International Business and Trade

Course Code: BUSA4114

Course Title: International Business and Trade
Credit Hours: 3(3+0)
Prerequisite(s): Basic Understanding of Business Environment

Course Objective

After the completion of this course the students will learn thorough review of countries and politics
of international trade and investment. Explain the function and form of global monetary system and
reason for diversification of resources among countries. Assess the special role of the international
business‘s various function. Evaluate different economic indicators to see economic growth of a
nation.

COURSE OUTLINE:

Globalization: Definition of globalization, its Nature and Scope. The emergence of global institutions,
forces behind globalization and its impact on national and international business environment

International trade theory: The pattern of international trade, Absolute and comparative advantage,
Free trade and globalization, The product life cycle, New trade theory, National comparative
advantage and Porter’s Diamond

Difference in culture: Cultural, Social structure and religious system. Impact of these cultural
differences in workplace settings

National difference in political economy: International Political, economic, Legal systems and their
respective features

The political economy of international trade: Instruments of trade, Government Intervention,

Development of the world trade system, WTO

Foreign direct investment (FDI): Foreign direct investment in the world economy, Foreign direct
investment in china, Horizontal foreign direct investment, Vertical foreign direct investment, The
cost of FDI to home and host country

The international monetary system: The gold standard, The Bretton Woods system, Fixed exchange
rates and floating exchange rates, Role of IMF

The strategy of international business: Strategy and firm, Global expansion, profitability and profit
growth, Location economics, Cost pressure and pressure for local responsiveness, Choosing a
strategy

Entry strategy in international business and strategic Alliance: Basic entry decisions, Entry modes,
Strategic alliance

Global production, outsourcing and logistics: Strategies of production and logistics, Where to
produce, The strategic role of foreign factories, Outsourcing production(Make or Buy decision),
Managing a global supply
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Recommended Study: (Latest Editions)

1. Hill, Charles W. L. International Business: Competing in the Global Marketplace

2. Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. International Business: Environments and
Operations. Pearson Education Limited.
3. Ball, Don. International Business: Wendell Mcculloerh.
4. Roger Bennett. International Business: Financial Times Pitman publishing
5. Czinkota, Michael. R Ronkainen, Ilkka.A: Global Business.
6. Claude M. Jonnard, International Business and Trade: Theory, Practice, and Policy,
International Business Series.
Note: In addition to the above, any other text or book referred by Instructor can also be included.

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