Course

Unit 1

International business: Meaning – Evolution of international business – Distinction between domestic business and international business -Reasons for growth in international business – Complexities or problems of international business – Modes of entry into international business- Exporting, licensing, and franchising, contract manufacturing, management contracting, turnkey contracts, fully owned manufacturing facilities, assembly operations, joint ventures, third-country location, mergers and acquisitions, strategic alliance, counter trade – MNCS and TNCS – meaning and importance.

Unit 2

Business Environment – meaning – definitions – importance – microenvironment – macro environment –International business environment – political environment – risks – indicators of political instability – political perspectives of a nation – Legal environment and its multiplicity – economic environment – socio-cultural environment – characteristics – components.

Unit 3

WTO – history, goals, structure – UNCTAD –IMF – Nature, objectives, functions – IBRD – IFC – IDA – ICSID – MIGA – Foreign trade policy of India – Trade barriers – Tariff and Non-tariff – OPEC – Commodity agreements – quota agreement- buffer stock agreement, bilateral agreements – multilateral agreements – Balance of payment – meaning- definition – characteristics – components.

Unit 4

Meaning – advantages – disadvantages – Trading blocs –European union – NAFTA – ASEAN – SAARC
– SAPTA – SAFTA – Globalization – concept –advantages – disadvantages – Export documentation – proforma invoice – commercial invoice – packing list – certificate of origin – Shipping bill – bill of lading – airway bill – health certificate – insurance certificate – letter of credit – dangerous goods forms – bank draft.

Unit 5

Foreign Exchange Market – meaning – features – functions – advantages – types – dealings or transactions in foreign exchange market: – spot, forward, futures, options, swap, arbitrage – Exchange control – features – objectives – types of exchange rate systems – FEMA act – FDI – concept – types – advantages – foreign private investment – factors affecting international investment – limitations and dangers of foreign capital – portfolio investment.

Course Objective

To introduce students to the International Business and business environment in the context of Multinational Enterprises (MNEs), and TNCs by understanding laws, institutions, and the regulatory environment governing foreign exchange market and investment.

Course Outcomes

The student will be able:

• CO1: To understand international business and its concepts.
• CO2: To understand various business environments.
• CO3: To understand the nature of different international business organizations.
• CO4: To understand the nature of different trade blocs and its involvement in international business.
• CO5: To understand the regulations governing the foreign exchange market and investment.

Textbook

1. Dr. Prasanth A.P, Muthulakshmi R, Akhil Raj, Nikhitha K.K – International Business – Iterative international Publishers.

References

1. Francis Cherunilam – International Business – PHI
2. Dr. C.B Gupta – International Business – S. Chand Publishers