Maharishi Markandeshwar Institute of Management

MBA 3RD Semester

Total Credits: 3

Lectures/ Tutorial per week : 3/0

Evaluation:

External: 60; Internal: 40

MBIB-01 GLOBAL AND INTERNATIONAL BUSINESS ENVIRONMENT

Course Description & Objectives

Today’s business milieu is essentially global. And the influence of global business
environment on any business – small or big – is certain. Understanding global business
environment and developing a global perspective is therefore deemed imperative. The broad
goal of this course is to impart the necessary conceptual and empirical tools within which to
carry out a principled and predictive analysis of global business environment as well as that
of opportunities and risks therein. The course shall start off with fundamental concepts and
basic forms of international business activities. Gaining a sound grounding in global business
milieu and the essential variables that shape it including political factors, capital flows,
exchange and interest rates, trade flows, production and so on shall form subsequent essential
aspect of the course. The course is thus aimed at imparting an overarching understanding of
global and international business practices under international socio-political and economic
environment and, specifically, within their ambit an understanding of nation’s business and
economic landscape. Organizational level decision in the context of global factors and
accelerating internalization of business shall be another essential component. The course will
also familiarize students to important governmental bodies such as WTO, GATT, IMF, etc.

Learning Outcomes
At the end of the course Learner will be able to:

 Demonstrate through tasks, projects and such a principled understanding of the

environment in which international business operates and evolves.
 Demonstrate problem solving ability in national context in light of global business
variables.
 Demonstrate understanding of globalisation, theories of international trade, and
regulations of global trade, investment and finance.
 Demonstrate ability to critically analyze current paradigms and trends in global
business environment as well as identify future trends in the same.
 Demonstrate ability to identify and solve outstanding problems in global and
international business environment

Course Content

Unit-1

Foundations for a global economy: Introduction to Globalisation; Political, Economic and

Legal Forces; Entry Strategy and Strategic Alliances Exporting, Importing, and
Countertrade; Global Production, Outsourcing, and Logistics; Global Marketing, Global
Human Resource Management,

Unit-2

Global Market: International Investment; Emerging Market Analysis including Country Risk
Analysis and Foreign Investment Analysis; International Trade & International Trade
Theories; Political Economy of International Trade; Trade Policy Instruments and
Liberalization; World Trade Organization & GATT; FDI; Entering Foreign Markets;
Developing Countries' Concerns; Stovall’s Diagram to Describe a Complete Economic
Cycle

Unit-3

Global Money or International Monetary System: Monetary and Exchange Policies;

Exchange Rate Determination & Forecasting; The International Monetary System;
International Banking.

General characteristic of a country’s economic systems and models of market economy;

Main indicators of countries’ classification (GDP per capita, Human Development Index,
competition level, etc.); The CAGE and Porter Diamond frameworks for analysing business
management environments

Unit-4

Strategy of International Business; International Sources of Finance for the Firm

International Legal Regimes: MFN and national regime. Types of legal systems and their
features: common law (Anglo-Saxon legal model), and civil law system (continental legal
model), and the system of theocratic law. Levels of law: national, supranational and
international law.

India's Exchange Rate Regimes and Experiences

Global Attributes: Cultural Issues; Ethics and International Business: International
protection of IPR

NOTE: Selected Case Studies based on the above modules.

Reading List

1) Hill Charles W.L. (2011), International Business: Competing in the Global Marketplace
(8/E.), McGraw-Hill

2) Donald Ball and Wendell McCulloch, International Business: The Challenge of Global
Competition (Sixth Edition), Irwin

3) Bernard, Jensen, Redding, & Schott, “Firms in International Trade,” Journal of

Economic Perspectives, Summer 2007

4) John Daniels and Lee Radebaugh, International Business: Environments and Operations
(Eighth Edition) Addison Wesley

5) International Business Week

6) The Economist