2013-14 SDM INSTITUTE FOR MANAGEMENT DEVELOPMENT

INTERNATIONAL BUSINESS MANAGEMENT

CREDITS 3 - TERM I
FACULTY : Dr. Mohan N. J. Monteiro Mail ID : monteiro@sdmimd.ac.in

Course Overview: International Business comprises a large and growing portion of worlds total business. With the advancing universal liberalisation and the concomitant globalisation, International business is gaining more and more importance. Today, international competition affect almost all firms large or small because most sell output to and secure supplies from foreign countries. Many companies also compete against products and services that come from abroad. International Business has increased the opportunities for a firm to expand its revenues by selling around the world and reduce its costs by producing in nations where key inputs are cheap. At the same time International business is much more complicated than domestic business because countries differ in many ways. An international business adds foreign environment (conditions) to its domestic one. The foreign external environment mainly adds to the complexities in its operation. A conceptual understanding of these conditions and complexities ,developing an awareness of and appreciation for the significance of country differences in political systems, economic systems, legal systems and national culture, the various modes of operating internationally, the trade policy & interventions of different nations, the global trading and monetary system, the global trade related investment measures would orient and enable one to have a global perspective in decision making. The course is designed to provide insights of the fast changing and dynamic international business, to explore and explain the complexities, as well as present the opportunities that a firm operating in international market faces. Course objectives: 1) 2) 3) 4) To expose students to the changing global business environment. To get insights of the complexities of International business. To have an idea of the benefits that accrue to International businesses. To understand the various modes of engaging in International Business.

Pedagogy: Lectures, Case discussions, Quizzes & Group activities

2013-14 Session-wise course outline Session Topics Readings No: 1 - 2 International Business - An Overview : > J. Daniels et al Ch. 1 Introduction; why companies engage in International > CWL Hill Ch.1. Business; Reasons for the recent growth in > CWL Hill Ch. 14 international business; Globalisation: globalisation of production, globalisation of markets. 3-4 5-6 International Business Environment : Political, > CWL Hill Ch.2 &3 economic and cultural International Trade Theories : Mercantilism; Adam > CWL Hill Ch.4 Smiths theory of absolute advantage; Ricardos theory of comparative advantage; Factor endowment theory; Product life cycle theory; Porters National Competitive advantage theory. Instruments of trade policy/control : Tariffs, > CWL Hill Ch.5 p subsidies, Quotas, VERs, Local content requirements, > J. Daniels et al Ch. 6 Administrative policies. Political & economic arguments for state interventions. Development of the Global trading system : GATT; > CWL Hill Ch.5 http://www.wto.org WTO; Regional Economic integration - ; Levels of > J. Daniels et al CH 7 Economic Integration; affects of integration Trade Creation and Trade diversion. Important Trade Blocks : EU; NAFTA; MERCOSUR; ASEAN; APEC; Remarks

7-8

9-10

11

Case Study :

12-13 entry strategies in International Business;

CWL hill Ch. 14

14-15 Foreign Exchange market: Nature & Function of > CWL Hill Ch.9 foreign exchange market, Theories of exchange rate determination. Financial Management in International Business-: > CWL Hill Ch.20 16-17 Investment Decisions, Financing Decisions & Money Management decisions in International business. 18 Case Study : 19-20 Export-Import procedure and documentation: terms > Rakesh Mohan Joshi of sale & Inco terms; documentary Credit, lines of Ch. 18 credit, Institutional infrastructure for export >Francis Cherunilam promotion in India.
Note : 1) Additional reference necessary for each topic shall be communicated in class. 2) Relevant cases shall be provided.

2013-14 Evaluation Sl.No. Component 1 Case analysis and presentation 2 Assignments & Class participation 3 Quizzez 4. Mid- term test 5 End-term test Marks % 10 10 30 20 30

Recommended Text : 1) International Business - Competing in the Global Marketplace: Charles W L Hill /TMH/ 6e. 2) International Business- Environment and Operations John D. Daniels, Lee H. Radebaugh, Daniels P. Sullivan/Pearsons/10e. Reference Text : 1) 2) 3) 4) International Business : Michael R. Czinkota et al/ Thomson South-western/6e. International Business : P Subba Rao/Himalaya/2e . International Business : Rakesh Mohan Joshi/ Oxford University press. International Management Culture, Strategy, and Behaviour : Richard. M. Hodgetts, Fred Luthans and Jonathan P. Doh/TMH/6e. 5) International Marketing : Francis Cherunilam/Himalaya/11e. 6) International Business : Justin Paul/PHI/5e.