SUBJECT : International Business

CLASS: TYBMS (Division A & B)

SEMESTER: V

FACULTY: Ms.Rushika Chavda

 MODULES
Sr. Modules
No.
1 FUNDAMENTALS OF INTERNATIONAL
BUSINESS

2 INTERNATIONAL BUSINESS ENVIRONMENT

3 INTERNATIONAL TRADE ORGANISATIONS

4 PRACTICAL ISSUES IN INTERNATIONAL

BUSINESS
UNIT 4- PRACTICAL ISSUES IN INTERNATIONAL
BUSINESS
Modes of Entry In International Market
• https://bbamantra.com/modes-of-entry-in-foreign-market/
 Export and Import Procedures and
Documentations
• https://www.vedantu.com/commerce/import-procedures-and-documentations

• https://www.vedantu.com/commerce/export-procedures-and-documentations
 Ethics In International Business
• Ethical standards establish trust between parties doing business together, including both
partners and customers. Organizations earn this trust by demonstrating a pattern of ethical
behavior over time, gaining a reputation for fair dealing and respect for human rights and
social responsibility.

• First and foremost, ethics are their own reward, in business and in our private lives. Living
ethically reflects good character and concern for the well-being of others. This leads to a
sense of goodwill toward others that nurtures self-respect and inner strength.

• At the same time, companies conducting their international business ethically realize higher
profits by attracting business partners who share the organization’s commitment to ethics in
international business.

• International business ethics constitute a global code of conduct – a set of principles that
establishes ethical standards for employees and businesses. Though every business has an
ethics code, engaging in international business may introduce gray areas where expectations
for employee conduct are unclear.

• Also, refer word document shared on Google classroom

 Copyright
• A set of exclusive rights granted to the author or creator of an original work, including the right to copy,
distribute, and adapt the work. In international business copyrights are transmitted and sold through license
agreements. In general, copyright is a form of legal protection given to content creators through the
assignment of specific rights to works that qualify for protection.

✔ The main goals of copyright are

• To encourage the development of culture, science and innovation
• To provide a financial benefit to copyright holders for their works
• To facilitate access to knowledge and entertainment for the public.
• Copyright provides a framework for relationships between the different players in the content industries, as
well as for relationships between rights holders and the consumers of content. Copyright is a form of
Intellectual Property, along with trademarks and patents in all countries, and other creations (such as trade
secrets, database rights, rights of publicity and the like) that may vary from country to country.

• Copyright is a creation of law in each country, and therefore there is no such thing as an international
copyright law. Nevertheless, nearly 180 countries have ratified a treaty – the Berne Convention, administered
by the World Intellectual Property Organization (WIPO) – that sets a minimum set of standards for the
protection of the rights of the creators of copyrighted works around the world.

• In addition, there have been efforts to harmonize copyright law in Europe and other regions. The differences
in national copyright laws, however, can represent a challenge for global organizations with employees
working in different countries and sharing content across boundaries.
 Trademark
• A trademark is a sign capable of distinguishing the goods or services of one enterprise from
those of other enterprises. Trademarks are protected by intellectual property rights.

• Trademarks are designed to protect words, phrases, or symbols used to identify the source
of a product from one business to another. Trademark laws and regulations vary from
country to country, so for international businesses, attention to detail is a must. Businesses
often look to register their brand not only in the countries that they currently do business in,
but also countries they see as possible future markets for growth.

• In the age of technology and the internet, trademark and intellectual property laws have
become very important to international business. Companies on opposite sides of the globe
can now compete head to head against each other, substantially increasing the negative
effects of a foreign business stealing your brand. Filing for trademarks internationally gives
businesses the legal standing to fight companies looking to capitalize on an already
established brand. Filing also helps companies establish a brand strategy, which is crucial
when looking to expand a business internationally.
 International Logistics
• When the flow of goods and products must cross an international border, the planning and
management process is known as international logistics.

• According to the Council of Logistics Management, logistics is the management process of

'planning, implementing, and controlling the physical and information flows concerned with
materials and final goods from the point of origin to the point of usage.' International
logistics involves the management of these resources in a company's supply chain across at
least one international border.

• International logistics focus on managing import and export activities. Exchanges are
organized by cross-border transport, whilst applying known logistical methods. It provides
logistical stakeholders with optimized solutions for exchanging goods and transporting
people between different countries.

• The ultimate goal in international logistics is to devote activity to the management of goods
transportation. The goods are first of all picked up (from a factory, logistician, supplier
warehouse, etc.) and conveyed to the export country where they will be unloaded by the
importer.
 International Supply Chain Management

• Global supply chain management generally refers to all processes regarding a

product’s lifecycle, from the concept of its creation to distribution to endpoints.
Global SCM is aimed to enhance the productivity of each stage of this lifecycle, get
rid of inefficiencies, and deliver the products timely and seamlessly.

• The traditional global supply chain comprises four critical stages: supplier,
manufacturer, retailer, and end-user.

• Going “global” through global supply chains helps facilitate entry into new markets,
enables business growth and provides firms with access to new technologies
through partnerships with foreign firms.

• Global supply chain management involves planning how the entire supply chain will
function as an integrated whole, with the aim of generating an optimum level of
customer service while being as cost efficient as possible.
 International Business HRM
• Due to the growth of internationalization and global competition, the role of International Human
Resource Management (IHRM) in those Multinational Corporations (MNCs) grows in significance.

• IHRM refers to the human resource management concepts and techniques employers use to
manage the HR challenges of their international operations, including acquiring, training,
appraising and compensating employees, and attending to their labour relations, health and
safety, and fairness concerns.

• IHRM and domestic HRM share similar core functions, including recruitment, selection, employee
learning and development, diversity and equality, and remuneration.

• International human resource management functions cover many different activities related to a
business organization’s employees and contractors. The first and most important is the staffing
needs of the company whether staff members are company employees or outside contractors.
• Other functions include recruiting and training employees, ensuring that they are performing at
expected levels or better, handling performance issues and making certain that personnel and
management policies conform to laws and regulations. International human resource
management is also involved in how the company manages employee compensation and benefits,
employee records and personnel policies and practices.
✔ In short, IHRM is concerned with handling the human resources at Multinational Companies
(MNCs) and it includes managing three types of employees −

• Home country employees − Employees residing in the home country of the company where
the corporate head quarter is situated, for example, an Indian working in India for some
company whose headquarters are in India itself.

• Host country employees − Employees residing in the nation in which the subsidiary is
located, for example, an Indian working as an NRI in some foreign country.

• Third country employees − These are the employees who are not from home country or host
country but are employed at the additional or corporate headquarters.

• For example, an Indian MNC, which has its corporate office in America, may employ a French
person as the CEO to the subsidiary. The Frenchman employed is a third country employee.
THANK YOU