Subject Outline

Subject for Subject Code Subject Title Subject Credits Specialization Instructor Office Phone Email ID : : : : : : : : : MBA - Semester III, July 10-12 Batch MGT 508 International Business 3 Credits Marketing A, Marketing B, OLS, Finance D Dr. R.G. Nambiar Alliance University Central Campus, NF 009 080-3093 8177 ramgovind.nambiar@alliance.edu.in

Instructors Profile: Dr. R. G. Nambiar is an Economist with over 45 years of experience in teaching and research. He was Director at Nirma Institute of Management, Ahmedabad. Prior to that, he was Chair Professor at the Indian Institute of Management, Ahmedabad. He has worked in various Government Departments like External Affairs Ministry and Commerce Ministry. He was also a consultant to the Tax Reform Committee (Chelliah Committee) in 1992. He has also worked as professor at Foundation for Liberal Management Education (FLAME), Pune. He has to his credit several publications in National and International Journals. Dr. Nambiar completed his graduation, post graduation and doctoral degrees from M.S. University, Baroda and is the recipient of the Ford Foundation award for Post Doctoral work at the University of Pennsylvania under the new International Economic Order Fellowship. Class Meets Office Hours Required Materials : : : As per schedule By appointment only Charles W. L. Hill, Arun Jain, (2008), International Business (6th ed.), Tata McGraw-Hill Publications, Inc.

Subject Overview: The rise of globalization presents numerous opportunities and challenges with regard to the international flow of capital, investment, goods, technology and services. In todays global economy, international business is confronted with a complex set of challenges arising out of operating in international environments. This course develops a framework for understanding the international aspects of business and management for formulating effective strategies in an increasingly complex world economy. The course will also examine how, and why, firms decide to develop operations in foreign countries, and how firms can become successful once their operations cross-national boundaries.
Core Learning Outcomes Learning Outcomes Assessment Criteria On completion of this course, you should To achieve the learning outcome you must demonstrate be able to: the ability to: 1. Analyse and develop insights into the complex nature of international business Asses the role of globalization in international business. Articulate the role of political and economic environment along with culture, ethics and technology in international business. Evaluate alternative entry modes and strategies into foreign markets. Critically analyse the nature and functioning of multinational companies. For each presentation topic, case study, and in the examinations identify the multifaceted forces operating in international business environment. Work on group projects to get first-hand information on data and its application on globalization and international business. In the presentation topics, in the case study discussions, and in the examination apply the relevant theories for policy implications on international business. In the case analyses, presentations, and examinations critically evaluate the merits and demerits of alternative entry strategies in international business. For each presentation topic, case study, and in the examinations critically analyse the the behavior of multinational companies in an international environment.

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Pedagogy: The pedagogy of the course has been designed so as to ensure that there is continuous interaction and active participation by the students throughout. To be precise it involves the following. Lectures ,Case analysis,Presentations

Subject Outline: Sl. No Chapter Name Introduction to International Business Contents No. of session

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What is International Business? - International versus Domestic Business - Who participates in international business? - Why Do Firms Expand Internationally? How do firms expand internationally? - What is this subject on IB? Why should you study IB? Globalization- An overview Waves of globalization - Drivers of Globalization The Face of Globalization - Debates about Globalization globalization National differences in political systems, economic systems and legal systems Property rights Geography, education and economic development Implications of changing political economy. Political Economy The Political Environment - The Measurement of Political Risk of International The Legal Environment: The Institutional Context; Legal Business Jurisdiction; Regional Jurisdiction; National Jurisdiction. - Legal Issues of Interest to the MNE: Rule of Origin Laws; Competition Laws; Marketing and Distribution Laws; Product Liability Laws; Treaties; Patent Laws. What Is Culture? - Culture and International Business - Correlates of Culture - Social structure Religious and Ethical systems Language and education Culture and workplace - National Culture Classifications; Hofstedes Dimensions of Culture; Other The Cultural Dimensions of Culture; National Culture Clustering - Corporate Environment Culture: Classifications of Corporate Culture - Key Cultural Issues; Cultural Etiquette; Cultural Stereotypes; Cultural Distance; Convergence and Divergence. Ethical Issues in Sources and Nature of Ethical issues in International Business Determinants of Ethical Behavior Approaches to Business Ethics International Ethical Decision Making in International business. Business Why do Nations Trade? - The Mercantilist Doctrine - Absolute Advantage Theory - Comparative Advantage Theory - HeckscherInternational Ohlin Theorem - The Leontief Paradox - The New Trade Theory Trade Theory and Application Intra and Inter Industry Trade - The Product Life-Cycle Model National Competitive Advantage: Porters Diamond Major Opposition to Free Trade - The Sovereignty Argument; The Lowest-Common-Denominator Argument; Trade Reciprocity. Instruments of Types of Trade Barriers: Tariff Barriers, and Non-Tariff Barriers Trade Policy Effective Rate of Protection - Antidumping laws Barter trade, counter trade, etc. Development of World Trading System GATT and The World International Trade Organization (WTO) Various negotiations rounds of WTO Economic - The International Monetary Fund (IMF); The World Bank Group; Institutions Other International Economic Organizations.
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Regional-Level Cooperation among Nations: Reasons and Effects Trade creation and trade diversion - Preferential Trade Area; Free Regional Trade Area; Customs Union, Common market; Economic Union Economic - Regionalization vs. Globalization Regional Trade Blocks Integration Commodity-Level Cooperation among Nations; Organization of Petroleum Exporting Countries (OPEC) Current Account, Capital Account, Official Reserves Account. Currency Convertibility issues - The Asian Financial Crisis: The The Balance of Financial Perspective; The Political/Institutional Perspective; The Payments Managerial Perspective. History of the International Monetary System - Contemporary The International Exchange Rate Systems - Foreign Exchange Rate Quotations Monetary System Foreign Exchange Arbitrage - Black Market and Parallel Market Determination of Foreign Exchange Rates: Purchasing Power and Foreign Exchange Market Parity (PPP); Interest Rate Parity (IRP). - Implications for MNEs: Foreign Exchange Forecasting. Definition and Types of Foreign Direct Investment - How MNEs Foreign Direct Benefit from Foreign Direct Investment - The Impact of FDI on the Investment Host (Recipient) Country. - Current Theories on FDI - Patterns of Theory and FDI: FDI Outflows and FDI Inflows. Application International Location Selection (Where) - Timing of Entry (When) International Entry Strategies - Entry Mode Selection (How). What Is a Multinational Enterprise? - The Worlds Largest MNEs The The Industry Composition of MNEs - The MNE in the Public Eye Multinational - The Competitive Advantage of the MNE - The MNE from Enterprise Emerging/ Developing Economies (DMNE). Projects and presentations Total No. of Sessions

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Assessment Components:
S. No. 1. 2. 3. 4. 5. 6. Assessment component Case Analysis Presentations Group Project Mid-Term Examination End-Term Examination Regularity in Attendance Weightage (Out of 100) 10 10 05 20 50 05

References: 1. Oded Shenkar and Yadong Luo (2004), International Business, Wiley Publications, Inc. 2. John D. Daniels, Lee H. Radebaugh, Daniel P. Sullivan, and Prashant Salwan (2011), International Business: Environments and Operations, (12th edn.), Pearson Publications.
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