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BASICS OF INTERNATIONAL BUSINESS [1]

Paper Code: 
MIB 126
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

CO 31: Comprehend the basic framework of international business

CO 32 Understand theories of International Trade

CO 33: Evaluate the conceptual and applied knowledge of MNCs

CO 34: Analyse and design different forms of organizational structures of MNCs

CO 35: Analyze the dynamics of exchange rates

CO 36: Understand the concept of International trade

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

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

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

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

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: 

ESSENTIAL READINGS:

  • P Subba Rao : International Business , Himalayan Publications.
  • Mathur S K : International Finance and Trade.
  • Jeevanandam C : Foreign Exchange and Risk Management.

SUGGESTED READINGS:

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

 

References: 

E-RESOURCES:

 

 

JOURNALS:

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

 

ACADEMIC YEAR: 
2022-2023 [3]

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Source URL: https://foreigntrade.iisuniv.ac.in/courses/subjects/basics-international-business-8

Links:
[1] https://foreigntrade.iisuniv.ac.in/courses/subjects/basics-international-business-8
[2] https://www.expresslibrary.mheducation.com/bookshelf
[3] https://foreigntrade.iisuniv.ac.in/academic-year/2022-2023