International Business (IB)

Course Description: 

Increasing globalization and operation of trade and commerce beyond one’s home country has expanded the scope of International Business (IB) all around the world. IB is an introduction to global business scenario that covers the cultural, economic, political, and legal environments of international business along with an overview of challenges, risks, and opportunities of competing in the global marketplace.

The course study of IB is concerned with the business practices of the global environment that focuses on how to operate in an international market and the various factors that can be the causes of success or failure of carrying out trade in a foreign land. The course basically gives an overview of the unique problems faced by firms along with importance of understanding the foreign social, economical, cultural, political, and legal environment; the terms of import and export; methods of entry into the foreign land; international financial management; recent upgrades on the terms and policies of trade.

Course Objectives: 

Upon successful completion of the course, students will be able to:

  1. Understand the basic system, issues, and environments related to global business and international trade
  2. Understand how cultural differences among various countries affect the operation of business
  3. Understand and manage cultural diversity and develop strategies to overcome cross-cultural differences in global trade
  4. Develop conceptual and analytical operational skills that help to determine the international business strategies
  5. Develop critical thinking skills, team-work and problem solving skills, and learn to adopt the most appropriate strategies with regards to different markets
  6. Compare and contrast major trade theories and policies and their effect on business operations
  7. ​Analyze the risks and opportunities associated with international business undertakings and take the most appropriate decisions.
Course Syllabus: 

Introduction to International Business

  • Introduction to International Business
  • Distinguishing aspects of International Business
  • Brief history of International Business
  • Globalization and its Forces, Impacts, and Debates
  • Multinational Companies (MNCs) or Transnational Companies (TNCs) and their Impacts on Host Countries
  • Entry into Foreign Markets
  • Entry Strategies

Modes of International Business

  • Direct Export
  • Licensing and Franchising
  • Contract Manufacturing
  • Foreign Assembly
  • Strategic Alliances and Joint Ventures
  • Merger and Acquisition
  • Greenfield Investment
  • Challenges and Complexities of International Business


Domestic & International Trade

  • International Trade: Volume, Direction, Pattern, and Trends
  • Foreign Direct Investment (FDI) – its Pattern, Inflows and Outflows, and Recent Trends
  • Portfolio Investment
  • Impact of International Trade and FDI on Economic and Social Development of Host Countries

Theories of International Business

  • Theories of International Trade
    • Mercantilism
    • Absolute Cost Advantage Theory
    • Comparative Cost Advantage Theory
    • Factor Endowment Theory
    • International Product Life Cycle Theory
    • Theory of National Competitive Advantage
    • Monopolistic Advantage
       
  • Theories of International Investment
    • Cross Investment
    • Internalization
    • Dunning’s Eclectic Theory


International Business System

  • National Government’s Influence on the Trade and Investment

  • Trade Restrictions
    • Arguments for Trade Restrictions
    • Instruments of Trade Control: Tariffs, Para- Tariffs, and Non–Tariff Barriers;
    • Investment Policy Measures – Trade and Non-Trade related.
  • Hierarchy of International Institutions in Global Business System

    • Unilateral Preferential Trading Arrangement; GSP, AGOA, Cotonou Agreement of EU/ACP etc.
    • Bilateral Trade and Investment Treaties; Concepts
    • The Regional Economic Integration (REI) or Trade Blocs: Introduction, Reasons to join REI, Different levels or types of REI; The effects of REI – Dynamic, Static, Trade Creation, Trade Diversion; Brief Assessment: SAFTA, BIMSTEC, ASEAN-FTA, EU and NAFTA
    • Multilateral Integration or International Arrangement: Introduction, Principle, -Functions, Opportunities and Challenges of WTO, UNCTAD and ITC.

Global Business Environmental Forces

  • Introduction to International Environmental Forces

    • Domestic, Foreign, and International Environment
    • Need of Assessing and Analyzing the Environmental Forces
  • ​Political Forces

    • Political Ideologies
    • Government Ownership of Business
    • Privatization
    • Government Protection
    • Government Stability
    • Traditional Hostilities
    • Types of Country Risk and Country Risk Assessment
  • Legal forces
    • International Legal Forces
    • International Law
    • Intellectual Property (Patents, Trademarks, Trade names, Copyrights, and Trade Secrets)
    • National Legal Forces (Taxation, Competition, Anti-trust Law, Bankruptcy Law)
  • Socio-cultural Forces
    • Introduction
    • Cultural Components Affecting International Business Operations
    • Understanding National Cultures
  • Economic and Socio-economic Forces
    • Level of Economic Development
    • Economic Dimensions – GDP, GNP, Per capita Income, Income Distribution, Private Consumption, Total Population, Density and Distribution, Industry Dimension
  • Financial Forces
    • Foreign Exchange
    • Tariffs
    • Taxations
    • Inflation
    • BOP
    • Indebtedness
  • Labor Forces
    • Worldwide Labor Conditions and Trends
    • Migrations and Mobility
    • Factors Affecting Labor Mobility.


International Monetary System and Exchange Rates

  • Gold Standard System
  • Brettonwoods Agreement and formation of IMF
  • Roles of IMF in International Monetary System
  • Emergence of floating exchange
  • Foreign Exchange Markets
    • Introduction and Functions (Currency Conversion and Currency Speculation)
    • Exchange Rates (Spot and Forward)
    • Causes of Exchange Rate Fluctuations – (Purchasing Power Parity, Supply and Demand of a Currency, Fisher Effect, Monetary and Fiscal Policies)
  • Understanding the Risk of Currency Fluctuation;
    • Transaction
    • Translation and Economic Exposure
  • Exchange Instruments
    • Managing Exchange Rate Risks (Forward Contract, Currency Swaps, Futures, and Options)
  • Foreign Exchange Control


International Marketing System

  • Assessing and Analyzing the Markets

    • Market Screening and Segment Screening
    • Complexities of International Marketing
  • Marketing Mix

    • Product
    • Pricing
    • Promotion
    • ​​Distribution and Channel Selection
  • Importance of International Marketing Research

  • International Marketing Plan and Strategies