INTERNATIONAL BUSINESS- 1

MODULE 1: INTERNATIONAL BUSINESS ENVIRONMENT

  • Concepts:

    • Evolution, drivers, and challenges of International Business (IB) vs. Domestic Business.

    • National and organizational competitive advantage on a global scale.

    • Modes of entry into international markets.

    • Active players in multinational business.

    • International environment: political, legal, technological, cultural, demographic, and economic factors.

    • Cross-cultural management; cultural levels and models.

MODULE 2: GLOBALIZATION

  • Key Topics:

    • Routes and modes of globalization.

    • Organizing international business: design and influencing factors.

    • Conflict management: reconciliation, adjudication, and arbitration.

    • Supporting institutions and negotiation strategies.

MODULE 3: WTO AND TRADING BLOCKS

  • Highlights:

    • World Trade Organization (WTO) and liberalization policies.

    • Implications of trade policies on India, regional trade blocks, and integration levels.

    • Formation of international strategic alliances.

MODULE 4: GLOBAL TRADE AND INVESTMENT

  • Theories:

    • Mercantilism, absolute advantage, comparative advantage, factor endowment, and product life cycle theories.

    • Foreign Direct Investment (FDI) benefits to home and host countries & the Indian context.

    • EXIM (Export-Import) trade: financing, policy, and institutional roles.

MODULE 5: GLOBAL ETHICS AND E-COMMERCE

  • Discussion Points:

    • Social responsibility and ethical issues across different cultures.

    • Code of conduct for multinational corporations (MNCs).

    • Growth of global E-business and its implications in India.

    • "Atmanirbhar" initiatives in the context of international business.

MODULE 6: GLOBAL BUSINESS OPERATIONS

  • Focus Areas:

    • Operations management, strategic issues in manufacturing and logistics.

    • International finance and balance of payments.

    • Marketing and human resource management in a global context.

Importance of Maritime Trade

  • Did you know:

    • 90% of global trade occurs by sea.

  • Reasons for high maritime trade:

    • Cost efficiency, capacity, global reach, versatility, environmental impact.

Significant Maritime Canals

  1. Suez Canal

    • Links the Red Sea and Mediterranean; crucial for trade between Asia and Europe.

    • Significant reduction in shipping time.

  2. Panama Canal

    • Connects the Pacific and Atlantic; eliminates challenging routes.

  3. Strait of Malacca

    • Key shipping route for major economies in Asia; handles 40% of global maritime traffic.

Global Supply Chains

  • Global production of products (ex. smartphones) involves multiple countries for components:

    • Design/Software: USA

    • Processors: Taiwan

    • Memory: South Korea

    • Assembly: China, India, Vietnam

Challenges in International Business

  • Identifying cultural differences, regional variations, and adapting business practices to local customs are essential.

  • Management complexity and cross-cultural challenges can affect operations and strategy.

Competitive Advantages in International Business

  • Factors contributing to national and organizational competitiveness (Porter's Diamond):

    • Factor conditions, demand conditions, related and supporting industries, firm strategy, structure, and rivalry.