International Business Management - Elective IV

Tribhuvan University

Institute of Science and Technology

Bachelor of Science in Computer Science and Information Technology

Course Title: International Business Management

Course no: MGT474

Semester: VIII

Nature of course: Theory

Full Marks: 80 + 20

Pass Marks: 32 + 8

Credit Hours: 3

Course Description : This course contains globalization and international business, global economy and regional, international trade and investment theories and practices, national difference in political, economic and socio-cultural environment, strategies for international business and international financial environment to provide the basic knowledge to students.

Course Objective : The objective of this course is to familiarize students with the environment and challenges of doing business abroad. The course presents students with the opportunities to explore a number of issues and concerns relating to international business.

Course Contents:

Unit 1. Globalization and International Business 8 Hrs.

Concept of domestic, international and global business. Opportunities and challenges of IB. Globalization: Concept and drivers, Types of globalization: economic, cultural, political, environmental, production, market. International Business Environment: Economic, demographic, cultural and political-legal environment; Globalization debate: positive and negative impact.

Unit 2. Global Economy and Regional Economy 6 Hrs.

Global economy: concept, features and structures; changing demographics of global business. MNCs: Concept, types, structures, strategies, and problems. Global economic integration: WTO (Origin, goals, structure, and functions). Regional economic integration levels: preferential trading, free trade areas, customs union, common market, economic union, and political union; International Economic Organizations: WTO, UNCTAD, World Bank, IMF EU, NAFTA, SAFTA, BIMSTEC (Origin, goals and structure).

Unit 3. National Differences in Socio-cultural Environment 3 Hrs.

Socio-cultural implication on IB. Cultural differences: Determinants of culture: Awareness, values, norms, communication, language and religion. Dealing with cultural differences.

Unit 4. National Differences in Political Environment 3 Hrs.

Political systems: Democracy & totalitarian spectrum. Business-government relations. Political risk: concept and types. Impact of political environment on international business. Implications of legal systems in business. Intellectual property rights.

Unit 5. National Differences in Economic Environment 3 Hrs.

Economic system: market, command, mixed. Determinants of economic development: Inflation, Income (GDP, per capita income nominal & PPP, HDI). Level of economic development: developed, developing, and emerging economies (World Bank’s Criteria).

Unit 6. International Financial Environment 8 Hrs.

Foreign exchange markets, Spot market, spot rate quotations, bid-ask spreads, trading in spot markets, cross exchange rates, forward markets, forward rate, long and short forward positions, forwards premium and discount; Arbitrage, Hedging and Speculation; Types of exchange rate systems: fixed and floating, soft peg, crawling peg, free float, managed float; Factors affecting exchange rate- relative inflation rates, interest rates, relative interest rates, relative income levels, government controls, expectations; Mode of payment in international trade.

Unit 7. Strategies for IB 6 Hrs.

International strategic management: Concept and importance; Modes of entry into a foreign market: Export and import; strategic alliances: equity based (wholly owned subsidiaries, acquisition, greenfield venture, equity alliances, joint venture) and contractual based (licensing, franchising, turnkey operations, BOT, management contract). FDI & portfolio investment: benefits and drawbacks.

Unit 8. Functional Management and Operation of IB 8 Hrs.

Polycentric, ethnocentric, regiocentric and geocentric approach in functional management of IB. Global marketing strategies: Product strategy, distribution strategy, promotion strategy, pricing strategy. Global production strategies: location, outsourcing, managing global supply chain. Global finance strategies: sources of fund, tax practices, tax haven. Global human resource management strategies: Staffing policy, expatriate management, compensation, cultivating global mindsets.

Text Books:

1. Cavusgil S.T., Knight G. and Riesenberger J. (2017). International Business. Fourth Edition. England: Pearson Education Limited.
2. Hill, Charles and Hult, Tomas. (2019). International Business. Twelfth Edition. New York:McGraw Hill Education.
3. Daniel J.D., Radebaugh L.H., Sullivan D.P. (2015). International business. Fifteenth Edition. England: Pearson Education Limited.
4. Rugman A.M. and Collinson, S. (2012). International business. Sixth Edution. England:Pearson Education Limited.