BASICS OF INTERNATIONAL BUSINESS (Theory)

Paper Code: 
25MIB321
Credits: 
4
Contact Hours: 
4.00
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 Outcomes (Cos):

 

Course

Learning outcome

(at course level)

Learning and teaching

strategies

Assessment Strategies

Course Code

Course Title

25MIB321

BASICS OF INTERNATIONAL BUSINESS

(Theory)

CO181: Analyze the basic framework of international business

CO182: Examine and understand the theories of International Trade

CO183: Evaluate the conceptual and applied knowledge of MNCs

CO184: Analyse and design different                      forms                       of organizational structures of MNCs

CO185: Interpret the dynamics of exchange rates

CO186: 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:
• International Business, GUPTA, McGraw Hill Education https://www.expresslibrary.mheducation.com/bookshelf
JOURNALS:
• The Indian Journal of Commerce
• Asian Journal of Management Cases

Academic Year: 
2025-2026
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