BASICS OF INTERNATIONAL BUSINESS

Paper Code: 
24MIB321
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to understand the concept of international business and its significance in the global economy.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching

strategies

Assessment Strategies

Course Code

Course Title

24MIB321

BASICS OF INTERNATIONAL BUSINESS

(Theory)

CO175: Analyze the basic framework of international business

CO176: Examine and understand the theories of International Trade

CO177: Evaluate the conceptual and applied knowledge of MNCs

CO178: Analyse and design different                     forms                     of organizational structures of MNCs

CO179: Interpret the dynamics of exchange rates

CO180: Contribute effectively in course-specific interaction

Approach     in teaching:

Interactive Lectures, Group Discussion, Tutorials, Case Study

Learning activities for the students:

Self-learning assignments,

presentations

Class test, Semester end examinations, Quiz, Assignments, Presentation

 

12.00
Unit I: 
Nature of International Business

Introduction, Scope, Drivers of International Business

Difference between International Business and Domestic Business Advantages of International Business

Problems of International Business

Approaches of International Business: Ethnocentric, Polycentric, Regiocentric, Geocentric

12.00
Unit II: 
Theories of International Trade

Mercantilism

Theory of Absolute Cost Advantage Theory of Comparative Cost Advantage, Theory of Relative Factor Endowments (H-O Theory) Product Life Cycle Theory

Porter’s National Competitive Advantage Theory

12.00
Unit III: 
Multinational Corporations

Definition

Why Companies become MNCs

Factors contributing to growth of MNCs

Advantages and Disadvantages of MNCs (to host & home countries) MNCs in India

Indianisation of Transnationals: Cases of PepsiCo, Reebok, Hyundai

12.00
Unit IV: 
Designing Organizational Structure of MNCs

Steps in designing Organizational Structure

Types of Organizational Structures in MNCs (Vertical & Horizontal) Approaches to Organizational Structure of MNCs

Product organization structure, Geographical organization structure, Decentralized Business Divisions, Strategic Business Units, Matrix

Organizational Structure

12.00
Unit V: 
Foreign Exchange Market, Basics of Exchange Rates and Exchange Rate Exposures

Foreign Exchange Market:

Organization of Foreign Exchange Markets

Spot Market, Forward Market, Currency Futures and Options Market.

Basics of Exchange Rates:

Meaning, Direct and Indirect Quote, Bid-Ask Quote, Spot rate-Forward Rate, Depreciation, Appreciation

on, Currency trading at premium and discount

Exchange Rate Exposures- Translation, Economic and Transaction exposure.

 

Essential Readings: 
  • Francis Cherunilam: International Business.
  • Charles W.L. Hill & G. Thomas M. Hult, “International Business”, Mc. Graw Hill

 

References: 

SUGGESTED READINGS:

  • Thakur & Mishra: International Business.
  • Varshney R.L. and Bhattacharya: International Marketing Management.
  • Ashwatthapa: International Business.

E-RESOURCES:

JOURNALS:

  • The Indian Journal of Commerce
  • Asian Journal of Management Cases

 

Academic Year: 
2024-2025
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