Rajiv Gandhi Institute of Petroleum Technology

M.B.A (Petroleum & Energy Management)

Semester-II (December 2010-May 2011)

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Course: International Business (PMS203)
Credits: 4
Instructor: Dr. Sanjay Kumar Kar
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Objectives: The primary objective of this course is to make the participant aware about
dynamic nature of international business and make them understand the international
business environment.

Importance of the Course: Today understanding international business environment is

paramount importance to managers. All countries have their own rules, regulations and
policies for firms operating in those countries. Lack of understanding of cultural, legal,
political and business environment in the foreign countries may lead to failure of
business operations causing financial and non-financial losses for firms. This course will
help the participants to sharpen their skills, knowledge and enable them to correctly
assess the business environments in different countries.

Deliverables: This is a foundation level course on international business. It will provide

basic level understanding of international business environment, international trade,
and business operations. It begins with brief overview of international business, focused
on globalization and global business operations strategy of firms across the globe.
Amongst the others we will discuss and examine national policies and business systems
of developed visa-vis developing nations.

Prerequisites: As the course is interdisciplinary in nature, so participants should have

basic conceptual, theoretical and practical understanding of fundamental courses on
economics, marketing, finance, accounting, OB, and HR.

Basic Text Book (BTB): International Business: Charles Hill & Arun K. Jain, 6th Edn.
McGraw

Evaluation:

Components
Class Participation 10%
Quiz 05%
Individual Assignments 15%
Group Assignment Submission & Presentation 15%

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Mid-semester I & II 30%
End-semester 25%

Introduction to International Business

Session1: Introduction to International Business

Importance of International Business
Role of Mangers in International Business

Module I: Globalization
Session2-3: Going global
Reading: Chapter1, Hill & Jain (Basic Text Book) pp.03-49.

Alexander and Korine, “When you shouldn’t go global”, HBR, 2008.

Kuemmerle, “Go global – or no?” Harvard Business Review, 2001

Session4: Globalization versus local needs

Levitt, "The globalization of markets," Harvard Business Review, 1983
Ghemawat, “Managing differences” Harvard Business Review, 2007

Session5: Understanding the global competitive landscape

Porter, “The competitive advantage of nations,” Harvard Business Review, 1990

Case: SAP: Establishing a Research Centre in China

Session6: Culture
Relevance of culture in International Business
Cultural change and implications for managers.
Reading: Chapter3

Module II: International Trade

Session7: Why trade?
Basic Theories of Trade
Theories of Foreign Investment
Foreign Direct Investment (FDI)
Foreign Institutional Investors (FII)
Reading: Chapter5 & Chapter7, Hill & Jain
Tarun Khanna, Microsoft & Metro: Views from World’s Corner Offices

Session8-9: WTO and the Trade Issues

Overview of WTO
The various agreements
Dispute Settlement and Decision Making in the WTO
Regional Economic Groupings and their Implications to India.

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Module III: Macroeconomic Issues
Session10: Foreign Exchange Market, Ch.10. BTB
Session11: International Monetary System, Ch.11.BTB
Module IV: Indian Business Environment: Focus on Foreign Trade Policy
Session12-13: Foreign Trade Policy of India
Reading: Foreign Trade Policy (2009-2014) available at http://dgft.delhi.nic.in/

Session14: Foreign Trade Procedures: A Case of India

Reading: Handbook of Procedures (Volume I) available at http://dgft.delhi.nic.in/

Module V: International Business Environment and Strategic Issues

Session15-16: Impact of economic environment on MNCs; International Business
Negotiation; Strategies in International Business; Special Focus on Oil and Gas Sector.

Session17: Policy Reforms

Reading: A Background Note on Support for Progressive Reinforcement of Competition
Institutions in Developing Countries through Capacity Building
Farrel et al, “Beyond cheap labor,” McKinsey Quarterly, 2005

Session18: International Expansion

Case: Jollibee Foods Corporation (A): International Expansion
Reading: Khanna & Palepu, “Emerging Giants”, HBR,2006.
Entry Strategy and Strategic Alliances, Ch.14.BTB

Sessio19: International Marketing Strategy

Case: L'Oreal and the Globalization of American Beauty
Session20: Managing Risk in International Business

Module VI: Challenges of Global Production, Outsourcing and Logistic

Session21-22: Global Production, Outsourcing and Logistic
Reading: Chapter 16, BTB.
Case: IKEA’s Global Sourcing Challenges: Indian Rug’s and Child Labor (A)
Session23: Business Process Outsourcing

Session24-26: Project Presentations

Session27: Course Review & Wrap-up

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Reference Text Books:
International Business: Daniels/Radebaugh/Sullivan, Prentice Hall
International Business: Czinkota, Ronikannen & Moffett
Various Exim policies of the Government of India and the New Foreign Trade Policy –
www.commerce.nic.in
Indian Economy in the 21st Century: Shankara Acharya, Academic Foundations, New
Delhi, 2001.
RBI Report on Currency and Finance, Various Issues

Web references
http://www.cbec.gov.in/cae1-english.htm
http://dgft.delhi.nic.in/
http://www.cbec.gov.in/cae1-english.htm
http://www.mof.go.jp/english/files.htm
http://www.census.gov/foreign-trade/about/index.html
http://www.census.gov/foreign-trade/statistics/highlights/top/top1010yr.html