INTERNATIONAL BUSINESS AND PRACTICES

Course Code:

MBA 203

Credit Units: 03

Course Objective:
This course provides a comprehensive overview of the role that international business plays in the global
economy. This knowledge shall help to understand the complexities, risks and opportunities of international
business and provide a global perspective on international trade, including foreign investments, impact of
financial markets, international marketing, and the operation of MNCs. Learn business practices organizations
adopt to tap global opportunities. Create awareness on career opportunities that exist in international business.

Course Contents:
Module I: Globalisation & Multinational Corporations
Globalisation - Meaning and implications; Globalisation of markets and production; Drivers of Globalisation;
Modes of entry into international business; The globalisation debate - arguments for and against; Differences
between domestic and international business; Multinational Corporations- Definition, Types, Organisation,
Design & Structures, Head quarters and Subsidiary relations.
Module II: Introduction to International Trade
Theories- Theory of Mercantilism, Absolute advantage, Comparative advantage, Hecksher-Ohlin theory, The
new product life cycle theory, The new trade theory, Porters diamond model; Instruments of International trade
policy tariffs, subsidies, local content requirements, administrative policies, anti dumping policies, political
and economic arguments for intervention; GATT, WTO, IPR, TRIPS, TRIMS, GATS, Ministerial Conferences,
Uruguay round of negotiations; Introduction to International Supply chain management & Logistics;
Introduction to current EXIM policy.
Module III: International Business Environment
Implication of environment differences: a) Economic factors the determinants of economic development; b)
Political and Legal factors c) Cultural factors -Culture, Values, Norms, Social, Religious, Ethical, Language,
Education; Regional Integrations, Trading Blocks - European Union, ASEAN, APEC, NAFTA, SAARC,
ANDEAN PACT and MERCOSUR; Global sourcing and its impact on Indian Industry - Indias competitive
advantage & potential threats in industries like IT, Textiles, Gems & Jewellery, Engineering etc.
Module IV: Introduction to International Financial Systems
International Financial Markets Equity, Debt, Foreign Exchange & Commodities; Role & funding facilities of
World Bank & International Monetary System; International Financial Risks of Trade Payments, FDIs, FIIs,
Expatriation, Repatriation, Currency fluctuations etc.; Introduction to Foreign Exchange Market functions,
nature, trading, rate determination, currency convertibility; Introduction to Export and Import Finance
Methods of payment in International Trade.
Module V: Introduction to International Business Practices
Country Risk Analysis How to assess Political, Social & Economic risks; International Marketing Potential,
Barriers, Entry strategies, Market selection, localization, organizational structures in order to compete
effectively globally; Decision-making and controlling practices; Developing individual/team/organizational
skills, knowledge & capabilities in intercultural communication, international marketing, cross-cultural
operations, international negotiations & settlement of international business disputes; Indian companies
becoming Multinationals Potential, Need and Problems; International Regulatory & Dispute Settlement
Mechanisms; Practices in Social Responsibility and Ethics in International operations .

Examination Scheme:
Components
Weightage (%)

CPA
5

TP
5

Q/S
5

A
5

ME
10

EE
70

Text & References:

Daniels, J.D.,Radebaugh L.H.,Sullivan D.P. & Prashant Salwan (2011), International Business:
Environments and Operations, Pearson Hall, Delhi
Sundaram and Black, (2009), International Business Environment, Prentice-Hall of India Pvt. Ltd.

Bhalla and Raju, (2010), International Business Environment, Sage Publication

Apte, P. G. (1998), International Financial Management, Tata McGraw Hill

Francis Cherulinam, (2008), International Business, Himalaya Publishing House

Charles Hill,(2007), International Business, McGraw Hill