BA1701-International

BA1701-International
Business
Business Management
Management

UNIT- I:INTRODUCTION
Trade policy or Exim policy or
Foreign trade policy 2002-07
 1. Introduction
 2. Objectives
 3. Strategy
 4. Special focus initiatives
 5. Promotional measures
 6. Services exports
 7. EOUs, EHTPs, STPs, & BTPs
 8. Free trade and warehousing
zones
 9. Export Houses
10. Evaluation
Institutions for export
promotions
 I. Consultative and
Deliberative Body
 II.Promotional
Organizations
 III.Service Institutions
trade procedure and
documentation
Export Order
Letter of credit (L/C)
Bill of exchange
Insurance policy /Certificate
Certificate of origin
Manufacture’s Certificate
Packing List
Export Declaration forms
organization forex
Management
 Spot Exchanges
 Forward Exchanges
factors affecting exchange
rate determination
 Balance of payments
 Inflation

 Money supply

 National Income

 Political Factors

Technical and Market factors

foreign exchange risk or
currency Exposure- AU 2006
 1. Economic Exposure
 2. Accounting Exposure or
(Transaction Exposure)
strategies involved in
managing the exchange rate
 i) Exchange risk avoidance
 ii) Charge /diversify
sourcing
 iii) Currency Diversification
 IV) Exchange risk adoption
Unit-II-International Business
Environment
 Globalization of business

 Business freedom
 Facilities
 Govt support
 Resources
 Competitiveness
 Orientation
Obstacles of globalization

 Govt policy
 High cost’
 Poor infrastructure
 Obsolescence
 Resistance to change
 Poor quality image
 Supply problems
 Small size
 Lack of experience
 Ltd R&D and Marketing Research
 Growing competition
 Trade barriers
Factors favoring globalization
 Human resources
 Wide base
 Growing entrepreneurship
 Growing Domestic Market
 Expanding market
 Transnationalisation of world
economy
 NRI
economic liberalization
 competition
Economic environment
 Nature of the economy
 Developing and
developed economy
 The growing economic
power of developing
countries
 Region states
 Structure of the
economy
 Economic policies
 Economic conditions
 Economic environment
of business
Political environment
 Economic
system
 Trends in
political
/economic
philosophies
 New tribalism
Cultural environment
 Meaning and elements
of culture
 Organization of culture
 Culture adoption
 Culture shock
 Culture transmission
 Cultural conformity
 Cultural lag
 Religion
 Ethno domination
 Languages
Regional trade blocks
SARRC
SAPTA
INDO-LANKA
agreement
North American free
trade agreement
NAFTA)
ASEAN
EFTA
EU
INDO-EURO TRADE
Unit-iii Global strategic
management
 Structural design of MNE’s
 1.International Division structure
 2.Global functional structure
 3.Global area structure
 4.Global product structure
 5.Global division structure
 6.Global customer structure
 7.Global matrix structure
 1.International Division
structure
Chief Executive officer

Vice- Vice-president Vice-president Vice-president

president Product Product International
Product B C Division
A North America North America
North
America
2. Global Functional Structure:

Chief Executive Officer

Vice Vice Vice Vice

President President President President
operations operations operations operations

North Europe
America
 3.Global Area Structure or
Global Geographical structure:
Chief Executive Officer

Vice Vice Vice Vice Vice

president president president president president
North Europe Southeast Latin Africa
America Asia America
4.Global product structure:

Chief executive officer

Product A Product B Product C Product D

North Asia Europe

America
5. Global Divisional Structure:

Chief Executive Officer

Power system Group Industry and defence group

Belgium Argentina Belgium Italy

Strategic planning

 Four approaches to formulating and

implementing strategy
 1.Focusing on the economic
imperative
 2.Addressing the political imperative
 3.Emphasizing the quality imperative
 4.Implementing an administrative
coordination strategy
Formulating strategy

 1.Scanning the environment for

opportunities and threats
 2.Conducting an internal
resource analysis of company
strengths and weaknesses
 3.Formulating goals in light of
the external scanning and
internal analysis
Unit-4:Control and evaluation
of international business
 Control MNEs
 1.Corporate culture
 2.Coordinating methods
 3.Reports
Performance measurement

 1.Financial performance
 2.Quality performance
 3.Personnel performance
Performance indicators

 Visit to subsidaries
 Management performance
evaluation
 Cost and accounting
comparability
 Evaluative measurement
 Information system
UNIT V: Conflict in
international business
 Role of negotiations in
international business
 1.Bargaining process
 2.Renotiations
 3.Behavioral characteristics
affecting negotiations