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Subject

International Business Management

International Business Management provides students with foundational knowledge of global business environments, challenges, and opportunities. The course covers key topics including globalization, international trade and investment theories, and the influence of political, economic, and socio-cultural differences on business operations. Students will explore strategies for international business, international financial systems, and the functioning of multinational corporations (MNCs). The course aims to prepare students for global business challenges by focusing on practical aspects like market entry strategies, trade laws, financial systems, and managing cross-border operations.

Tribhuvan University

International Business Management

International Business Management

Course Title: International Business Management

Course no: MGT488

Nature of course: Theory

Full Marks: 80 + 20

Pass Marks: 32+ 8

Credit Hours:

Course Description : This course contains globalization and international business, global economy and regional, international trade and investment theories and practices, national difference in political, economic and socio-cultural environment, strategies for international business and international financial environment to provide the basic knowledge to students.

Course Objective : The objective of this course is to familiarize students with the environment and challenges of doing business abroad. The course presents students with the opportunities to explore a number of issues and concerns relating to international business.

Course Contents:
Unit 1. Globalization and International Business 8 Hrs.

Concept of domestic, international and global business. Opportunities and challenges of IB. Globalization: Concept and drivers, Types of globalization:economic, cultural, political, environmental, production, market.International Business Environment: Economic, demographic, cultural and political-legal environment; Globalization debate: positive and negative impact.
Unit 2. National Differences in Political Environment 3 Hrs.

Political systems: Democracy & totalitarian spectrum. Business-government relations. Political
risk: concept and types. Impact of political environment on international business. Implications
of legal systems in business. Intellectual property rights.
Unit 3. Strategies for IB 6 Hrs.

International strategic management: Concept and importance; Modes of entry into a foreign market:Export and import; strategic alliances: equity based (wholly owned subsidiaries, acquisition, greenfield venture, equity alliances, joint venture) and contractual based (licensing, franchising, turnkey operations, BOT, management contract). FDI & portfolio investment: benefits and drawbacks.
Unit 4. Global Economy and Regional Economy 6 Hrs.

Global economy: concept, features and structures; changing demographics of global business. MNCs: Concept, types, structures, strategies, and problems. Global economic integration: WTO (Origin, goals, structure, and functions). Regional economic integrationlevels: preferential trading, free trade areas, customs union, common market, economic union, and political union; International Economic Organizations: WTO, UNCTAD, World Bank, IMF EU, NAFTA, SAFTA, BIMSTEC (Origin, goals and structure).
Unit 5. National Differences in Socio-cultural Environment 3 Hrs.

Socio-cultural implication on IB. Cultural differences: Determinants of culture: Awareness, values, norms, communication, language and religion. Dealing with cultural differences.
Unit 6. National Differences in Economic Environment 3 Hrs.

Economic system: market, command, mixed. Determinants of economic development: Inflation, Income (GDP, per capita income nominal & PPP, HDI). Level of economic development: developed, developing, and emerging economies (World Bank’s Criteria).
Unit 7. International Financial Environment 8 Hrs.

Foreign exchange markets, Spot market, spot rate quotations, bid-ask spreads, trading in spot markets, cross exchange rates, forward markets, forward rate, long and short forward positions, forwards premium and discount; Arbitrage, Hedging and Speculation; Types of exchange rate systems: fixed and floating, soft peg, crawling peg, free float, managed float; Factors affecting exchange rate- relative inflation rates, interest rates, relative interest rates, relative income levels, government controls, expectations; Mode of payment in international trade.
Unit 8. Functional Management and Operation of IB 8 Hrs.

Polycentric, ethnocentric, regiocentric and geocentric approach in functional management of IB. Global marketing strategies: Product strategy, distribution strategy, promotion strategy, pricing strategy. Global production strategies: location, outsourcing, managing global supply chain. Global finance strategies: sources of fund, tax practices, tax haven. Global human resource management strategies: Staffing policy, expatriate management, compensation, cultivating global mindsets.
Reference Books:
  • Cavusgil S.T., Knight G. and Riesenberger J. (2017). International Business. Fourth Edition.England: Pearson Education Limited.
  • Hill, Charles and Hult, Tomas. (2019). International Business. Twelfth Edition. New York:McGraw Hill Education.
  • Daniel J.D., Radebaugh L.H., Sullivan D.P. (2015). International business. Fifteenth Edition.England: Pearson Education Limited.
  • Rugman A.M. and Collinson, S. (2012). International business. Sixth Edution. England:Pearson Education Limited.