Introduction to International Business Syllabus - BBA (PU)

Course Objectives

This course provides an overview of the importance of international business and trade in the global economy, explores the factors and environment that influence success in international markets, and familiarizes students with the basic terminologies, key concepts and issues unique to the subject.  Students will learn about the techniques and strategies associated with different dimensions of marketing, financial management, and human resource management which arise in an international business context.

Course Description

This is a broad–based introductory course organized around three main modules: 1) the external environment of international business, 2) international business strategy, and 3) international business operations. This course provides students the opportunity to explore the international business environment and understand internationalization strategies, modes of entry, strategic and organizational issues, and the operational decisions facing managers of companies that operate beyond their domestic market.

Course Outcomes

Upon successful completion of the course, students will be able to:

• Define key international business terms and concepts;
• Analyze the business environment of a foreign market and identify the business Opportunities;
• Understand some of the complexities of doing business in foreign markets;
• Discuss the different types of economic, political, and legal systems and their impact on business;
• Compare and contrast major trade theories and trade policies and their effect on business
• Discuss international exchange rates and their effects on global business; and
• Critically analyze the opportunities and risks associated with international business activities.

Course Contents

Unit I: Globalization and International Business                                                    5 hours

Concepts of globalization and international business; Factors affecting globalization; Reasons for international business expansion; Drivers of market globalization; Domestic vs international business.

Unit II: Theories of International Trade and Investment                                       10 hours

Theory of Mercantilism, Theory of Absolute Advantage, Theory of Comparative Advantage, Factor Endowment Theory, Product Life-Cycle Theory, Theory of Competitive Advantage; Foreign direct investment based theories; Implications of international trade and investment theories; Contemporary issues of international trade.

Unit III: Global Business Environment                                                                    10 hours

Political and legal systems; Actors in political and legal systems; Political risks; e-commerce and intellectual property rights; Government interventions and investment barriers; Cultural environment – concept, why culture matters in international business?; Regional economic integration – types, leading economic blocs; Emerging foreign markets; The changing demographics of the global economy; International monetary and financial environment – currencies and exchange rate systems; The floating exchange rate system.; Modes of payment in international trade; Global financial system; International economic institutions; WTO and free trade policies.

Unit IV: International Strategic Management                                                        8 hours

Strategy and opportunity assessment; Role of strategy in international business; Estimating market potential; Choosing a strategy; Entering and operating in international markets – exporting and importing, collaborative ventures and strategic alliances, licensing, franchising; Global outsourcing; MNCs and Foreign Direct Investment (FDI) in the world economy – concept, types and trends.

Unit V: Functional Areas of International Business                                                12 hours

Global production, outsourcing and logistics – managing global supply chain; Global marketing strategy – global branding, product development, pricing, communications, and distribution strategies; Global e-marketing strategy; Financial management – sources of funds for international operations: Investment decisions; Tax practices; Currency risk management; International human resource management – staffing policy, diversity management, labour relations, preparing employees for repatriation.

Basic Texts

1. Hill, C. W. L. and Jain, A. K. International Business: Competing in the Global Marketplace. Tata McGraw Hill, New Delhi.
2. Hill, J. S. International Business: Managing Globalization. Sage Publications. New Delhi.

References

1. Sitkin, A. and Brown, N. International Business: Challenges and Choice. Oxford University Press. New Delhi.
2. Sthapit, A. International Business: Text and Cases. Taleju Prakashan, Kathmandu.
3. Shenkar, O. and Luo, Y. International Business. Wiley Publications. New Delhi.
4. Gautam, M. P. International Business: System, Environments and Management. Buddha Publications, Kathmandu.
5. Peng, M. W. Global Business. Cengage Learning, New Delhi.
6. Joshi, R. M. International Business. Oxford University Press. New Delhi.