MGN 578:

INTERNATIONAL
ENVIRONMENT AND
MANAGEMENT
L:2 T:1 P:0
COURSE OUTCOMES:
 analyze business environment and trends to take decisions
with respect to international business operations
 interpret and apply international trade theories in
international business operations
 identify and critically analyze the role of foreign exchange
market and usage of fundamental instruments for currency
exchange
 evaluate the various international expansion strategies to
enter into international market
IMPORTANCE OF INTERNATIONAL
BUSINESS COURSE
 'In an ever-changing global business and
economic environment, studying business
from an international perspective is vital
for post graduates who are ambitious to work
across international boundaries and cultures.
 develop a global mind-set
 Understand how globalisation has brought
about an increasing 'connectedness' of
businesses, markets, people and information
across countries.
FUTURE JOB OPPORTUNITIES
 Possible job titles include
 Business adviser
 Business analyst
 Corporate investment banker
 Human resources manager
 Management consultant
 Marketing manager
 Product manager
 Purchasing manager
 Logistics manager
RECENT ISSUES OF
INTERNATIONAL
IMPORTANCE
ABOUT THE DEAL
US-CHINA TRADE WAR
US-CHINA TRADE WAR
 The US launched an investigation into
Chinese trade policies in 2017. It imposed
tariffs on billions of dollars worth of Chinese
products and Beijing retaliated in kind.
 The duties range from 10% to 25% and cover
a wide range of industrial and consumer
items - from handbags to railway equipment.
IMPACT OF US CHINA TRADE
WAR ON INDIA
AIRBNB
BIGGEST CHALLENGES OF INTERNATIONAL
BUSINESS IN 2018

Foreign laws and regulations

 Founded in 2008, Airbnb now lists more than

half a million private properties in 192
countries for stays as short as one night and is
valued at an estimated $10bn.
 Airbnb ran into trouble in 2014, with a
crackdown on advertised rental properties
falling outside local housing and tourism
regulations. The company was forced to pay a
€30,000 fine for a breach of local tourism laws
in Barcelona.
REASONS
 Any flat rented to tourists must be registered
with the Tourism Registry.
 Regional laws also prohibit the renting out of
rooms in private residences.
FLIPKART
INTERNATIONAL ACCOUNTING
 Flipkart having Corporate office in Bangalore
has registered office in Singapore
 Tax rates in India is 33% whereas in
Singapore it was 17 %.  So it was a very
logical decision to register in Singapore.
 FDI and FEMA are not so transparent in
India, they change with change in ruling
parties.
 Singapore has a zero export duty. This keeps
a window open for Flipkart to have vendors
from Singapore.
COST CALCULATION AND GLOBAL PRICING
STRATEGY
 Swedish furniture giant Ikea, known in
Europe for its low-cost value, struggled
initially in China due to local competitor
costs of labor and production being much
cheaper.
UNIVERSAL PAYMENT METHODS

 Determining acceptable payment methods

and ensuring secure processing must be a
central consideration for businesses who
seeks to trade internationally.
TESCO
TESCO’S UNSUCCESSFUL US
ENTRY
 Tesco PLC, the third-largest retailer in the
world, entered the US market in 2006.
 Tesco withdrew from US market in April,
2013 having invested US $1.6 Billion.
 Fresh and Easy Retail Stores.
 Was the Tesco's problems in the United
States a result of poor strategy?
 Learning?
REASONS
 Layout- layout was kept straight and simple
to allow easy movement.
 Automated checkouts, as US people were
used to the presence of store helpers.
 Product Range -private label products
including breads, hamburger buns, etc.
 customers in the US were not in favor of
wrapped fruits and vegetables as they
wanted to handle them before use.
LEARNING
 small assortment
 overemphasis on private labels
 lack of customization based on the
neighborhood, and self-checkout.
FAMOUS INTERNATIONAL
BRANDS
COURSE WEIGHTAGE

Attendance 05
CA 45
ETE 50
Total 100
BOOKS & REFERENCES
 MAIN TEXT BOOK : INTERNATIONAL
BUSINESS ENVIRONMENTS AND
OPERATIONS
 AUTHOR : DANIELS, RADEBAUGH,
 SULLIVAN & SALWAN
 PUBLISHER: PEARSON
BOOKS & REFERENCES
 REFERENCE BOOKS :
1 INTERNATIONAL BUSINESS ENVIRONMENT AND
MANAGEMENT by V.K. BHALLA AND S.SHIVA RAMU,
ANMOL PUBLICATIONS PVT. LTD.

2 INTERNATIONAL BUSINESS by RAKESH MOHAN

JOSHI, OXFORD UNIVERSITY PRESS
3. INTERNATIONAL BUSINESS - COMPETING IN THE
GLOBAL MARKETPLACE by CHARLES WL HILL, ARUN
KUMAR JAIN, MC GRAW HILL
ACADEMIC TASK 1
 Topic Details: Group Discussion -Case based
 Evaluation Parameters: As per Rubric
 Expected outcomes: To develop team work,
analytical and interaction/discussion on skills
among students
ACADEMIC TASK 2
 Topic Details:Assignment -Situation based
problem solving-PESTLE Analysis
 Evaluation-As per IP
 Expected outcomes: To enhance conceptual
and analytical skills of students
ACADEMIC TASK 3
 Topic Details: Presentation -Individual.
 Evaluation Parameters:15 Marks
 Expected outcomes: To provide a platform
to every student for developing
communication skill, confidence and an
analytical bent of
mind
Happy Learning…!!!