Landegger IBD Summer 2014 Newsletter

N ewsletter Summer 2014

Who We Are The Karl F. Landegger Program in International Business Diplomacy (IBD) was formed on the premise that international business and finance take place in a real world where the public policies of home and host countries continuously shape corporate operations and strategy. Within this context, the honors graduates of IBD must be trained to maximize the benefits that globalization of trade, investment, and technology can bring to people in developed and developing countries.

This requires a mix of training across the range of private-sector business functions, with an understanding of public-sector policies to spur growth and development. Backed by foreign language skills and understanding of foreign cultures, IBD graduates today work in prominent positions in multinational corporations, international banks and finance, trade agencies, government ministries, multilateral development institutions, and non-governmental organizations. Indeed, IBD graduates are equipped to move back and forth among challenging jobs within these diverse settings.

This past academic year This year we seated 531 students in our IBD classes, 147 of which were active candidates in the IBD program. The Landegger program has been steadily growing in the past few years and this spring 99 students received the Honors Certificate with their degrees. The table on page 2 shows that the candidates’ degrees came from a wide spectrum of both undergraduate and graduate programs.

IBD Faculty

3700 O Street, NW • ICC 516A •Washington, DC 20057 Phone: 202-687-5854 • Email: ibd@georgetown.edu http://ibd.georgetown.edu/

Our core faculty, Professors Theodore Moran, John Kline, Marc Busch, and Lindsay Oldenski not only offer challenging cutting-edge classes but are also pursuing research in various topics. Their research is highlighted in this newsletter.

Our classes and professors remain in high demand and each semester our courses generate long wait-lists. Professor Jerry Solomon, who teaches our Business, Accounting and Finance

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Degree Program

Number of IBD Honors Certificates Awarded 2014

BSFS

45

MSFS

20

GSFS

7

1 MAAST(Asian Studies) 1 MAREES (Russian and Eastern European Studies) 3 MAGES (German and European Studies) 2 MAAS (Arab Studies)

MBA

16

CCT

6

Joint Degrees

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1 BSFS/MAGES 1 BSFS/MSFS 2 MBA/MSFS 1 MSFS/JD

course, added an additional section both fall and spring semester to help accommodate the high demand for this class. IBD and our students were very thankful. Our excellent adjunct faculty contributed to the popularity of IBD courses. We had the pleasure of having Professors Gerry West, Conor Healy, Petal Hackett, Ross Harrison, Robin King and James Koehler teach for us this past academic year.

IBD Staff We recently learned that our Program Assistant, Kathy Klingenberg, has decided to retire after 13 years in SFS and the Landegger Program. She has been a vital team member to our program and we wish her well in her next endeavors.

Tammy Ganey, our Program Administrator, watches over our program’s bookkeeping and budget. She has hired fantastic student employees that help us out during the academic year.

Tammy also puts together this newsletter for us.

Rosie O’Neil, our Program Counselor continues to help our candidates navigate their academic and career choices. She has also been instrumental in coordinating new initiatives that are helping to grow the IBD program. Rosie was featured in the Washington Post Magazine/ First Person Singular this past spring. You can read her interview by clicking the direct link to the profile: http://www.washingtonpost.com/lifestyle/magazine/2013/03/20/b49e7332-892a-11e3-916e-e01534b1e132_ story.html IBD on GeorgetownX In our last newsletter, we introduced you to our work in creating the first Georgetown MOOC on the edX platform. The course Globalization’s Winners and Losers: Challenges for Developed and Developing Countries launched last October and had an enrollment of over 35,000 students from more than 150 countries around the world. Read more about it in the “Special Report”

section of this newsletter.

After the MOOC finished, Rosie O’Neil and Emily Cheung Koepke, (CCT-IBD’14), our valued MOOC TA, worked tirelessly behind the scenes to create a new and improved course.

So, if you missed the chance to enroll last October, don’t worry.

A re-launch is scheduled for fall 2014.

We looking forward to hearing from you and encourage you to visit next time you are on the Hilltop and see just how IBD is growing!

Faculty Updates I am pleased to report that this past year has been a particularly successful period for the Karl F. Landegger Program in International Business Diplomacy. Demand for our courses from the very best undergraduate and graduate students in the School of Foreign Service as well as the MBA and CCT programs, is consistently strong and gratifying to all of Dr. Theodore H. Moran holds the Marcus Walus in the IBD program.

lenberg Chair in International Business and Finance Dr. Moran is founder of the Landegger Program in International Business Diplomacy, and serves as Director

Our MOOC (Massive Open OnLine Course) that examines who are the winners and who are the losers from the globalization of trade, investment, and technology is highlighted in this report. Our goal is to help enhance the benefits of globalization for both developed and developing countries, and cushion the impact on those who are hurt or left behind. I myself have been transformed from a MOOC-skeptic into a MOOC-supporter. To be sure, on-line education for some

Karl F. Landegger Program in International Business Diplomacy 35,000 students around the world will never replace face-toface classroom teaching on the Georgetown campus. But our MOOC may have set new records for the number of students who participated through all seven weeks to the end (usually there is a large drop-out rate). Several professors from Central Asia, Africa, and elsewhere contacted me, and said that they planned to use our Globalization MOOC as a kind of video textbook in real-life classes they planned for schools in their countries. We also plan to use our MOOC to maintain closer contract with the IBD alumni base!

My own research has discovered a natural partner in our IBD colleague Professor Lindsay Oldenski. Together we have published two studies via the Peterson Institute for International Economics. Our volume Outward Foreign Direct Investment and US Exports, Jobs, and R&D: Implications for US Policy (with Gary Hufbauer) examines the controversial question of whether outward investment on the part of US MNCs undermines the strength of the US domestic economy or reinforces domestic employment, investment, and research and development. We find that the expansion of US MNCs abroad actually leads to increased economic activity in the US home economy. Most job loss in US manufacturing actually takes place within firms that do not engage in outward investment. Of particular note, the globalization of R&D by US MNCs – as they build research campuses in China and India, for example – reinforces their spending on R&D in the United States.

Professor Kline spent much of the past academic year in China, following the publication last September of a Chinese translation of his textbook Ethics for International Business, 2nd ed., by Renmin University Press. In October he offered guest lectures at Tsinghua University, Renmin University, the Dr. John M. Kline is a Central University for Finance and Professor of International Business Economics, and an executive manageDiplomacy ment group at the China National Petroleum Company in Beijing. In Shanghai he made presentations at Jiao Tong University and Fudan University where he was invited to return in the Spring as a Visiting Scholar of Comparative Political Development in Fudan University’s School of International Relations and Public Affairs (SIRPA).

Professor Kline took a leave of absence to teach a class in SIRPA on “Governments and Global Business: Decision Making in Ethical Dilemmas.” He also offered guest lectures at various universities in Shanghai, Beijing and Jinhua on topics

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Our volume Foreign Investment in the US: Benefits, Suspicions, and Risks with Special Attention to FDI from China finds that foreign companies that invest in the United States pay higher wages, do more R&D, and generate more exports from the US than average American firms. One of our most important discoveries is that twelve percent of all productivity growth within the US economy since 1987 derives from spillovers from foreign investors to US firms and workers in America. We take a particularly close look at Chinese FDI in the US, and provide a framework for assessing when foreign acquisitions of US companies might pose a genuine national security threat and when such threats are simply implausible.

We in IBD are taking new and more intensive efforts to keep in touch with and to engage our growing base of highly successful alums, in business, finance, public service, and NGOs. We hope that you will also make the effort to keep in touch with us!

Finally, I want to offer a special farewell to Kathy Klingenberg who tells us she is planning to retire. She has given thirteen years of devoted service to the Landegger Program, in particular to all of the IBD students. She has been invaluable in helping me with my research and administrative duties. She says that she may continue to work in education – at least part-time – and we wish her the very best as she moves forward.

Ted Moran

including “International Business Ethics & China’s ‘Go Global’ Policy”; “Nationality, FDI, SOEs & Competitive Neutrality: A Political Economy View of BRICS Interests”, and “A Visit to Alta Gracia: The ‘Living Wage’ Factory.” The newsletter contains a brief interview with Professor Kline on his experience teaching and lecturing in China.

Professor Kline continues his research on the Alta Gracia apparel factory in the Dominican Republic. Another article in the newsletter reports on the latest research trip. A new report is scheduled for release in August that will update past analyses on ways a “living wage” impacts the lives of workers and their families along with an evaluation of the factory’s financial and marketing progress. Last January, Georgetown University officially revised its labor code of conduct for licensees to give preference to companies that offer a “living wage” and follow other socially responsible practices, adopting a recommendation from the Licensing Oversight Committee on which Professor Kline serves. Additionally, plans are underway to offer a “clearinghouse” that could consolidate t-shirt orders from campus organizations and place them with Alta Gracia.

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Newsletter 2014

Professor Marc Busch teaches two courses for IBD, INAF 503: WTO Dispute Settlement and INAF 508: Business, Government and the Global Economy and is currently writing on two subjects, the Generalized System of Preferences and trade volumes of developing countries who join the GATT/WTO; and the relevance of words in WTO Dr. Marc Busch is the Karl F. Landegger Pro- judicial verdicts on national treatment. fessor of International Professor Busch’s recently pubBusiness Diplomacy lished articles include the following: “Law, Politics, and the True Cost of Protectionism: The Choice of Trade Remedies or Binding Overhang” World Trade Review 13 (1) 2014: 39-64 (with Krzysztof Pelc),“Dispute Settlement in the WTO” In Lisa L. Martin (ed.), Oxford Handbook of International Trade (NY: Oxford University Press, forthcoming). (with Krzysztof Pelc), and “Developing Countries and DSU Reform” In Simon J. Evenett and Alejandro Jara (eds.), Building on Bali: A Work Programme for the WTO (London: CEPR, 2013) (with Petros C. Mavroidis).

He has also been awarded the following grants towards his research: National Priorities Research Fund, Qatar Na-

tional Research Fund, 2014, and Insight Development Grant, Social Sciences and Humanities Research Council of Canada, 2013-2016.

In addition to his teaching and research, this year Marc Busch has been reappointed for a second term to the Industry Trade Advisory Committee on Standards and Technical Trade Barriers (ITAC 16), a public-private advisory body reporting to the Department of Commerce and United States Trade Representative on trade policy. Professor Busch is the first academic to be appointed to the ITAC, and represents GORUCK (a company launched by his former MBA student, Jason McCarthy, specializing in military-grade gear and apparel) on ITAC 16. His other current appointments include the Advisory Board, International Political Economy: Trade Policy eJournal, May 2013 – present, and the Editorial Board of the International Studies Quarterly, August 2013 – present.

This year Professor Busch was voted by the BSFS class of 2014 to deliver the “Last Chance Lecture” on the eve of convocation. This talk, titled “Living the Course(s),” was an effort to link the content of his two courses INAF 508 and INAF 503 to “life lessons.”

Professor Oldenski recently became a Non-Resident Senior Fellow at the Peterson Institute for International Economics (PIIE). Her work at PIIE examines various aspects of multinational company operations and their implications for US policy makers. She is currently working on two policy briefs for PIIE. The first Dr. Lindsay Oldenski is is a joint work with Ted Moran that an assistant professor in the Landegger Program evaluates the current state of US in International Buisness manufacturing competitiveness and Diplomacy finds that it’s stronger than many people think. The second investigates recent claims that US firms have been “reshoring”, or bringing production back to the US that had previously been located offshore.

nonroutine a task is. In other words, US-based firms are more likely to offshore their most routine, repetitive, and mundane tasks to other countries, as these types of production activities can easily be performed anywhere. But firms prefer to keep activities that are more strategic, creative, mission-critical, or that require greater judgment and decision making on the part of management within their US headquarters, as the cost of offshoring these types of tasks is much higher. This specialization leads to overall efficiency gains.

Professor Oldenski’s policy work is very closely related to her academic research on the operations of multinational companies (MNCs). Her previous work has studied the factors that MNCs consider when deciding how to fragment their production across borders. This research has shown that one of the most important considerations is how routine or

However, underlying these net gains from globalization are important distributional consequences. In her current research, Professor Oldenski shows that increasing foreign expansion by MNCs leads to increasing specialization across countries. This specialization increases demand for high skilled workers performing nonroutine tasks in the US, but it decreases demand for middle skilled workers, who are more likely to perform the routine tasks that are being offshored.

The lowest wage workers in unskilled service occupations such as fast food and janitorial services are largely unaffected.

These findings on the link between globalization and the relative demand for different types of skills have important implications for education and worker training programs.

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A Word From Rosie Hello IBD! Hope this newsletter finds everyone well. As you can see from our graduation statistics and front page article, we enjoyed an eventful academic year successfully graduating our largest IBD class and launching the first Georgetown MOOC! In order to support this year’s work, we leaned heavily on our full time faculty and staff and added new adjunct faculty to our rosters, including Prof. Ross Harrison (Former MSFS Business Concentration Coordinator), IBD alum James Koehler (MALAS/IBD ’07), Professors Conor Healy and Petal Hackett (Both from the World Bank) and welcomed SFS Alumna Prof. Robin King, back from living in India. Courses which our new and returning adjuncts offered were Business Strategies in Emerging Markets (Harrison), Political Economy of Cities: Latin America and Asia (King), Energy Sector: Structure, Markets and Regulation (Koehler),and Globalization, Risks and Investments in Emerging Markets (Healy and Hackett). Professors West and Solomon continued to teach their classic courses on Business Operations in Emerging Markets and International Political Risk Analysis (West) and the compulsory Business, Accounting and Finance (Solomon). In recent years we’ve experienced a high demand for our Accounting and Finance course, as more employers, in all sectors, prefer incoming new hires to have basic literacy in these disciplines.

The Landegger Program’s engagement and production of the first Georgetown massive open online course (MOOC), Globalization’s Winners and Losers: Challenges for Developed and Developing Countries, has put us at the forefront of new ways of teaching and learning in higher education. This project was an experiment that has yielded multiple research projects and insights on how we might integrate new technology in teaching. Georgetown’s Initiative on Technology Enhanced Learning (ITEL) supported the production of the course with a $100,000 grant and with specialized human capital resources.

The outcome of this project for IBD includes not only expansion of our brand and specialized teaching to the world but also

the capability and impetus to begin to include technology in other IBD courses. As noted earlier, the next run of our MOOC is scheduled to be launched in October 2014. We encourage your participation and feedback.

Alumni are the backbone of our program. We are always excited Rosaelena O’Neil is the to welcome alumni to campus and Associate Director and Program Counselor for to visit alumni as we travel the the Landegger Program world. This year we invited alumni in International Buisness to visit program faculty, staff and Diplomacy current students during our first fall Homecoming Open House and we invited alumni to celebrate our graduates at our Annual Spring Reception. Please stay tuned for these annual events and consider stopping by. We’ll announce events on the program’s website and via the Landegger Program LinkedIn group. On the road with my colleagues from MSFS, GSFS and the SFS Graduate Career Center, IBD alumni met up with 1st year graduate students on their annual NY career trek. I am grateful to those that were able to attend both the reception and our BSFS lunch group. I want to thank all alumni that offered valuable career insights and mentorship to our honors candidates and are especially grateful to those that connected students with jobs and internships. Our annual career survey showed that over 70% of our students had accepted a position by graduation, with the majority of candidates telling us that alumni connections generated jobs and important network connections.

With regard to career connections and professional development, IBD and the SFS Graduate Career Center work in unison to support you as you move toward your professional goals. With this in mind, I should tell you that the SFS Graduate Career Center (GCC) has moved to a new and larger space!

The GCC is now located in ICC Suite 305. Next time you are on campus, please stop by and check it out. Much like IBD, my colleagues in the GCC provide one-on-one coaching sessions in person or over the phone to alumni. The GCC also offers skills workshops, employer sessions and industry panels that are open to all students and alumni. My degree program colleagues and I work Professor John Kline and Rosie O’Neil chat with alumni at the Homecoming Open House. to support all the efforts of the GCC to

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offer a wide net of opportunities to all students and alumni of the SFS. All graduate alumni can sign into Symplicity (the career center online database) to check out the latest job and internship postings. The GCC posted over 7,000 jobs and internships over the last academic year on the Symplicity database.

Do you have a job or internship you would like to fill in your organization? Let us know! You can contact me at rao@ georgetown.edu or my colleague, GCC Director, Anne Steen at ams276@georgetown.edu. We can help you with your recruitment efforts. ​ Finally, we appreciate your financial support and ask that you continue to consider supporting the Landegger Program in your annual giving. As you know, all your contributions go directly to supporting advanced course offerings, skills workshops and career support services for students and alumni.

Directing your giving to the Landegger Program simply requires you to name the program in your pledge.

Thank you to all of you for your generosity of time, talent and financial support. The Landegger Program continues to be a special program because of you! We deeply value our connec-

Rosie and IBD alums at the Annual NYC MSFS Graduate Career Trek.

tion with you and look forward to serving you.

A Message from IBD’s Program Assistant Kathy Klingenberg Dear IBD Candidates, Alumni, Faculty and Staff: After working for the Landegger Program since December, 2000, I have decided to say good-bye and move on to other endeavors. This has not been an easy decision for me to make.

It will be hard to leave IBD which has been my second home for 13 years. I shall miss the interactions with the IBD candidates, alumni, faculty and staff. However, as Professor Moran likes to say, “IBD is like the Hotel California. you can checkout but never leave.”

Some of the highlights of my stay in IBD have been the various nationalities that I have met, including Kazakhs, Bulgarians, Ukrainians, Russians, Asians, Europeans, Latinos, Canadians and Americans. I have learned more about economics than I ever thought I would know. I contributed to the support of 5 MIGA-Georgetown Symposiums on International Political Risk Management. I produced name badges for all of these events. Believe me that’s a lot of name badges!

I had just started working for IBD when 911 hit. I mourned with the rest of the world and decided that contributing to the IBD program with its international focus combining business and public policy was the best way to prepare accomplished candidates who could make changes in the world for the better.

I have enjoyed coordinating with thirteen graduating classes

of exceptional IBD candidates whose international and successful accomplishments continue to impress me. I look forward to Kathy always welcomed guests with a smile. seeing the successes of the new graduating classes.

I have enjoyed supporting Professor Moran’s excursions to Morocco, China and Europe as well as contributing table of contents and bibliographies for his numerous books on FDI. Recently he has blazed the trail for Georgetown by creating the first Georgetown MOOC (with the help of Rosie O’Neil and her teaching assistant and IBD alum, Emily Cheung Koepke).

I have witnessed the successes of Professor Kline as he developed his work with Alta Gracia, published two editions of his book on Business Ethics, (which has recently been translated into Chinese) and then taught his class in China. I have seen the happy students crowding around Professor Busch during his office hours and thanking him for the wonderful class. Only Professor Busch could create a business symposium based on whisky and scotch! I have seen the students in Professor Oldenski’s class crowding around during office hours and have seen

Karl F. Landegger Program in International Business Diplomacy her success as co-author with Professor Moran. I have enjoyed interacting with Professor Solomon and his great sense of humor. When I asked why he had chosen to vacation in England, he told me “Well, my wife Kathy managing the name badges at the Endspeaks the language!” of-Year Reception 2013.

Professor West has shared his interesting hobbies including collecting stamps and purchasing interesting items in auctions. I have enjoyed interacting with our adjunct professors including Professors Healy, Hackett, Harrison, King and Koehler. I have seen Rosie O’Neil’s children grow from grade school to an accomplished musician and a fitness instructor. I have learned from the program administrators, Lola Brown and Tammy Ganey, about managing a complex, multi-discipline academic program.

Working for the IBD program enabled me to earn my Master’s degree in Liberal Studies at Georgetown with a concentration

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in Medieval and Early Modern History. My master’s thesis was written on early forms of the King Arthur story written in Latin and Old French for King Henry II of England in the 12th century. As many of you may know I have a fondness for studying illuminated medieval manuscripts and hope to continue my studies in French and medieval art history. Please see the example of an illuminated manuscript below.

So I will say au revoir and I hope to take what I have learned while working for IBD onto my new horizons.

Illuminated manuscript page illustrating the Annunciation from the Belles Heures du Duc de Berry.

“The Belles Heures of Jean de Berry (The Beautiful Hours) is an early 15th-century illuminated manuscript book of hours (containing prayers to be said by the faithful at each canonical hour of the day) commissioned by Jean of France, Duke of Berry around 1409, and made for his use in private prayer and especially devotions to the Virgin Mary. The Belles Heures is one of the most celebrated manuscripts of the Middle Ages and very few books of hours are as richly decorated as it. The manuscript is now in The Cloisters in New York”. Meiss, Millard (1974). The Belles Heures of Jean, Duke of Berry. New York: George Braziller, Inc. Accessed On Wikipedia on 5/29/14.

Teaching in China An Interview with Professor John Kline During the spring semester of the 2013-2014 academic year, IBD Professor John Kline spent the semester at Fudan University in China teaching a course based on his International Business Ethics course at Georgetown, called Governments and Global Business: Decision Making in Ethical Dilemmas. Professor Kline’s semester in China was spurred by the translation of the second edition of his most recent book, Ethics for International Business: Decision-Making in a Global Political Economy, into Chinese.

Teaching in China brings with it a set of challenges, denoted by the process of publishing the book in Chinese itself. The book had to undergo a publisher’s editing process that deleted some references in the chapter on human rights, as well as a few cases relating to Google, Starbucks and Chinese oil operations in Sudan. Professor Kline presented this issue to his students at Georgetown, asking them if it was ethically appropriate to publish the book in Chinese with such editing of the contents.

Most students concluded that, despite issues with censorship, the benefits of such a book to a Chinese audience exceeded the costs - using one of the basic ethical approaches (teleological) covered in Professor Kline’s course.

The premise of the course was to focus on using value based choices in decision making. These ideas are applicable to all players in the international sphere as businesses, governments, and non-governmental organizations may learn from what other companies have done in the past while establishing and operat-

Professor Kline at Renmin University

ing in countries with different political systems and cultural practices. This returns to the issue of restricted exposure in China. Professor Kline spoke on this topic, noting that since Chinese companies were just beginning to invest abroad, some knowledge which can stem from years of experience with international expansion is lacking. Therefore, it is important for China to discuss and evaluate issues which other parties have faced as they operate abroad. To that end, Professor Kline noted that one of the largest issues facing China in today’s globalizing economy will be “the preparation of management to deal with ethical dilemmas in other countries and cultures, and to do it in an applied fashion.”

The idea that each country, industry, and company will confront difficult ethical challenges is central to Professor Kline’s book.

This is why he believes that the practice of analyzing what has been done before—and most importantly what has and has not

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worked—is extremely important. According to Professor Kline, this extends beyond international business case studies. Since we all make value judgments every day—whether or not they be conscious—it is important for us to bring these judgments outside of ourselves, examine them, and develop rational rules to guide our decision making process. Similarly, by systematically examining past events using a decision-making framework, members of the international business community can develop a substantial toolbox for tackling difficult international ethical issues.

In his classes, Professor Kline hopes that by encouraging everyone to look at their values and make judgments about them, students will be able to build their own set of rules to apply to case analysis. This is precisely why, when teaching in China, Professor Kline chose to ignore the textbook’s censorship and present all of the cases standard in his course at Georgetown.

When questioned about this, Professor Kline replied without

hesitation, “I wanted to approach the teaching in the way I believe is best for the students.” This approach paid dividends.

By doing this, the students at Fudan University were able to gain insights and discuss freely and intelligently on the extra cases, enhancing their understanding of how theories on business ethics can be usefully applied in a constantly evolving and globalizing world.

Submitted by Gregory Saydah

Prof. Kline presenting for the executive training program at the China National Petroleum Company in Beijing

Research and Field Trips Research on the Alta Gracia Apparel Factory Early this year, I had the opportunity to support Professor John Kline in his research of Alta Gracia, an unprecedented living wage program in the Dominican Republic. Piloted by collegiate apparel supplier Knights Apparel in 2010, the program occupies a refurbished warehouse in the Export Processing Zone of Villa Altagracia. Since the beginning, Knights committed to compensate factory workers according to a comprehensive cost of living assessment for an adult and two dependents to secure decent housing, nutritious food, necessary health care, and quality education. While this living wage is only a $1.25 greater per hour than wages traditionally received by apparel workers in the Dominican Republic, it constitutes a 300% wage increase!

After four years of following the program, Professor Kline was keen not only to capture the direct impact of a living wage on the lives of Alta Gracia workers, but also witness any spillover effects within the greater community. Both were evident. In our bilingual interviews with employees, we listened to stories of families lifted out of the perpetual cycle of poverty; the $1.25 enabled parents to put three meals on the table instead of two, allowed workers to purchase vital medicine for their ailing parents, and for others to pursue night school to obtain professional degrees. Beyond the nuclear family, the $1.25 meant that friends and extended family were compensated for home renovation assistance, local food markets enjoyed more frequent customers, and other small businesses could leverage rising demand to expand their facilities. Alta Gracia’s hum of progress was observed far beyond the factory’s four walls.

The factory workers understand that the program’s success

hinges on their ability to produce, as well as their participation in “spreading the word” to US colleges and universities about the brand’s capacity to change lives. As Alta Gracia gains traction in collegiate bookstores, and orders continue to grow, we are all hopeful that Alta Gracia can expand its operations and its positive impact on the lives of A worker at the Alta people throughout the community.

Submitted by Michaela Corr

Gracia Factory

Class Trip to Nuclear Power Plant On Friday April 18, the students in Professor James Koehler’s IBD class on the energy sector convened bright and early to venture to the Calvert Cliffs Nuclear Power Plant. The Calvert Cliffs plant is located on the Chesapeake Bay in Calvert County, Maryland. The 1800 MW plant, operating at 99% capacity during our visit, supplies power to both Baltimore and Washington DC. Upon our arrival, we were shuffled through radiation detectors and greeted by our tour guides Kory and Tracey. We then attended a brief, interactive presentation during which we learned about the fundamentals of nuclear power generation, specific information about the Calvert Cliffs facility and business model, and some of the key issues facing the industry. As we exited the room, we were handed hard hats, safety glasses, and earplugs.

As we walked through the facility and witnessed the plant in action, we gained a holistic understanding of the scale and complexity of the nuclear power generation process. One of the highlights of the tour was the control room where we were able to see the nuclear reactor itself on a live cam. Throughout

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Students Tour the Calvert Cliffs Nuclear Power Plant

the tour, we discussed a wide variety of topics including the safety and security features of the plant, the function of policy in bolstering nuclear power generation, and the perception of nuclear energy following Fukushima. We also had the opportunity to ask questions regarding the role of nuclear power in the

energy mix of emerging markets and investor concerns relating to the power industry. We wrapped up our tour with one final radiation check and returned to campus eager to share our extremely neat experience.

Submitted by Elena Malik

Special Mention IBD Candidate Publishes First Paper Christian Holkeboer, a senior in the SFS majoring in International Political Economy and pursuing a certificate in International Business Diplomacy, published his first paper, “Calling Democracies and Dictatorships: The Effect of Political Regime on International Long Distance Rates” with Government professor James Vreeland in the third issue of the sixty-sixth volume of the Kyklos International Review for Social Sciences.

Christian started studying the topic four years ago when he was a freshman in Vreeland’s pro-seminar writing his term paper. The idea for the paper stemmed from the observation of a curious inequity between the costs of calling Mongolia versus Pakistan which was shown by an advertisement for Lebara Mobile’s international calling rates posted in a tram in Zurich. While the research itself has remained more or less constant, the theory driving the research has matured significantly.

The current theory is supported in part by two incidences of telecom monopoly controversy. During the Arab Spring, Syriatel, controlled by Rami Makhlouf (cousin of President Bashar Assad) faced protest against the monopoly it holds over Syrian telecom infrastructure. These protests yielded no reward. At the same time, Switzerland blocked the proposed merger of telecom companies Sunrise and Orange because of anti-monopoly regulation.

From these observations, the paper evolved based on theories presented in the Peltzman model. Democracies must get their

message to the entire electorate, appealing to at least 50.1% of the population. Conversely, dictatorships must appeal only to a selectorate needed to maintain power. Thus, it is in democracies’ best interest to foster the spread of information by keeping international calling costs low. Logically, it would also be in the best interest of dictatorships to create barriers for the spread of information, in this case higher calling rates.

Holkeboer’s thesis, that it is more expensive to call dictatorships than democracies, is supported by a regression of 116 democracies and 74 authoritarian regimes as data. Holkeboer’s model controls for a myriad of influencing factors, including but not limited to GDP, population, population density, region size, percent of region that is mountainous, level of trade, and infrastructure presence. Through this, the logarithmic regression tells us that regime type is responsible for a shocking 25% of the difference between international calling rates for authoritarian and democratic regimes with a high correlation of .9.

Christian gives Georgetown substantial credit for his publishing success, noting in particular the SFS dean’s office, the SFS academic council, and the faculty, praising in particular the “very helpful collaborative environment” that these different elements foster. Christian also noted that this paper has an enormous connection to his studies in IBD (which he notes as his favorite set of classes at Georgetown). Writing the paper allowed him to understand the theory, whereas the IBD courses, specifically Moran’s Business and Investment Negotiations, and Globalization classes, allowed him to see how these political nuances he had researched worked in real time in the international business and policy spheres.

Submitted by Gregory Emerson Saydah

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Newsletter 2014

Events During the Year IBD Alumna Shares Experiences as an Investment Analyst On Friday, October 11th, 2013, IBD alumna Zara Khan (F ’07) visited Georgetown to offer career and professional development insights to current IBD candidates. Ms. Khan is based in Nairobi, Kenya, with the International Finance Corporation (IFC), focusing on agribusiness and forestry in Africa. As an investment analyst, she helps identify investment opportunities in companies that will yield financial as well as social returns.

She participates in the full investment cycle including business development, due diligence, committee memorandums, legal documentation, negotiations, and portfolio review.

At the event, Ms. Khan shared her experiences and challenges as a young professional who transitioned from the private to the non-profit and public sectors early in her career. Students in attendance at the event were curious to know about Ms. Khan’s career path and the prospects available for young profession-

als in organizations such as the IFC and The World Bank. She emphasized the importance of self-initiation, persistence, networking, and taking risks in order to succeed professionally.

Additionally, Ms. Khan reflected on her own time as an undergraduate student at Georgetown and the value she gained from taking courses that were outside of her major field. She advised current students to take courses that are unrelated to their field of study, in order to gain exposure to new ideas and opportunities. The IBD program is grateful to call the very driven, generous, and giving Ms. Khan an alumna.

Submitted by Omika Jikaria

Memories from the IBD Annual End of Year Reception - April 2014

Karl F. Landegger Program in International Business Diplomacy

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Lunch and Conversation with Mr. Mikhail Afendikov, Chairman and CEO of CUB Energy Inc. April 7, 2014 On April 7, 2014, Mr. Mikhail Afendikov joined IBD’s Ted Moran, CUB Energy’s Frank Mermoud, and Georgetown students and faculty in the Georgetown Executive Conference Room to discuss the links between energy and national security, and the history of energy transport and production in Ukraine.

Mr. Mikhail Afendikov currently serves as Executive Chairman and Chief Executive Officer of CUB Energy Inc. Although a trained medical doctor, Mr. Afendikov has always been interested and involved with energy production. In 2005, Mr. Afendikov became Chief Executive Officer of Gastek LLC, and co-started Gastek as the company’s first investment in the oil and gas sector in Ukraine. Along with these endeavors, Mr. Afendikov brings a long and impressive resume of experience in the energy sector.

The discussion began with opening comments from Mr. Afendikov. He described his simple way of doing business: “Don’t blame the government and pay your taxes.” He explained the history of Ukrainian energy production and the all-important issue of Ukrainian-Russian relations. He described how Ukrainian energy production has remained relatively flat since 1992, while Russian use of Ukrainian energy infrastructure and European natural gas consumption have continued to remain pressing issues. Some of the most important issues Mr. Afendikov raised

included the close cultural ties between Ukraine and Russia, and how Russia views preferred access to Ukrainian energy infrastructure as essential to its national security.

After these opening remarks, questions on energy, national security, and the relationship between Russia and Ukraine were taken. This discussion offered invaluable insight on some of the most important international issues countries are wrestling with today.

Submitted by Tommy Pigott

The Global Education Movement: Beyond Public vs. Private Presentation by Oliver Sabot

On April 24, 2014, members of the Georgetown community met for a discussion on the global education movement with Oliver Sabot, the founder of Spire and Kepler – two new organizations focused on improving the quality, cost, and accessibility of higher education in the developing world. Before focusing his efforts on education, Mr. Sabot spent close to a decade working to improve global health. Most notably, he served as the Executive Vice

Newsletter 2014

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President for Global Programs at the Clinton Health Access Initiative (CHAI), where he led the design and execution of large-scale programs focused on reducing child mortality and transforming the health systems of more than 20 countries.

In his opening comments, Mr. Sabot raised two questions that drove his main focus from health to education. First, he wondered, if education is arguably as important to development as health is, (which much of the literature suggests), why has progress in global health so outpaced progress in global educa-

Special Report

tion. In the following discussion, Mr. Sabot proposed that, while outside forces may have converged to help in the promotion of global health initiatives, such as the fight against HIV AIDS, it was by proactively deconstructing false dichotomies within the global health community that organizations were able to successfully argue for more funding and support, and thus make progress. Second, Mr. Sabot wondered how the global education movement can learn from the global health community to similarly break down false dichotomies. For Mr. Sabot, the false dichotomy between proponents of public education and private education is one of the most important barriers to overcome. He argued for cooperation between the private and public sectors in order to best provide education and employment opportunities.

The informative and intriguing conversation lasted for just under an hour and a half, and was jointly sponsored by the Landegger Program in International Business Diplomacy and the Science, Technology, and International Affairs (STIA) program.

Submitted by Tommy Pigott

IBD Creates the First MOOC for Georgetown

Submitted by Emily Cheung Koepke

This past fall, two of Professor Moran’s popular courses were blended together to create Georgetown’s first Massive Open Online Course (MOOC): Globalization’s Winners and Losers: Challenges for Developed and Developing Countries. Over 35,500 students from 155 countries enrolled into the seven-week long course offering that covered topics from the resource curse and sweatshops to foreign direct investment, supply chains, offshoring and outsourcing, and national security threats.

By December, the Globalization MOOC had 10,044 active students in the course. 1,152 students received a passing grade of 75% and received an honor certificate from Georgetown and edX. Participation levels were high since there were over 22,000 discussion posts and 616 Wiki articles crafted during the seven-week duration of the course. Student feedback was positive and complimentary, with a few suggestions for improvements to the course and platform:

The MOOC was an IBD team project! Professor Moran and Rosie planned out the course while Kathy helped make all the necessary room reservations for filming and Tammy managed the MOOC budget. Professors John Kline and Lindsay Oldenski generously offered their time and expertise and were part of a robust panel of guest lecturers. Other guest lecturers include Professors Anna Maria Mayda, Scott Taylor, Kate McNamara, Carl Dahlman, Rodney Ludema, and Mr. William Plummer of Huawei. Caroline Fisher, Paul Lindemann, Christian Holkeboer, and I served as the TAs for the course and interacted on-line with many of the international students: answering questions, providing additional resources, and giving them encouragement.

“I really appreciate the work that has gone into this course.”

Course Manager - Rosaelena A. O’Neil (Center); Teaching Assistant Team: Lead TA - Emily C. (Second from Left), Paul L., Christian H., and Caroline F. (From Left to Right)

“Great course, great teacher.”

“AMAZING teacher and a very important subject, however some economic data analysis should also be included (in simple words) to make the evidence more concrete.”

“The overall output of the course/teaching staff and the technical staff was excellent.”

The success of “Globalization” has inspired the IBD Department to re-launch the course for a second time in the Fall of 2014. Based on the end-of-course surveys and feedback, additional content on emerging markets and foreign direct investment have been included. Globalization’s Winners and Losers: Challenges for Developed and Developing Countries will begin again on Oct. 1, 2014. We hope you will enroll and join in the fun!

Professor Lindsay Oldenski explains her point during the filming of the MOOC with Professor Ted Moran