Importance of International

Business
• Earn foreign exchange
• Optimum utilization of
resources
• Achieve its objectives
• To spread business risks
• Improve organization's
efficiency
• Get benefits from Government
• Expand and diversify
• Increase competitive capacity
Importance of International
Business
• Earn foreign exchange
• Optimum utilization of
resources
• Achieve its objectives
• To spread business risks
• Improve organization's
efficiency
• Get benefits from Government
• Expand and diversify
• Increase competitive capacity
Importance of International
Business
• Earn foreign exchange
• Optimum utilization of
resources
• Achieve its objectives
• To spread business risks
• Improve organization's
efficiency
• Get benefits from Government
• Expand and diversify
• Increase competitive capacity
Earn foreign exchange
• Optimum utilization of
resources
• Achieve its objectives
• To spread business risks
• Improve organization's
efficiency
• Get benefits from Government
• Expand and diversify
• Increase competitive capacity
Unit - 1

1. Factors causing the globalisation of business:

* Technology
* Multinational Companies
* Reduced tariffs
* Improved transport
* Labor mobility
* Capital mobility

Types of globalisations:
* Financial Globalisation
* Economic Globalisation
* Technological Globalisation
* Political Globalisation
* Cultural Globalisation

Components of Globalisation:
* Globalisation of Markets
* Globalisation of Production
* Globalisation of Investment
* Globalisation of Technology

2. Advantages of globalization (International Business)

 Free flow of capital, technology
 Industrialization
 Product Flexibility
 Learning New Methods
 Less Competition
 Lower prices and high quality
 Jobs and Incomes
 Higher standard of living
 Balanced Human development
 Welfare and prosperity

3. Approaches of Internation Business

* Ethnocentric
* Polycentric
* Regiocentric
* Geocentric

4. Dimensions in the International Business Environment

* The Domestic Environment
* The Foreign Environment
* The International Environment
The forces:
* Political Environment
* Legal Environment
* Cultural Environment
* Technological Environment
* Economic Environment

5. Country attractiveness
Three dimensions of country attractiveness:
* Market Opportunities
* Industry Opportunities
* County Risks:
• Political Risks
• Economic Risks
• Competitive Risks
• Operational Risks
6. Liberalisation in Global Business:
* Tariffs Barriers
* Non- Tariff Barriers
* Rules
* Regulations
* Legislation
* Exacting Standards or Specification
* Voluntary Export Restraints

Unit - 2

1. The role of GATT and WTO

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2. Theories of International Trade and Investment

* Mercantilism
* Absolute advantage
• Natural Advantage
• Acquired Advantage
* Comparative advantage
* Competitive Advantage

3. Regional Trade blocks

Types:
* Preferential trading environment
* Free trade area
* customs union
* Common market
* Economic union
* Political union

Advantages (Merits):
* Foreign Direct Investment
* Economies of Sale
* Competition
* Trade Effects
* Market Efficiency

Disadvantages (Demerits):
* Regionalism vs Multinationalism
* Loss of Sovereignty
* Concessions
* Interdependence

4. RTBs across the globe

* European Union (EU)
* North American Free Trade Agreement (NAFTA)
* South Asian Association for Regional Cooperations (SAARC)
* SAARC preferential Trading arrangement (SAPTA)
* South Asian Free Trade Area (SAFTA)
* Association of southeast Asian nations (ASEAN)
* ASEAN Free Trade Area (AFTA)
* Mercosur
* Asian Pacific Economic Cooperation (APEC)
* European Free Trade Association (EFTA)

Unit - 3
1. Differentiate Standardization and Differentiation
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2. Different forms of International Business

* Wholly Owned
* Joint Ventures
* Franchising
* Licensing
* Turnkey Projects
* Exporting
* Subsidiaries

3. Controlling of International Business

Types of Control System
* Personal Controls
* Bureacratic Controls
* Output Controls
* Cultural Controls

Approaches to Control:
* Market Approach
* Rules Approach
* Corporate Culture Approach

Control Mechanism:
* Reports
* Visits to subsidiaries
* Management Performance Evaluations
* Cost and Comparisons

4. Performance Measurement Indicators

Various Performance Indiactors:
* Financial Measures
• Return on Investement (ROI)
• Budget as a Success Indicator
* Non-financial Measures

Types of Perfomance Evaluation:

* Budget Programming
* Management Audit
* PERT (Program Evaluation review technique)
* Management Information System

Unit - 5
1. Types of Conflicts
* Organisation
* Group
* Individual

Conflict Resolutions:
* Adjudicative Processes
* Consensual Processes
* Lawsuit
* Arbitration
* Collaborative Law
* Mediation
* Conciliation

3. Role of International Agnecies

* The Hand Shake
* Heads of Agreement/Exchange of Letters
• Products involved
• timeframe of agreement
• termination clauses
• review clauses
• performance targets
* Formal Agent/Distributor Agreement
* Joint Venture

4. Ethical Issues in International Business:

* Child Labor
* Workplace Diversity
* Working Standards
* Human Rights
* Equal Employment Opportunity
* Trust and Integrity
* Enivironmental preservation

5. Steps involved in ethical decision making:

* Identify the Ethical Issues
* Get the Facts
* Evaluate Alternative actions
* Choose an Option for Action and Test it.
* Implement your decision and reflect on the outcome.