SURVEY OF GLOBAL BUSINESS

SURVEY OF GLOBAL BUSINESS
AREA OF STUDY: CORE
BAC129

Year: 4
Semester: 7

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* Continuous
** Duration: 3 hours

Course Objectives
The primary objective of the course is to familiarize students with the various aspects of international business activities, which shape the Global Business.
Unit 1: Introduction L.H.8
International Business, objectives of IB, IB Environment, Internationalization Process, Domestic Business vs. IB. Liberalization, Privatization and Globalization, Promoters of Globalizations.
Unit 2: Economic Framework of Global Business L.H.8
Economic system-market economy, Command Economy, Mixed Economy, State Directed economy.
Macroeconomic Indicator- Economic Growth (GNP, GDP), Inflation, Money Supply, Debt and Deficits (BOP).
Unit 3: Trade Theory L.H.8
Introduction, Mercantilism, Absolute Advantage, Equal Advantage, Comparative Advantage, Hecksher Ohlin Theory, Leontief Paradox.
Forms of Trade control- Tariffs, Subsides, Import Quotas, Voluntary Export Restraints, Local content Requirements, Antidumping, GSP, Super 302.
Unit 4: Foreign Direct Investment L.H.8
Meaning, Growth and Direction, FDI as an alternate to trade, FDI Theories- PLC Theory, Market Imperfections and Monopolistic advantage theories, Eclectic theory, Impact of FDI on Economic Dev & LDCS.
Unit 5: Environmental Aspects of Global Business L.H.8
Cultural Environment: Concept of Culture, Culture affecting Business- Group affiliation, Group Membership, Need Hierarchy, Self-reliance, Communication.
Political Environment: Political System- Democracy, Totalitarianism, Political instability and Legal Environment: Impact of Laws on IB.
Unit 6: Economic Integration L.H.8
Levels of Integration- Free Trade Area, Customs Union, Common market, Economic Union, Introduction to Regional Economic Blocks- NAFTA, EU, ASEAN, APEC, SAPTA, SAFTA, BIMST- EC.
World Trade Organization- Development, Benefits and Problems of WTO.
Suggested Readings
1. John Daniels & Lech Padebaugh, International Business 8th Edition, Pearson Education Asia.
2. WL Charles. International Business 3rd Edition, Hill McGraw Hill, Irwin