)

                      Current accountFlow of goods and services Roughly= exports -

                      imports

                      Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                      ReservesForeign currency gold etcUsed to finance gap between current amp capital

                      accountsldquobelow the linerdquo

                      Martin Wolf book ldquoFixing Global Financerdquo

                      Must Balance

                      If deficithellip

                      pay out reserves

                      If surplus

                      Build up reserves

                      National ldquoBalance Sheetrdquo

                      bullKey must ldquobalancerdquo

                      If ldquocurrent accountrdquo deficit

                      thenhellip by definitionhellip

                      ldquocapital accountrdquo = surplus

                      National ldquoBalance Sheetrdquo

                      bullGROUP

                      SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                      Answerhellip

                      SURPLUS Money must be coming in from abroad to

                      finance the current account deficits

                      National ldquoBalance Sheetrdquobull Buthellip

                      What happens if you do NOT have money coming in from abroad

                      Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                      Group assignment What happens What must you do (hint 3rd part of national

                      accounts mentioned before)hellip

                      Answer

                      You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                      Follow up questionWhat if you donrsquot have enough reserves Then what

                      What can you do

                      (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                      Call for help

                      bullIMFbullOr for Greecehellip call the other Euro

                      countries and ask for loans

                      bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                      Recent struggles

                      bullGreek shipping industry was hit hard by the decline in world trade

                      bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                      exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                      Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                      Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                      assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                      Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                      As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                      importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                      2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                      Fears- Contagion

                      bullThere are many other countries that are running deficits

                      bullWhat happens if credits stop fundingbullPIIGS of Europe

                      Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                      bullUS UK are the big ones

                      Other countries ndash BIGGER Debts

                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                      Other countries ndash BIGGER Debts

                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                      Other countries ndash BIGGER Debts

                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                      Other countries ndash BIGGER Debts

                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                      Other countries ndash BIGGER Debts

                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                      Seehellip

                      bullSee economist article ndash history ndash credit crunch

                      bullI will send it by email hellip and will discuss next week

                      Homework

                      Sorry

                      Homeworkndash due Wednesday for feedback or at next class

                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                      potential conflict)What could you do (style switching) to lesson the

                      potential problems

                      • Global Entrepreneurship
                      • Brian David Butler
                      • Brian David Butler (2)
                      • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                      • Exam
                      • Schedule for today
                      • New Ideas
                      • What new business ideas
                      • Also curious
                      • Global Entrepreneurship developing the global mindset for ent
                      • Why study Culture
                      • Rather than a ldquolaundry listrdquo
                      • Preview of upcoming lectures
                      • Examples to discuss
                      • Your own examples
                      • Cultural Orientation Index
                      • Cultural Orientations Indicator- COI
                      • NOTE
                      • Homeworkndash due Wednesday for feedback or at next class
                      • Handouts emails
                      • Mini case studies
                      • Resources to learn more
                      • COI amp Entrepreneurship
                      • Entrepreneurship and COI
                      • Entrepreneurship and COI (2)
                      • Entrepreneurship and COI (3)
                      • Entrepreneurship and COI (4)
                      • Steps to take
                      • Style switching
                      • International IQ moment
                      • Athens Greece
                      • Athens Greece (2)
                      • Greek economy
                      • Greek economy ndash boom years
                      • Summary of problem + why important
                      • External funding + current accounts
                      • National ldquoBalance Sheetrdquo
                      • National ldquoBalance Sheetrdquo (2)
                      • National ldquoBalance Sheetrdquo (3)
                      • Answerhellip
                      • National ldquoBalance Sheetrdquo (4)
                      • Answer
                      • Call for help
                      • Recent struggles
                      • Understanding Greek challenges
                      • Understanding Greek challenges (2)
                      • Understanding Greek challenges (3)
                      • Fears- Contagion
                      • Other countries ndash BIGGER Debts
                      • Other countries ndash BIGGER Debts (2)
                      • Other countries ndash BIGGER Debts (3)
                      • Other countries ndash BIGGER Debts (4)
                      • Other countries ndash BIGGER Debts (5)
                      • Seehellip
                      • Homework
                      • Homeworkndash due Wednesday for feedback or at next class (2)

                        Rather than a ldquolaundry listrdquo

                        bullBetter to develop a framework for analyzing cultural differences

                        bullRather than trying to memorize cultural differences for each and ever possible culture you might encounter (French German Italianhellip too difficult)

                        bullGoal ndash develop skills of HOW to look for cultural clues using a framework for analyzing culture

                        Preview of upcoming lectures

                        Cross cultural lessons will be useful when talking about

                        1 Using outsourcing to build global teams (4hww)

                        2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

                        development

                        Examples to discuss

                        bullForum-Nexus Study AbroadExample with teachers ndash American vs

                        Italian Relation with students

                        Your own examples

                        bullIn class assignmentWith a partner discuss an instance of

                        cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                        Take 5 minutes to discuss1 person will present to the classhellip

                        Cultural Orientation Index

                        COI

                        Cultural Orientations Indicator- COI

                        NOTE

                        bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                        Homeworkndash due Wednesday for feedback or at next class

                        bull Each student is to make their own COI analysisEach factor ndash what type are you

                        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                        potential conflict)What could you do (style switching) to lesson the

                        potential problems

                        Handouts emails

                        1 Culture Summary document- Dimensions Orientations

                        2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                        Mini case studies

                        bullSee other slides bullUse other projectorhellip

                        Resources to learn more

                        Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                        ues-in-Brazil

                        bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                        httpwwwtmcorpcom

                        COI amp Entrepreneurship

                        Entrepreneurship and COI

                        1 Development issue Which cultural traits probably lead to more

                        entrepreneurship hence more economic development

                        Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                        2 Personal issue What style switching should you do to

                        promote entrepreneurship

                        Entrepreneurship and COI

                        1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                        2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                        on many ideas at same time3 Individualism

                        Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                        Entrepreneurship and COI4 Competitiveness

                        Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                        5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                        Entrepreneurship and COI

                        6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                        constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                        Inductive is better for big-company (systematic process) innovations

                        Deductive is better for entrepreneurs and big changes

                        7 Future orientation (time)

                        Steps to take

                        bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                        ldquostyle switchingrdquo for results4 Stay alert over time

                        Stop cultural ldquocruise controlrdquo

                        Style switching

                        bullWho should switch You ThembullConsider

                        Power relationship Buyer supplier Salesperson purchasing agent Customer client

                        Who must change Style switch

                        International IQ moment

                        What is happening in Greece - discussion

                        Athens GreeceAthens Greece ndash at the heart of a European Crisis

                        Athens Greece

                        bullWhat is happening in Greece ndash

                        Greek economy Euro Zone

                        Negatives

                        bull No control of monetary policy

                        bull Can not devalue currency to regain competitiveness

                        Positives

                        bull Low borrowing costs

                        Greek economy ndash boom years

                        httpenwikipediaorgwikiEconomy_of_Greece

                        Summary of problem + why importantbull In recent history

                        First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                        consumer demand ndash deficit spending Keynes stimulus

                        Credit continues to contract ndash less money to go around

                        Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                        External funding + current accounts

                        bullLesson from past- current account deficits = dangerous

                        bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                        This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                        It is also what happed to Greece

                        National ldquoBalance Sheetrdquo

                        bull3 Important parts (for our class discussion)

                        Current accountFlow of goods and services Roughly= exports -

                        imports

                        Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                        ReservesForeign currency gold etcUsed to finance gap between current amp capital

                        accountsldquobelow the linerdquo

                        Martin Wolf book ldquoFixing Global Financerdquo

                        Must Balance

                        If deficithellip

                        pay out reserves

                        If surplus

                        Build up reserves

                        National ldquoBalance Sheetrdquo

                        bullKey must ldquobalancerdquo

                        If ldquocurrent accountrdquo deficit

                        thenhellip by definitionhellip

                        ldquocapital accountrdquo = surplus

                        National ldquoBalance Sheetrdquo

                        bullGROUP

                        SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                        Answerhellip

                        SURPLUS Money must be coming in from abroad to

                        finance the current account deficits

                        National ldquoBalance Sheetrdquobull Buthellip

                        What happens if you do NOT have money coming in from abroad

                        Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                        Group assignment What happens What must you do (hint 3rd part of national

                        accounts mentioned before)hellip

                        Answer

                        You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                        Follow up questionWhat if you donrsquot have enough reserves Then what

                        What can you do

                        (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                        Call for help

                        bullIMFbullOr for Greecehellip call the other Euro

                        countries and ask for loans

                        bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                        Recent struggles

                        bullGreek shipping industry was hit hard by the decline in world trade

                        bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                        exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                        Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                        Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                        assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                        Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                        As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                        importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                        2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                        Fears- Contagion

                        bullThere are many other countries that are running deficits

                        bullWhat happens if credits stop fundingbullPIIGS of Europe

                        Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                        bullUS UK are the big ones

                        Other countries ndash BIGGER Debts

                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                        Other countries ndash BIGGER Debts

                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                        Other countries ndash BIGGER Debts

                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                        Other countries ndash BIGGER Debts

                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                        Other countries ndash BIGGER Debts

                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                        Seehellip

                        bullSee economist article ndash history ndash credit crunch

                        bullI will send it by email hellip and will discuss next week

                        Homework

                        Sorry

                        Homeworkndash due Wednesday for feedback or at next class

                        bull Each student is to make their own COI analysisEach factor ndash what type are you

                        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                        potential conflict)What could you do (style switching) to lesson the

                        potential problems

                        • Global Entrepreneurship
                        • Brian David Butler
                        • Brian David Butler (2)
                        • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                        • Exam
                        • Schedule for today
                        • New Ideas
                        • What new business ideas
                        • Also curious
                        • Global Entrepreneurship developing the global mindset for ent
                        • Why study Culture
                        • Rather than a ldquolaundry listrdquo
                        • Preview of upcoming lectures
                        • Examples to discuss
                        • Your own examples
                        • Cultural Orientation Index
                        • Cultural Orientations Indicator- COI
                        • NOTE
                        • Homeworkndash due Wednesday for feedback or at next class
                        • Handouts emails
                        • Mini case studies
                        • Resources to learn more
                        • COI amp Entrepreneurship
                        • Entrepreneurship and COI
                        • Entrepreneurship and COI (2)
                        • Entrepreneurship and COI (3)
                        • Entrepreneurship and COI (4)
                        • Steps to take
                        • Style switching
                        • International IQ moment
                        • Athens Greece
                        • Athens Greece (2)
                        • Greek economy
                        • Greek economy ndash boom years
                        • Summary of problem + why important
                        • External funding + current accounts
                        • National ldquoBalance Sheetrdquo
                        • National ldquoBalance Sheetrdquo (2)
                        • National ldquoBalance Sheetrdquo (3)
                        • Answerhellip
                        • National ldquoBalance Sheetrdquo (4)
                        • Answer
                        • Call for help
                        • Recent struggles
                        • Understanding Greek challenges
                        • Understanding Greek challenges (2)
                        • Understanding Greek challenges (3)
                        • Fears- Contagion
                        • Other countries ndash BIGGER Debts
                        • Other countries ndash BIGGER Debts (2)
                        • Other countries ndash BIGGER Debts (3)
                        • Other countries ndash BIGGER Debts (4)
                        • Other countries ndash BIGGER Debts (5)
                        • Seehellip
                        • Homework
                        • Homeworkndash due Wednesday for feedback or at next class (2)

                          Preview of upcoming lectures

                          Cross cultural lessons will be useful when talking about

                          1 Using outsourcing to build global teams (4hww)

                          2 Global collaboration crowd sourcing3 Clusters entrepreneurship and

                          development

                          Examples to discuss

                          bullForum-Nexus Study AbroadExample with teachers ndash American vs

                          Italian Relation with students

                          Your own examples

                          bullIn class assignmentWith a partner discuss an instance of

                          cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                          Take 5 minutes to discuss1 person will present to the classhellip

                          Cultural Orientation Index

                          COI

                          Cultural Orientations Indicator- COI

                          NOTE

                          bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                          Homeworkndash due Wednesday for feedback or at next class

                          bull Each student is to make their own COI analysisEach factor ndash what type are you

                          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                          potential conflict)What could you do (style switching) to lesson the

                          potential problems

                          Handouts emails

                          1 Culture Summary document- Dimensions Orientations

                          2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                          Mini case studies

                          bullSee other slides bullUse other projectorhellip

                          Resources to learn more

                          Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                          ues-in-Brazil

                          bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                          httpwwwtmcorpcom

                          COI amp Entrepreneurship

                          Entrepreneurship and COI

                          1 Development issue Which cultural traits probably lead to more

                          entrepreneurship hence more economic development

                          Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                          2 Personal issue What style switching should you do to

                          promote entrepreneurship

                          Entrepreneurship and COI

                          1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                          2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                          on many ideas at same time3 Individualism

                          Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                          Entrepreneurship and COI4 Competitiveness

                          Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                          5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                          Entrepreneurship and COI

                          6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                          constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                          Inductive is better for big-company (systematic process) innovations

                          Deductive is better for entrepreneurs and big changes

                          7 Future orientation (time)

                          Steps to take

                          bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                          ldquostyle switchingrdquo for results4 Stay alert over time

                          Stop cultural ldquocruise controlrdquo

                          Style switching

                          bullWho should switch You ThembullConsider

                          Power relationship Buyer supplier Salesperson purchasing agent Customer client

                          Who must change Style switch

                          International IQ moment

                          What is happening in Greece - discussion

                          Athens GreeceAthens Greece ndash at the heart of a European Crisis

                          Athens Greece

                          bullWhat is happening in Greece ndash

                          Greek economy Euro Zone

                          Negatives

                          bull No control of monetary policy

                          bull Can not devalue currency to regain competitiveness

                          Positives

                          bull Low borrowing costs

                          Greek economy ndash boom years

                          httpenwikipediaorgwikiEconomy_of_Greece

                          Summary of problem + why importantbull In recent history

                          First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                          consumer demand ndash deficit spending Keynes stimulus

                          Credit continues to contract ndash less money to go around

                          Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                          External funding + current accounts

                          bullLesson from past- current account deficits = dangerous

                          bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                          This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                          It is also what happed to Greece

                          National ldquoBalance Sheetrdquo

                          bull3 Important parts (for our class discussion)

                          Current accountFlow of goods and services Roughly= exports -

                          imports

                          Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                          ReservesForeign currency gold etcUsed to finance gap between current amp capital

                          accountsldquobelow the linerdquo

                          Martin Wolf book ldquoFixing Global Financerdquo

                          Must Balance

                          If deficithellip

                          pay out reserves

                          If surplus

                          Build up reserves

                          National ldquoBalance Sheetrdquo

                          bullKey must ldquobalancerdquo

                          If ldquocurrent accountrdquo deficit

                          thenhellip by definitionhellip

                          ldquocapital accountrdquo = surplus

                          National ldquoBalance Sheetrdquo

                          bullGROUP

                          SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                          Answerhellip

                          SURPLUS Money must be coming in from abroad to

                          finance the current account deficits

                          National ldquoBalance Sheetrdquobull Buthellip

                          What happens if you do NOT have money coming in from abroad

                          Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                          Group assignment What happens What must you do (hint 3rd part of national

                          accounts mentioned before)hellip

                          Answer

                          You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                          Follow up questionWhat if you donrsquot have enough reserves Then what

                          What can you do

                          (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                          Call for help

                          bullIMFbullOr for Greecehellip call the other Euro

                          countries and ask for loans

                          bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                          Recent struggles

                          bullGreek shipping industry was hit hard by the decline in world trade

                          bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                          exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                          Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                          Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                          assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                          Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                          As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                          importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                          2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                          Fears- Contagion

                          bullThere are many other countries that are running deficits

                          bullWhat happens if credits stop fundingbullPIIGS of Europe

                          Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                          bullUS UK are the big ones

                          Other countries ndash BIGGER Debts

                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                          Other countries ndash BIGGER Debts

                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                          Other countries ndash BIGGER Debts

                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                          Other countries ndash BIGGER Debts

                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                          Other countries ndash BIGGER Debts

                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                          Seehellip

                          bullSee economist article ndash history ndash credit crunch

                          bullI will send it by email hellip and will discuss next week

                          Homework

                          Sorry

                          Homeworkndash due Wednesday for feedback or at next class

                          bull Each student is to make their own COI analysisEach factor ndash what type are you

                          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                          potential conflict)What could you do (style switching) to lesson the

                          potential problems

                          • Global Entrepreneurship
                          • Brian David Butler
                          • Brian David Butler (2)
                          • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                          • Exam
                          • Schedule for today
                          • New Ideas
                          • What new business ideas
                          • Also curious
                          • Global Entrepreneurship developing the global mindset for ent
                          • Why study Culture
                          • Rather than a ldquolaundry listrdquo
                          • Preview of upcoming lectures
                          • Examples to discuss
                          • Your own examples
                          • Cultural Orientation Index
                          • Cultural Orientations Indicator- COI
                          • NOTE
                          • Homeworkndash due Wednesday for feedback or at next class
                          • Handouts emails
                          • Mini case studies
                          • Resources to learn more
                          • COI amp Entrepreneurship
                          • Entrepreneurship and COI
                          • Entrepreneurship and COI (2)
                          • Entrepreneurship and COI (3)
                          • Entrepreneurship and COI (4)
                          • Steps to take
                          • Style switching
                          • International IQ moment
                          • Athens Greece
                          • Athens Greece (2)
                          • Greek economy
                          • Greek economy ndash boom years
                          • Summary of problem + why important
                          • External funding + current accounts
                          • National ldquoBalance Sheetrdquo
                          • National ldquoBalance Sheetrdquo (2)
                          • National ldquoBalance Sheetrdquo (3)
                          • Answerhellip
                          • National ldquoBalance Sheetrdquo (4)
                          • Answer
                          • Call for help
                          • Recent struggles
                          • Understanding Greek challenges
                          • Understanding Greek challenges (2)
                          • Understanding Greek challenges (3)
                          • Fears- Contagion
                          • Other countries ndash BIGGER Debts
                          • Other countries ndash BIGGER Debts (2)
                          • Other countries ndash BIGGER Debts (3)
                          • Other countries ndash BIGGER Debts (4)
                          • Other countries ndash BIGGER Debts (5)
                          • Seehellip
                          • Homework
                          • Homeworkndash due Wednesday for feedback or at next class (2)

                            Examples to discuss

                            bullForum-Nexus Study AbroadExample with teachers ndash American vs

                            Italian Relation with students

                            Your own examples

                            bullIn class assignmentWith a partner discuss an instance of

                            cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                            Take 5 minutes to discuss1 person will present to the classhellip

                            Cultural Orientation Index

                            COI

                            Cultural Orientations Indicator- COI

                            NOTE

                            bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                            Homeworkndash due Wednesday for feedback or at next class

                            bull Each student is to make their own COI analysisEach factor ndash what type are you

                            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                            potential conflict)What could you do (style switching) to lesson the

                            potential problems

                            Handouts emails

                            1 Culture Summary document- Dimensions Orientations

                            2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                            Mini case studies

                            bullSee other slides bullUse other projectorhellip

                            Resources to learn more

                            Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                            ues-in-Brazil

                            bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                            httpwwwtmcorpcom

                            COI amp Entrepreneurship

                            Entrepreneurship and COI

                            1 Development issue Which cultural traits probably lead to more

                            entrepreneurship hence more economic development

                            Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                            2 Personal issue What style switching should you do to

                            promote entrepreneurship

                            Entrepreneurship and COI

                            1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                            2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                            on many ideas at same time3 Individualism

                            Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                            Entrepreneurship and COI4 Competitiveness

                            Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                            5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                            Entrepreneurship and COI

                            6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                            constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                            Inductive is better for big-company (systematic process) innovations

                            Deductive is better for entrepreneurs and big changes

                            7 Future orientation (time)

                            Steps to take

                            bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                            ldquostyle switchingrdquo for results4 Stay alert over time

                            Stop cultural ldquocruise controlrdquo

                            Style switching

                            bullWho should switch You ThembullConsider

                            Power relationship Buyer supplier Salesperson purchasing agent Customer client

                            Who must change Style switch

                            International IQ moment

                            What is happening in Greece - discussion

                            Athens GreeceAthens Greece ndash at the heart of a European Crisis

                            Athens Greece

                            bullWhat is happening in Greece ndash

                            Greek economy Euro Zone

                            Negatives

                            bull No control of monetary policy

                            bull Can not devalue currency to regain competitiveness

                            Positives

                            bull Low borrowing costs

                            Greek economy ndash boom years

                            httpenwikipediaorgwikiEconomy_of_Greece

                            Summary of problem + why importantbull In recent history

                            First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                            consumer demand ndash deficit spending Keynes stimulus

                            Credit continues to contract ndash less money to go around

                            Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                            External funding + current accounts

                            bullLesson from past- current account deficits = dangerous

                            bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                            This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                            It is also what happed to Greece

                            National ldquoBalance Sheetrdquo

                            bull3 Important parts (for our class discussion)

                            Current accountFlow of goods and services Roughly= exports -

                            imports

                            Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                            ReservesForeign currency gold etcUsed to finance gap between current amp capital

                            accountsldquobelow the linerdquo

                            Martin Wolf book ldquoFixing Global Financerdquo

                            Must Balance

                            If deficithellip

                            pay out reserves

                            If surplus

                            Build up reserves

                            National ldquoBalance Sheetrdquo

                            bullKey must ldquobalancerdquo

                            If ldquocurrent accountrdquo deficit

                            thenhellip by definitionhellip

                            ldquocapital accountrdquo = surplus

                            National ldquoBalance Sheetrdquo

                            bullGROUP

                            SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                            Answerhellip

                            SURPLUS Money must be coming in from abroad to

                            finance the current account deficits

                            National ldquoBalance Sheetrdquobull Buthellip

                            What happens if you do NOT have money coming in from abroad

                            Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                            Group assignment What happens What must you do (hint 3rd part of national

                            accounts mentioned before)hellip

                            Answer

                            You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                            Follow up questionWhat if you donrsquot have enough reserves Then what

                            What can you do

                            (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                            Call for help

                            bullIMFbullOr for Greecehellip call the other Euro

                            countries and ask for loans

                            bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                            Recent struggles

                            bullGreek shipping industry was hit hard by the decline in world trade

                            bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                            exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                            Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                            Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                            assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                            Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                            As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                            importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                            2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                            Fears- Contagion

                            bullThere are many other countries that are running deficits

                            bullWhat happens if credits stop fundingbullPIIGS of Europe

                            Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                            bullUS UK are the big ones

                            Other countries ndash BIGGER Debts

                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                            Other countries ndash BIGGER Debts

                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                            Other countries ndash BIGGER Debts

                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                            Other countries ndash BIGGER Debts

                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                            Other countries ndash BIGGER Debts

                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                            Seehellip

                            bullSee economist article ndash history ndash credit crunch

                            bullI will send it by email hellip and will discuss next week

                            Homework

                            Sorry

                            Homeworkndash due Wednesday for feedback or at next class

                            bull Each student is to make their own COI analysisEach factor ndash what type are you

                            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                            potential conflict)What could you do (style switching) to lesson the

                            potential problems

                            • Global Entrepreneurship
                            • Brian David Butler
                            • Brian David Butler (2)
                            • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                            • Exam
                            • Schedule for today
                            • New Ideas
                            • What new business ideas
                            • Also curious
                            • Global Entrepreneurship developing the global mindset for ent
                            • Why study Culture
                            • Rather than a ldquolaundry listrdquo
                            • Preview of upcoming lectures
                            • Examples to discuss
                            • Your own examples
                            • Cultural Orientation Index
                            • Cultural Orientations Indicator- COI
                            • NOTE
                            • Homeworkndash due Wednesday for feedback or at next class
                            • Handouts emails
                            • Mini case studies
                            • Resources to learn more
                            • COI amp Entrepreneurship
                            • Entrepreneurship and COI
                            • Entrepreneurship and COI (2)
                            • Entrepreneurship and COI (3)
                            • Entrepreneurship and COI (4)
                            • Steps to take
                            • Style switching
                            • International IQ moment
                            • Athens Greece
                            • Athens Greece (2)
                            • Greek economy
                            • Greek economy ndash boom years
                            • Summary of problem + why important
                            • External funding + current accounts
                            • National ldquoBalance Sheetrdquo
                            • National ldquoBalance Sheetrdquo (2)
                            • National ldquoBalance Sheetrdquo (3)
                            • Answerhellip
                            • National ldquoBalance Sheetrdquo (4)
                            • Answer
                            • Call for help
                            • Recent struggles
                            • Understanding Greek challenges
                            • Understanding Greek challenges (2)
                            • Understanding Greek challenges (3)
                            • Fears- Contagion
                            • Other countries ndash BIGGER Debts
                            • Other countries ndash BIGGER Debts (2)
                            • Other countries ndash BIGGER Debts (3)
                            • Other countries ndash BIGGER Debts (4)
                            • Other countries ndash BIGGER Debts (5)
                            • Seehellip
                            • Homework
                            • Homeworkndash due Wednesday for feedback or at next class (2)

                              Your own examples

                              bullIn class assignmentWith a partner discuss an instance of

                              cultural misunderstanding that has personally happened to you Could this misunderstand have been avoided How

                              Take 5 minutes to discuss1 person will present to the classhellip

                              Cultural Orientation Index

                              COI

                              Cultural Orientations Indicator- COI

                              NOTE

                              bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                              Homeworkndash due Wednesday for feedback or at next class

                              bull Each student is to make their own COI analysisEach factor ndash what type are you

                              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                              potential conflict)What could you do (style switching) to lesson the

                              potential problems

                              Handouts emails

                              1 Culture Summary document- Dimensions Orientations

                              2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                              Mini case studies

                              bullSee other slides bullUse other projectorhellip

                              Resources to learn more

                              Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                              ues-in-Brazil

                              bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                              httpwwwtmcorpcom

                              COI amp Entrepreneurship

                              Entrepreneurship and COI

                              1 Development issue Which cultural traits probably lead to more

                              entrepreneurship hence more economic development

                              Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                              2 Personal issue What style switching should you do to

                              promote entrepreneurship

                              Entrepreneurship and COI

                              1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                              2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                              on many ideas at same time3 Individualism

                              Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                              Entrepreneurship and COI4 Competitiveness

                              Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                              5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                              Entrepreneurship and COI

                              6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                              constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                              Inductive is better for big-company (systematic process) innovations

                              Deductive is better for entrepreneurs and big changes

                              7 Future orientation (time)

                              Steps to take

                              bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                              ldquostyle switchingrdquo for results4 Stay alert over time

                              Stop cultural ldquocruise controlrdquo

                              Style switching

                              bullWho should switch You ThembullConsider

                              Power relationship Buyer supplier Salesperson purchasing agent Customer client

                              Who must change Style switch

                              International IQ moment

                              What is happening in Greece - discussion

                              Athens GreeceAthens Greece ndash at the heart of a European Crisis

                              Athens Greece

                              bullWhat is happening in Greece ndash

                              Greek economy Euro Zone

                              Negatives

                              bull No control of monetary policy

                              bull Can not devalue currency to regain competitiveness

                              Positives

                              bull Low borrowing costs

                              Greek economy ndash boom years

                              httpenwikipediaorgwikiEconomy_of_Greece

                              Summary of problem + why importantbull In recent history

                              First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                              consumer demand ndash deficit spending Keynes stimulus

                              Credit continues to contract ndash less money to go around

                              Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                              External funding + current accounts

                              bullLesson from past- current account deficits = dangerous

                              bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                              This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                              It is also what happed to Greece

                              National ldquoBalance Sheetrdquo

                              bull3 Important parts (for our class discussion)

                              Current accountFlow of goods and services Roughly= exports -

                              imports

                              Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                              ReservesForeign currency gold etcUsed to finance gap between current amp capital

                              accountsldquobelow the linerdquo

                              Martin Wolf book ldquoFixing Global Financerdquo

                              Must Balance

                              If deficithellip

                              pay out reserves

                              If surplus

                              Build up reserves

                              National ldquoBalance Sheetrdquo

                              bullKey must ldquobalancerdquo

                              If ldquocurrent accountrdquo deficit

                              thenhellip by definitionhellip

                              ldquocapital accountrdquo = surplus

                              National ldquoBalance Sheetrdquo

                              bullGROUP

                              SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                              Answerhellip

                              SURPLUS Money must be coming in from abroad to

                              finance the current account deficits

                              National ldquoBalance Sheetrdquobull Buthellip

                              What happens if you do NOT have money coming in from abroad

                              Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                              Group assignment What happens What must you do (hint 3rd part of national

                              accounts mentioned before)hellip

                              Answer

                              You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                              Follow up questionWhat if you donrsquot have enough reserves Then what

                              What can you do

                              (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                              Call for help

                              bullIMFbullOr for Greecehellip call the other Euro

                              countries and ask for loans

                              bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                              Recent struggles

                              bullGreek shipping industry was hit hard by the decline in world trade

                              bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                              exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                              Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                              Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                              assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                              Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                              As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                              importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                              2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                              Fears- Contagion

                              bullThere are many other countries that are running deficits

                              bullWhat happens if credits stop fundingbullPIIGS of Europe

                              Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                              bullUS UK are the big ones

                              Other countries ndash BIGGER Debts

                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                              Other countries ndash BIGGER Debts

                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                              Other countries ndash BIGGER Debts

                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                              Other countries ndash BIGGER Debts

                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                              Other countries ndash BIGGER Debts

                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                              Seehellip

                              bullSee economist article ndash history ndash credit crunch

                              bullI will send it by email hellip and will discuss next week

                              Homework

                              Sorry

                              Homeworkndash due Wednesday for feedback or at next class

                              bull Each student is to make their own COI analysisEach factor ndash what type are you

                              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                              potential conflict)What could you do (style switching) to lesson the

                              potential problems

                              • Global Entrepreneurship
                              • Brian David Butler
                              • Brian David Butler (2)
                              • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                              • Exam
                              • Schedule for today
                              • New Ideas
                              • What new business ideas
                              • Also curious
                              • Global Entrepreneurship developing the global mindset for ent
                              • Why study Culture
                              • Rather than a ldquolaundry listrdquo
                              • Preview of upcoming lectures
                              • Examples to discuss
                              • Your own examples
                              • Cultural Orientation Index
                              • Cultural Orientations Indicator- COI
                              • NOTE
                              • Homeworkndash due Wednesday for feedback or at next class
                              • Handouts emails
                              • Mini case studies
                              • Resources to learn more
                              • COI amp Entrepreneurship
                              • Entrepreneurship and COI
                              • Entrepreneurship and COI (2)
                              • Entrepreneurship and COI (3)
                              • Entrepreneurship and COI (4)
                              • Steps to take
                              • Style switching
                              • International IQ moment
                              • Athens Greece
                              • Athens Greece (2)
                              • Greek economy
                              • Greek economy ndash boom years
                              • Summary of problem + why important
                              • External funding + current accounts
                              • National ldquoBalance Sheetrdquo
                              • National ldquoBalance Sheetrdquo (2)
                              • National ldquoBalance Sheetrdquo (3)
                              • Answerhellip
                              • National ldquoBalance Sheetrdquo (4)
                              • Answer
                              • Call for help
                              • Recent struggles
                              • Understanding Greek challenges
                              • Understanding Greek challenges (2)
                              • Understanding Greek challenges (3)
                              • Fears- Contagion
                              • Other countries ndash BIGGER Debts
                              • Other countries ndash BIGGER Debts (2)
                              • Other countries ndash BIGGER Debts (3)
                              • Other countries ndash BIGGER Debts (4)
                              • Other countries ndash BIGGER Debts (5)
                              • Seehellip
                              • Homework
                              • Homeworkndash due Wednesday for feedback or at next class (2)

                                Cultural Orientation Index

                                COI

                                Cultural Orientations Indicator- COI

                                NOTE

                                bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                                Homeworkndash due Wednesday for feedback or at next class

                                bull Each student is to make their own COI analysisEach factor ndash what type are you

                                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                potential conflict)What could you do (style switching) to lesson the

                                potential problems

                                Handouts emails

                                1 Culture Summary document- Dimensions Orientations

                                2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                                Mini case studies

                                bullSee other slides bullUse other projectorhellip

                                Resources to learn more

                                Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                                ues-in-Brazil

                                bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                                httpwwwtmcorpcom

                                COI amp Entrepreneurship

                                Entrepreneurship and COI

                                1 Development issue Which cultural traits probably lead to more

                                entrepreneurship hence more economic development

                                Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                2 Personal issue What style switching should you do to

                                promote entrepreneurship

                                Entrepreneurship and COI

                                1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                on many ideas at same time3 Individualism

                                Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                Entrepreneurship and COI4 Competitiveness

                                Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                Entrepreneurship and COI

                                6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                Inductive is better for big-company (systematic process) innovations

                                Deductive is better for entrepreneurs and big changes

                                7 Future orientation (time)

                                Steps to take

                                bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                ldquostyle switchingrdquo for results4 Stay alert over time

                                Stop cultural ldquocruise controlrdquo

                                Style switching

                                bullWho should switch You ThembullConsider

                                Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                Who must change Style switch

                                International IQ moment

                                What is happening in Greece - discussion

                                Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                Athens Greece

                                bullWhat is happening in Greece ndash

                                Greek economy Euro Zone

                                Negatives

                                bull No control of monetary policy

                                bull Can not devalue currency to regain competitiveness

                                Positives

                                bull Low borrowing costs

                                Greek economy ndash boom years

                                httpenwikipediaorgwikiEconomy_of_Greece

                                Summary of problem + why importantbull In recent history

                                First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                consumer demand ndash deficit spending Keynes stimulus

                                Credit continues to contract ndash less money to go around

                                Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                External funding + current accounts

                                bullLesson from past- current account deficits = dangerous

                                bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                It is also what happed to Greece

                                National ldquoBalance Sheetrdquo

                                bull3 Important parts (for our class discussion)

                                Current accountFlow of goods and services Roughly= exports -

                                imports

                                Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                accountsldquobelow the linerdquo

                                Martin Wolf book ldquoFixing Global Financerdquo

                                Must Balance

                                If deficithellip

                                pay out reserves

                                If surplus

                                Build up reserves

                                National ldquoBalance Sheetrdquo

                                bullKey must ldquobalancerdquo

                                If ldquocurrent accountrdquo deficit

                                thenhellip by definitionhellip

                                ldquocapital accountrdquo = surplus

                                National ldquoBalance Sheetrdquo

                                bullGROUP

                                SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                Answerhellip

                                SURPLUS Money must be coming in from abroad to

                                finance the current account deficits

                                National ldquoBalance Sheetrdquobull Buthellip

                                What happens if you do NOT have money coming in from abroad

                                Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                Group assignment What happens What must you do (hint 3rd part of national

                                accounts mentioned before)hellip

                                Answer

                                You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                Follow up questionWhat if you donrsquot have enough reserves Then what

                                What can you do

                                (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                Call for help

                                bullIMFbullOr for Greecehellip call the other Euro

                                countries and ask for loans

                                bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                Recent struggles

                                bullGreek shipping industry was hit hard by the decline in world trade

                                bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                Fears- Contagion

                                bullThere are many other countries that are running deficits

                                bullWhat happens if credits stop fundingbullPIIGS of Europe

                                Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                bullUS UK are the big ones

                                Other countries ndash BIGGER Debts

                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                Other countries ndash BIGGER Debts

                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                Other countries ndash BIGGER Debts

                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                Other countries ndash BIGGER Debts

                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                Other countries ndash BIGGER Debts

                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                Seehellip

                                bullSee economist article ndash history ndash credit crunch

                                bullI will send it by email hellip and will discuss next week

                                Homework

                                Sorry

                                Homeworkndash due Wednesday for feedback or at next class

                                bull Each student is to make their own COI analysisEach factor ndash what type are you

                                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                potential conflict)What could you do (style switching) to lesson the

                                potential problems

                                • Global Entrepreneurship
                                • Brian David Butler
                                • Brian David Butler (2)
                                • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                • Exam
                                • Schedule for today
                                • New Ideas
                                • What new business ideas
                                • Also curious
                                • Global Entrepreneurship developing the global mindset for ent
                                • Why study Culture
                                • Rather than a ldquolaundry listrdquo
                                • Preview of upcoming lectures
                                • Examples to discuss
                                • Your own examples
                                • Cultural Orientation Index
                                • Cultural Orientations Indicator- COI
                                • NOTE
                                • Homeworkndash due Wednesday for feedback or at next class
                                • Handouts emails
                                • Mini case studies
                                • Resources to learn more
                                • COI amp Entrepreneurship
                                • Entrepreneurship and COI
                                • Entrepreneurship and COI (2)
                                • Entrepreneurship and COI (3)
                                • Entrepreneurship and COI (4)
                                • Steps to take
                                • Style switching
                                • International IQ moment
                                • Athens Greece
                                • Athens Greece (2)
                                • Greek economy
                                • Greek economy ndash boom years
                                • Summary of problem + why important
                                • External funding + current accounts
                                • National ldquoBalance Sheetrdquo
                                • National ldquoBalance Sheetrdquo (2)
                                • National ldquoBalance Sheetrdquo (3)
                                • Answerhellip
                                • National ldquoBalance Sheetrdquo (4)
                                • Answer
                                • Call for help
                                • Recent struggles
                                • Understanding Greek challenges
                                • Understanding Greek challenges (2)
                                • Understanding Greek challenges (3)
                                • Fears- Contagion
                                • Other countries ndash BIGGER Debts
                                • Other countries ndash BIGGER Debts (2)
                                • Other countries ndash BIGGER Debts (3)
                                • Other countries ndash BIGGER Debts (4)
                                • Other countries ndash BIGGER Debts (5)
                                • Seehellip
                                • Homework
                                • Homeworkndash due Wednesday for feedback or at next class (2)

                                  Cultural Orientations Indicator- COI

                                  NOTE

                                  bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                                  Homeworkndash due Wednesday for feedback or at next class

                                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                  potential conflict)What could you do (style switching) to lesson the

                                  potential problems

                                  Handouts emails

                                  1 Culture Summary document- Dimensions Orientations

                                  2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                                  Mini case studies

                                  bullSee other slides bullUse other projectorhellip

                                  Resources to learn more

                                  Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                                  ues-in-Brazil

                                  bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                                  httpwwwtmcorpcom

                                  COI amp Entrepreneurship

                                  Entrepreneurship and COI

                                  1 Development issue Which cultural traits probably lead to more

                                  entrepreneurship hence more economic development

                                  Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                  2 Personal issue What style switching should you do to

                                  promote entrepreneurship

                                  Entrepreneurship and COI

                                  1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                  2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                  on many ideas at same time3 Individualism

                                  Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                  Entrepreneurship and COI4 Competitiveness

                                  Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                  5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                  Entrepreneurship and COI

                                  6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                  constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                  Inductive is better for big-company (systematic process) innovations

                                  Deductive is better for entrepreneurs and big changes

                                  7 Future orientation (time)

                                  Steps to take

                                  bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                  ldquostyle switchingrdquo for results4 Stay alert over time

                                  Stop cultural ldquocruise controlrdquo

                                  Style switching

                                  bullWho should switch You ThembullConsider

                                  Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                  Who must change Style switch

                                  International IQ moment

                                  What is happening in Greece - discussion

                                  Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                  Athens Greece

                                  bullWhat is happening in Greece ndash

                                  Greek economy Euro Zone

                                  Negatives

                                  bull No control of monetary policy

                                  bull Can not devalue currency to regain competitiveness

                                  Positives

                                  bull Low borrowing costs

                                  Greek economy ndash boom years

                                  httpenwikipediaorgwikiEconomy_of_Greece

                                  Summary of problem + why importantbull In recent history

                                  First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                  consumer demand ndash deficit spending Keynes stimulus

                                  Credit continues to contract ndash less money to go around

                                  Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                  External funding + current accounts

                                  bullLesson from past- current account deficits = dangerous

                                  bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                  This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                  It is also what happed to Greece

                                  National ldquoBalance Sheetrdquo

                                  bull3 Important parts (for our class discussion)

                                  Current accountFlow of goods and services Roughly= exports -

                                  imports

                                  Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                  ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                  accountsldquobelow the linerdquo

                                  Martin Wolf book ldquoFixing Global Financerdquo

                                  Must Balance

                                  If deficithellip

                                  pay out reserves

                                  If surplus

                                  Build up reserves

                                  National ldquoBalance Sheetrdquo

                                  bullKey must ldquobalancerdquo

                                  If ldquocurrent accountrdquo deficit

                                  thenhellip by definitionhellip

                                  ldquocapital accountrdquo = surplus

                                  National ldquoBalance Sheetrdquo

                                  bullGROUP

                                  SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                  Answerhellip

                                  SURPLUS Money must be coming in from abroad to

                                  finance the current account deficits

                                  National ldquoBalance Sheetrdquobull Buthellip

                                  What happens if you do NOT have money coming in from abroad

                                  Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                  Group assignment What happens What must you do (hint 3rd part of national

                                  accounts mentioned before)hellip

                                  Answer

                                  You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                  Follow up questionWhat if you donrsquot have enough reserves Then what

                                  What can you do

                                  (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                  Call for help

                                  bullIMFbullOr for Greecehellip call the other Euro

                                  countries and ask for loans

                                  bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                  Recent struggles

                                  bullGreek shipping industry was hit hard by the decline in world trade

                                  bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                  exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                  Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                  Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                  assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                  Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                  As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                  importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                  2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                  Fears- Contagion

                                  bullThere are many other countries that are running deficits

                                  bullWhat happens if credits stop fundingbullPIIGS of Europe

                                  Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                  bullUS UK are the big ones

                                  Other countries ndash BIGGER Debts

                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                  Other countries ndash BIGGER Debts

                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                  Other countries ndash BIGGER Debts

                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                  Other countries ndash BIGGER Debts

                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                  Other countries ndash BIGGER Debts

                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                  Seehellip

                                  bullSee economist article ndash history ndash credit crunch

                                  bullI will send it by email hellip and will discuss next week

                                  Homework

                                  Sorry

                                  Homeworkndash due Wednesday for feedback or at next class

                                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                  potential conflict)What could you do (style switching) to lesson the

                                  potential problems

                                  • Global Entrepreneurship
                                  • Brian David Butler
                                  • Brian David Butler (2)
                                  • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                  • Exam
                                  • Schedule for today
                                  • New Ideas
                                  • What new business ideas
                                  • Also curious
                                  • Global Entrepreneurship developing the global mindset for ent
                                  • Why study Culture
                                  • Rather than a ldquolaundry listrdquo
                                  • Preview of upcoming lectures
                                  • Examples to discuss
                                  • Your own examples
                                  • Cultural Orientation Index
                                  • Cultural Orientations Indicator- COI
                                  • NOTE
                                  • Homeworkndash due Wednesday for feedback or at next class
                                  • Handouts emails
                                  • Mini case studies
                                  • Resources to learn more
                                  • COI amp Entrepreneurship
                                  • Entrepreneurship and COI
                                  • Entrepreneurship and COI (2)
                                  • Entrepreneurship and COI (3)
                                  • Entrepreneurship and COI (4)
                                  • Steps to take
                                  • Style switching
                                  • International IQ moment
                                  • Athens Greece
                                  • Athens Greece (2)
                                  • Greek economy
                                  • Greek economy ndash boom years
                                  • Summary of problem + why important
                                  • External funding + current accounts
                                  • National ldquoBalance Sheetrdquo
                                  • National ldquoBalance Sheetrdquo (2)
                                  • National ldquoBalance Sheetrdquo (3)
                                  • Answerhellip
                                  • National ldquoBalance Sheetrdquo (4)
                                  • Answer
                                  • Call for help
                                  • Recent struggles
                                  • Understanding Greek challenges
                                  • Understanding Greek challenges (2)
                                  • Understanding Greek challenges (3)
                                  • Fears- Contagion
                                  • Other countries ndash BIGGER Debts
                                  • Other countries ndash BIGGER Debts (2)
                                  • Other countries ndash BIGGER Debts (3)
                                  • Other countries ndash BIGGER Debts (4)
                                  • Other countries ndash BIGGER Debts (5)
                                  • Seehellip
                                  • Homework
                                  • Homeworkndash due Wednesday for feedback or at next class (2)

                                    NOTE

                                    bullOne thing we need to remember is that cultures are never exclusively one or the other cultures will likely be one and the other but with a clear tendency toward one of these two extremes

                                    Homeworkndash due Wednesday for feedback or at next class

                                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                    potential conflict)What could you do (style switching) to lesson the

                                    potential problems

                                    Handouts emails

                                    1 Culture Summary document- Dimensions Orientations

                                    2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                                    Mini case studies

                                    bullSee other slides bullUse other projectorhellip

                                    Resources to learn more

                                    Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                                    ues-in-Brazil

                                    bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                                    httpwwwtmcorpcom

                                    COI amp Entrepreneurship

                                    Entrepreneurship and COI

                                    1 Development issue Which cultural traits probably lead to more

                                    entrepreneurship hence more economic development

                                    Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                    2 Personal issue What style switching should you do to

                                    promote entrepreneurship

                                    Entrepreneurship and COI

                                    1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                    2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                    on many ideas at same time3 Individualism

                                    Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                    Entrepreneurship and COI4 Competitiveness

                                    Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                    5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                    Entrepreneurship and COI

                                    6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                    constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                    Inductive is better for big-company (systematic process) innovations

                                    Deductive is better for entrepreneurs and big changes

                                    7 Future orientation (time)

                                    Steps to take

                                    bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                    ldquostyle switchingrdquo for results4 Stay alert over time

                                    Stop cultural ldquocruise controlrdquo

                                    Style switching

                                    bullWho should switch You ThembullConsider

                                    Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                    Who must change Style switch

                                    International IQ moment

                                    What is happening in Greece - discussion

                                    Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                    Athens Greece

                                    bullWhat is happening in Greece ndash

                                    Greek economy Euro Zone

                                    Negatives

                                    bull No control of monetary policy

                                    bull Can not devalue currency to regain competitiveness

                                    Positives

                                    bull Low borrowing costs

                                    Greek economy ndash boom years

                                    httpenwikipediaorgwikiEconomy_of_Greece

                                    Summary of problem + why importantbull In recent history

                                    First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                    consumer demand ndash deficit spending Keynes stimulus

                                    Credit continues to contract ndash less money to go around

                                    Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                    External funding + current accounts

                                    bullLesson from past- current account deficits = dangerous

                                    bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                    This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                    It is also what happed to Greece

                                    National ldquoBalance Sheetrdquo

                                    bull3 Important parts (for our class discussion)

                                    Current accountFlow of goods and services Roughly= exports -

                                    imports

                                    Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                    ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                    accountsldquobelow the linerdquo

                                    Martin Wolf book ldquoFixing Global Financerdquo

                                    Must Balance

                                    If deficithellip

                                    pay out reserves

                                    If surplus

                                    Build up reserves

                                    National ldquoBalance Sheetrdquo

                                    bullKey must ldquobalancerdquo

                                    If ldquocurrent accountrdquo deficit

                                    thenhellip by definitionhellip

                                    ldquocapital accountrdquo = surplus

                                    National ldquoBalance Sheetrdquo

                                    bullGROUP

                                    SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                    Answerhellip

                                    SURPLUS Money must be coming in from abroad to

                                    finance the current account deficits

                                    National ldquoBalance Sheetrdquobull Buthellip

                                    What happens if you do NOT have money coming in from abroad

                                    Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                    Group assignment What happens What must you do (hint 3rd part of national

                                    accounts mentioned before)hellip

                                    Answer

                                    You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                    Follow up questionWhat if you donrsquot have enough reserves Then what

                                    What can you do

                                    (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                    Call for help

                                    bullIMFbullOr for Greecehellip call the other Euro

                                    countries and ask for loans

                                    bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                    Recent struggles

                                    bullGreek shipping industry was hit hard by the decline in world trade

                                    bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                    exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                    Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                    Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                    assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                    Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                    As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                    importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                    2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                    Fears- Contagion

                                    bullThere are many other countries that are running deficits

                                    bullWhat happens if credits stop fundingbullPIIGS of Europe

                                    Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                    bullUS UK are the big ones

                                    Other countries ndash BIGGER Debts

                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                    Other countries ndash BIGGER Debts

                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                    Other countries ndash BIGGER Debts

                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                    Other countries ndash BIGGER Debts

                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                    Other countries ndash BIGGER Debts

                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                    Seehellip

                                    bullSee economist article ndash history ndash credit crunch

                                    bullI will send it by email hellip and will discuss next week

                                    Homework

                                    Sorry

                                    Homeworkndash due Wednesday for feedback or at next class

                                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                    potential conflict)What could you do (style switching) to lesson the

                                    potential problems

                                    • Global Entrepreneurship
                                    • Brian David Butler
                                    • Brian David Butler (2)
                                    • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                    • Exam
                                    • Schedule for today
                                    • New Ideas
                                    • What new business ideas
                                    • Also curious
                                    • Global Entrepreneurship developing the global mindset for ent
                                    • Why study Culture
                                    • Rather than a ldquolaundry listrdquo
                                    • Preview of upcoming lectures
                                    • Examples to discuss
                                    • Your own examples
                                    • Cultural Orientation Index
                                    • Cultural Orientations Indicator- COI
                                    • NOTE
                                    • Homeworkndash due Wednesday for feedback or at next class
                                    • Handouts emails
                                    • Mini case studies
                                    • Resources to learn more
                                    • COI amp Entrepreneurship
                                    • Entrepreneurship and COI
                                    • Entrepreneurship and COI (2)
                                    • Entrepreneurship and COI (3)
                                    • Entrepreneurship and COI (4)
                                    • Steps to take
                                    • Style switching
                                    • International IQ moment
                                    • Athens Greece
                                    • Athens Greece (2)
                                    • Greek economy
                                    • Greek economy ndash boom years
                                    • Summary of problem + why important
                                    • External funding + current accounts
                                    • National ldquoBalance Sheetrdquo
                                    • National ldquoBalance Sheetrdquo (2)
                                    • National ldquoBalance Sheetrdquo (3)
                                    • Answerhellip
                                    • National ldquoBalance Sheetrdquo (4)
                                    • Answer
                                    • Call for help
                                    • Recent struggles
                                    • Understanding Greek challenges
                                    • Understanding Greek challenges (2)
                                    • Understanding Greek challenges (3)
                                    • Fears- Contagion
                                    • Other countries ndash BIGGER Debts
                                    • Other countries ndash BIGGER Debts (2)
                                    • Other countries ndash BIGGER Debts (3)
                                    • Other countries ndash BIGGER Debts (4)
                                    • Other countries ndash BIGGER Debts (5)
                                    • Seehellip
                                    • Homework
                                    • Homeworkndash due Wednesday for feedback or at next class (2)

                                      Homeworkndash due Wednesday for feedback or at next class

                                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                      potential conflict)What could you do (style switching) to lesson the

                                      potential problems

                                      Handouts emails

                                      1 Culture Summary document- Dimensions Orientations

                                      2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                                      Mini case studies

                                      bullSee other slides bullUse other projectorhellip

                                      Resources to learn more

                                      Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                                      ues-in-Brazil

                                      bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                                      httpwwwtmcorpcom

                                      COI amp Entrepreneurship

                                      Entrepreneurship and COI

                                      1 Development issue Which cultural traits probably lead to more

                                      entrepreneurship hence more economic development

                                      Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                      2 Personal issue What style switching should you do to

                                      promote entrepreneurship

                                      Entrepreneurship and COI

                                      1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                      2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                      on many ideas at same time3 Individualism

                                      Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                      Entrepreneurship and COI4 Competitiveness

                                      Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                      5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                      Entrepreneurship and COI

                                      6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                      constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                      Inductive is better for big-company (systematic process) innovations

                                      Deductive is better for entrepreneurs and big changes

                                      7 Future orientation (time)

                                      Steps to take

                                      bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                      ldquostyle switchingrdquo for results4 Stay alert over time

                                      Stop cultural ldquocruise controlrdquo

                                      Style switching

                                      bullWho should switch You ThembullConsider

                                      Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                      Who must change Style switch

                                      International IQ moment

                                      What is happening in Greece - discussion

                                      Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                      Athens Greece

                                      bullWhat is happening in Greece ndash

                                      Greek economy Euro Zone

                                      Negatives

                                      bull No control of monetary policy

                                      bull Can not devalue currency to regain competitiveness

                                      Positives

                                      bull Low borrowing costs

                                      Greek economy ndash boom years

                                      httpenwikipediaorgwikiEconomy_of_Greece

                                      Summary of problem + why importantbull In recent history

                                      First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                      consumer demand ndash deficit spending Keynes stimulus

                                      Credit continues to contract ndash less money to go around

                                      Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                      External funding + current accounts

                                      bullLesson from past- current account deficits = dangerous

                                      bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                      This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                      It is also what happed to Greece

                                      National ldquoBalance Sheetrdquo

                                      bull3 Important parts (for our class discussion)

                                      Current accountFlow of goods and services Roughly= exports -

                                      imports

                                      Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                      ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                      accountsldquobelow the linerdquo

                                      Martin Wolf book ldquoFixing Global Financerdquo

                                      Must Balance

                                      If deficithellip

                                      pay out reserves

                                      If surplus

                                      Build up reserves

                                      National ldquoBalance Sheetrdquo

                                      bullKey must ldquobalancerdquo

                                      If ldquocurrent accountrdquo deficit

                                      thenhellip by definitionhellip

                                      ldquocapital accountrdquo = surplus

                                      National ldquoBalance Sheetrdquo

                                      bullGROUP

                                      SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                      Answerhellip

                                      SURPLUS Money must be coming in from abroad to

                                      finance the current account deficits

                                      National ldquoBalance Sheetrdquobull Buthellip

                                      What happens if you do NOT have money coming in from abroad

                                      Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                      Group assignment What happens What must you do (hint 3rd part of national

                                      accounts mentioned before)hellip

                                      Answer

                                      You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                      Follow up questionWhat if you donrsquot have enough reserves Then what

                                      What can you do

                                      (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                      Call for help

                                      bullIMFbullOr for Greecehellip call the other Euro

                                      countries and ask for loans

                                      bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                      Recent struggles

                                      bullGreek shipping industry was hit hard by the decline in world trade

                                      bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                      exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                      Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                      Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                      assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                      Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                      As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                      importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                      2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                      Fears- Contagion

                                      bullThere are many other countries that are running deficits

                                      bullWhat happens if credits stop fundingbullPIIGS of Europe

                                      Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                      bullUS UK are the big ones

                                      Other countries ndash BIGGER Debts

                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                      Other countries ndash BIGGER Debts

                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                      Other countries ndash BIGGER Debts

                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                      Other countries ndash BIGGER Debts

                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                      Other countries ndash BIGGER Debts

                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                      Seehellip

                                      bullSee economist article ndash history ndash credit crunch

                                      bullI will send it by email hellip and will discuss next week

                                      Homework

                                      Sorry

                                      Homeworkndash due Wednesday for feedback or at next class

                                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                      potential conflict)What could you do (style switching) to lesson the

                                      potential problems

                                      • Global Entrepreneurship
                                      • Brian David Butler
                                      • Brian David Butler (2)
                                      • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                      • Exam
                                      • Schedule for today
                                      • New Ideas
                                      • What new business ideas
                                      • Also curious
                                      • Global Entrepreneurship developing the global mindset for ent
                                      • Why study Culture
                                      • Rather than a ldquolaundry listrdquo
                                      • Preview of upcoming lectures
                                      • Examples to discuss
                                      • Your own examples
                                      • Cultural Orientation Index
                                      • Cultural Orientations Indicator- COI
                                      • NOTE
                                      • Homeworkndash due Wednesday for feedback or at next class
                                      • Handouts emails
                                      • Mini case studies
                                      • Resources to learn more
                                      • COI amp Entrepreneurship
                                      • Entrepreneurship and COI
                                      • Entrepreneurship and COI (2)
                                      • Entrepreneurship and COI (3)
                                      • Entrepreneurship and COI (4)
                                      • Steps to take
                                      • Style switching
                                      • International IQ moment
                                      • Athens Greece
                                      • Athens Greece (2)
                                      • Greek economy
                                      • Greek economy ndash boom years
                                      • Summary of problem + why important
                                      • External funding + current accounts
                                      • National ldquoBalance Sheetrdquo
                                      • National ldquoBalance Sheetrdquo (2)
                                      • National ldquoBalance Sheetrdquo (3)
                                      • Answerhellip
                                      • National ldquoBalance Sheetrdquo (4)
                                      • Answer
                                      • Call for help
                                      • Recent struggles
                                      • Understanding Greek challenges
                                      • Understanding Greek challenges (2)
                                      • Understanding Greek challenges (3)
                                      • Fears- Contagion
                                      • Other countries ndash BIGGER Debts
                                      • Other countries ndash BIGGER Debts (2)
                                      • Other countries ndash BIGGER Debts (3)
                                      • Other countries ndash BIGGER Debts (4)
                                      • Other countries ndash BIGGER Debts (5)
                                      • Seehellip
                                      • Homework
                                      • Homeworkndash due Wednesday for feedback or at next class (2)

                                        Handouts emails

                                        1 Culture Summary document- Dimensions Orientations

                                        2 Excel spreadsheet ndash COI comparison of Canada USA Mexico

                                        Mini case studies

                                        bullSee other slides bullUse other projectorhellip

                                        Resources to learn more

                                        Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                                        ues-in-Brazil

                                        bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                                        httpwwwtmcorpcom

                                        COI amp Entrepreneurship

                                        Entrepreneurship and COI

                                        1 Development issue Which cultural traits probably lead to more

                                        entrepreneurship hence more economic development

                                        Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                        2 Personal issue What style switching should you do to

                                        promote entrepreneurship

                                        Entrepreneurship and COI

                                        1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                        2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                        on many ideas at same time3 Individualism

                                        Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                        Entrepreneurship and COI4 Competitiveness

                                        Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                        5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                        Entrepreneurship and COI

                                        6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                        constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                        Inductive is better for big-company (systematic process) innovations

                                        Deductive is better for entrepreneurs and big changes

                                        7 Future orientation (time)

                                        Steps to take

                                        bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                        ldquostyle switchingrdquo for results4 Stay alert over time

                                        Stop cultural ldquocruise controlrdquo

                                        Style switching

                                        bullWho should switch You ThembullConsider

                                        Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                        Who must change Style switch

                                        International IQ moment

                                        What is happening in Greece - discussion

                                        Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                        Athens Greece

                                        bullWhat is happening in Greece ndash

                                        Greek economy Euro Zone

                                        Negatives

                                        bull No control of monetary policy

                                        bull Can not devalue currency to regain competitiveness

                                        Positives

                                        bull Low borrowing costs

                                        Greek economy ndash boom years

                                        httpenwikipediaorgwikiEconomy_of_Greece

                                        Summary of problem + why importantbull In recent history

                                        First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                        consumer demand ndash deficit spending Keynes stimulus

                                        Credit continues to contract ndash less money to go around

                                        Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                        External funding + current accounts

                                        bullLesson from past- current account deficits = dangerous

                                        bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                        This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                        It is also what happed to Greece

                                        National ldquoBalance Sheetrdquo

                                        bull3 Important parts (for our class discussion)

                                        Current accountFlow of goods and services Roughly= exports -

                                        imports

                                        Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                        ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                        accountsldquobelow the linerdquo

                                        Martin Wolf book ldquoFixing Global Financerdquo

                                        Must Balance

                                        If deficithellip

                                        pay out reserves

                                        If surplus

                                        Build up reserves

                                        National ldquoBalance Sheetrdquo

                                        bullKey must ldquobalancerdquo

                                        If ldquocurrent accountrdquo deficit

                                        thenhellip by definitionhellip

                                        ldquocapital accountrdquo = surplus

                                        National ldquoBalance Sheetrdquo

                                        bullGROUP

                                        SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                        Answerhellip

                                        SURPLUS Money must be coming in from abroad to

                                        finance the current account deficits

                                        National ldquoBalance Sheetrdquobull Buthellip

                                        What happens if you do NOT have money coming in from abroad

                                        Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                        Group assignment What happens What must you do (hint 3rd part of national

                                        accounts mentioned before)hellip

                                        Answer

                                        You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                        Follow up questionWhat if you donrsquot have enough reserves Then what

                                        What can you do

                                        (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                        Call for help

                                        bullIMFbullOr for Greecehellip call the other Euro

                                        countries and ask for loans

                                        bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                        Recent struggles

                                        bullGreek shipping industry was hit hard by the decline in world trade

                                        bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                        exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                        Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                        Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                        assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                        Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                        As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                        importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                        2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                        Fears- Contagion

                                        bullThere are many other countries that are running deficits

                                        bullWhat happens if credits stop fundingbullPIIGS of Europe

                                        Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                        bullUS UK are the big ones

                                        Other countries ndash BIGGER Debts

                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                        Other countries ndash BIGGER Debts

                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                        Other countries ndash BIGGER Debts

                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                        Other countries ndash BIGGER Debts

                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                        Other countries ndash BIGGER Debts

                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                        Seehellip

                                        bullSee economist article ndash history ndash credit crunch

                                        bullI will send it by email hellip and will discuss next week

                                        Homework

                                        Sorry

                                        Homeworkndash due Wednesday for feedback or at next class

                                        bull Each student is to make their own COI analysisEach factor ndash what type are you

                                        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                        potential conflict)What could you do (style switching) to lesson the

                                        potential problems

                                        • Global Entrepreneurship
                                        • Brian David Butler
                                        • Brian David Butler (2)
                                        • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                        • Exam
                                        • Schedule for today
                                        • New Ideas
                                        • What new business ideas
                                        • Also curious
                                        • Global Entrepreneurship developing the global mindset for ent
                                        • Why study Culture
                                        • Rather than a ldquolaundry listrdquo
                                        • Preview of upcoming lectures
                                        • Examples to discuss
                                        • Your own examples
                                        • Cultural Orientation Index
                                        • Cultural Orientations Indicator- COI
                                        • NOTE
                                        • Homeworkndash due Wednesday for feedback or at next class
                                        • Handouts emails
                                        • Mini case studies
                                        • Resources to learn more
                                        • COI amp Entrepreneurship
                                        • Entrepreneurship and COI
                                        • Entrepreneurship and COI (2)
                                        • Entrepreneurship and COI (3)
                                        • Entrepreneurship and COI (4)
                                        • Steps to take
                                        • Style switching
                                        • International IQ moment
                                        • Athens Greece
                                        • Athens Greece (2)
                                        • Greek economy
                                        • Greek economy ndash boom years
                                        • Summary of problem + why important
                                        • External funding + current accounts
                                        • National ldquoBalance Sheetrdquo
                                        • National ldquoBalance Sheetrdquo (2)
                                        • National ldquoBalance Sheetrdquo (3)
                                        • Answerhellip
                                        • National ldquoBalance Sheetrdquo (4)
                                        • Answer
                                        • Call for help
                                        • Recent struggles
                                        • Understanding Greek challenges
                                        • Understanding Greek challenges (2)
                                        • Understanding Greek challenges (3)
                                        • Fears- Contagion
                                        • Other countries ndash BIGGER Debts
                                        • Other countries ndash BIGGER Debts (2)
                                        • Other countries ndash BIGGER Debts (3)
                                        • Other countries ndash BIGGER Debts (4)
                                        • Other countries ndash BIGGER Debts (5)
                                        • Seehellip
                                        • Homework
                                        • Homeworkndash due Wednesday for feedback or at next class (2)

                                          Mini case studies

                                          bullSee other slides bullUse other projectorhellip

                                          Resources to learn more

                                          Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                                          ues-in-Brazil

                                          bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                                          httpwwwtmcorpcom

                                          COI amp Entrepreneurship

                                          Entrepreneurship and COI

                                          1 Development issue Which cultural traits probably lead to more

                                          entrepreneurship hence more economic development

                                          Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                          2 Personal issue What style switching should you do to

                                          promote entrepreneurship

                                          Entrepreneurship and COI

                                          1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                          2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                          on many ideas at same time3 Individualism

                                          Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                          Entrepreneurship and COI4 Competitiveness

                                          Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                          5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                          Entrepreneurship and COI

                                          6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                          constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                          Inductive is better for big-company (systematic process) innovations

                                          Deductive is better for entrepreneurs and big changes

                                          7 Future orientation (time)

                                          Steps to take

                                          bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                          ldquostyle switchingrdquo for results4 Stay alert over time

                                          Stop cultural ldquocruise controlrdquo

                                          Style switching

                                          bullWho should switch You ThembullConsider

                                          Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                          Who must change Style switch

                                          International IQ moment

                                          What is happening in Greece - discussion

                                          Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                          Athens Greece

                                          bullWhat is happening in Greece ndash

                                          Greek economy Euro Zone

                                          Negatives

                                          bull No control of monetary policy

                                          bull Can not devalue currency to regain competitiveness

                                          Positives

                                          bull Low borrowing costs

                                          Greek economy ndash boom years

                                          httpenwikipediaorgwikiEconomy_of_Greece

                                          Summary of problem + why importantbull In recent history

                                          First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                          consumer demand ndash deficit spending Keynes stimulus

                                          Credit continues to contract ndash less money to go around

                                          Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                          External funding + current accounts

                                          bullLesson from past- current account deficits = dangerous

                                          bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                          This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                          It is also what happed to Greece

                                          National ldquoBalance Sheetrdquo

                                          bull3 Important parts (for our class discussion)

                                          Current accountFlow of goods and services Roughly= exports -

                                          imports

                                          Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                          ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                          accountsldquobelow the linerdquo

                                          Martin Wolf book ldquoFixing Global Financerdquo

                                          Must Balance

                                          If deficithellip

                                          pay out reserves

                                          If surplus

                                          Build up reserves

                                          National ldquoBalance Sheetrdquo

                                          bullKey must ldquobalancerdquo

                                          If ldquocurrent accountrdquo deficit

                                          thenhellip by definitionhellip

                                          ldquocapital accountrdquo = surplus

                                          National ldquoBalance Sheetrdquo

                                          bullGROUP

                                          SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                          Answerhellip

                                          SURPLUS Money must be coming in from abroad to

                                          finance the current account deficits

                                          National ldquoBalance Sheetrdquobull Buthellip

                                          What happens if you do NOT have money coming in from abroad

                                          Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                          Group assignment What happens What must you do (hint 3rd part of national

                                          accounts mentioned before)hellip

                                          Answer

                                          You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                          Follow up questionWhat if you donrsquot have enough reserves Then what

                                          What can you do

                                          (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                          Call for help

                                          bullIMFbullOr for Greecehellip call the other Euro

                                          countries and ask for loans

                                          bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                          Recent struggles

                                          bullGreek shipping industry was hit hard by the decline in world trade

                                          bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                          exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                          Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                          Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                          assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                          Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                          As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                          importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                          2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                          Fears- Contagion

                                          bullThere are many other countries that are running deficits

                                          bullWhat happens if credits stop fundingbullPIIGS of Europe

                                          Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                          bullUS UK are the big ones

                                          Other countries ndash BIGGER Debts

                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                          Other countries ndash BIGGER Debts

                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                          Other countries ndash BIGGER Debts

                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                          Other countries ndash BIGGER Debts

                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                          Other countries ndash BIGGER Debts

                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                          Seehellip

                                          bullSee economist article ndash history ndash credit crunch

                                          bullI will send it by email hellip and will discuss next week

                                          Homework

                                          Sorry

                                          Homeworkndash due Wednesday for feedback or at next class

                                          bull Each student is to make their own COI analysisEach factor ndash what type are you

                                          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                          potential conflict)What could you do (style switching) to lesson the

                                          potential problems

                                          • Global Entrepreneurship
                                          • Brian David Butler
                                          • Brian David Butler (2)
                                          • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                          • Exam
                                          • Schedule for today
                                          • New Ideas
                                          • What new business ideas
                                          • Also curious
                                          • Global Entrepreneurship developing the global mindset for ent
                                          • Why study Culture
                                          • Rather than a ldquolaundry listrdquo
                                          • Preview of upcoming lectures
                                          • Examples to discuss
                                          • Your own examples
                                          • Cultural Orientation Index
                                          • Cultural Orientations Indicator- COI
                                          • NOTE
                                          • Homeworkndash due Wednesday for feedback or at next class
                                          • Handouts emails
                                          • Mini case studies
                                          • Resources to learn more
                                          • COI amp Entrepreneurship
                                          • Entrepreneurship and COI
                                          • Entrepreneurship and COI (2)
                                          • Entrepreneurship and COI (3)
                                          • Entrepreneurship and COI (4)
                                          • Steps to take
                                          • Style switching
                                          • International IQ moment
                                          • Athens Greece
                                          • Athens Greece (2)
                                          • Greek economy
                                          • Greek economy ndash boom years
                                          • Summary of problem + why important
                                          • External funding + current accounts
                                          • National ldquoBalance Sheetrdquo
                                          • National ldquoBalance Sheetrdquo (2)
                                          • National ldquoBalance Sheetrdquo (3)
                                          • Answerhellip
                                          • National ldquoBalance Sheetrdquo (4)
                                          • Answer
                                          • Call for help
                                          • Recent struggles
                                          • Understanding Greek challenges
                                          • Understanding Greek challenges (2)
                                          • Understanding Greek challenges (3)
                                          • Fears- Contagion
                                          • Other countries ndash BIGGER Debts
                                          • Other countries ndash BIGGER Debts (2)
                                          • Other countries ndash BIGGER Debts (3)
                                          • Other countries ndash BIGGER Debts (4)
                                          • Other countries ndash BIGGER Debts (5)
                                          • Seehellip
                                          • Homework
                                          • Homeworkndash due Wednesday for feedback or at next class (2)

                                            Resources to learn more

                                            Prof Brian Butlerrsquos notes online httpglobotrendspbworkscomCulture-iss

                                            ues-in-Brazil

                                            bullSourcesThunderbird here Download the PDF raquosee the TMC site here

                                            httpwwwtmcorpcom

                                            COI amp Entrepreneurship

                                            Entrepreneurship and COI

                                            1 Development issue Which cultural traits probably lead to more

                                            entrepreneurship hence more economic development

                                            Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                            2 Personal issue What style switching should you do to

                                            promote entrepreneurship

                                            Entrepreneurship and COI

                                            1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                            2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                            on many ideas at same time3 Individualism

                                            Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                            Entrepreneurship and COI4 Competitiveness

                                            Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                            5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                            Entrepreneurship and COI

                                            6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                            constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                            Inductive is better for big-company (systematic process) innovations

                                            Deductive is better for entrepreneurs and big changes

                                            7 Future orientation (time)

                                            Steps to take

                                            bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                            ldquostyle switchingrdquo for results4 Stay alert over time

                                            Stop cultural ldquocruise controlrdquo

                                            Style switching

                                            bullWho should switch You ThembullConsider

                                            Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                            Who must change Style switch

                                            International IQ moment

                                            What is happening in Greece - discussion

                                            Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                            Athens Greece

                                            bullWhat is happening in Greece ndash

                                            Greek economy Euro Zone

                                            Negatives

                                            bull No control of monetary policy

                                            bull Can not devalue currency to regain competitiveness

                                            Positives

                                            bull Low borrowing costs

                                            Greek economy ndash boom years

                                            httpenwikipediaorgwikiEconomy_of_Greece

                                            Summary of problem + why importantbull In recent history

                                            First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                            consumer demand ndash deficit spending Keynes stimulus

                                            Credit continues to contract ndash less money to go around

                                            Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                            External funding + current accounts

                                            bullLesson from past- current account deficits = dangerous

                                            bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                            This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                            It is also what happed to Greece

                                            National ldquoBalance Sheetrdquo

                                            bull3 Important parts (for our class discussion)

                                            Current accountFlow of goods and services Roughly= exports -

                                            imports

                                            Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                            ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                            accountsldquobelow the linerdquo

                                            Martin Wolf book ldquoFixing Global Financerdquo

                                            Must Balance

                                            If deficithellip

                                            pay out reserves

                                            If surplus

                                            Build up reserves

                                            National ldquoBalance Sheetrdquo

                                            bullKey must ldquobalancerdquo

                                            If ldquocurrent accountrdquo deficit

                                            thenhellip by definitionhellip

                                            ldquocapital accountrdquo = surplus

                                            National ldquoBalance Sheetrdquo

                                            bullGROUP

                                            SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                            Answerhellip

                                            SURPLUS Money must be coming in from abroad to

                                            finance the current account deficits

                                            National ldquoBalance Sheetrdquobull Buthellip

                                            What happens if you do NOT have money coming in from abroad

                                            Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                            Group assignment What happens What must you do (hint 3rd part of national

                                            accounts mentioned before)hellip

                                            Answer

                                            You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                            Follow up questionWhat if you donrsquot have enough reserves Then what

                                            What can you do

                                            (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                            Call for help

                                            bullIMFbullOr for Greecehellip call the other Euro

                                            countries and ask for loans

                                            bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                            Recent struggles

                                            bullGreek shipping industry was hit hard by the decline in world trade

                                            bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                            exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                            Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                            Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                            assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                            Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                            As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                            importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                            2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                            Fears- Contagion

                                            bullThere are many other countries that are running deficits

                                            bullWhat happens if credits stop fundingbullPIIGS of Europe

                                            Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                            bullUS UK are the big ones

                                            Other countries ndash BIGGER Debts

                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                            Other countries ndash BIGGER Debts

                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                            Other countries ndash BIGGER Debts

                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                            Other countries ndash BIGGER Debts

                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                            Other countries ndash BIGGER Debts

                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                            Seehellip

                                            bullSee economist article ndash history ndash credit crunch

                                            bullI will send it by email hellip and will discuss next week

                                            Homework

                                            Sorry

                                            Homeworkndash due Wednesday for feedback or at next class

                                            bull Each student is to make their own COI analysisEach factor ndash what type are you

                                            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                            potential conflict)What could you do (style switching) to lesson the

                                            potential problems

                                            • Global Entrepreneurship
                                            • Brian David Butler
                                            • Brian David Butler (2)
                                            • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                            • Exam
                                            • Schedule for today
                                            • New Ideas
                                            • What new business ideas
                                            • Also curious
                                            • Global Entrepreneurship developing the global mindset for ent
                                            • Why study Culture
                                            • Rather than a ldquolaundry listrdquo
                                            • Preview of upcoming lectures
                                            • Examples to discuss
                                            • Your own examples
                                            • Cultural Orientation Index
                                            • Cultural Orientations Indicator- COI
                                            • NOTE
                                            • Homeworkndash due Wednesday for feedback or at next class
                                            • Handouts emails
                                            • Mini case studies
                                            • Resources to learn more
                                            • COI amp Entrepreneurship
                                            • Entrepreneurship and COI
                                            • Entrepreneurship and COI (2)
                                            • Entrepreneurship and COI (3)
                                            • Entrepreneurship and COI (4)
                                            • Steps to take
                                            • Style switching
                                            • International IQ moment
                                            • Athens Greece
                                            • Athens Greece (2)
                                            • Greek economy
                                            • Greek economy ndash boom years
                                            • Summary of problem + why important
                                            • External funding + current accounts
                                            • National ldquoBalance Sheetrdquo
                                            • National ldquoBalance Sheetrdquo (2)
                                            • National ldquoBalance Sheetrdquo (3)
                                            • Answerhellip
                                            • National ldquoBalance Sheetrdquo (4)
                                            • Answer
                                            • Call for help
                                            • Recent struggles
                                            • Understanding Greek challenges
                                            • Understanding Greek challenges (2)
                                            • Understanding Greek challenges (3)
                                            • Fears- Contagion
                                            • Other countries ndash BIGGER Debts
                                            • Other countries ndash BIGGER Debts (2)
                                            • Other countries ndash BIGGER Debts (3)
                                            • Other countries ndash BIGGER Debts (4)
                                            • Other countries ndash BIGGER Debts (5)
                                            • Seehellip
                                            • Homework
                                            • Homeworkndash due Wednesday for feedback or at next class (2)

                                              COI amp Entrepreneurship

                                              Entrepreneurship and COI

                                              1 Development issue Which cultural traits probably lead to more

                                              entrepreneurship hence more economic development

                                              Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                              2 Personal issue What style switching should you do to

                                              promote entrepreneurship

                                              Entrepreneurship and COI

                                              1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                              2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                              on many ideas at same time3 Individualism

                                              Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                              Entrepreneurship and COI4 Competitiveness

                                              Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                              5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                              Entrepreneurship and COI

                                              6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                              constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                              Inductive is better for big-company (systematic process) innovations

                                              Deductive is better for entrepreneurs and big changes

                                              7 Future orientation (time)

                                              Steps to take

                                              bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                              ldquostyle switchingrdquo for results4 Stay alert over time

                                              Stop cultural ldquocruise controlrdquo

                                              Style switching

                                              bullWho should switch You ThembullConsider

                                              Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                              Who must change Style switch

                                              International IQ moment

                                              What is happening in Greece - discussion

                                              Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                              Athens Greece

                                              bullWhat is happening in Greece ndash

                                              Greek economy Euro Zone

                                              Negatives

                                              bull No control of monetary policy

                                              bull Can not devalue currency to regain competitiveness

                                              Positives

                                              bull Low borrowing costs

                                              Greek economy ndash boom years

                                              httpenwikipediaorgwikiEconomy_of_Greece

                                              Summary of problem + why importantbull In recent history

                                              First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                              consumer demand ndash deficit spending Keynes stimulus

                                              Credit continues to contract ndash less money to go around

                                              Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                              External funding + current accounts

                                              bullLesson from past- current account deficits = dangerous

                                              bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                              This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                              It is also what happed to Greece

                                              National ldquoBalance Sheetrdquo

                                              bull3 Important parts (for our class discussion)

                                              Current accountFlow of goods and services Roughly= exports -

                                              imports

                                              Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                              ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                              accountsldquobelow the linerdquo

                                              Martin Wolf book ldquoFixing Global Financerdquo

                                              Must Balance

                                              If deficithellip

                                              pay out reserves

                                              If surplus

                                              Build up reserves

                                              National ldquoBalance Sheetrdquo

                                              bullKey must ldquobalancerdquo

                                              If ldquocurrent accountrdquo deficit

                                              thenhellip by definitionhellip

                                              ldquocapital accountrdquo = surplus

                                              National ldquoBalance Sheetrdquo

                                              bullGROUP

                                              SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                              Answerhellip

                                              SURPLUS Money must be coming in from abroad to

                                              finance the current account deficits

                                              National ldquoBalance Sheetrdquobull Buthellip

                                              What happens if you do NOT have money coming in from abroad

                                              Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                              Group assignment What happens What must you do (hint 3rd part of national

                                              accounts mentioned before)hellip

                                              Answer

                                              You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                              Follow up questionWhat if you donrsquot have enough reserves Then what

                                              What can you do

                                              (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                              Call for help

                                              bullIMFbullOr for Greecehellip call the other Euro

                                              countries and ask for loans

                                              bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                              Recent struggles

                                              bullGreek shipping industry was hit hard by the decline in world trade

                                              bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                              exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                              Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                              Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                              assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                              Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                              As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                              importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                              2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                              Fears- Contagion

                                              bullThere are many other countries that are running deficits

                                              bullWhat happens if credits stop fundingbullPIIGS of Europe

                                              Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                              bullUS UK are the big ones

                                              Other countries ndash BIGGER Debts

                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                              Other countries ndash BIGGER Debts

                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                              Other countries ndash BIGGER Debts

                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                              Other countries ndash BIGGER Debts

                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                              Other countries ndash BIGGER Debts

                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                              Seehellip

                                              bullSee economist article ndash history ndash credit crunch

                                              bullI will send it by email hellip and will discuss next week

                                              Homework

                                              Sorry

                                              Homeworkndash due Wednesday for feedback or at next class

                                              bull Each student is to make their own COI analysisEach factor ndash what type are you

                                              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                              potential conflict)What could you do (style switching) to lesson the

                                              potential problems

                                              • Global Entrepreneurship
                                              • Brian David Butler
                                              • Brian David Butler (2)
                                              • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                              • Exam
                                              • Schedule for today
                                              • New Ideas
                                              • What new business ideas
                                              • Also curious
                                              • Global Entrepreneurship developing the global mindset for ent
                                              • Why study Culture
                                              • Rather than a ldquolaundry listrdquo
                                              • Preview of upcoming lectures
                                              • Examples to discuss
                                              • Your own examples
                                              • Cultural Orientation Index
                                              • Cultural Orientations Indicator- COI
                                              • NOTE
                                              • Homeworkndash due Wednesday for feedback or at next class
                                              • Handouts emails
                                              • Mini case studies
                                              • Resources to learn more
                                              • COI amp Entrepreneurship
                                              • Entrepreneurship and COI
                                              • Entrepreneurship and COI (2)
                                              • Entrepreneurship and COI (3)
                                              • Entrepreneurship and COI (4)
                                              • Steps to take
                                              • Style switching
                                              • International IQ moment
                                              • Athens Greece
                                              • Athens Greece (2)
                                              • Greek economy
                                              • Greek economy ndash boom years
                                              • Summary of problem + why important
                                              • External funding + current accounts
                                              • National ldquoBalance Sheetrdquo
                                              • National ldquoBalance Sheetrdquo (2)
                                              • National ldquoBalance Sheetrdquo (3)
                                              • Answerhellip
                                              • National ldquoBalance Sheetrdquo (4)
                                              • Answer
                                              • Call for help
                                              • Recent struggles
                                              • Understanding Greek challenges
                                              • Understanding Greek challenges (2)
                                              • Understanding Greek challenges (3)
                                              • Fears- Contagion
                                              • Other countries ndash BIGGER Debts
                                              • Other countries ndash BIGGER Debts (2)
                                              • Other countries ndash BIGGER Debts (3)
                                              • Other countries ndash BIGGER Debts (4)
                                              • Other countries ndash BIGGER Debts (5)
                                              • Seehellip
                                              • Homework
                                              • Homeworkndash due Wednesday for feedback or at next class (2)

                                                Entrepreneurship and COI

                                                1 Development issue Which cultural traits probably lead to more

                                                entrepreneurship hence more economic development

                                                Which factors are most important for entrepreneurship + level of entrepreneurship in different places

                                                2 Personal issue What style switching should you do to

                                                promote entrepreneurship

                                                Entrepreneurship and COI

                                                1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                                2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                                on many ideas at same time3 Individualism

                                                Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                                Entrepreneurship and COI4 Competitiveness

                                                Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                                5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                                Entrepreneurship and COI

                                                6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                                constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                                Inductive is better for big-company (systematic process) innovations

                                                Deductive is better for entrepreneurs and big changes

                                                7 Future orientation (time)

                                                Steps to take

                                                bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                                ldquostyle switchingrdquo for results4 Stay alert over time

                                                Stop cultural ldquocruise controlrdquo

                                                Style switching

                                                bullWho should switch You ThembullConsider

                                                Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                                Who must change Style switch

                                                International IQ moment

                                                What is happening in Greece - discussion

                                                Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                Athens Greece

                                                bullWhat is happening in Greece ndash

                                                Greek economy Euro Zone

                                                Negatives

                                                bull No control of monetary policy

                                                bull Can not devalue currency to regain competitiveness

                                                Positives

                                                bull Low borrowing costs

                                                Greek economy ndash boom years

                                                httpenwikipediaorgwikiEconomy_of_Greece

                                                Summary of problem + why importantbull In recent history

                                                First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                consumer demand ndash deficit spending Keynes stimulus

                                                Credit continues to contract ndash less money to go around

                                                Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                External funding + current accounts

                                                bullLesson from past- current account deficits = dangerous

                                                bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                It is also what happed to Greece

                                                National ldquoBalance Sheetrdquo

                                                bull3 Important parts (for our class discussion)

                                                Current accountFlow of goods and services Roughly= exports -

                                                imports

                                                Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                accountsldquobelow the linerdquo

                                                Martin Wolf book ldquoFixing Global Financerdquo

                                                Must Balance

                                                If deficithellip

                                                pay out reserves

                                                If surplus

                                                Build up reserves

                                                National ldquoBalance Sheetrdquo

                                                bullKey must ldquobalancerdquo

                                                If ldquocurrent accountrdquo deficit

                                                thenhellip by definitionhellip

                                                ldquocapital accountrdquo = surplus

                                                National ldquoBalance Sheetrdquo

                                                bullGROUP

                                                SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                Answerhellip

                                                SURPLUS Money must be coming in from abroad to

                                                finance the current account deficits

                                                National ldquoBalance Sheetrdquobull Buthellip

                                                What happens if you do NOT have money coming in from abroad

                                                Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                Group assignment What happens What must you do (hint 3rd part of national

                                                accounts mentioned before)hellip

                                                Answer

                                                You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                Follow up questionWhat if you donrsquot have enough reserves Then what

                                                What can you do

                                                (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                Call for help

                                                bullIMFbullOr for Greecehellip call the other Euro

                                                countries and ask for loans

                                                bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                Recent struggles

                                                bullGreek shipping industry was hit hard by the decline in world trade

                                                bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                Fears- Contagion

                                                bullThere are many other countries that are running deficits

                                                bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                bullUS UK are the big ones

                                                Other countries ndash BIGGER Debts

                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                Other countries ndash BIGGER Debts

                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                Other countries ndash BIGGER Debts

                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                Other countries ndash BIGGER Debts

                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                Other countries ndash BIGGER Debts

                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                Seehellip

                                                bullSee economist article ndash history ndash credit crunch

                                                bullI will send it by email hellip and will discuss next week

                                                Homework

                                                Sorry

                                                Homeworkndash due Wednesday for feedback or at next class

                                                bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                potential conflict)What could you do (style switching) to lesson the

                                                potential problems

                                                • Global Entrepreneurship
                                                • Brian David Butler
                                                • Brian David Butler (2)
                                                • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                • Exam
                                                • Schedule for today
                                                • New Ideas
                                                • What new business ideas
                                                • Also curious
                                                • Global Entrepreneurship developing the global mindset for ent
                                                • Why study Culture
                                                • Rather than a ldquolaundry listrdquo
                                                • Preview of upcoming lectures
                                                • Examples to discuss
                                                • Your own examples
                                                • Cultural Orientation Index
                                                • Cultural Orientations Indicator- COI
                                                • NOTE
                                                • Homeworkndash due Wednesday for feedback or at next class
                                                • Handouts emails
                                                • Mini case studies
                                                • Resources to learn more
                                                • COI amp Entrepreneurship
                                                • Entrepreneurship and COI
                                                • Entrepreneurship and COI (2)
                                                • Entrepreneurship and COI (3)
                                                • Entrepreneurship and COI (4)
                                                • Steps to take
                                                • Style switching
                                                • International IQ moment
                                                • Athens Greece
                                                • Athens Greece (2)
                                                • Greek economy
                                                • Greek economy ndash boom years
                                                • Summary of problem + why important
                                                • External funding + current accounts
                                                • National ldquoBalance Sheetrdquo
                                                • National ldquoBalance Sheetrdquo (2)
                                                • National ldquoBalance Sheetrdquo (3)
                                                • Answerhellip
                                                • National ldquoBalance Sheetrdquo (4)
                                                • Answer
                                                • Call for help
                                                • Recent struggles
                                                • Understanding Greek challenges
                                                • Understanding Greek challenges (2)
                                                • Understanding Greek challenges (3)
                                                • Fears- Contagion
                                                • Other countries ndash BIGGER Debts
                                                • Other countries ndash BIGGER Debts (2)
                                                • Other countries ndash BIGGER Debts (3)
                                                • Other countries ndash BIGGER Debts (4)
                                                • Other countries ndash BIGGER Debts (5)
                                                • Seehellip
                                                • Homework
                                                • Homeworkndash due Wednesday for feedback or at next class (2)

                                                  Entrepreneurship and COI

                                                  1 Environment Control Not ldquoharmonyrdquo or ldquoconstraintrdquo

                                                  2 Time Multifocused ndash versatile adaptation Ability to change project change idea work

                                                  on many ideas at same time3 Individualism

                                                  Particularistic vs Universalistic better with ldquorules donrsquot apply to merdquo (not constrained)

                                                  Entrepreneurship and COI4 Competitiveness

                                                  Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                                  5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                                  Entrepreneurship and COI

                                                  6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                                  constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                                  Inductive is better for big-company (systematic process) innovations

                                                  Deductive is better for entrepreneurs and big changes

                                                  7 Future orientation (time)

                                                  Steps to take

                                                  bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                                  ldquostyle switchingrdquo for results4 Stay alert over time

                                                  Stop cultural ldquocruise controlrdquo

                                                  Style switching

                                                  bullWho should switch You ThembullConsider

                                                  Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                                  Who must change Style switch

                                                  International IQ moment

                                                  What is happening in Greece - discussion

                                                  Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                  Athens Greece

                                                  bullWhat is happening in Greece ndash

                                                  Greek economy Euro Zone

                                                  Negatives

                                                  bull No control of monetary policy

                                                  bull Can not devalue currency to regain competitiveness

                                                  Positives

                                                  bull Low borrowing costs

                                                  Greek economy ndash boom years

                                                  httpenwikipediaorgwikiEconomy_of_Greece

                                                  Summary of problem + why importantbull In recent history

                                                  First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                  consumer demand ndash deficit spending Keynes stimulus

                                                  Credit continues to contract ndash less money to go around

                                                  Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                  External funding + current accounts

                                                  bullLesson from past- current account deficits = dangerous

                                                  bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                  This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                  It is also what happed to Greece

                                                  National ldquoBalance Sheetrdquo

                                                  bull3 Important parts (for our class discussion)

                                                  Current accountFlow of goods and services Roughly= exports -

                                                  imports

                                                  Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                  ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                  accountsldquobelow the linerdquo

                                                  Martin Wolf book ldquoFixing Global Financerdquo

                                                  Must Balance

                                                  If deficithellip

                                                  pay out reserves

                                                  If surplus

                                                  Build up reserves

                                                  National ldquoBalance Sheetrdquo

                                                  bullKey must ldquobalancerdquo

                                                  If ldquocurrent accountrdquo deficit

                                                  thenhellip by definitionhellip

                                                  ldquocapital accountrdquo = surplus

                                                  National ldquoBalance Sheetrdquo

                                                  bullGROUP

                                                  SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                  Answerhellip

                                                  SURPLUS Money must be coming in from abroad to

                                                  finance the current account deficits

                                                  National ldquoBalance Sheetrdquobull Buthellip

                                                  What happens if you do NOT have money coming in from abroad

                                                  Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                  Group assignment What happens What must you do (hint 3rd part of national

                                                  accounts mentioned before)hellip

                                                  Answer

                                                  You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                  Follow up questionWhat if you donrsquot have enough reserves Then what

                                                  What can you do

                                                  (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                  Call for help

                                                  bullIMFbullOr for Greecehellip call the other Euro

                                                  countries and ask for loans

                                                  bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                  Recent struggles

                                                  bullGreek shipping industry was hit hard by the decline in world trade

                                                  bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                  exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                  Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                  Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                  assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                  Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                  As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                  importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                  2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                  Fears- Contagion

                                                  bullThere are many other countries that are running deficits

                                                  bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                  Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                  bullUS UK are the big ones

                                                  Other countries ndash BIGGER Debts

                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                  Other countries ndash BIGGER Debts

                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                  Other countries ndash BIGGER Debts

                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                  Other countries ndash BIGGER Debts

                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                  Other countries ndash BIGGER Debts

                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                  Seehellip

                                                  bullSee economist article ndash history ndash credit crunch

                                                  bullI will send it by email hellip and will discuss next week

                                                  Homework

                                                  Sorry

                                                  Homeworkndash due Wednesday for feedback or at next class

                                                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                  potential conflict)What could you do (style switching) to lesson the

                                                  potential problems

                                                  • Global Entrepreneurship
                                                  • Brian David Butler
                                                  • Brian David Butler (2)
                                                  • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                  • Exam
                                                  • Schedule for today
                                                  • New Ideas
                                                  • What new business ideas
                                                  • Also curious
                                                  • Global Entrepreneurship developing the global mindset for ent
                                                  • Why study Culture
                                                  • Rather than a ldquolaundry listrdquo
                                                  • Preview of upcoming lectures
                                                  • Examples to discuss
                                                  • Your own examples
                                                  • Cultural Orientation Index
                                                  • Cultural Orientations Indicator- COI
                                                  • NOTE
                                                  • Homeworkndash due Wednesday for feedback or at next class
                                                  • Handouts emails
                                                  • Mini case studies
                                                  • Resources to learn more
                                                  • COI amp Entrepreneurship
                                                  • Entrepreneurship and COI
                                                  • Entrepreneurship and COI (2)
                                                  • Entrepreneurship and COI (3)
                                                  • Entrepreneurship and COI (4)
                                                  • Steps to take
                                                  • Style switching
                                                  • International IQ moment
                                                  • Athens Greece
                                                  • Athens Greece (2)
                                                  • Greek economy
                                                  • Greek economy ndash boom years
                                                  • Summary of problem + why important
                                                  • External funding + current accounts
                                                  • National ldquoBalance Sheetrdquo
                                                  • National ldquoBalance Sheetrdquo (2)
                                                  • National ldquoBalance Sheetrdquo (3)
                                                  • Answerhellip
                                                  • National ldquoBalance Sheetrdquo (4)
                                                  • Answer
                                                  • Call for help
                                                  • Recent struggles
                                                  • Understanding Greek challenges
                                                  • Understanding Greek challenges (2)
                                                  • Understanding Greek challenges (3)
                                                  • Fears- Contagion
                                                  • Other countries ndash BIGGER Debts
                                                  • Other countries ndash BIGGER Debts (2)
                                                  • Other countries ndash BIGGER Debts (3)
                                                  • Other countries ndash BIGGER Debts (4)
                                                  • Other countries ndash BIGGER Debts (5)
                                                  • Seehellip
                                                  • Homework
                                                  • Homeworkndash due Wednesday for feedback or at next class (2)

                                                    Entrepreneurship and COI4 Competitiveness

                                                    Competitiveness vs Cooperation Focus on benefits to self leave the group loyal to the group (thinking) Comfortable with competition Desire for self-recognition

                                                    5 Flexibility Not ldquoorderrdquo focused Better if likes flexibility innovation adaptation Comfortable with risks Dynamic goals (changing) Problem solving needs flexibility Tolerate unpredictable dissent (Israel)

                                                    Entrepreneurship and COI

                                                    6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                                    constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                                    Inductive is better for big-company (systematic process) innovations

                                                    Deductive is better for entrepreneurs and big changes

                                                    7 Future orientation (time)

                                                    Steps to take

                                                    bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                                    ldquostyle switchingrdquo for results4 Stay alert over time

                                                    Stop cultural ldquocruise controlrdquo

                                                    Style switching

                                                    bullWho should switch You ThembullConsider

                                                    Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                                    Who must change Style switch

                                                    International IQ moment

                                                    What is happening in Greece - discussion

                                                    Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                    Athens Greece

                                                    bullWhat is happening in Greece ndash

                                                    Greek economy Euro Zone

                                                    Negatives

                                                    bull No control of monetary policy

                                                    bull Can not devalue currency to regain competitiveness

                                                    Positives

                                                    bull Low borrowing costs

                                                    Greek economy ndash boom years

                                                    httpenwikipediaorgwikiEconomy_of_Greece

                                                    Summary of problem + why importantbull In recent history

                                                    First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                    consumer demand ndash deficit spending Keynes stimulus

                                                    Credit continues to contract ndash less money to go around

                                                    Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                    External funding + current accounts

                                                    bullLesson from past- current account deficits = dangerous

                                                    bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                    This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                    It is also what happed to Greece

                                                    National ldquoBalance Sheetrdquo

                                                    bull3 Important parts (for our class discussion)

                                                    Current accountFlow of goods and services Roughly= exports -

                                                    imports

                                                    Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                    ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                    accountsldquobelow the linerdquo

                                                    Martin Wolf book ldquoFixing Global Financerdquo

                                                    Must Balance

                                                    If deficithellip

                                                    pay out reserves

                                                    If surplus

                                                    Build up reserves

                                                    National ldquoBalance Sheetrdquo

                                                    bullKey must ldquobalancerdquo

                                                    If ldquocurrent accountrdquo deficit

                                                    thenhellip by definitionhellip

                                                    ldquocapital accountrdquo = surplus

                                                    National ldquoBalance Sheetrdquo

                                                    bullGROUP

                                                    SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                    Answerhellip

                                                    SURPLUS Money must be coming in from abroad to

                                                    finance the current account deficits

                                                    National ldquoBalance Sheetrdquobull Buthellip

                                                    What happens if you do NOT have money coming in from abroad

                                                    Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                    Group assignment What happens What must you do (hint 3rd part of national

                                                    accounts mentioned before)hellip

                                                    Answer

                                                    You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                    Follow up questionWhat if you donrsquot have enough reserves Then what

                                                    What can you do

                                                    (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                    Call for help

                                                    bullIMFbullOr for Greecehellip call the other Euro

                                                    countries and ask for loans

                                                    bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                    Recent struggles

                                                    bullGreek shipping industry was hit hard by the decline in world trade

                                                    bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                    exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                    Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                    Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                    assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                    Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                    As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                    importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                    2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                    Fears- Contagion

                                                    bullThere are many other countries that are running deficits

                                                    bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                    Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                    bullUS UK are the big ones

                                                    Other countries ndash BIGGER Debts

                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                    Other countries ndash BIGGER Debts

                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                    Other countries ndash BIGGER Debts

                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                    Other countries ndash BIGGER Debts

                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                    Other countries ndash BIGGER Debts

                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                    Seehellip

                                                    bullSee economist article ndash history ndash credit crunch

                                                    bullI will send it by email hellip and will discuss next week

                                                    Homework

                                                    Sorry

                                                    Homeworkndash due Wednesday for feedback or at next class

                                                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                    potential conflict)What could you do (style switching) to lesson the

                                                    potential problems

                                                    • Global Entrepreneurship
                                                    • Brian David Butler
                                                    • Brian David Butler (2)
                                                    • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                    • Exam
                                                    • Schedule for today
                                                    • New Ideas
                                                    • What new business ideas
                                                    • Also curious
                                                    • Global Entrepreneurship developing the global mindset for ent
                                                    • Why study Culture
                                                    • Rather than a ldquolaundry listrdquo
                                                    • Preview of upcoming lectures
                                                    • Examples to discuss
                                                    • Your own examples
                                                    • Cultural Orientation Index
                                                    • Cultural Orientations Indicator- COI
                                                    • NOTE
                                                    • Homeworkndash due Wednesday for feedback or at next class
                                                    • Handouts emails
                                                    • Mini case studies
                                                    • Resources to learn more
                                                    • COI amp Entrepreneurship
                                                    • Entrepreneurship and COI
                                                    • Entrepreneurship and COI (2)
                                                    • Entrepreneurship and COI (3)
                                                    • Entrepreneurship and COI (4)
                                                    • Steps to take
                                                    • Style switching
                                                    • International IQ moment
                                                    • Athens Greece
                                                    • Athens Greece (2)
                                                    • Greek economy
                                                    • Greek economy ndash boom years
                                                    • Summary of problem + why important
                                                    • External funding + current accounts
                                                    • National ldquoBalance Sheetrdquo
                                                    • National ldquoBalance Sheetrdquo (2)
                                                    • National ldquoBalance Sheetrdquo (3)
                                                    • Answerhellip
                                                    • National ldquoBalance Sheetrdquo (4)
                                                    • Answer
                                                    • Call for help
                                                    • Recent struggles
                                                    • Understanding Greek challenges
                                                    • Understanding Greek challenges (2)
                                                    • Understanding Greek challenges (3)
                                                    • Fears- Contagion
                                                    • Other countries ndash BIGGER Debts
                                                    • Other countries ndash BIGGER Debts (2)
                                                    • Other countries ndash BIGGER Debts (3)
                                                    • Other countries ndash BIGGER Debts (4)
                                                    • Other countries ndash BIGGER Debts (5)
                                                    • Seehellip
                                                    • Homework
                                                    • Homeworkndash due Wednesday for feedback or at next class (2)

                                                      Entrepreneurship and COI

                                                      6 Thinking Inductive vs Deductive Slight advantage to deductive thought ndash not

                                                      constrained by ldquofactrdquo but instead gravitate to grand theories and ldquovisionsrdquo (visionary)

                                                      Inductive is better for big-company (systematic process) innovations

                                                      Deductive is better for entrepreneurs and big changes

                                                      7 Future orientation (time)

                                                      Steps to take

                                                      bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                                      ldquostyle switchingrdquo for results4 Stay alert over time

                                                      Stop cultural ldquocruise controlrdquo

                                                      Style switching

                                                      bullWho should switch You ThembullConsider

                                                      Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                                      Who must change Style switch

                                                      International IQ moment

                                                      What is happening in Greece - discussion

                                                      Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                      Athens Greece

                                                      bullWhat is happening in Greece ndash

                                                      Greek economy Euro Zone

                                                      Negatives

                                                      bull No control of monetary policy

                                                      bull Can not devalue currency to regain competitiveness

                                                      Positives

                                                      bull Low borrowing costs

                                                      Greek economy ndash boom years

                                                      httpenwikipediaorgwikiEconomy_of_Greece

                                                      Summary of problem + why importantbull In recent history

                                                      First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                      consumer demand ndash deficit spending Keynes stimulus

                                                      Credit continues to contract ndash less money to go around

                                                      Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                      External funding + current accounts

                                                      bullLesson from past- current account deficits = dangerous

                                                      bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                      This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                      It is also what happed to Greece

                                                      National ldquoBalance Sheetrdquo

                                                      bull3 Important parts (for our class discussion)

                                                      Current accountFlow of goods and services Roughly= exports -

                                                      imports

                                                      Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                      ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                      accountsldquobelow the linerdquo

                                                      Martin Wolf book ldquoFixing Global Financerdquo

                                                      Must Balance

                                                      If deficithellip

                                                      pay out reserves

                                                      If surplus

                                                      Build up reserves

                                                      National ldquoBalance Sheetrdquo

                                                      bullKey must ldquobalancerdquo

                                                      If ldquocurrent accountrdquo deficit

                                                      thenhellip by definitionhellip

                                                      ldquocapital accountrdquo = surplus

                                                      National ldquoBalance Sheetrdquo

                                                      bullGROUP

                                                      SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                      Answerhellip

                                                      SURPLUS Money must be coming in from abroad to

                                                      finance the current account deficits

                                                      National ldquoBalance Sheetrdquobull Buthellip

                                                      What happens if you do NOT have money coming in from abroad

                                                      Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                      Group assignment What happens What must you do (hint 3rd part of national

                                                      accounts mentioned before)hellip

                                                      Answer

                                                      You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                      Follow up questionWhat if you donrsquot have enough reserves Then what

                                                      What can you do

                                                      (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                      Call for help

                                                      bullIMFbullOr for Greecehellip call the other Euro

                                                      countries and ask for loans

                                                      bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                      Recent struggles

                                                      bullGreek shipping industry was hit hard by the decline in world trade

                                                      bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                      exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                      Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                      Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                      assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                      Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                      As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                      importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                      2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                      Fears- Contagion

                                                      bullThere are many other countries that are running deficits

                                                      bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                      Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                      bullUS UK are the big ones

                                                      Other countries ndash BIGGER Debts

                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                      Other countries ndash BIGGER Debts

                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                      Other countries ndash BIGGER Debts

                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                      Other countries ndash BIGGER Debts

                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                      Other countries ndash BIGGER Debts

                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                      Seehellip

                                                      bullSee economist article ndash history ndash credit crunch

                                                      bullI will send it by email hellip and will discuss next week

                                                      Homework

                                                      Sorry

                                                      Homeworkndash due Wednesday for feedback or at next class

                                                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                      potential conflict)What could you do (style switching) to lesson the

                                                      potential problems

                                                      • Global Entrepreneurship
                                                      • Brian David Butler
                                                      • Brian David Butler (2)
                                                      • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                      • Exam
                                                      • Schedule for today
                                                      • New Ideas
                                                      • What new business ideas
                                                      • Also curious
                                                      • Global Entrepreneurship developing the global mindset for ent
                                                      • Why study Culture
                                                      • Rather than a ldquolaundry listrdquo
                                                      • Preview of upcoming lectures
                                                      • Examples to discuss
                                                      • Your own examples
                                                      • Cultural Orientation Index
                                                      • Cultural Orientations Indicator- COI
                                                      • NOTE
                                                      • Homeworkndash due Wednesday for feedback or at next class
                                                      • Handouts emails
                                                      • Mini case studies
                                                      • Resources to learn more
                                                      • COI amp Entrepreneurship
                                                      • Entrepreneurship and COI
                                                      • Entrepreneurship and COI (2)
                                                      • Entrepreneurship and COI (3)
                                                      • Entrepreneurship and COI (4)
                                                      • Steps to take
                                                      • Style switching
                                                      • International IQ moment
                                                      • Athens Greece
                                                      • Athens Greece (2)
                                                      • Greek economy
                                                      • Greek economy ndash boom years
                                                      • Summary of problem + why important
                                                      • External funding + current accounts
                                                      • National ldquoBalance Sheetrdquo
                                                      • National ldquoBalance Sheetrdquo (2)
                                                      • National ldquoBalance Sheetrdquo (3)
                                                      • Answerhellip
                                                      • National ldquoBalance Sheetrdquo (4)
                                                      • Answer
                                                      • Call for help
                                                      • Recent struggles
                                                      • Understanding Greek challenges
                                                      • Understanding Greek challenges (2)
                                                      • Understanding Greek challenges (3)
                                                      • Fears- Contagion
                                                      • Other countries ndash BIGGER Debts
                                                      • Other countries ndash BIGGER Debts (2)
                                                      • Other countries ndash BIGGER Debts (3)
                                                      • Other countries ndash BIGGER Debts (4)
                                                      • Other countries ndash BIGGER Debts (5)
                                                      • Seehellip
                                                      • Homework
                                                      • Homeworkndash due Wednesday for feedback or at next class (2)

                                                        Steps to take

                                                        bullOrder 1 Cultural due diligence (COI)2 then gap analysis 3 Develop strategy to minimize negatives

                                                        ldquostyle switchingrdquo for results4 Stay alert over time

                                                        Stop cultural ldquocruise controlrdquo

                                                        Style switching

                                                        bullWho should switch You ThembullConsider

                                                        Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                                        Who must change Style switch

                                                        International IQ moment

                                                        What is happening in Greece - discussion

                                                        Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                        Athens Greece

                                                        bullWhat is happening in Greece ndash

                                                        Greek economy Euro Zone

                                                        Negatives

                                                        bull No control of monetary policy

                                                        bull Can not devalue currency to regain competitiveness

                                                        Positives

                                                        bull Low borrowing costs

                                                        Greek economy ndash boom years

                                                        httpenwikipediaorgwikiEconomy_of_Greece

                                                        Summary of problem + why importantbull In recent history

                                                        First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                        consumer demand ndash deficit spending Keynes stimulus

                                                        Credit continues to contract ndash less money to go around

                                                        Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                        External funding + current accounts

                                                        bullLesson from past- current account deficits = dangerous

                                                        bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                        This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                        It is also what happed to Greece

                                                        National ldquoBalance Sheetrdquo

                                                        bull3 Important parts (for our class discussion)

                                                        Current accountFlow of goods and services Roughly= exports -

                                                        imports

                                                        Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                        ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                        accountsldquobelow the linerdquo

                                                        Martin Wolf book ldquoFixing Global Financerdquo

                                                        Must Balance

                                                        If deficithellip

                                                        pay out reserves

                                                        If surplus

                                                        Build up reserves

                                                        National ldquoBalance Sheetrdquo

                                                        bullKey must ldquobalancerdquo

                                                        If ldquocurrent accountrdquo deficit

                                                        thenhellip by definitionhellip

                                                        ldquocapital accountrdquo = surplus

                                                        National ldquoBalance Sheetrdquo

                                                        bullGROUP

                                                        SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                        Answerhellip

                                                        SURPLUS Money must be coming in from abroad to

                                                        finance the current account deficits

                                                        National ldquoBalance Sheetrdquobull Buthellip

                                                        What happens if you do NOT have money coming in from abroad

                                                        Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                        Group assignment What happens What must you do (hint 3rd part of national

                                                        accounts mentioned before)hellip

                                                        Answer

                                                        You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                        Follow up questionWhat if you donrsquot have enough reserves Then what

                                                        What can you do

                                                        (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                        Call for help

                                                        bullIMFbullOr for Greecehellip call the other Euro

                                                        countries and ask for loans

                                                        bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                        Recent struggles

                                                        bullGreek shipping industry was hit hard by the decline in world trade

                                                        bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                        exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                        Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                        Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                        assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                        Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                        As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                        importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                        2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                        Fears- Contagion

                                                        bullThere are many other countries that are running deficits

                                                        bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                        Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                        bullUS UK are the big ones

                                                        Other countries ndash BIGGER Debts

                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                        Other countries ndash BIGGER Debts

                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                        Other countries ndash BIGGER Debts

                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                        Other countries ndash BIGGER Debts

                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                        Other countries ndash BIGGER Debts

                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                        Seehellip

                                                        bullSee economist article ndash history ndash credit crunch

                                                        bullI will send it by email hellip and will discuss next week

                                                        Homework

                                                        Sorry

                                                        Homeworkndash due Wednesday for feedback or at next class

                                                        bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                        potential conflict)What could you do (style switching) to lesson the

                                                        potential problems

                                                        • Global Entrepreneurship
                                                        • Brian David Butler
                                                        • Brian David Butler (2)
                                                        • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                        • Exam
                                                        • Schedule for today
                                                        • New Ideas
                                                        • What new business ideas
                                                        • Also curious
                                                        • Global Entrepreneurship developing the global mindset for ent
                                                        • Why study Culture
                                                        • Rather than a ldquolaundry listrdquo
                                                        • Preview of upcoming lectures
                                                        • Examples to discuss
                                                        • Your own examples
                                                        • Cultural Orientation Index
                                                        • Cultural Orientations Indicator- COI
                                                        • NOTE
                                                        • Homeworkndash due Wednesday for feedback or at next class
                                                        • Handouts emails
                                                        • Mini case studies
                                                        • Resources to learn more
                                                        • COI amp Entrepreneurship
                                                        • Entrepreneurship and COI
                                                        • Entrepreneurship and COI (2)
                                                        • Entrepreneurship and COI (3)
                                                        • Entrepreneurship and COI (4)
                                                        • Steps to take
                                                        • Style switching
                                                        • International IQ moment
                                                        • Athens Greece
                                                        • Athens Greece (2)
                                                        • Greek economy
                                                        • Greek economy ndash boom years
                                                        • Summary of problem + why important
                                                        • External funding + current accounts
                                                        • National ldquoBalance Sheetrdquo
                                                        • National ldquoBalance Sheetrdquo (2)
                                                        • National ldquoBalance Sheetrdquo (3)
                                                        • Answerhellip
                                                        • National ldquoBalance Sheetrdquo (4)
                                                        • Answer
                                                        • Call for help
                                                        • Recent struggles
                                                        • Understanding Greek challenges
                                                        • Understanding Greek challenges (2)
                                                        • Understanding Greek challenges (3)
                                                        • Fears- Contagion
                                                        • Other countries ndash BIGGER Debts
                                                        • Other countries ndash BIGGER Debts (2)
                                                        • Other countries ndash BIGGER Debts (3)
                                                        • Other countries ndash BIGGER Debts (4)
                                                        • Other countries ndash BIGGER Debts (5)
                                                        • Seehellip
                                                        • Homework
                                                        • Homeworkndash due Wednesday for feedback or at next class (2)

                                                          Style switching

                                                          bullWho should switch You ThembullConsider

                                                          Power relationship Buyer supplier Salesperson purchasing agent Customer client

                                                          Who must change Style switch

                                                          International IQ moment

                                                          What is happening in Greece - discussion

                                                          Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                          Athens Greece

                                                          bullWhat is happening in Greece ndash

                                                          Greek economy Euro Zone

                                                          Negatives

                                                          bull No control of monetary policy

                                                          bull Can not devalue currency to regain competitiveness

                                                          Positives

                                                          bull Low borrowing costs

                                                          Greek economy ndash boom years

                                                          httpenwikipediaorgwikiEconomy_of_Greece

                                                          Summary of problem + why importantbull In recent history

                                                          First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                          consumer demand ndash deficit spending Keynes stimulus

                                                          Credit continues to contract ndash less money to go around

                                                          Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                          External funding + current accounts

                                                          bullLesson from past- current account deficits = dangerous

                                                          bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                          This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                          It is also what happed to Greece

                                                          National ldquoBalance Sheetrdquo

                                                          bull3 Important parts (for our class discussion)

                                                          Current accountFlow of goods and services Roughly= exports -

                                                          imports

                                                          Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                          ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                          accountsldquobelow the linerdquo

                                                          Martin Wolf book ldquoFixing Global Financerdquo

                                                          Must Balance

                                                          If deficithellip

                                                          pay out reserves

                                                          If surplus

                                                          Build up reserves

                                                          National ldquoBalance Sheetrdquo

                                                          bullKey must ldquobalancerdquo

                                                          If ldquocurrent accountrdquo deficit

                                                          thenhellip by definitionhellip

                                                          ldquocapital accountrdquo = surplus

                                                          National ldquoBalance Sheetrdquo

                                                          bullGROUP

                                                          SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                          Answerhellip

                                                          SURPLUS Money must be coming in from abroad to

                                                          finance the current account deficits

                                                          National ldquoBalance Sheetrdquobull Buthellip

                                                          What happens if you do NOT have money coming in from abroad

                                                          Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                          Group assignment What happens What must you do (hint 3rd part of national

                                                          accounts mentioned before)hellip

                                                          Answer

                                                          You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                          Follow up questionWhat if you donrsquot have enough reserves Then what

                                                          What can you do

                                                          (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                          Call for help

                                                          bullIMFbullOr for Greecehellip call the other Euro

                                                          countries and ask for loans

                                                          bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                          Recent struggles

                                                          bullGreek shipping industry was hit hard by the decline in world trade

                                                          bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                          exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                          Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                          Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                          assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                          Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                          As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                          importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                          2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                          Fears- Contagion

                                                          bullThere are many other countries that are running deficits

                                                          bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                          Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                          bullUS UK are the big ones

                                                          Other countries ndash BIGGER Debts

                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                          Other countries ndash BIGGER Debts

                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                          Other countries ndash BIGGER Debts

                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                          Other countries ndash BIGGER Debts

                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                          Other countries ndash BIGGER Debts

                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                          Seehellip

                                                          bullSee economist article ndash history ndash credit crunch

                                                          bullI will send it by email hellip and will discuss next week

                                                          Homework

                                                          Sorry

                                                          Homeworkndash due Wednesday for feedback or at next class

                                                          bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                          potential conflict)What could you do (style switching) to lesson the

                                                          potential problems

                                                          • Global Entrepreneurship
                                                          • Brian David Butler
                                                          • Brian David Butler (2)
                                                          • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                          • Exam
                                                          • Schedule for today
                                                          • New Ideas
                                                          • What new business ideas
                                                          • Also curious
                                                          • Global Entrepreneurship developing the global mindset for ent
                                                          • Why study Culture
                                                          • Rather than a ldquolaundry listrdquo
                                                          • Preview of upcoming lectures
                                                          • Examples to discuss
                                                          • Your own examples
                                                          • Cultural Orientation Index
                                                          • Cultural Orientations Indicator- COI
                                                          • NOTE
                                                          • Homeworkndash due Wednesday for feedback or at next class
                                                          • Handouts emails
                                                          • Mini case studies
                                                          • Resources to learn more
                                                          • COI amp Entrepreneurship
                                                          • Entrepreneurship and COI
                                                          • Entrepreneurship and COI (2)
                                                          • Entrepreneurship and COI (3)
                                                          • Entrepreneurship and COI (4)
                                                          • Steps to take
                                                          • Style switching
                                                          • International IQ moment
                                                          • Athens Greece
                                                          • Athens Greece (2)
                                                          • Greek economy
                                                          • Greek economy ndash boom years
                                                          • Summary of problem + why important
                                                          • External funding + current accounts
                                                          • National ldquoBalance Sheetrdquo
                                                          • National ldquoBalance Sheetrdquo (2)
                                                          • National ldquoBalance Sheetrdquo (3)
                                                          • Answerhellip
                                                          • National ldquoBalance Sheetrdquo (4)
                                                          • Answer
                                                          • Call for help
                                                          • Recent struggles
                                                          • Understanding Greek challenges
                                                          • Understanding Greek challenges (2)
                                                          • Understanding Greek challenges (3)
                                                          • Fears- Contagion
                                                          • Other countries ndash BIGGER Debts
                                                          • Other countries ndash BIGGER Debts (2)
                                                          • Other countries ndash BIGGER Debts (3)
                                                          • Other countries ndash BIGGER Debts (4)
                                                          • Other countries ndash BIGGER Debts (5)
                                                          • Seehellip
                                                          • Homework
                                                          • Homeworkndash due Wednesday for feedback or at next class (2)

                                                            International IQ moment

                                                            What is happening in Greece - discussion

                                                            Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                            Athens Greece

                                                            bullWhat is happening in Greece ndash

                                                            Greek economy Euro Zone

                                                            Negatives

                                                            bull No control of monetary policy

                                                            bull Can not devalue currency to regain competitiveness

                                                            Positives

                                                            bull Low borrowing costs

                                                            Greek economy ndash boom years

                                                            httpenwikipediaorgwikiEconomy_of_Greece

                                                            Summary of problem + why importantbull In recent history

                                                            First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                            consumer demand ndash deficit spending Keynes stimulus

                                                            Credit continues to contract ndash less money to go around

                                                            Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                            External funding + current accounts

                                                            bullLesson from past- current account deficits = dangerous

                                                            bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                            This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                            It is also what happed to Greece

                                                            National ldquoBalance Sheetrdquo

                                                            bull3 Important parts (for our class discussion)

                                                            Current accountFlow of goods and services Roughly= exports -

                                                            imports

                                                            Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                            ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                            accountsldquobelow the linerdquo

                                                            Martin Wolf book ldquoFixing Global Financerdquo

                                                            Must Balance

                                                            If deficithellip

                                                            pay out reserves

                                                            If surplus

                                                            Build up reserves

                                                            National ldquoBalance Sheetrdquo

                                                            bullKey must ldquobalancerdquo

                                                            If ldquocurrent accountrdquo deficit

                                                            thenhellip by definitionhellip

                                                            ldquocapital accountrdquo = surplus

                                                            National ldquoBalance Sheetrdquo

                                                            bullGROUP

                                                            SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                            Answerhellip

                                                            SURPLUS Money must be coming in from abroad to

                                                            finance the current account deficits

                                                            National ldquoBalance Sheetrdquobull Buthellip

                                                            What happens if you do NOT have money coming in from abroad

                                                            Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                            Group assignment What happens What must you do (hint 3rd part of national

                                                            accounts mentioned before)hellip

                                                            Answer

                                                            You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                            Follow up questionWhat if you donrsquot have enough reserves Then what

                                                            What can you do

                                                            (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                            Call for help

                                                            bullIMFbullOr for Greecehellip call the other Euro

                                                            countries and ask for loans

                                                            bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                            Recent struggles

                                                            bullGreek shipping industry was hit hard by the decline in world trade

                                                            bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                            exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                            Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                            Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                            assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                            Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                            As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                            importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                            2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                            Fears- Contagion

                                                            bullThere are many other countries that are running deficits

                                                            bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                            Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                            bullUS UK are the big ones

                                                            Other countries ndash BIGGER Debts

                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                            Other countries ndash BIGGER Debts

                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                            Other countries ndash BIGGER Debts

                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                            Other countries ndash BIGGER Debts

                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                            Other countries ndash BIGGER Debts

                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                            Seehellip

                                                            bullSee economist article ndash history ndash credit crunch

                                                            bullI will send it by email hellip and will discuss next week

                                                            Homework

                                                            Sorry

                                                            Homeworkndash due Wednesday for feedback or at next class

                                                            bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                            potential conflict)What could you do (style switching) to lesson the

                                                            potential problems

                                                            • Global Entrepreneurship
                                                            • Brian David Butler
                                                            • Brian David Butler (2)
                                                            • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                            • Exam
                                                            • Schedule for today
                                                            • New Ideas
                                                            • What new business ideas
                                                            • Also curious
                                                            • Global Entrepreneurship developing the global mindset for ent
                                                            • Why study Culture
                                                            • Rather than a ldquolaundry listrdquo
                                                            • Preview of upcoming lectures
                                                            • Examples to discuss
                                                            • Your own examples
                                                            • Cultural Orientation Index
                                                            • Cultural Orientations Indicator- COI
                                                            • NOTE
                                                            • Homeworkndash due Wednesday for feedback or at next class
                                                            • Handouts emails
                                                            • Mini case studies
                                                            • Resources to learn more
                                                            • COI amp Entrepreneurship
                                                            • Entrepreneurship and COI
                                                            • Entrepreneurship and COI (2)
                                                            • Entrepreneurship and COI (3)
                                                            • Entrepreneurship and COI (4)
                                                            • Steps to take
                                                            • Style switching
                                                            • International IQ moment
                                                            • Athens Greece
                                                            • Athens Greece (2)
                                                            • Greek economy
                                                            • Greek economy ndash boom years
                                                            • Summary of problem + why important
                                                            • External funding + current accounts
                                                            • National ldquoBalance Sheetrdquo
                                                            • National ldquoBalance Sheetrdquo (2)
                                                            • National ldquoBalance Sheetrdquo (3)
                                                            • Answerhellip
                                                            • National ldquoBalance Sheetrdquo (4)
                                                            • Answer
                                                            • Call for help
                                                            • Recent struggles
                                                            • Understanding Greek challenges
                                                            • Understanding Greek challenges (2)
                                                            • Understanding Greek challenges (3)
                                                            • Fears- Contagion
                                                            • Other countries ndash BIGGER Debts
                                                            • Other countries ndash BIGGER Debts (2)
                                                            • Other countries ndash BIGGER Debts (3)
                                                            • Other countries ndash BIGGER Debts (4)
                                                            • Other countries ndash BIGGER Debts (5)
                                                            • Seehellip
                                                            • Homework
                                                            • Homeworkndash due Wednesday for feedback or at next class (2)

                                                              Athens GreeceAthens Greece ndash at the heart of a European Crisis

                                                              Athens Greece

                                                              bullWhat is happening in Greece ndash

                                                              Greek economy Euro Zone

                                                              Negatives

                                                              bull No control of monetary policy

                                                              bull Can not devalue currency to regain competitiveness

                                                              Positives

                                                              bull Low borrowing costs

                                                              Greek economy ndash boom years

                                                              httpenwikipediaorgwikiEconomy_of_Greece

                                                              Summary of problem + why importantbull In recent history

                                                              First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                              consumer demand ndash deficit spending Keynes stimulus

                                                              Credit continues to contract ndash less money to go around

                                                              Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                              External funding + current accounts

                                                              bullLesson from past- current account deficits = dangerous

                                                              bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                              This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                              It is also what happed to Greece

                                                              National ldquoBalance Sheetrdquo

                                                              bull3 Important parts (for our class discussion)

                                                              Current accountFlow of goods and services Roughly= exports -

                                                              imports

                                                              Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                              ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                              accountsldquobelow the linerdquo

                                                              Martin Wolf book ldquoFixing Global Financerdquo

                                                              Must Balance

                                                              If deficithellip

                                                              pay out reserves

                                                              If surplus

                                                              Build up reserves

                                                              National ldquoBalance Sheetrdquo

                                                              bullKey must ldquobalancerdquo

                                                              If ldquocurrent accountrdquo deficit

                                                              thenhellip by definitionhellip

                                                              ldquocapital accountrdquo = surplus

                                                              National ldquoBalance Sheetrdquo

                                                              bullGROUP

                                                              SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                              Answerhellip

                                                              SURPLUS Money must be coming in from abroad to

                                                              finance the current account deficits

                                                              National ldquoBalance Sheetrdquobull Buthellip

                                                              What happens if you do NOT have money coming in from abroad

                                                              Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                              Group assignment What happens What must you do (hint 3rd part of national

                                                              accounts mentioned before)hellip

                                                              Answer

                                                              You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                              Follow up questionWhat if you donrsquot have enough reserves Then what

                                                              What can you do

                                                              (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                              Call for help

                                                              bullIMFbullOr for Greecehellip call the other Euro

                                                              countries and ask for loans

                                                              bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                              Recent struggles

                                                              bullGreek shipping industry was hit hard by the decline in world trade

                                                              bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                              exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                              Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                              Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                              assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                              Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                              As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                              importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                              2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                              Fears- Contagion

                                                              bullThere are many other countries that are running deficits

                                                              bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                              Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                              bullUS UK are the big ones

                                                              Other countries ndash BIGGER Debts

                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                              Other countries ndash BIGGER Debts

                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                              Other countries ndash BIGGER Debts

                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                              Other countries ndash BIGGER Debts

                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                              Other countries ndash BIGGER Debts

                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                              Seehellip

                                                              bullSee economist article ndash history ndash credit crunch

                                                              bullI will send it by email hellip and will discuss next week

                                                              Homework

                                                              Sorry

                                                              Homeworkndash due Wednesday for feedback or at next class

                                                              bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                              potential conflict)What could you do (style switching) to lesson the

                                                              potential problems

                                                              • Global Entrepreneurship
                                                              • Brian David Butler
                                                              • Brian David Butler (2)
                                                              • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                              • Exam
                                                              • Schedule for today
                                                              • New Ideas
                                                              • What new business ideas
                                                              • Also curious
                                                              • Global Entrepreneurship developing the global mindset for ent
                                                              • Why study Culture
                                                              • Rather than a ldquolaundry listrdquo
                                                              • Preview of upcoming lectures
                                                              • Examples to discuss
                                                              • Your own examples
                                                              • Cultural Orientation Index
                                                              • Cultural Orientations Indicator- COI
                                                              • NOTE
                                                              • Homeworkndash due Wednesday for feedback or at next class
                                                              • Handouts emails
                                                              • Mini case studies
                                                              • Resources to learn more
                                                              • COI amp Entrepreneurship
                                                              • Entrepreneurship and COI
                                                              • Entrepreneurship and COI (2)
                                                              • Entrepreneurship and COI (3)
                                                              • Entrepreneurship and COI (4)
                                                              • Steps to take
                                                              • Style switching
                                                              • International IQ moment
                                                              • Athens Greece
                                                              • Athens Greece (2)
                                                              • Greek economy
                                                              • Greek economy ndash boom years
                                                              • Summary of problem + why important
                                                              • External funding + current accounts
                                                              • National ldquoBalance Sheetrdquo
                                                              • National ldquoBalance Sheetrdquo (2)
                                                              • National ldquoBalance Sheetrdquo (3)
                                                              • Answerhellip
                                                              • National ldquoBalance Sheetrdquo (4)
                                                              • Answer
                                                              • Call for help
                                                              • Recent struggles
                                                              • Understanding Greek challenges
                                                              • Understanding Greek challenges (2)
                                                              • Understanding Greek challenges (3)
                                                              • Fears- Contagion
                                                              • Other countries ndash BIGGER Debts
                                                              • Other countries ndash BIGGER Debts (2)
                                                              • Other countries ndash BIGGER Debts (3)
                                                              • Other countries ndash BIGGER Debts (4)
                                                              • Other countries ndash BIGGER Debts (5)
                                                              • Seehellip
                                                              • Homework
                                                              • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                Athens Greece

                                                                bullWhat is happening in Greece ndash

                                                                Greek economy Euro Zone

                                                                Negatives

                                                                bull No control of monetary policy

                                                                bull Can not devalue currency to regain competitiveness

                                                                Positives

                                                                bull Low borrowing costs

                                                                Greek economy ndash boom years

                                                                httpenwikipediaorgwikiEconomy_of_Greece

                                                                Summary of problem + why importantbull In recent history

                                                                First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                                consumer demand ndash deficit spending Keynes stimulus

                                                                Credit continues to contract ndash less money to go around

                                                                Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                                External funding + current accounts

                                                                bullLesson from past- current account deficits = dangerous

                                                                bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                                This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                                It is also what happed to Greece

                                                                National ldquoBalance Sheetrdquo

                                                                bull3 Important parts (for our class discussion)

                                                                Current accountFlow of goods and services Roughly= exports -

                                                                imports

                                                                Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                                ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                                accountsldquobelow the linerdquo

                                                                Martin Wolf book ldquoFixing Global Financerdquo

                                                                Must Balance

                                                                If deficithellip

                                                                pay out reserves

                                                                If surplus

                                                                Build up reserves

                                                                National ldquoBalance Sheetrdquo

                                                                bullKey must ldquobalancerdquo

                                                                If ldquocurrent accountrdquo deficit

                                                                thenhellip by definitionhellip

                                                                ldquocapital accountrdquo = surplus

                                                                National ldquoBalance Sheetrdquo

                                                                bullGROUP

                                                                SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                Answerhellip

                                                                SURPLUS Money must be coming in from abroad to

                                                                finance the current account deficits

                                                                National ldquoBalance Sheetrdquobull Buthellip

                                                                What happens if you do NOT have money coming in from abroad

                                                                Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                Group assignment What happens What must you do (hint 3rd part of national

                                                                accounts mentioned before)hellip

                                                                Answer

                                                                You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                What can you do

                                                                (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                Call for help

                                                                bullIMFbullOr for Greecehellip call the other Euro

                                                                countries and ask for loans

                                                                bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                Recent struggles

                                                                bullGreek shipping industry was hit hard by the decline in world trade

                                                                bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                Fears- Contagion

                                                                bullThere are many other countries that are running deficits

                                                                bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                bullUS UK are the big ones

                                                                Other countries ndash BIGGER Debts

                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                Other countries ndash BIGGER Debts

                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                Other countries ndash BIGGER Debts

                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                Other countries ndash BIGGER Debts

                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                Other countries ndash BIGGER Debts

                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                Seehellip

                                                                bullSee economist article ndash history ndash credit crunch

                                                                bullI will send it by email hellip and will discuss next week

                                                                Homework

                                                                Sorry

                                                                Homeworkndash due Wednesday for feedback or at next class

                                                                bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                potential conflict)What could you do (style switching) to lesson the

                                                                potential problems

                                                                • Global Entrepreneurship
                                                                • Brian David Butler
                                                                • Brian David Butler (2)
                                                                • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                • Exam
                                                                • Schedule for today
                                                                • New Ideas
                                                                • What new business ideas
                                                                • Also curious
                                                                • Global Entrepreneurship developing the global mindset for ent
                                                                • Why study Culture
                                                                • Rather than a ldquolaundry listrdquo
                                                                • Preview of upcoming lectures
                                                                • Examples to discuss
                                                                • Your own examples
                                                                • Cultural Orientation Index
                                                                • Cultural Orientations Indicator- COI
                                                                • NOTE
                                                                • Homeworkndash due Wednesday for feedback or at next class
                                                                • Handouts emails
                                                                • Mini case studies
                                                                • Resources to learn more
                                                                • COI amp Entrepreneurship
                                                                • Entrepreneurship and COI
                                                                • Entrepreneurship and COI (2)
                                                                • Entrepreneurship and COI (3)
                                                                • Entrepreneurship and COI (4)
                                                                • Steps to take
                                                                • Style switching
                                                                • International IQ moment
                                                                • Athens Greece
                                                                • Athens Greece (2)
                                                                • Greek economy
                                                                • Greek economy ndash boom years
                                                                • Summary of problem + why important
                                                                • External funding + current accounts
                                                                • National ldquoBalance Sheetrdquo
                                                                • National ldquoBalance Sheetrdquo (2)
                                                                • National ldquoBalance Sheetrdquo (3)
                                                                • Answerhellip
                                                                • National ldquoBalance Sheetrdquo (4)
                                                                • Answer
                                                                • Call for help
                                                                • Recent struggles
                                                                • Understanding Greek challenges
                                                                • Understanding Greek challenges (2)
                                                                • Understanding Greek challenges (3)
                                                                • Fears- Contagion
                                                                • Other countries ndash BIGGER Debts
                                                                • Other countries ndash BIGGER Debts (2)
                                                                • Other countries ndash BIGGER Debts (3)
                                                                • Other countries ndash BIGGER Debts (4)
                                                                • Other countries ndash BIGGER Debts (5)
                                                                • Seehellip
                                                                • Homework
                                                                • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                  Greek economy Euro Zone

                                                                  Negatives

                                                                  bull No control of monetary policy

                                                                  bull Can not devalue currency to regain competitiveness

                                                                  Positives

                                                                  bull Low borrowing costs

                                                                  Greek economy ndash boom years

                                                                  httpenwikipediaorgwikiEconomy_of_Greece

                                                                  Summary of problem + why importantbull In recent history

                                                                  First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                                  consumer demand ndash deficit spending Keynes stimulus

                                                                  Credit continues to contract ndash less money to go around

                                                                  Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                                  External funding + current accounts

                                                                  bullLesson from past- current account deficits = dangerous

                                                                  bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                                  This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                                  It is also what happed to Greece

                                                                  National ldquoBalance Sheetrdquo

                                                                  bull3 Important parts (for our class discussion)

                                                                  Current accountFlow of goods and services Roughly= exports -

                                                                  imports

                                                                  Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                                  ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                                  accountsldquobelow the linerdquo

                                                                  Martin Wolf book ldquoFixing Global Financerdquo

                                                                  Must Balance

                                                                  If deficithellip

                                                                  pay out reserves

                                                                  If surplus

                                                                  Build up reserves

                                                                  National ldquoBalance Sheetrdquo

                                                                  bullKey must ldquobalancerdquo

                                                                  If ldquocurrent accountrdquo deficit

                                                                  thenhellip by definitionhellip

                                                                  ldquocapital accountrdquo = surplus

                                                                  National ldquoBalance Sheetrdquo

                                                                  bullGROUP

                                                                  SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                  Answerhellip

                                                                  SURPLUS Money must be coming in from abroad to

                                                                  finance the current account deficits

                                                                  National ldquoBalance Sheetrdquobull Buthellip

                                                                  What happens if you do NOT have money coming in from abroad

                                                                  Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                  Group assignment What happens What must you do (hint 3rd part of national

                                                                  accounts mentioned before)hellip

                                                                  Answer

                                                                  You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                  Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                  What can you do

                                                                  (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                  Call for help

                                                                  bullIMFbullOr for Greecehellip call the other Euro

                                                                  countries and ask for loans

                                                                  bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                  Recent struggles

                                                                  bullGreek shipping industry was hit hard by the decline in world trade

                                                                  bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                  exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                  Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                  Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                  assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                  Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                  As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                  importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                  2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                  Fears- Contagion

                                                                  bullThere are many other countries that are running deficits

                                                                  bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                  Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                  bullUS UK are the big ones

                                                                  Other countries ndash BIGGER Debts

                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                  Other countries ndash BIGGER Debts

                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                  Other countries ndash BIGGER Debts

                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                  Other countries ndash BIGGER Debts

                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                  Other countries ndash BIGGER Debts

                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                  Seehellip

                                                                  bullSee economist article ndash history ndash credit crunch

                                                                  bullI will send it by email hellip and will discuss next week

                                                                  Homework

                                                                  Sorry

                                                                  Homeworkndash due Wednesday for feedback or at next class

                                                                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                  potential conflict)What could you do (style switching) to lesson the

                                                                  potential problems

                                                                  • Global Entrepreneurship
                                                                  • Brian David Butler
                                                                  • Brian David Butler (2)
                                                                  • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                  • Exam
                                                                  • Schedule for today
                                                                  • New Ideas
                                                                  • What new business ideas
                                                                  • Also curious
                                                                  • Global Entrepreneurship developing the global mindset for ent
                                                                  • Why study Culture
                                                                  • Rather than a ldquolaundry listrdquo
                                                                  • Preview of upcoming lectures
                                                                  • Examples to discuss
                                                                  • Your own examples
                                                                  • Cultural Orientation Index
                                                                  • Cultural Orientations Indicator- COI
                                                                  • NOTE
                                                                  • Homeworkndash due Wednesday for feedback or at next class
                                                                  • Handouts emails
                                                                  • Mini case studies
                                                                  • Resources to learn more
                                                                  • COI amp Entrepreneurship
                                                                  • Entrepreneurship and COI
                                                                  • Entrepreneurship and COI (2)
                                                                  • Entrepreneurship and COI (3)
                                                                  • Entrepreneurship and COI (4)
                                                                  • Steps to take
                                                                  • Style switching
                                                                  • International IQ moment
                                                                  • Athens Greece
                                                                  • Athens Greece (2)
                                                                  • Greek economy
                                                                  • Greek economy ndash boom years
                                                                  • Summary of problem + why important
                                                                  • External funding + current accounts
                                                                  • National ldquoBalance Sheetrdquo
                                                                  • National ldquoBalance Sheetrdquo (2)
                                                                  • National ldquoBalance Sheetrdquo (3)
                                                                  • Answerhellip
                                                                  • National ldquoBalance Sheetrdquo (4)
                                                                  • Answer
                                                                  • Call for help
                                                                  • Recent struggles
                                                                  • Understanding Greek challenges
                                                                  • Understanding Greek challenges (2)
                                                                  • Understanding Greek challenges (3)
                                                                  • Fears- Contagion
                                                                  • Other countries ndash BIGGER Debts
                                                                  • Other countries ndash BIGGER Debts (2)
                                                                  • Other countries ndash BIGGER Debts (3)
                                                                  • Other countries ndash BIGGER Debts (4)
                                                                  • Other countries ndash BIGGER Debts (5)
                                                                  • Seehellip
                                                                  • Homework
                                                                  • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                    Greek economy ndash boom years

                                                                    httpenwikipediaorgwikiEconomy_of_Greece

                                                                    Summary of problem + why importantbull In recent history

                                                                    First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                                    consumer demand ndash deficit spending Keynes stimulus

                                                                    Credit continues to contract ndash less money to go around

                                                                    Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                                    External funding + current accounts

                                                                    bullLesson from past- current account deficits = dangerous

                                                                    bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                                    This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                                    It is also what happed to Greece

                                                                    National ldquoBalance Sheetrdquo

                                                                    bull3 Important parts (for our class discussion)

                                                                    Current accountFlow of goods and services Roughly= exports -

                                                                    imports

                                                                    Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                                    ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                                    accountsldquobelow the linerdquo

                                                                    Martin Wolf book ldquoFixing Global Financerdquo

                                                                    Must Balance

                                                                    If deficithellip

                                                                    pay out reserves

                                                                    If surplus

                                                                    Build up reserves

                                                                    National ldquoBalance Sheetrdquo

                                                                    bullKey must ldquobalancerdquo

                                                                    If ldquocurrent accountrdquo deficit

                                                                    thenhellip by definitionhellip

                                                                    ldquocapital accountrdquo = surplus

                                                                    National ldquoBalance Sheetrdquo

                                                                    bullGROUP

                                                                    SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                    Answerhellip

                                                                    SURPLUS Money must be coming in from abroad to

                                                                    finance the current account deficits

                                                                    National ldquoBalance Sheetrdquobull Buthellip

                                                                    What happens if you do NOT have money coming in from abroad

                                                                    Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                    Group assignment What happens What must you do (hint 3rd part of national

                                                                    accounts mentioned before)hellip

                                                                    Answer

                                                                    You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                    Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                    What can you do

                                                                    (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                    Call for help

                                                                    bullIMFbullOr for Greecehellip call the other Euro

                                                                    countries and ask for loans

                                                                    bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                    Recent struggles

                                                                    bullGreek shipping industry was hit hard by the decline in world trade

                                                                    bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                    exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                    Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                    Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                    assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                    Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                    As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                    importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                    2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                    Fears- Contagion

                                                                    bullThere are many other countries that are running deficits

                                                                    bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                    Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                    bullUS UK are the big ones

                                                                    Other countries ndash BIGGER Debts

                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                    Other countries ndash BIGGER Debts

                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                    Other countries ndash BIGGER Debts

                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                    Other countries ndash BIGGER Debts

                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                    Other countries ndash BIGGER Debts

                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                    Seehellip

                                                                    bullSee economist article ndash history ndash credit crunch

                                                                    bullI will send it by email hellip and will discuss next week

                                                                    Homework

                                                                    Sorry

                                                                    Homeworkndash due Wednesday for feedback or at next class

                                                                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                    potential conflict)What could you do (style switching) to lesson the

                                                                    potential problems

                                                                    • Global Entrepreneurship
                                                                    • Brian David Butler
                                                                    • Brian David Butler (2)
                                                                    • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                    • Exam
                                                                    • Schedule for today
                                                                    • New Ideas
                                                                    • What new business ideas
                                                                    • Also curious
                                                                    • Global Entrepreneurship developing the global mindset for ent
                                                                    • Why study Culture
                                                                    • Rather than a ldquolaundry listrdquo
                                                                    • Preview of upcoming lectures
                                                                    • Examples to discuss
                                                                    • Your own examples
                                                                    • Cultural Orientation Index
                                                                    • Cultural Orientations Indicator- COI
                                                                    • NOTE
                                                                    • Homeworkndash due Wednesday for feedback or at next class
                                                                    • Handouts emails
                                                                    • Mini case studies
                                                                    • Resources to learn more
                                                                    • COI amp Entrepreneurship
                                                                    • Entrepreneurship and COI
                                                                    • Entrepreneurship and COI (2)
                                                                    • Entrepreneurship and COI (3)
                                                                    • Entrepreneurship and COI (4)
                                                                    • Steps to take
                                                                    • Style switching
                                                                    • International IQ moment
                                                                    • Athens Greece
                                                                    • Athens Greece (2)
                                                                    • Greek economy
                                                                    • Greek economy ndash boom years
                                                                    • Summary of problem + why important
                                                                    • External funding + current accounts
                                                                    • National ldquoBalance Sheetrdquo
                                                                    • National ldquoBalance Sheetrdquo (2)
                                                                    • National ldquoBalance Sheetrdquo (3)
                                                                    • Answerhellip
                                                                    • National ldquoBalance Sheetrdquo (4)
                                                                    • Answer
                                                                    • Call for help
                                                                    • Recent struggles
                                                                    • Understanding Greek challenges
                                                                    • Understanding Greek challenges (2)
                                                                    • Understanding Greek challenges (3)
                                                                    • Fears- Contagion
                                                                    • Other countries ndash BIGGER Debts
                                                                    • Other countries ndash BIGGER Debts (2)
                                                                    • Other countries ndash BIGGER Debts (3)
                                                                    • Other countries ndash BIGGER Debts (4)
                                                                    • Other countries ndash BIGGER Debts (5)
                                                                    • Seehellip
                                                                    • Homework
                                                                    • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                      Summary of problem + why importantbull In recent history

                                                                      First came the global economic crisis 2007-(9)Contraction of credit deleveragingGovernments step up to fill void of missing

                                                                      consumer demand ndash deficit spending Keynes stimulus

                                                                      Credit continues to contract ndash less money to go around

                                                                      Creditors punish weak countries with external funding requirements ndash Greece is 1st in line (but likely not the last)

                                                                      External funding + current accounts

                                                                      bullLesson from past- current account deficits = dangerous

                                                                      bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                                      This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                                      It is also what happed to Greece

                                                                      National ldquoBalance Sheetrdquo

                                                                      bull3 Important parts (for our class discussion)

                                                                      Current accountFlow of goods and services Roughly= exports -

                                                                      imports

                                                                      Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                                      ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                                      accountsldquobelow the linerdquo

                                                                      Martin Wolf book ldquoFixing Global Financerdquo

                                                                      Must Balance

                                                                      If deficithellip

                                                                      pay out reserves

                                                                      If surplus

                                                                      Build up reserves

                                                                      National ldquoBalance Sheetrdquo

                                                                      bullKey must ldquobalancerdquo

                                                                      If ldquocurrent accountrdquo deficit

                                                                      thenhellip by definitionhellip

                                                                      ldquocapital accountrdquo = surplus

                                                                      National ldquoBalance Sheetrdquo

                                                                      bullGROUP

                                                                      SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                      Answerhellip

                                                                      SURPLUS Money must be coming in from abroad to

                                                                      finance the current account deficits

                                                                      National ldquoBalance Sheetrdquobull Buthellip

                                                                      What happens if you do NOT have money coming in from abroad

                                                                      Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                      Group assignment What happens What must you do (hint 3rd part of national

                                                                      accounts mentioned before)hellip

                                                                      Answer

                                                                      You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                      Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                      What can you do

                                                                      (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                      Call for help

                                                                      bullIMFbullOr for Greecehellip call the other Euro

                                                                      countries and ask for loans

                                                                      bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                      Recent struggles

                                                                      bullGreek shipping industry was hit hard by the decline in world trade

                                                                      bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                      exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                      Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                      Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                      assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                      Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                      As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                      importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                      2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                      Fears- Contagion

                                                                      bullThere are many other countries that are running deficits

                                                                      bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                      Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                      bullUS UK are the big ones

                                                                      Other countries ndash BIGGER Debts

                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                      Other countries ndash BIGGER Debts

                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                      Other countries ndash BIGGER Debts

                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                      Other countries ndash BIGGER Debts

                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                      Other countries ndash BIGGER Debts

                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                      Seehellip

                                                                      bullSee economist article ndash history ndash credit crunch

                                                                      bullI will send it by email hellip and will discuss next week

                                                                      Homework

                                                                      Sorry

                                                                      Homeworkndash due Wednesday for feedback or at next class

                                                                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                      potential conflict)What could you do (style switching) to lesson the

                                                                      potential problems

                                                                      • Global Entrepreneurship
                                                                      • Brian David Butler
                                                                      • Brian David Butler (2)
                                                                      • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                      • Exam
                                                                      • Schedule for today
                                                                      • New Ideas
                                                                      • What new business ideas
                                                                      • Also curious
                                                                      • Global Entrepreneurship developing the global mindset for ent
                                                                      • Why study Culture
                                                                      • Rather than a ldquolaundry listrdquo
                                                                      • Preview of upcoming lectures
                                                                      • Examples to discuss
                                                                      • Your own examples
                                                                      • Cultural Orientation Index
                                                                      • Cultural Orientations Indicator- COI
                                                                      • NOTE
                                                                      • Homeworkndash due Wednesday for feedback or at next class
                                                                      • Handouts emails
                                                                      • Mini case studies
                                                                      • Resources to learn more
                                                                      • COI amp Entrepreneurship
                                                                      • Entrepreneurship and COI
                                                                      • Entrepreneurship and COI (2)
                                                                      • Entrepreneurship and COI (3)
                                                                      • Entrepreneurship and COI (4)
                                                                      • Steps to take
                                                                      • Style switching
                                                                      • International IQ moment
                                                                      • Athens Greece
                                                                      • Athens Greece (2)
                                                                      • Greek economy
                                                                      • Greek economy ndash boom years
                                                                      • Summary of problem + why important
                                                                      • External funding + current accounts
                                                                      • National ldquoBalance Sheetrdquo
                                                                      • National ldquoBalance Sheetrdquo (2)
                                                                      • National ldquoBalance Sheetrdquo (3)
                                                                      • Answerhellip
                                                                      • National ldquoBalance Sheetrdquo (4)
                                                                      • Answer
                                                                      • Call for help
                                                                      • Recent struggles
                                                                      • Understanding Greek challenges
                                                                      • Understanding Greek challenges (2)
                                                                      • Understanding Greek challenges (3)
                                                                      • Fears- Contagion
                                                                      • Other countries ndash BIGGER Debts
                                                                      • Other countries ndash BIGGER Debts (2)
                                                                      • Other countries ndash BIGGER Debts (3)
                                                                      • Other countries ndash BIGGER Debts (4)
                                                                      • Other countries ndash BIGGER Debts (5)
                                                                      • Seehellip
                                                                      • Homework
                                                                      • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                        External funding + current accounts

                                                                        bullLesson from past- current account deficits = dangerous

                                                                        bullReliance on funding from foreignersbullShort term fundingbullPay off rolling debtsbullBut what happens if funding dries up

                                                                        This is what happened to Lehman Bros in credit crisis (and Bear Stearns etc)

                                                                        It is also what happed to Greece

                                                                        National ldquoBalance Sheetrdquo

                                                                        bull3 Important parts (for our class discussion)

                                                                        Current accountFlow of goods and services Roughly= exports -

                                                                        imports

                                                                        Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                                        ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                                        accountsldquobelow the linerdquo

                                                                        Martin Wolf book ldquoFixing Global Financerdquo

                                                                        Must Balance

                                                                        If deficithellip

                                                                        pay out reserves

                                                                        If surplus

                                                                        Build up reserves

                                                                        National ldquoBalance Sheetrdquo

                                                                        bullKey must ldquobalancerdquo

                                                                        If ldquocurrent accountrdquo deficit

                                                                        thenhellip by definitionhellip

                                                                        ldquocapital accountrdquo = surplus

                                                                        National ldquoBalance Sheetrdquo

                                                                        bullGROUP

                                                                        SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                        Answerhellip

                                                                        SURPLUS Money must be coming in from abroad to

                                                                        finance the current account deficits

                                                                        National ldquoBalance Sheetrdquobull Buthellip

                                                                        What happens if you do NOT have money coming in from abroad

                                                                        Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                        Group assignment What happens What must you do (hint 3rd part of national

                                                                        accounts mentioned before)hellip

                                                                        Answer

                                                                        You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                        Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                        What can you do

                                                                        (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                        Call for help

                                                                        bullIMFbullOr for Greecehellip call the other Euro

                                                                        countries and ask for loans

                                                                        bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                        Recent struggles

                                                                        bullGreek shipping industry was hit hard by the decline in world trade

                                                                        bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                        exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                        Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                        Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                        assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                        Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                        As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                        importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                        2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                        Fears- Contagion

                                                                        bullThere are many other countries that are running deficits

                                                                        bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                        Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                        bullUS UK are the big ones

                                                                        Other countries ndash BIGGER Debts

                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                        Other countries ndash BIGGER Debts

                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                        Other countries ndash BIGGER Debts

                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                        Other countries ndash BIGGER Debts

                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                        Other countries ndash BIGGER Debts

                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                        Seehellip

                                                                        bullSee economist article ndash history ndash credit crunch

                                                                        bullI will send it by email hellip and will discuss next week

                                                                        Homework

                                                                        Sorry

                                                                        Homeworkndash due Wednesday for feedback or at next class

                                                                        bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                        potential conflict)What could you do (style switching) to lesson the

                                                                        potential problems

                                                                        • Global Entrepreneurship
                                                                        • Brian David Butler
                                                                        • Brian David Butler (2)
                                                                        • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                        • Exam
                                                                        • Schedule for today
                                                                        • New Ideas
                                                                        • What new business ideas
                                                                        • Also curious
                                                                        • Global Entrepreneurship developing the global mindset for ent
                                                                        • Why study Culture
                                                                        • Rather than a ldquolaundry listrdquo
                                                                        • Preview of upcoming lectures
                                                                        • Examples to discuss
                                                                        • Your own examples
                                                                        • Cultural Orientation Index
                                                                        • Cultural Orientations Indicator- COI
                                                                        • NOTE
                                                                        • Homeworkndash due Wednesday for feedback or at next class
                                                                        • Handouts emails
                                                                        • Mini case studies
                                                                        • Resources to learn more
                                                                        • COI amp Entrepreneurship
                                                                        • Entrepreneurship and COI
                                                                        • Entrepreneurship and COI (2)
                                                                        • Entrepreneurship and COI (3)
                                                                        • Entrepreneurship and COI (4)
                                                                        • Steps to take
                                                                        • Style switching
                                                                        • International IQ moment
                                                                        • Athens Greece
                                                                        • Athens Greece (2)
                                                                        • Greek economy
                                                                        • Greek economy ndash boom years
                                                                        • Summary of problem + why important
                                                                        • External funding + current accounts
                                                                        • National ldquoBalance Sheetrdquo
                                                                        • National ldquoBalance Sheetrdquo (2)
                                                                        • National ldquoBalance Sheetrdquo (3)
                                                                        • Answerhellip
                                                                        • National ldquoBalance Sheetrdquo (4)
                                                                        • Answer
                                                                        • Call for help
                                                                        • Recent struggles
                                                                        • Understanding Greek challenges
                                                                        • Understanding Greek challenges (2)
                                                                        • Understanding Greek challenges (3)
                                                                        • Fears- Contagion
                                                                        • Other countries ndash BIGGER Debts
                                                                        • Other countries ndash BIGGER Debts (2)
                                                                        • Other countries ndash BIGGER Debts (3)
                                                                        • Other countries ndash BIGGER Debts (4)
                                                                        • Other countries ndash BIGGER Debts (5)
                                                                        • Seehellip
                                                                        • Homework
                                                                        • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                          National ldquoBalance Sheetrdquo

                                                                          bull3 Important parts (for our class discussion)

                                                                          Current accountFlow of goods and services Roughly= exports -

                                                                          imports

                                                                          Capital accountPaying for the current account - Money flowsExample US government sells treasury bills

                                                                          ReservesForeign currency gold etcUsed to finance gap between current amp capital

                                                                          accountsldquobelow the linerdquo

                                                                          Martin Wolf book ldquoFixing Global Financerdquo

                                                                          Must Balance

                                                                          If deficithellip

                                                                          pay out reserves

                                                                          If surplus

                                                                          Build up reserves

                                                                          National ldquoBalance Sheetrdquo

                                                                          bullKey must ldquobalancerdquo

                                                                          If ldquocurrent accountrdquo deficit

                                                                          thenhellip by definitionhellip

                                                                          ldquocapital accountrdquo = surplus

                                                                          National ldquoBalance Sheetrdquo

                                                                          bullGROUP

                                                                          SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                          Answerhellip

                                                                          SURPLUS Money must be coming in from abroad to

                                                                          finance the current account deficits

                                                                          National ldquoBalance Sheetrdquobull Buthellip

                                                                          What happens if you do NOT have money coming in from abroad

                                                                          Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                          Group assignment What happens What must you do (hint 3rd part of national

                                                                          accounts mentioned before)hellip

                                                                          Answer

                                                                          You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                          Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                          What can you do

                                                                          (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                          Call for help

                                                                          bullIMFbullOr for Greecehellip call the other Euro

                                                                          countries and ask for loans

                                                                          bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                          Recent struggles

                                                                          bullGreek shipping industry was hit hard by the decline in world trade

                                                                          bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                          exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                          Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                          Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                          assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                          Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                          As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                          importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                          2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                          Fears- Contagion

                                                                          bullThere are many other countries that are running deficits

                                                                          bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                          Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                          bullUS UK are the big ones

                                                                          Other countries ndash BIGGER Debts

                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                          Other countries ndash BIGGER Debts

                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                          Other countries ndash BIGGER Debts

                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                          Other countries ndash BIGGER Debts

                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                          Other countries ndash BIGGER Debts

                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                          Seehellip

                                                                          bullSee economist article ndash history ndash credit crunch

                                                                          bullI will send it by email hellip and will discuss next week

                                                                          Homework

                                                                          Sorry

                                                                          Homeworkndash due Wednesday for feedback or at next class

                                                                          bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                          potential conflict)What could you do (style switching) to lesson the

                                                                          potential problems

                                                                          • Global Entrepreneurship
                                                                          • Brian David Butler
                                                                          • Brian David Butler (2)
                                                                          • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                          • Exam
                                                                          • Schedule for today
                                                                          • New Ideas
                                                                          • What new business ideas
                                                                          • Also curious
                                                                          • Global Entrepreneurship developing the global mindset for ent
                                                                          • Why study Culture
                                                                          • Rather than a ldquolaundry listrdquo
                                                                          • Preview of upcoming lectures
                                                                          • Examples to discuss
                                                                          • Your own examples
                                                                          • Cultural Orientation Index
                                                                          • Cultural Orientations Indicator- COI
                                                                          • NOTE
                                                                          • Homeworkndash due Wednesday for feedback or at next class
                                                                          • Handouts emails
                                                                          • Mini case studies
                                                                          • Resources to learn more
                                                                          • COI amp Entrepreneurship
                                                                          • Entrepreneurship and COI
                                                                          • Entrepreneurship and COI (2)
                                                                          • Entrepreneurship and COI (3)
                                                                          • Entrepreneurship and COI (4)
                                                                          • Steps to take
                                                                          • Style switching
                                                                          • International IQ moment
                                                                          • Athens Greece
                                                                          • Athens Greece (2)
                                                                          • Greek economy
                                                                          • Greek economy ndash boom years
                                                                          • Summary of problem + why important
                                                                          • External funding + current accounts
                                                                          • National ldquoBalance Sheetrdquo
                                                                          • National ldquoBalance Sheetrdquo (2)
                                                                          • National ldquoBalance Sheetrdquo (3)
                                                                          • Answerhellip
                                                                          • National ldquoBalance Sheetrdquo (4)
                                                                          • Answer
                                                                          • Call for help
                                                                          • Recent struggles
                                                                          • Understanding Greek challenges
                                                                          • Understanding Greek challenges (2)
                                                                          • Understanding Greek challenges (3)
                                                                          • Fears- Contagion
                                                                          • Other countries ndash BIGGER Debts
                                                                          • Other countries ndash BIGGER Debts (2)
                                                                          • Other countries ndash BIGGER Debts (3)
                                                                          • Other countries ndash BIGGER Debts (4)
                                                                          • Other countries ndash BIGGER Debts (5)
                                                                          • Seehellip
                                                                          • Homework
                                                                          • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                            National ldquoBalance Sheetrdquo

                                                                            bullKey must ldquobalancerdquo

                                                                            If ldquocurrent accountrdquo deficit

                                                                            thenhellip by definitionhellip

                                                                            ldquocapital accountrdquo = surplus

                                                                            National ldquoBalance Sheetrdquo

                                                                            bullGROUP

                                                                            SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                            Answerhellip

                                                                            SURPLUS Money must be coming in from abroad to

                                                                            finance the current account deficits

                                                                            National ldquoBalance Sheetrdquobull Buthellip

                                                                            What happens if you do NOT have money coming in from abroad

                                                                            Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                            Group assignment What happens What must you do (hint 3rd part of national

                                                                            accounts mentioned before)hellip

                                                                            Answer

                                                                            You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                            Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                            What can you do

                                                                            (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                            Call for help

                                                                            bullIMFbullOr for Greecehellip call the other Euro

                                                                            countries and ask for loans

                                                                            bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                            Recent struggles

                                                                            bullGreek shipping industry was hit hard by the decline in world trade

                                                                            bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                            exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                            Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                            Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                            assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                            Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                            As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                            importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                            2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                            Fears- Contagion

                                                                            bullThere are many other countries that are running deficits

                                                                            bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                            Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                            bullUS UK are the big ones

                                                                            Other countries ndash BIGGER Debts

                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                            Other countries ndash BIGGER Debts

                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                            Other countries ndash BIGGER Debts

                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                            Other countries ndash BIGGER Debts

                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                            Other countries ndash BIGGER Debts

                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                            Seehellip

                                                                            bullSee economist article ndash history ndash credit crunch

                                                                            bullI will send it by email hellip and will discuss next week

                                                                            Homework

                                                                            Sorry

                                                                            Homeworkndash due Wednesday for feedback or at next class

                                                                            bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                            potential conflict)What could you do (style switching) to lesson the

                                                                            potential problems

                                                                            • Global Entrepreneurship
                                                                            • Brian David Butler
                                                                            • Brian David Butler (2)
                                                                            • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                            • Exam
                                                                            • Schedule for today
                                                                            • New Ideas
                                                                            • What new business ideas
                                                                            • Also curious
                                                                            • Global Entrepreneurship developing the global mindset for ent
                                                                            • Why study Culture
                                                                            • Rather than a ldquolaundry listrdquo
                                                                            • Preview of upcoming lectures
                                                                            • Examples to discuss
                                                                            • Your own examples
                                                                            • Cultural Orientation Index
                                                                            • Cultural Orientations Indicator- COI
                                                                            • NOTE
                                                                            • Homeworkndash due Wednesday for feedback or at next class
                                                                            • Handouts emails
                                                                            • Mini case studies
                                                                            • Resources to learn more
                                                                            • COI amp Entrepreneurship
                                                                            • Entrepreneurship and COI
                                                                            • Entrepreneurship and COI (2)
                                                                            • Entrepreneurship and COI (3)
                                                                            • Entrepreneurship and COI (4)
                                                                            • Steps to take
                                                                            • Style switching
                                                                            • International IQ moment
                                                                            • Athens Greece
                                                                            • Athens Greece (2)
                                                                            • Greek economy
                                                                            • Greek economy ndash boom years
                                                                            • Summary of problem + why important
                                                                            • External funding + current accounts
                                                                            • National ldquoBalance Sheetrdquo
                                                                            • National ldquoBalance Sheetrdquo (2)
                                                                            • National ldquoBalance Sheetrdquo (3)
                                                                            • Answerhellip
                                                                            • National ldquoBalance Sheetrdquo (4)
                                                                            • Answer
                                                                            • Call for help
                                                                            • Recent struggles
                                                                            • Understanding Greek challenges
                                                                            • Understanding Greek challenges (2)
                                                                            • Understanding Greek challenges (3)
                                                                            • Fears- Contagion
                                                                            • Other countries ndash BIGGER Debts
                                                                            • Other countries ndash BIGGER Debts (2)
                                                                            • Other countries ndash BIGGER Debts (3)
                                                                            • Other countries ndash BIGGER Debts (4)
                                                                            • Other countries ndash BIGGER Debts (5)
                                                                            • Seehellip
                                                                            • Homework
                                                                            • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                              National ldquoBalance Sheetrdquo

                                                                              bullGROUP

                                                                              SohellipIf imports are gt exportshellip what must be happening in the ldquocapital accountrdquo

                                                                              Answerhellip

                                                                              SURPLUS Money must be coming in from abroad to

                                                                              finance the current account deficits

                                                                              National ldquoBalance Sheetrdquobull Buthellip

                                                                              What happens if you do NOT have money coming in from abroad

                                                                              Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                              Group assignment What happens What must you do (hint 3rd part of national

                                                                              accounts mentioned before)hellip

                                                                              Answer

                                                                              You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                              Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                              What can you do

                                                                              (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                              Call for help

                                                                              bullIMFbullOr for Greecehellip call the other Euro

                                                                              countries and ask for loans

                                                                              bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                              Recent struggles

                                                                              bullGreek shipping industry was hit hard by the decline in world trade

                                                                              bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                              exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                              Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                              Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                              assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                              Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                              As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                              importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                              2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                              Fears- Contagion

                                                                              bullThere are many other countries that are running deficits

                                                                              bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                              Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                              bullUS UK are the big ones

                                                                              Other countries ndash BIGGER Debts

                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                              Other countries ndash BIGGER Debts

                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                              Other countries ndash BIGGER Debts

                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                              Other countries ndash BIGGER Debts

                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                              Other countries ndash BIGGER Debts

                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                              Seehellip

                                                                              bullSee economist article ndash history ndash credit crunch

                                                                              bullI will send it by email hellip and will discuss next week

                                                                              Homework

                                                                              Sorry

                                                                              Homeworkndash due Wednesday for feedback or at next class

                                                                              bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                              potential conflict)What could you do (style switching) to lesson the

                                                                              potential problems

                                                                              • Global Entrepreneurship
                                                                              • Brian David Butler
                                                                              • Brian David Butler (2)
                                                                              • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                              • Exam
                                                                              • Schedule for today
                                                                              • New Ideas
                                                                              • What new business ideas
                                                                              • Also curious
                                                                              • Global Entrepreneurship developing the global mindset for ent
                                                                              • Why study Culture
                                                                              • Rather than a ldquolaundry listrdquo
                                                                              • Preview of upcoming lectures
                                                                              • Examples to discuss
                                                                              • Your own examples
                                                                              • Cultural Orientation Index
                                                                              • Cultural Orientations Indicator- COI
                                                                              • NOTE
                                                                              • Homeworkndash due Wednesday for feedback or at next class
                                                                              • Handouts emails
                                                                              • Mini case studies
                                                                              • Resources to learn more
                                                                              • COI amp Entrepreneurship
                                                                              • Entrepreneurship and COI
                                                                              • Entrepreneurship and COI (2)
                                                                              • Entrepreneurship and COI (3)
                                                                              • Entrepreneurship and COI (4)
                                                                              • Steps to take
                                                                              • Style switching
                                                                              • International IQ moment
                                                                              • Athens Greece
                                                                              • Athens Greece (2)
                                                                              • Greek economy
                                                                              • Greek economy ndash boom years
                                                                              • Summary of problem + why important
                                                                              • External funding + current accounts
                                                                              • National ldquoBalance Sheetrdquo
                                                                              • National ldquoBalance Sheetrdquo (2)
                                                                              • National ldquoBalance Sheetrdquo (3)
                                                                              • Answerhellip
                                                                              • National ldquoBalance Sheetrdquo (4)
                                                                              • Answer
                                                                              • Call for help
                                                                              • Recent struggles
                                                                              • Understanding Greek challenges
                                                                              • Understanding Greek challenges (2)
                                                                              • Understanding Greek challenges (3)
                                                                              • Fears- Contagion
                                                                              • Other countries ndash BIGGER Debts
                                                                              • Other countries ndash BIGGER Debts (2)
                                                                              • Other countries ndash BIGGER Debts (3)
                                                                              • Other countries ndash BIGGER Debts (4)
                                                                              • Other countries ndash BIGGER Debts (5)
                                                                              • Seehellip
                                                                              • Homework
                                                                              • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                Answerhellip

                                                                                SURPLUS Money must be coming in from abroad to

                                                                                finance the current account deficits

                                                                                National ldquoBalance Sheetrdquobull Buthellip

                                                                                What happens if you do NOT have money coming in from abroad

                                                                                Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                                Group assignment What happens What must you do (hint 3rd part of national

                                                                                accounts mentioned before)hellip

                                                                                Answer

                                                                                You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                                Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                                What can you do

                                                                                (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                                Call for help

                                                                                bullIMFbullOr for Greecehellip call the other Euro

                                                                                countries and ask for loans

                                                                                bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                                Recent struggles

                                                                                bullGreek shipping industry was hit hard by the decline in world trade

                                                                                bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                                exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                                Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                                assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                                As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                                Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                Fears- Contagion

                                                                                bullThere are many other countries that are running deficits

                                                                                bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                bullUS UK are the big ones

                                                                                Other countries ndash BIGGER Debts

                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                Other countries ndash BIGGER Debts

                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                Other countries ndash BIGGER Debts

                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                Other countries ndash BIGGER Debts

                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                Other countries ndash BIGGER Debts

                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                Seehellip

                                                                                bullSee economist article ndash history ndash credit crunch

                                                                                bullI will send it by email hellip and will discuss next week

                                                                                Homework

                                                                                Sorry

                                                                                Homeworkndash due Wednesday for feedback or at next class

                                                                                bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                potential conflict)What could you do (style switching) to lesson the

                                                                                potential problems

                                                                                • Global Entrepreneurship
                                                                                • Brian David Butler
                                                                                • Brian David Butler (2)
                                                                                • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                • Exam
                                                                                • Schedule for today
                                                                                • New Ideas
                                                                                • What new business ideas
                                                                                • Also curious
                                                                                • Global Entrepreneurship developing the global mindset for ent
                                                                                • Why study Culture
                                                                                • Rather than a ldquolaundry listrdquo
                                                                                • Preview of upcoming lectures
                                                                                • Examples to discuss
                                                                                • Your own examples
                                                                                • Cultural Orientation Index
                                                                                • Cultural Orientations Indicator- COI
                                                                                • NOTE
                                                                                • Homeworkndash due Wednesday for feedback or at next class
                                                                                • Handouts emails
                                                                                • Mini case studies
                                                                                • Resources to learn more
                                                                                • COI amp Entrepreneurship
                                                                                • Entrepreneurship and COI
                                                                                • Entrepreneurship and COI (2)
                                                                                • Entrepreneurship and COI (3)
                                                                                • Entrepreneurship and COI (4)
                                                                                • Steps to take
                                                                                • Style switching
                                                                                • International IQ moment
                                                                                • Athens Greece
                                                                                • Athens Greece (2)
                                                                                • Greek economy
                                                                                • Greek economy ndash boom years
                                                                                • Summary of problem + why important
                                                                                • External funding + current accounts
                                                                                • National ldquoBalance Sheetrdquo
                                                                                • National ldquoBalance Sheetrdquo (2)
                                                                                • National ldquoBalance Sheetrdquo (3)
                                                                                • Answerhellip
                                                                                • National ldquoBalance Sheetrdquo (4)
                                                                                • Answer
                                                                                • Call for help
                                                                                • Recent struggles
                                                                                • Understanding Greek challenges
                                                                                • Understanding Greek challenges (2)
                                                                                • Understanding Greek challenges (3)
                                                                                • Fears- Contagion
                                                                                • Other countries ndash BIGGER Debts
                                                                                • Other countries ndash BIGGER Debts (2)
                                                                                • Other countries ndash BIGGER Debts (3)
                                                                                • Other countries ndash BIGGER Debts (4)
                                                                                • Other countries ndash BIGGER Debts (5)
                                                                                • Seehellip
                                                                                • Homework
                                                                                • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                  National ldquoBalance Sheetrdquobull Buthellip

                                                                                  What happens if you do NOT have money coming in from abroad

                                                                                  Note just because you have a ldquocurrent accountrdquo deficithellip that doesnrsquot mean foreigners will pay the billhellip

                                                                                  Group assignment What happens What must you do (hint 3rd part of national

                                                                                  accounts mentioned before)hellip

                                                                                  Answer

                                                                                  You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                                  Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                                  What can you do

                                                                                  (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                                  Call for help

                                                                                  bullIMFbullOr for Greecehellip call the other Euro

                                                                                  countries and ask for loans

                                                                                  bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                                  Recent struggles

                                                                                  bullGreek shipping industry was hit hard by the decline in world trade

                                                                                  bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                                  exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                  Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                                  Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                                  assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                  Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                                  As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                                  Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                  importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                  2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                  Fears- Contagion

                                                                                  bullThere are many other countries that are running deficits

                                                                                  bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                  Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                  bullUS UK are the big ones

                                                                                  Other countries ndash BIGGER Debts

                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                  Other countries ndash BIGGER Debts

                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                  Other countries ndash BIGGER Debts

                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                  Other countries ndash BIGGER Debts

                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                  Other countries ndash BIGGER Debts

                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                  Seehellip

                                                                                  bullSee economist article ndash history ndash credit crunch

                                                                                  bullI will send it by email hellip and will discuss next week

                                                                                  Homework

                                                                                  Sorry

                                                                                  Homeworkndash due Wednesday for feedback or at next class

                                                                                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                  potential conflict)What could you do (style switching) to lesson the

                                                                                  potential problems

                                                                                  • Global Entrepreneurship
                                                                                  • Brian David Butler
                                                                                  • Brian David Butler (2)
                                                                                  • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                  • Exam
                                                                                  • Schedule for today
                                                                                  • New Ideas
                                                                                  • What new business ideas
                                                                                  • Also curious
                                                                                  • Global Entrepreneurship developing the global mindset for ent
                                                                                  • Why study Culture
                                                                                  • Rather than a ldquolaundry listrdquo
                                                                                  • Preview of upcoming lectures
                                                                                  • Examples to discuss
                                                                                  • Your own examples
                                                                                  • Cultural Orientation Index
                                                                                  • Cultural Orientations Indicator- COI
                                                                                  • NOTE
                                                                                  • Homeworkndash due Wednesday for feedback or at next class
                                                                                  • Handouts emails
                                                                                  • Mini case studies
                                                                                  • Resources to learn more
                                                                                  • COI amp Entrepreneurship
                                                                                  • Entrepreneurship and COI
                                                                                  • Entrepreneurship and COI (2)
                                                                                  • Entrepreneurship and COI (3)
                                                                                  • Entrepreneurship and COI (4)
                                                                                  • Steps to take
                                                                                  • Style switching
                                                                                  • International IQ moment
                                                                                  • Athens Greece
                                                                                  • Athens Greece (2)
                                                                                  • Greek economy
                                                                                  • Greek economy ndash boom years
                                                                                  • Summary of problem + why important
                                                                                  • External funding + current accounts
                                                                                  • National ldquoBalance Sheetrdquo
                                                                                  • National ldquoBalance Sheetrdquo (2)
                                                                                  • National ldquoBalance Sheetrdquo (3)
                                                                                  • Answerhellip
                                                                                  • National ldquoBalance Sheetrdquo (4)
                                                                                  • Answer
                                                                                  • Call for help
                                                                                  • Recent struggles
                                                                                  • Understanding Greek challenges
                                                                                  • Understanding Greek challenges (2)
                                                                                  • Understanding Greek challenges (3)
                                                                                  • Fears- Contagion
                                                                                  • Other countries ndash BIGGER Debts
                                                                                  • Other countries ndash BIGGER Debts (2)
                                                                                  • Other countries ndash BIGGER Debts (3)
                                                                                  • Other countries ndash BIGGER Debts (4)
                                                                                  • Other countries ndash BIGGER Debts (5)
                                                                                  • Seehellip
                                                                                  • Homework
                                                                                  • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                    Answer

                                                                                    You must then dip into the Reserves (if you have any) and pay the differencehellip (gold foreign currency)

                                                                                    Follow up questionWhat if you donrsquot have enough reserves Then what

                                                                                    What can you do

                                                                                    (What happens if you are running a current account deficit and if foreigners SUDDEN STOP supplying capital buthellip you do not have enough reserves to pay the bill)

                                                                                    Call for help

                                                                                    bullIMFbullOr for Greecehellip call the other Euro

                                                                                    countries and ask for loans

                                                                                    bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                                    Recent struggles

                                                                                    bullGreek shipping industry was hit hard by the decline in world trade

                                                                                    bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                                    exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                    Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                                    Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                                    assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                    Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                                    As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                                    Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                    importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                    2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                    Fears- Contagion

                                                                                    bullThere are many other countries that are running deficits

                                                                                    bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                    Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                    bullUS UK are the big ones

                                                                                    Other countries ndash BIGGER Debts

                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                    Other countries ndash BIGGER Debts

                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                    Other countries ndash BIGGER Debts

                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                    Other countries ndash BIGGER Debts

                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                    Other countries ndash BIGGER Debts

                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                    Seehellip

                                                                                    bullSee economist article ndash history ndash credit crunch

                                                                                    bullI will send it by email hellip and will discuss next week

                                                                                    Homework

                                                                                    Sorry

                                                                                    Homeworkndash due Wednesday for feedback or at next class

                                                                                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                    potential conflict)What could you do (style switching) to lesson the

                                                                                    potential problems

                                                                                    • Global Entrepreneurship
                                                                                    • Brian David Butler
                                                                                    • Brian David Butler (2)
                                                                                    • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                    • Exam
                                                                                    • Schedule for today
                                                                                    • New Ideas
                                                                                    • What new business ideas
                                                                                    • Also curious
                                                                                    • Global Entrepreneurship developing the global mindset for ent
                                                                                    • Why study Culture
                                                                                    • Rather than a ldquolaundry listrdquo
                                                                                    • Preview of upcoming lectures
                                                                                    • Examples to discuss
                                                                                    • Your own examples
                                                                                    • Cultural Orientation Index
                                                                                    • Cultural Orientations Indicator- COI
                                                                                    • NOTE
                                                                                    • Homeworkndash due Wednesday for feedback or at next class
                                                                                    • Handouts emails
                                                                                    • Mini case studies
                                                                                    • Resources to learn more
                                                                                    • COI amp Entrepreneurship
                                                                                    • Entrepreneurship and COI
                                                                                    • Entrepreneurship and COI (2)
                                                                                    • Entrepreneurship and COI (3)
                                                                                    • Entrepreneurship and COI (4)
                                                                                    • Steps to take
                                                                                    • Style switching
                                                                                    • International IQ moment
                                                                                    • Athens Greece
                                                                                    • Athens Greece (2)
                                                                                    • Greek economy
                                                                                    • Greek economy ndash boom years
                                                                                    • Summary of problem + why important
                                                                                    • External funding + current accounts
                                                                                    • National ldquoBalance Sheetrdquo
                                                                                    • National ldquoBalance Sheetrdquo (2)
                                                                                    • National ldquoBalance Sheetrdquo (3)
                                                                                    • Answerhellip
                                                                                    • National ldquoBalance Sheetrdquo (4)
                                                                                    • Answer
                                                                                    • Call for help
                                                                                    • Recent struggles
                                                                                    • Understanding Greek challenges
                                                                                    • Understanding Greek challenges (2)
                                                                                    • Understanding Greek challenges (3)
                                                                                    • Fears- Contagion
                                                                                    • Other countries ndash BIGGER Debts
                                                                                    • Other countries ndash BIGGER Debts (2)
                                                                                    • Other countries ndash BIGGER Debts (3)
                                                                                    • Other countries ndash BIGGER Debts (4)
                                                                                    • Other countries ndash BIGGER Debts (5)
                                                                                    • Seehellip
                                                                                    • Homework
                                                                                    • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                      Call for help

                                                                                      bullIMFbullOr for Greecehellip call the other Euro

                                                                                      countries and ask for loans

                                                                                      bullButhellip put yourself in the Germans shoeshellip would you want to pour money into Greece if you didnrsquot expect to get the money back Will the Greeks change

                                                                                      Recent struggles

                                                                                      bullGreek shipping industry was hit hard by the decline in world trade

                                                                                      bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                                      exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                      Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                                      Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                                      assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                      Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                                      As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                                      Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                      importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                      2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                      Fears- Contagion

                                                                                      bullThere are many other countries that are running deficits

                                                                                      bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                      Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                      bullUS UK are the big ones

                                                                                      Other countries ndash BIGGER Debts

                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                      Other countries ndash BIGGER Debts

                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                      Other countries ndash BIGGER Debts

                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                      Other countries ndash BIGGER Debts

                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                      Other countries ndash BIGGER Debts

                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                      Seehellip

                                                                                      bullSee economist article ndash history ndash credit crunch

                                                                                      bullI will send it by email hellip and will discuss next week

                                                                                      Homework

                                                                                      Sorry

                                                                                      Homeworkndash due Wednesday for feedback or at next class

                                                                                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                      potential conflict)What could you do (style switching) to lesson the

                                                                                      potential problems

                                                                                      • Global Entrepreneurship
                                                                                      • Brian David Butler
                                                                                      • Brian David Butler (2)
                                                                                      • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                      • Exam
                                                                                      • Schedule for today
                                                                                      • New Ideas
                                                                                      • What new business ideas
                                                                                      • Also curious
                                                                                      • Global Entrepreneurship developing the global mindset for ent
                                                                                      • Why study Culture
                                                                                      • Rather than a ldquolaundry listrdquo
                                                                                      • Preview of upcoming lectures
                                                                                      • Examples to discuss
                                                                                      • Your own examples
                                                                                      • Cultural Orientation Index
                                                                                      • Cultural Orientations Indicator- COI
                                                                                      • NOTE
                                                                                      • Homeworkndash due Wednesday for feedback or at next class
                                                                                      • Handouts emails
                                                                                      • Mini case studies
                                                                                      • Resources to learn more
                                                                                      • COI amp Entrepreneurship
                                                                                      • Entrepreneurship and COI
                                                                                      • Entrepreneurship and COI (2)
                                                                                      • Entrepreneurship and COI (3)
                                                                                      • Entrepreneurship and COI (4)
                                                                                      • Steps to take
                                                                                      • Style switching
                                                                                      • International IQ moment
                                                                                      • Athens Greece
                                                                                      • Athens Greece (2)
                                                                                      • Greek economy
                                                                                      • Greek economy ndash boom years
                                                                                      • Summary of problem + why important
                                                                                      • External funding + current accounts
                                                                                      • National ldquoBalance Sheetrdquo
                                                                                      • National ldquoBalance Sheetrdquo (2)
                                                                                      • National ldquoBalance Sheetrdquo (3)
                                                                                      • Answerhellip
                                                                                      • National ldquoBalance Sheetrdquo (4)
                                                                                      • Answer
                                                                                      • Call for help
                                                                                      • Recent struggles
                                                                                      • Understanding Greek challenges
                                                                                      • Understanding Greek challenges (2)
                                                                                      • Understanding Greek challenges (3)
                                                                                      • Fears- Contagion
                                                                                      • Other countries ndash BIGGER Debts
                                                                                      • Other countries ndash BIGGER Debts (2)
                                                                                      • Other countries ndash BIGGER Debts (3)
                                                                                      • Other countries ndash BIGGER Debts (4)
                                                                                      • Other countries ndash BIGGER Debts (5)
                                                                                      • Seehellip
                                                                                      • Homework
                                                                                      • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                        Recent struggles

                                                                                        bullGreek shipping industry was hit hard by the decline in world trade

                                                                                        bullTourism ndash falls 15 of Greeces GDP and a major earner of foreign exchange

                                                                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                                        exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                        Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                                        Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                                        assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                        Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                                        As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                                        Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                        importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                        2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                        Fears- Contagion

                                                                                        bullThere are many other countries that are running deficits

                                                                                        bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                        Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                        bullUS UK are the big ones

                                                                                        Other countries ndash BIGGER Debts

                                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                        Other countries ndash BIGGER Debts

                                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                        Other countries ndash BIGGER Debts

                                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                        Other countries ndash BIGGER Debts

                                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                        Other countries ndash BIGGER Debts

                                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                        Seehellip

                                                                                        bullSee economist article ndash history ndash credit crunch

                                                                                        bullI will send it by email hellip and will discuss next week

                                                                                        Homework

                                                                                        Sorry

                                                                                        Homeworkndash due Wednesday for feedback or at next class

                                                                                        bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                        potential conflict)What could you do (style switching) to lesson the

                                                                                        potential problems

                                                                                        • Global Entrepreneurship
                                                                                        • Brian David Butler
                                                                                        • Brian David Butler (2)
                                                                                        • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                        • Exam
                                                                                        • Schedule for today
                                                                                        • New Ideas
                                                                                        • What new business ideas
                                                                                        • Also curious
                                                                                        • Global Entrepreneurship developing the global mindset for ent
                                                                                        • Why study Culture
                                                                                        • Rather than a ldquolaundry listrdquo
                                                                                        • Preview of upcoming lectures
                                                                                        • Examples to discuss
                                                                                        • Your own examples
                                                                                        • Cultural Orientation Index
                                                                                        • Cultural Orientations Indicator- COI
                                                                                        • NOTE
                                                                                        • Homeworkndash due Wednesday for feedback or at next class
                                                                                        • Handouts emails
                                                                                        • Mini case studies
                                                                                        • Resources to learn more
                                                                                        • COI amp Entrepreneurship
                                                                                        • Entrepreneurship and COI
                                                                                        • Entrepreneurship and COI (2)
                                                                                        • Entrepreneurship and COI (3)
                                                                                        • Entrepreneurship and COI (4)
                                                                                        • Steps to take
                                                                                        • Style switching
                                                                                        • International IQ moment
                                                                                        • Athens Greece
                                                                                        • Athens Greece (2)
                                                                                        • Greek economy
                                                                                        • Greek economy ndash boom years
                                                                                        • Summary of problem + why important
                                                                                        • External funding + current accounts
                                                                                        • National ldquoBalance Sheetrdquo
                                                                                        • National ldquoBalance Sheetrdquo (2)
                                                                                        • National ldquoBalance Sheetrdquo (3)
                                                                                        • Answerhellip
                                                                                        • National ldquoBalance Sheetrdquo (4)
                                                                                        • Answer
                                                                                        • Call for help
                                                                                        • Recent struggles
                                                                                        • Understanding Greek challenges
                                                                                        • Understanding Greek challenges (2)
                                                                                        • Understanding Greek challenges (3)
                                                                                        • Fears- Contagion
                                                                                        • Other countries ndash BIGGER Debts
                                                                                        • Other countries ndash BIGGER Debts (2)
                                                                                        • Other countries ndash BIGGER Debts (3)
                                                                                        • Other countries ndash BIGGER Debts (4)
                                                                                        • Other countries ndash BIGGER Debts (5)
                                                                                        • Seehellip
                                                                                        • Homework
                                                                                        • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks importing as we

                                                                                          exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                          Money came in not from foreigners investing in FDI (as was noted during speech with Metaxa this morning) but instead much $ came in from tourists Tourism = importing capital (capital account surplus) But remember what has to happen if the capital account switches from surplus to deficits The current account must move from deficit to surplus How If currency can devalue (as they are apart of Euro zone)hellip then competitiveness must increase ndash either more efficient or lower wageshellip politically and socially painful process that could take YEARS

                                                                                          Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                                          assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                          Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                                          As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                                          Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                          importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                          2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                          Fears- Contagion

                                                                                          bullThere are many other countries that are running deficits

                                                                                          bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                          Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                          bullUS UK are the big ones

                                                                                          Other countries ndash BIGGER Debts

                                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                          Other countries ndash BIGGER Debts

                                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                          Other countries ndash BIGGER Debts

                                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                          Other countries ndash BIGGER Debts

                                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                          Other countries ndash BIGGER Debts

                                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                          Seehellip

                                                                                          bullSee economist article ndash history ndash credit crunch

                                                                                          bullI will send it by email hellip and will discuss next week

                                                                                          Homework

                                                                                          Sorry

                                                                                          Homeworkndash due Wednesday for feedback or at next class

                                                                                          bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                          potential conflict)What could you do (style switching) to lesson the

                                                                                          potential problems

                                                                                          • Global Entrepreneurship
                                                                                          • Brian David Butler
                                                                                          • Brian David Butler (2)
                                                                                          • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                          • Exam
                                                                                          • Schedule for today
                                                                                          • New Ideas
                                                                                          • What new business ideas
                                                                                          • Also curious
                                                                                          • Global Entrepreneurship developing the global mindset for ent
                                                                                          • Why study Culture
                                                                                          • Rather than a ldquolaundry listrdquo
                                                                                          • Preview of upcoming lectures
                                                                                          • Examples to discuss
                                                                                          • Your own examples
                                                                                          • Cultural Orientation Index
                                                                                          • Cultural Orientations Indicator- COI
                                                                                          • NOTE
                                                                                          • Homeworkndash due Wednesday for feedback or at next class
                                                                                          • Handouts emails
                                                                                          • Mini case studies
                                                                                          • Resources to learn more
                                                                                          • COI amp Entrepreneurship
                                                                                          • Entrepreneurship and COI
                                                                                          • Entrepreneurship and COI (2)
                                                                                          • Entrepreneurship and COI (3)
                                                                                          • Entrepreneurship and COI (4)
                                                                                          • Steps to take
                                                                                          • Style switching
                                                                                          • International IQ moment
                                                                                          • Athens Greece
                                                                                          • Athens Greece (2)
                                                                                          • Greek economy
                                                                                          • Greek economy ndash boom years
                                                                                          • Summary of problem + why important
                                                                                          • External funding + current accounts
                                                                                          • National ldquoBalance Sheetrdquo
                                                                                          • National ldquoBalance Sheetrdquo (2)
                                                                                          • National ldquoBalance Sheetrdquo (3)
                                                                                          • Answerhellip
                                                                                          • National ldquoBalance Sheetrdquo (4)
                                                                                          • Answer
                                                                                          • Call for help
                                                                                          • Recent struggles
                                                                                          • Understanding Greek challenges
                                                                                          • Understanding Greek challenges (2)
                                                                                          • Understanding Greek challenges (3)
                                                                                          • Fears- Contagion
                                                                                          • Other countries ndash BIGGER Debts
                                                                                          • Other countries ndash BIGGER Debts (2)
                                                                                          • Other countries ndash BIGGER Debts (3)
                                                                                          • Other countries ndash BIGGER Debts (4)
                                                                                          • Other countries ndash BIGGER Debts (5)
                                                                                          • Seehellip
                                                                                          • Homework
                                                                                          • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                            Understanding Greek challenges2 Budget deficits - remember national balance sheet ndash

                                                                                            assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                            Governments weak short term thinking Difficult to fix structural troubles with budget Need to cut costs But strong unions and impatient democratic voters Politicians that try to raise taxes or cut spending (fire teachers) are thrown out

                                                                                            As opposed to governments in countries like Ireland that have made steps to address difficult structural troubles

                                                                                            Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                            importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                            2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                            Fears- Contagion

                                                                                            bullThere are many other countries that are running deficits

                                                                                            bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                            Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                            bullUS UK are the big ones

                                                                                            Other countries ndash BIGGER Debts

                                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                            Other countries ndash BIGGER Debts

                                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                            Other countries ndash BIGGER Debts

                                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                            Other countries ndash BIGGER Debts

                                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                            Other countries ndash BIGGER Debts

                                                                                            httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                            Seehellip

                                                                                            bullSee economist article ndash history ndash credit crunch

                                                                                            bullI will send it by email hellip and will discuss next week

                                                                                            Homework

                                                                                            Sorry

                                                                                            Homeworkndash due Wednesday for feedback or at next class

                                                                                            bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                            potential conflict)What could you do (style switching) to lesson the

                                                                                            potential problems

                                                                                            • Global Entrepreneurship
                                                                                            • Brian David Butler
                                                                                            • Brian David Butler (2)
                                                                                            • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                            • Exam
                                                                                            • Schedule for today
                                                                                            • New Ideas
                                                                                            • What new business ideas
                                                                                            • Also curious
                                                                                            • Global Entrepreneurship developing the global mindset for ent
                                                                                            • Why study Culture
                                                                                            • Rather than a ldquolaundry listrdquo
                                                                                            • Preview of upcoming lectures
                                                                                            • Examples to discuss
                                                                                            • Your own examples
                                                                                            • Cultural Orientation Index
                                                                                            • Cultural Orientations Indicator- COI
                                                                                            • NOTE
                                                                                            • Homeworkndash due Wednesday for feedback or at next class
                                                                                            • Handouts emails
                                                                                            • Mini case studies
                                                                                            • Resources to learn more
                                                                                            • COI amp Entrepreneurship
                                                                                            • Entrepreneurship and COI
                                                                                            • Entrepreneurship and COI (2)
                                                                                            • Entrepreneurship and COI (3)
                                                                                            • Entrepreneurship and COI (4)
                                                                                            • Steps to take
                                                                                            • Style switching
                                                                                            • International IQ moment
                                                                                            • Athens Greece
                                                                                            • Athens Greece (2)
                                                                                            • Greek economy
                                                                                            • Greek economy ndash boom years
                                                                                            • Summary of problem + why important
                                                                                            • External funding + current accounts
                                                                                            • National ldquoBalance Sheetrdquo
                                                                                            • National ldquoBalance Sheetrdquo (2)
                                                                                            • National ldquoBalance Sheetrdquo (3)
                                                                                            • Answerhellip
                                                                                            • National ldquoBalance Sheetrdquo (4)
                                                                                            • Answer
                                                                                            • Call for help
                                                                                            • Recent struggles
                                                                                            • Understanding Greek challenges
                                                                                            • Understanding Greek challenges (2)
                                                                                            • Understanding Greek challenges (3)
                                                                                            • Fears- Contagion
                                                                                            • Other countries ndash BIGGER Debts
                                                                                            • Other countries ndash BIGGER Debts (2)
                                                                                            • Other countries ndash BIGGER Debts (3)
                                                                                            • Other countries ndash BIGGER Debts (4)
                                                                                            • Other countries ndash BIGGER Debts (5)
                                                                                            • Seehellip
                                                                                            • Homework
                                                                                            • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                              Understanding Greek challengesbull In a macro sensebull Facing 2 deficit challenges1 Current account deficits ndash remember line of trucks

                                                                                              importing as we exited the boat in Greece ndash importing more than exporting So by definitionhellip capital account must be in surplus to pay for current account deficit Importing capital

                                                                                              2 Budget deficits - remember national balance sheet ndash assets (income) and liabilities (spending) For Greece a bit part of income came from tourism which dropped off significantly with the crisis But spending remained ldquotoo highrdquo Structural difficult to bring down

                                                                                              Fears- Contagion

                                                                                              bullThere are many other countries that are running deficits

                                                                                              bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                              Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                              bullUS UK are the big ones

                                                                                              Other countries ndash BIGGER Debts

                                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                              Other countries ndash BIGGER Debts

                                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                              Other countries ndash BIGGER Debts

                                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                              Other countries ndash BIGGER Debts

                                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                              Other countries ndash BIGGER Debts

                                                                                              httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                              Seehellip

                                                                                              bullSee economist article ndash history ndash credit crunch

                                                                                              bullI will send it by email hellip and will discuss next week

                                                                                              Homework

                                                                                              Sorry

                                                                                              Homeworkndash due Wednesday for feedback or at next class

                                                                                              bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                              potential conflict)What could you do (style switching) to lesson the

                                                                                              potential problems

                                                                                              • Global Entrepreneurship
                                                                                              • Brian David Butler
                                                                                              • Brian David Butler (2)
                                                                                              • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                              • Exam
                                                                                              • Schedule for today
                                                                                              • New Ideas
                                                                                              • What new business ideas
                                                                                              • Also curious
                                                                                              • Global Entrepreneurship developing the global mindset for ent
                                                                                              • Why study Culture
                                                                                              • Rather than a ldquolaundry listrdquo
                                                                                              • Preview of upcoming lectures
                                                                                              • Examples to discuss
                                                                                              • Your own examples
                                                                                              • Cultural Orientation Index
                                                                                              • Cultural Orientations Indicator- COI
                                                                                              • NOTE
                                                                                              • Homeworkndash due Wednesday for feedback or at next class
                                                                                              • Handouts emails
                                                                                              • Mini case studies
                                                                                              • Resources to learn more
                                                                                              • COI amp Entrepreneurship
                                                                                              • Entrepreneurship and COI
                                                                                              • Entrepreneurship and COI (2)
                                                                                              • Entrepreneurship and COI (3)
                                                                                              • Entrepreneurship and COI (4)
                                                                                              • Steps to take
                                                                                              • Style switching
                                                                                              • International IQ moment
                                                                                              • Athens Greece
                                                                                              • Athens Greece (2)
                                                                                              • Greek economy
                                                                                              • Greek economy ndash boom years
                                                                                              • Summary of problem + why important
                                                                                              • External funding + current accounts
                                                                                              • National ldquoBalance Sheetrdquo
                                                                                              • National ldquoBalance Sheetrdquo (2)
                                                                                              • National ldquoBalance Sheetrdquo (3)
                                                                                              • Answerhellip
                                                                                              • National ldquoBalance Sheetrdquo (4)
                                                                                              • Answer
                                                                                              • Call for help
                                                                                              • Recent struggles
                                                                                              • Understanding Greek challenges
                                                                                              • Understanding Greek challenges (2)
                                                                                              • Understanding Greek challenges (3)
                                                                                              • Fears- Contagion
                                                                                              • Other countries ndash BIGGER Debts
                                                                                              • Other countries ndash BIGGER Debts (2)
                                                                                              • Other countries ndash BIGGER Debts (3)
                                                                                              • Other countries ndash BIGGER Debts (4)
                                                                                              • Other countries ndash BIGGER Debts (5)
                                                                                              • Seehellip
                                                                                              • Homework
                                                                                              • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                Fears- Contagion

                                                                                                bullThere are many other countries that are running deficits

                                                                                                bullWhat happens if credits stop fundingbullPIIGS of Europe

                                                                                                Portugal Italy Ireland Greece SpainThreaten to tear apart Euro

                                                                                                bullUS UK are the big ones

                                                                                                Other countries ndash BIGGER Debts

                                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                Other countries ndash BIGGER Debts

                                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                Other countries ndash BIGGER Debts

                                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                Other countries ndash BIGGER Debts

                                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                Other countries ndash BIGGER Debts

                                                                                                httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                Seehellip

                                                                                                bullSee economist article ndash history ndash credit crunch

                                                                                                bullI will send it by email hellip and will discuss next week

                                                                                                Homework

                                                                                                Sorry

                                                                                                Homeworkndash due Wednesday for feedback or at next class

                                                                                                bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                potential conflict)What could you do (style switching) to lesson the

                                                                                                potential problems

                                                                                                • Global Entrepreneurship
                                                                                                • Brian David Butler
                                                                                                • Brian David Butler (2)
                                                                                                • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                • Exam
                                                                                                • Schedule for today
                                                                                                • New Ideas
                                                                                                • What new business ideas
                                                                                                • Also curious
                                                                                                • Global Entrepreneurship developing the global mindset for ent
                                                                                                • Why study Culture
                                                                                                • Rather than a ldquolaundry listrdquo
                                                                                                • Preview of upcoming lectures
                                                                                                • Examples to discuss
                                                                                                • Your own examples
                                                                                                • Cultural Orientation Index
                                                                                                • Cultural Orientations Indicator- COI
                                                                                                • NOTE
                                                                                                • Homeworkndash due Wednesday for feedback or at next class
                                                                                                • Handouts emails
                                                                                                • Mini case studies
                                                                                                • Resources to learn more
                                                                                                • COI amp Entrepreneurship
                                                                                                • Entrepreneurship and COI
                                                                                                • Entrepreneurship and COI (2)
                                                                                                • Entrepreneurship and COI (3)
                                                                                                • Entrepreneurship and COI (4)
                                                                                                • Steps to take
                                                                                                • Style switching
                                                                                                • International IQ moment
                                                                                                • Athens Greece
                                                                                                • Athens Greece (2)
                                                                                                • Greek economy
                                                                                                • Greek economy ndash boom years
                                                                                                • Summary of problem + why important
                                                                                                • External funding + current accounts
                                                                                                • National ldquoBalance Sheetrdquo
                                                                                                • National ldquoBalance Sheetrdquo (2)
                                                                                                • National ldquoBalance Sheetrdquo (3)
                                                                                                • Answerhellip
                                                                                                • National ldquoBalance Sheetrdquo (4)
                                                                                                • Answer
                                                                                                • Call for help
                                                                                                • Recent struggles
                                                                                                • Understanding Greek challenges
                                                                                                • Understanding Greek challenges (2)
                                                                                                • Understanding Greek challenges (3)
                                                                                                • Fears- Contagion
                                                                                                • Other countries ndash BIGGER Debts
                                                                                                • Other countries ndash BIGGER Debts (2)
                                                                                                • Other countries ndash BIGGER Debts (3)
                                                                                                • Other countries ndash BIGGER Debts (4)
                                                                                                • Other countries ndash BIGGER Debts (5)
                                                                                                • Seehellip
                                                                                                • Homework
                                                                                                • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                  Other countries ndash BIGGER Debts

                                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                  Other countries ndash BIGGER Debts

                                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                  Other countries ndash BIGGER Debts

                                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                  Other countries ndash BIGGER Debts

                                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                  Other countries ndash BIGGER Debts

                                                                                                  httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                  Seehellip

                                                                                                  bullSee economist article ndash history ndash credit crunch

                                                                                                  bullI will send it by email hellip and will discuss next week

                                                                                                  Homework

                                                                                                  Sorry

                                                                                                  Homeworkndash due Wednesday for feedback or at next class

                                                                                                  bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                  bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                  single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                  potential conflict)What could you do (style switching) to lesson the

                                                                                                  potential problems

                                                                                                  • Global Entrepreneurship
                                                                                                  • Brian David Butler
                                                                                                  • Brian David Butler (2)
                                                                                                  • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                  • Exam
                                                                                                  • Schedule for today
                                                                                                  • New Ideas
                                                                                                  • What new business ideas
                                                                                                  • Also curious
                                                                                                  • Global Entrepreneurship developing the global mindset for ent
                                                                                                  • Why study Culture
                                                                                                  • Rather than a ldquolaundry listrdquo
                                                                                                  • Preview of upcoming lectures
                                                                                                  • Examples to discuss
                                                                                                  • Your own examples
                                                                                                  • Cultural Orientation Index
                                                                                                  • Cultural Orientations Indicator- COI
                                                                                                  • NOTE
                                                                                                  • Homeworkndash due Wednesday for feedback or at next class
                                                                                                  • Handouts emails
                                                                                                  • Mini case studies
                                                                                                  • Resources to learn more
                                                                                                  • COI amp Entrepreneurship
                                                                                                  • Entrepreneurship and COI
                                                                                                  • Entrepreneurship and COI (2)
                                                                                                  • Entrepreneurship and COI (3)
                                                                                                  • Entrepreneurship and COI (4)
                                                                                                  • Steps to take
                                                                                                  • Style switching
                                                                                                  • International IQ moment
                                                                                                  • Athens Greece
                                                                                                  • Athens Greece (2)
                                                                                                  • Greek economy
                                                                                                  • Greek economy ndash boom years
                                                                                                  • Summary of problem + why important
                                                                                                  • External funding + current accounts
                                                                                                  • National ldquoBalance Sheetrdquo
                                                                                                  • National ldquoBalance Sheetrdquo (2)
                                                                                                  • National ldquoBalance Sheetrdquo (3)
                                                                                                  • Answerhellip
                                                                                                  • National ldquoBalance Sheetrdquo (4)
                                                                                                  • Answer
                                                                                                  • Call for help
                                                                                                  • Recent struggles
                                                                                                  • Understanding Greek challenges
                                                                                                  • Understanding Greek challenges (2)
                                                                                                  • Understanding Greek challenges (3)
                                                                                                  • Fears- Contagion
                                                                                                  • Other countries ndash BIGGER Debts
                                                                                                  • Other countries ndash BIGGER Debts (2)
                                                                                                  • Other countries ndash BIGGER Debts (3)
                                                                                                  • Other countries ndash BIGGER Debts (4)
                                                                                                  • Other countries ndash BIGGER Debts (5)
                                                                                                  • Seehellip
                                                                                                  • Homework
                                                                                                  • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                    Other countries ndash BIGGER Debts

                                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                    Other countries ndash BIGGER Debts

                                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                    Other countries ndash BIGGER Debts

                                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                    Other countries ndash BIGGER Debts

                                                                                                    httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                    Seehellip

                                                                                                    bullSee economist article ndash history ndash credit crunch

                                                                                                    bullI will send it by email hellip and will discuss next week

                                                                                                    Homework

                                                                                                    Sorry

                                                                                                    Homeworkndash due Wednesday for feedback or at next class

                                                                                                    bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                    bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                    single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                    potential conflict)What could you do (style switching) to lesson the

                                                                                                    potential problems

                                                                                                    • Global Entrepreneurship
                                                                                                    • Brian David Butler
                                                                                                    • Brian David Butler (2)
                                                                                                    • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                    • Exam
                                                                                                    • Schedule for today
                                                                                                    • New Ideas
                                                                                                    • What new business ideas
                                                                                                    • Also curious
                                                                                                    • Global Entrepreneurship developing the global mindset for ent
                                                                                                    • Why study Culture
                                                                                                    • Rather than a ldquolaundry listrdquo
                                                                                                    • Preview of upcoming lectures
                                                                                                    • Examples to discuss
                                                                                                    • Your own examples
                                                                                                    • Cultural Orientation Index
                                                                                                    • Cultural Orientations Indicator- COI
                                                                                                    • NOTE
                                                                                                    • Homeworkndash due Wednesday for feedback or at next class
                                                                                                    • Handouts emails
                                                                                                    • Mini case studies
                                                                                                    • Resources to learn more
                                                                                                    • COI amp Entrepreneurship
                                                                                                    • Entrepreneurship and COI
                                                                                                    • Entrepreneurship and COI (2)
                                                                                                    • Entrepreneurship and COI (3)
                                                                                                    • Entrepreneurship and COI (4)
                                                                                                    • Steps to take
                                                                                                    • Style switching
                                                                                                    • International IQ moment
                                                                                                    • Athens Greece
                                                                                                    • Athens Greece (2)
                                                                                                    • Greek economy
                                                                                                    • Greek economy ndash boom years
                                                                                                    • Summary of problem + why important
                                                                                                    • External funding + current accounts
                                                                                                    • National ldquoBalance Sheetrdquo
                                                                                                    • National ldquoBalance Sheetrdquo (2)
                                                                                                    • National ldquoBalance Sheetrdquo (3)
                                                                                                    • Answerhellip
                                                                                                    • National ldquoBalance Sheetrdquo (4)
                                                                                                    • Answer
                                                                                                    • Call for help
                                                                                                    • Recent struggles
                                                                                                    • Understanding Greek challenges
                                                                                                    • Understanding Greek challenges (2)
                                                                                                    • Understanding Greek challenges (3)
                                                                                                    • Fears- Contagion
                                                                                                    • Other countries ndash BIGGER Debts
                                                                                                    • Other countries ndash BIGGER Debts (2)
                                                                                                    • Other countries ndash BIGGER Debts (3)
                                                                                                    • Other countries ndash BIGGER Debts (4)
                                                                                                    • Other countries ndash BIGGER Debts (5)
                                                                                                    • Seehellip
                                                                                                    • Homework
                                                                                                    • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                      Other countries ndash BIGGER Debts

                                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                      Other countries ndash BIGGER Debts

                                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                      Other countries ndash BIGGER Debts

                                                                                                      httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                      Seehellip

                                                                                                      bullSee economist article ndash history ndash credit crunch

                                                                                                      bullI will send it by email hellip and will discuss next week

                                                                                                      Homework

                                                                                                      Sorry

                                                                                                      Homeworkndash due Wednesday for feedback or at next class

                                                                                                      bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                      bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                      single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                      potential conflict)What could you do (style switching) to lesson the

                                                                                                      potential problems

                                                                                                      • Global Entrepreneurship
                                                                                                      • Brian David Butler
                                                                                                      • Brian David Butler (2)
                                                                                                      • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                      • Exam
                                                                                                      • Schedule for today
                                                                                                      • New Ideas
                                                                                                      • What new business ideas
                                                                                                      • Also curious
                                                                                                      • Global Entrepreneurship developing the global mindset for ent
                                                                                                      • Why study Culture
                                                                                                      • Rather than a ldquolaundry listrdquo
                                                                                                      • Preview of upcoming lectures
                                                                                                      • Examples to discuss
                                                                                                      • Your own examples
                                                                                                      • Cultural Orientation Index
                                                                                                      • Cultural Orientations Indicator- COI
                                                                                                      • NOTE
                                                                                                      • Homeworkndash due Wednesday for feedback or at next class
                                                                                                      • Handouts emails
                                                                                                      • Mini case studies
                                                                                                      • Resources to learn more
                                                                                                      • COI amp Entrepreneurship
                                                                                                      • Entrepreneurship and COI
                                                                                                      • Entrepreneurship and COI (2)
                                                                                                      • Entrepreneurship and COI (3)
                                                                                                      • Entrepreneurship and COI (4)
                                                                                                      • Steps to take
                                                                                                      • Style switching
                                                                                                      • International IQ moment
                                                                                                      • Athens Greece
                                                                                                      • Athens Greece (2)
                                                                                                      • Greek economy
                                                                                                      • Greek economy ndash boom years
                                                                                                      • Summary of problem + why important
                                                                                                      • External funding + current accounts
                                                                                                      • National ldquoBalance Sheetrdquo
                                                                                                      • National ldquoBalance Sheetrdquo (2)
                                                                                                      • National ldquoBalance Sheetrdquo (3)
                                                                                                      • Answerhellip
                                                                                                      • National ldquoBalance Sheetrdquo (4)
                                                                                                      • Answer
                                                                                                      • Call for help
                                                                                                      • Recent struggles
                                                                                                      • Understanding Greek challenges
                                                                                                      • Understanding Greek challenges (2)
                                                                                                      • Understanding Greek challenges (3)
                                                                                                      • Fears- Contagion
                                                                                                      • Other countries ndash BIGGER Debts
                                                                                                      • Other countries ndash BIGGER Debts (2)
                                                                                                      • Other countries ndash BIGGER Debts (3)
                                                                                                      • Other countries ndash BIGGER Debts (4)
                                                                                                      • Other countries ndash BIGGER Debts (5)
                                                                                                      • Seehellip
                                                                                                      • Homework
                                                                                                      • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                        Other countries ndash BIGGER Debts

                                                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                        Other countries ndash BIGGER Debts

                                                                                                        httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                        Seehellip

                                                                                                        bullSee economist article ndash history ndash credit crunch

                                                                                                        bullI will send it by email hellip and will discuss next week

                                                                                                        Homework

                                                                                                        Sorry

                                                                                                        Homeworkndash due Wednesday for feedback or at next class

                                                                                                        bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                        bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                        single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                        potential conflict)What could you do (style switching) to lesson the

                                                                                                        potential problems

                                                                                                        • Global Entrepreneurship
                                                                                                        • Brian David Butler
                                                                                                        • Brian David Butler (2)
                                                                                                        • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                        • Exam
                                                                                                        • Schedule for today
                                                                                                        • New Ideas
                                                                                                        • What new business ideas
                                                                                                        • Also curious
                                                                                                        • Global Entrepreneurship developing the global mindset for ent
                                                                                                        • Why study Culture
                                                                                                        • Rather than a ldquolaundry listrdquo
                                                                                                        • Preview of upcoming lectures
                                                                                                        • Examples to discuss
                                                                                                        • Your own examples
                                                                                                        • Cultural Orientation Index
                                                                                                        • Cultural Orientations Indicator- COI
                                                                                                        • NOTE
                                                                                                        • Homeworkndash due Wednesday for feedback or at next class
                                                                                                        • Handouts emails
                                                                                                        • Mini case studies
                                                                                                        • Resources to learn more
                                                                                                        • COI amp Entrepreneurship
                                                                                                        • Entrepreneurship and COI
                                                                                                        • Entrepreneurship and COI (2)
                                                                                                        • Entrepreneurship and COI (3)
                                                                                                        • Entrepreneurship and COI (4)
                                                                                                        • Steps to take
                                                                                                        • Style switching
                                                                                                        • International IQ moment
                                                                                                        • Athens Greece
                                                                                                        • Athens Greece (2)
                                                                                                        • Greek economy
                                                                                                        • Greek economy ndash boom years
                                                                                                        • Summary of problem + why important
                                                                                                        • External funding + current accounts
                                                                                                        • National ldquoBalance Sheetrdquo
                                                                                                        • National ldquoBalance Sheetrdquo (2)
                                                                                                        • National ldquoBalance Sheetrdquo (3)
                                                                                                        • Answerhellip
                                                                                                        • National ldquoBalance Sheetrdquo (4)
                                                                                                        • Answer
                                                                                                        • Call for help
                                                                                                        • Recent struggles
                                                                                                        • Understanding Greek challenges
                                                                                                        • Understanding Greek challenges (2)
                                                                                                        • Understanding Greek challenges (3)
                                                                                                        • Fears- Contagion
                                                                                                        • Other countries ndash BIGGER Debts
                                                                                                        • Other countries ndash BIGGER Debts (2)
                                                                                                        • Other countries ndash BIGGER Debts (3)
                                                                                                        • Other countries ndash BIGGER Debts (4)
                                                                                                        • Other countries ndash BIGGER Debts (5)
                                                                                                        • Seehellip
                                                                                                        • Homework
                                                                                                        • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                          Other countries ndash BIGGER Debts

                                                                                                          httpwwweconomistcomworldeuropedisplayStorycfmstory_id=16003661ampsource=most_commented

                                                                                                          Seehellip

                                                                                                          bullSee economist article ndash history ndash credit crunch

                                                                                                          bullI will send it by email hellip and will discuss next week

                                                                                                          Homework

                                                                                                          Sorry

                                                                                                          Homeworkndash due Wednesday for feedback or at next class

                                                                                                          bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                          bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                          single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                          potential conflict)What could you do (style switching) to lesson the

                                                                                                          potential problems

                                                                                                          • Global Entrepreneurship
                                                                                                          • Brian David Butler
                                                                                                          • Brian David Butler (2)
                                                                                                          • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                          • Exam
                                                                                                          • Schedule for today
                                                                                                          • New Ideas
                                                                                                          • What new business ideas
                                                                                                          • Also curious
                                                                                                          • Global Entrepreneurship developing the global mindset for ent
                                                                                                          • Why study Culture
                                                                                                          • Rather than a ldquolaundry listrdquo
                                                                                                          • Preview of upcoming lectures
                                                                                                          • Examples to discuss
                                                                                                          • Your own examples
                                                                                                          • Cultural Orientation Index
                                                                                                          • Cultural Orientations Indicator- COI
                                                                                                          • NOTE
                                                                                                          • Homeworkndash due Wednesday for feedback or at next class
                                                                                                          • Handouts emails
                                                                                                          • Mini case studies
                                                                                                          • Resources to learn more
                                                                                                          • COI amp Entrepreneurship
                                                                                                          • Entrepreneurship and COI
                                                                                                          • Entrepreneurship and COI (2)
                                                                                                          • Entrepreneurship and COI (3)
                                                                                                          • Entrepreneurship and COI (4)
                                                                                                          • Steps to take
                                                                                                          • Style switching
                                                                                                          • International IQ moment
                                                                                                          • Athens Greece
                                                                                                          • Athens Greece (2)
                                                                                                          • Greek economy
                                                                                                          • Greek economy ndash boom years
                                                                                                          • Summary of problem + why important
                                                                                                          • External funding + current accounts
                                                                                                          • National ldquoBalance Sheetrdquo
                                                                                                          • National ldquoBalance Sheetrdquo (2)
                                                                                                          • National ldquoBalance Sheetrdquo (3)
                                                                                                          • Answerhellip
                                                                                                          • National ldquoBalance Sheetrdquo (4)
                                                                                                          • Answer
                                                                                                          • Call for help
                                                                                                          • Recent struggles
                                                                                                          • Understanding Greek challenges
                                                                                                          • Understanding Greek challenges (2)
                                                                                                          • Understanding Greek challenges (3)
                                                                                                          • Fears- Contagion
                                                                                                          • Other countries ndash BIGGER Debts
                                                                                                          • Other countries ndash BIGGER Debts (2)
                                                                                                          • Other countries ndash BIGGER Debts (3)
                                                                                                          • Other countries ndash BIGGER Debts (4)
                                                                                                          • Other countries ndash BIGGER Debts (5)
                                                                                                          • Seehellip
                                                                                                          • Homework
                                                                                                          • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                            Seehellip

                                                                                                            bullSee economist article ndash history ndash credit crunch

                                                                                                            bullI will send it by email hellip and will discuss next week

                                                                                                            Homework

                                                                                                            Sorry

                                                                                                            Homeworkndash due Wednesday for feedback or at next class

                                                                                                            bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                            bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                            single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                            potential conflict)What could you do (style switching) to lesson the

                                                                                                            potential problems

                                                                                                            • Global Entrepreneurship
                                                                                                            • Brian David Butler
                                                                                                            • Brian David Butler (2)
                                                                                                            • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                            • Exam
                                                                                                            • Schedule for today
                                                                                                            • New Ideas
                                                                                                            • What new business ideas
                                                                                                            • Also curious
                                                                                                            • Global Entrepreneurship developing the global mindset for ent
                                                                                                            • Why study Culture
                                                                                                            • Rather than a ldquolaundry listrdquo
                                                                                                            • Preview of upcoming lectures
                                                                                                            • Examples to discuss
                                                                                                            • Your own examples
                                                                                                            • Cultural Orientation Index
                                                                                                            • Cultural Orientations Indicator- COI
                                                                                                            • NOTE
                                                                                                            • Homeworkndash due Wednesday for feedback or at next class
                                                                                                            • Handouts emails
                                                                                                            • Mini case studies
                                                                                                            • Resources to learn more
                                                                                                            • COI amp Entrepreneurship
                                                                                                            • Entrepreneurship and COI
                                                                                                            • Entrepreneurship and COI (2)
                                                                                                            • Entrepreneurship and COI (3)
                                                                                                            • Entrepreneurship and COI (4)
                                                                                                            • Steps to take
                                                                                                            • Style switching
                                                                                                            • International IQ moment
                                                                                                            • Athens Greece
                                                                                                            • Athens Greece (2)
                                                                                                            • Greek economy
                                                                                                            • Greek economy ndash boom years
                                                                                                            • Summary of problem + why important
                                                                                                            • External funding + current accounts
                                                                                                            • National ldquoBalance Sheetrdquo
                                                                                                            • National ldquoBalance Sheetrdquo (2)
                                                                                                            • National ldquoBalance Sheetrdquo (3)
                                                                                                            • Answerhellip
                                                                                                            • National ldquoBalance Sheetrdquo (4)
                                                                                                            • Answer
                                                                                                            • Call for help
                                                                                                            • Recent struggles
                                                                                                            • Understanding Greek challenges
                                                                                                            • Understanding Greek challenges (2)
                                                                                                            • Understanding Greek challenges (3)
                                                                                                            • Fears- Contagion
                                                                                                            • Other countries ndash BIGGER Debts
                                                                                                            • Other countries ndash BIGGER Debts (2)
                                                                                                            • Other countries ndash BIGGER Debts (3)
                                                                                                            • Other countries ndash BIGGER Debts (4)
                                                                                                            • Other countries ndash BIGGER Debts (5)
                                                                                                            • Seehellip
                                                                                                            • Homework
                                                                                                            • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                              Homework

                                                                                                              Sorry

                                                                                                              Homeworkndash due Wednesday for feedback or at next class

                                                                                                              bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                              bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                              single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                              potential conflict)What could you do (style switching) to lesson the

                                                                                                              potential problems

                                                                                                              • Global Entrepreneurship
                                                                                                              • Brian David Butler
                                                                                                              • Brian David Butler (2)
                                                                                                              • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                              • Exam
                                                                                                              • Schedule for today
                                                                                                              • New Ideas
                                                                                                              • What new business ideas
                                                                                                              • Also curious
                                                                                                              • Global Entrepreneurship developing the global mindset for ent
                                                                                                              • Why study Culture
                                                                                                              • Rather than a ldquolaundry listrdquo
                                                                                                              • Preview of upcoming lectures
                                                                                                              • Examples to discuss
                                                                                                              • Your own examples
                                                                                                              • Cultural Orientation Index
                                                                                                              • Cultural Orientations Indicator- COI
                                                                                                              • NOTE
                                                                                                              • Homeworkndash due Wednesday for feedback or at next class
                                                                                                              • Handouts emails
                                                                                                              • Mini case studies
                                                                                                              • Resources to learn more
                                                                                                              • COI amp Entrepreneurship
                                                                                                              • Entrepreneurship and COI
                                                                                                              • Entrepreneurship and COI (2)
                                                                                                              • Entrepreneurship and COI (3)
                                                                                                              • Entrepreneurship and COI (4)
                                                                                                              • Steps to take
                                                                                                              • Style switching
                                                                                                              • International IQ moment
                                                                                                              • Athens Greece
                                                                                                              • Athens Greece (2)
                                                                                                              • Greek economy
                                                                                                              • Greek economy ndash boom years
                                                                                                              • Summary of problem + why important
                                                                                                              • External funding + current accounts
                                                                                                              • National ldquoBalance Sheetrdquo
                                                                                                              • National ldquoBalance Sheetrdquo (2)
                                                                                                              • National ldquoBalance Sheetrdquo (3)
                                                                                                              • Answerhellip
                                                                                                              • National ldquoBalance Sheetrdquo (4)
                                                                                                              • Answer
                                                                                                              • Call for help
                                                                                                              • Recent struggles
                                                                                                              • Understanding Greek challenges
                                                                                                              • Understanding Greek challenges (2)
                                                                                                              • Understanding Greek challenges (3)
                                                                                                              • Fears- Contagion
                                                                                                              • Other countries ndash BIGGER Debts
                                                                                                              • Other countries ndash BIGGER Debts (2)
                                                                                                              • Other countries ndash BIGGER Debts (3)
                                                                                                              • Other countries ndash BIGGER Debts (4)
                                                                                                              • Other countries ndash BIGGER Debts (5)
                                                                                                              • Seehellip
                                                                                                              • Homework
                                                                                                              • Homeworkndash due Wednesday for feedback or at next class (2)

                                                                                                                Homeworkndash due Wednesday for feedback or at next class

                                                                                                                bull Each student is to make their own COI analysisEach factor ndash what type are you

                                                                                                                bull Also do a ldquogap analysisrdquo German personDeductive linear doing low-context direct fluid time

                                                                                                                single focus competitive equalityCompare your COI with this sample person (German)Which areas do you have the greatest gaps (areas of

                                                                                                                potential conflict)What could you do (style switching) to lesson the

                                                                                                                potential problems

                                                                                                                • Global Entrepreneurship
                                                                                                                • Brian David Butler
                                                                                                                • Brian David Butler (2)
                                                                                                                • Brian Butler Founder of ldquoKookyPlancomrdquo ndash the wiki for Entrep
                                                                                                                • Exam
                                                                                                                • Schedule for today
                                                                                                                • New Ideas
                                                                                                                • What new business ideas
                                                                                                                • Also curious
                                                                                                                • Global Entrepreneurship developing the global mindset for ent
                                                                                                                • Why study Culture
                                                                                                                • Rather than a ldquolaundry listrdquo
                                                                                                                • Preview of upcoming lectures
                                                                                                                • Examples to discuss
                                                                                                                • Your own examples
                                                                                                                • Cultural Orientation Index
                                                                                                                • Cultural Orientations Indicator- COI
                                                                                                                • NOTE
                                                                                                                • Homeworkndash due Wednesday for feedback or at next class
                                                                                                                • Handouts emails
                                                                                                                • Mini case studies
                                                                                                                • Resources to learn more
                                                                                                                • COI amp Entrepreneurship
                                                                                                                • Entrepreneurship and COI
                                                                                                                • Entrepreneurship and COI (2)
                                                                                                                • Entrepreneurship and COI (3)
                                                                                                                • Entrepreneurship and COI (4)
                                                                                                                • Steps to take
                                                                                                                • Style switching
                                                                                                                • International IQ moment
                                                                                                                • Athens Greece
                                                                                                                • Athens Greece (2)
                                                                                                                • Greek economy
                                                                                                                • Greek economy ndash boom years
                                                                                                                • Summary of problem + why important
                                                                                                                • External funding + current accounts
                                                                                                                • National ldquoBalance Sheetrdquo
                                                                                                                • National ldquoBalance Sheetrdquo (2)
                                                                                                                • National ldquoBalance Sheetrdquo (3)
                                                                                                                • Answerhellip
                                                                                                                • National ldquoBalance Sheetrdquo (4)
                                                                                                                • Answer
                                                                                                                • Call for help
                                                                                                                • Recent struggles
                                                                                                                • Understanding Greek challenges
                                                                                                                • Understanding Greek challenges (2)
                                                                                                                • Understanding Greek challenges (3)
                                                                                                                • Fears- Contagion
                                                                                                                • Other countries ndash BIGGER Debts
                                                                                                                • Other countries ndash BIGGER Debts (2)
                                                                                                                • Other countries ndash BIGGER Debts (3)
                                                                                                                • Other countries ndash BIGGER Debts (4)
                                                                                                                • Other countries ndash BIGGER Debts (5)
                                                                                                                • Seehellip
                                                                                                                • Homework
                                                                                                                • Homeworkndash due Wednesday for feedback or at next class (2)

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