International Business

source: http://www.visionapexcollege.blogspot.com
MGT 106 (Credit hours 3)
BBA, Third Year, Sixth Semester

Course Objective

The course aims to help the students in understanding the basics of international business  and its environment, and develop the analytical skills required to compete effectively in this environment.

1.     Overview of Global Business                                                           4 hours

Meaning of international business and globalization, drivers of globalization, overview of changing global picture: declining trade barriers and change in communication, information and transportation technologies.

2.        International Trade Theories                                                      7 hours                 
       Adam Smith’s Theory of Absolute Advantage, David Ricardo’s theory of comparative advantage, Heckscher-Ohlin’s theory of factor endowment, Raymond Vernon’s product life-cycle theory, new trade theory based on economies of scale, theory of national competitive advantage: Porter’s diamond. 

3.     Global Business Environment                                         10 hours          

        Political, Economic and Legal Environment

Political systems: individualism vs. collectivism; democratic vs. totalitarian, legal system: property rights, protection of intellectual property, product safety requirements,  economic environment: market economy, command economy & mixed economy,  interconnection of political, legal and economic system followed by a country,  impact of differences in system on international business.

        Cultural Environment

Meaning of culture, values and norms, determinants of culture: social structure, religion, education, language, aesthetics, history and geography, impact of differences in culture on international business.

      Multinational Companies

Concept and characteristics of MNCs and their impact on host countries (political, economic and cultural).

4.     World Trading System & Regional Trade Agreements         9 hours

Tariff and non-tariff trade-barriers, international financial system: exchange rate, exchange control and trends of exchange rate systems, role of international financial institutions: World Bank, IMF and ADB.  Evolution of GATT and WTO.  Regional groupings: EU, NAFTA, ASEAN and SAARC 

5.       International Strategic Management                                                  4 hours       
     Types of strategies: international strategy, multidomestic strategy, global strategy, transnational strategy,  advantages and disadvantages of these strategies.

6.       Entry Into International Business and Strategic Alliances               6 hours           
 Market entry decisions: timing of entry, scale of entry and strategic commitments, entry modes: exporting, licensing, franchising, joint ventures.  Choice of entry mode, comparison of green-field and acquisition, advantages and disadvantages of strategic alliances. 

7.     International Marketing                                                         6 hours

International marketing management, international market positioning, product policy, pricing issues, promotion issues, and distribution issues: international distribution and channels of distribution.

Text Books:

1.                   Robert Bennett, International Business, Pearson Education

Reference Books:

1.                   John Daniels and W H Radebough, International Business: Environments and Operations, Pearson Education

2.                   Czinkota, Michael R, Ron Kainon, I.K, L Moffett, M.H. International Business,                 Thompson South-Western.

3.                   Hill, Richard: International Business: Concepts & Issues, Tata McGraw Hill, 5th edition