International Business

Concept of domestic, international and global business. Op portunities and challenges of IB. Globalization: Concept and drivers, Types of globalization: economic, cultural, political, environmental, production, market. International Business Environment: Economic, demographic, cultural and political -legal environment; Globalization debate: positive and negative impact.

• Global economy: concept, features and structures
• Changing demographics of global business. MNCs: Concept, types, structures, strategies, and problems. Global economic integration: WTO (Origin, goals, structure, and functions). Regional economic integratio n levels: preferential trading, free trade areas, customs union, common market, economic union, and political union
• International Economic Organizations: WTO, UNCTAD, World Bank, IMF EU, NAFTA, SAFTA, BIMSTEC (Origin, goals and structure).

International trade theories: Mercantilism, absolute cost advantage, comparative advantage, factor endowment, PLC , Porter’s diamond. Patterns of global trade. Protectio nism & Government’s instruments of trade intervention: tariff & non -tariff barriers. Balance of payment (BOP): Balance of payment account and its components

Socio-cultural implication on IB. Cultural differences: Determinants of culture: Awareness, values, norms, communication, language and religion. Dealing with cultural differences. Social responsibility: concept and implications.

Political systems: Democracy & totalitarian spectrum. Business -government relations. Political risk: concept and types. Impact of political environment on international busines s. Implications of legal systems in business. Intellectual property rights.

Economic system: market, command, mixed. Determinants of economic development: Inflation, Income (GDP, per capita income nominal & PPP, HDI). Level of economic development: developed, developing, and emerging economies (World Bank’s Criteria). Competitive environment of IB.

• Foreign exchange markets, Spot market, spot rate quotations, bid -ask spreads, trading in spot markets, cross exchange rates, forward markets, forward rate, long and short forward positions, forwards premium and di scount
• Arbitrage, Hedging and Speculation
• Types of exchange rate systems: fixed and floating, soft peg, crawling peg, free float, managed float
• Foreign exchange risk and exposure
• Exchange rate Determination: Types of Exchange rates, Factors affecting exchange rate - relative inflation rates, interest rates, relative interest rates, relative income levels, government controls, expectations
• Mode of payment in international trade.

• International strategic management: Concept and importance
• Modes of entry into a foreign market: Export and import
• strategic alliances: equity based (wholly owned subsidiaries, acquisition, greenfield ve nture, equity alliances, joint venture) and contractual based (licensing, franchising, turnkey operations, BOT, management contract). FDI & portfolio investment: benefits and drawbacks.

Polycentric, ethnocentric, regiocentric and geocentric approach in functional management of IB. Global marketing strategies: Product strategy, distribution strategy, promotion strategy, pricing strategy. Global production st rategies: location, outsourcing, managing global supply chain. Global finance strategies: sources of fund, tax practices, tax haven. Global human resource management strategies: Staffing policy, expatriate management, compensation, cultivating global mindsets. Project Work 10 LHs The final project work is made an essential academic requirement for the fourth year students in all concentration courses. The faculty will give home/field assignment to students to develop/ design/ evaluate/ analyze/ control/ or similar other task relate d to project, and discuss in classroom so that students learn practicum on international business.