Name of the Program: Bachelor of Business Administration (BBA)

Course Code: BBA 6.3

Name of the Course: International Business
Course Credits No. of Hours per Week Total No. of Teaching Hours

4 Credits 4 Hrs. 56 Hrs.

Pedagogy: Classroom lectures, tutorials, Group discussion, Seminar, Case studies & field work etc.,

Course Outcomes: On successful completion of the course, the students will be able to:
a) Understand the concept of International Business.
b) Differentiate the Internal and External International Business Environment.
c) Understand the difference between MNC and TNC
d) Understand the role of International Organizations in International Business.
e) Understand International Operations Management.
Syllabus: Hours
Module No. 1: Introduction to International Business 12
Introduction Meaning and definition of international business need and importance of
international business, stages of internationalization, tariffs and nontariff barriers to
international business.
Mode of entry into international business exporting (direct and indirect), licensing and franchising,
contract manufacturing, turnkey projects, management contracts, wholly owned manufacturing
facility, Assembly operations, Joint Ventures, Third country location, Mergers and Acquisition,
Strategic alliance, Counter Trade; Foreign investments.

Module No. 2: International Business Environment 12

Overview, Internal and External environment Economic environment, Political environment,
Demographic environment, Social and Cultural environment, Technological and Natural
environment.

Module No.3: Globalization 12

Meaning, features, essential conditions favoring globalization, challenges to globalization,
MNCs, TNCs Meaning, features, merits and demerits; Technology transfer meaning and issues
in technology transfer.

Module No.4: Organizations Supporting International Business 10

Meaning, Objectives and functions of I M F , WTO, GATT, GATS, TRIM, TRIP; and Regional
Integration EU, NAFTA, SAARC, BRICS.

Module No.5: International Operations Management 10

Global Supply Chain Management Global sourcing, Global manufacturing strategies,
International Logistics, International HRM Staffing policy and its determinants; Expatriation and
Repatriation (Meaning only).
The international business environment comprises both internal and external factors that
influence a company's operations and decision-making processes on a global scale.

Internal International Business Environment:

1. Organizational Structure: The structure, culture, and management practices within a

company can impact its international operations. Decentralized structures may facilitate
quicker decision-making in response to market changes, while centralized structures may
ensure consistency across global operations.

2. Human Resources: The skills, expertise, and cultural awareness of employees play a
crucial role in managing international business activities. Training programs, talent
development, and cross-cultural competency initiatives are essential for success in global
markets.

3. Financial Resources: The availability of capital, funding sources, and financial

management practices influence a company's ability to expand internationally. Access to
financing, currency exchange risk management, and international taxation are key
considerations.

4. Technological Capabilities: Internal technological infrastructure, digitalization efforts,

and innovation capacity impact a company's competitiveness in the global marketplace.
Leveraging technology for communication, data analytics, and supply chain management can
enhance efficiency and agility.

5. Product Development and Innovation: The ability to adapt products or services to meet
diverse market needs and preferences is essential for international success. Companies need
to continuously innovate and customize offerings to remain competitive globally.

External International Business Environment:

1. Market Dynamics: Factors such as demand trends, consumer behavior, and market
growth rates vary across countries and regions. Understanding local market dynamics is
crucial for effective market entry and expansion strategies.

2. Political and Legal Environment: Political stability, government regulations, trade

policies, and legal frameworks in foreign markets impact international business operations.
Companies must navigate regulatory compliance, political risks, and legal complexities when
operating globally.

3. Economic Conditions: Economic indicators, currency exchange rates, inflation rates, and
GDP growth rates influence international business activities. Economic fluctuations and
market volatility can affect demand, pricing strategies, and investment decisions.

4. Cultural and Social Factors: Cultural differences, social norms, and consumer
preferences vary across countries and can influence marketing strategies, product
localization, and customer engagement approaches. Cultural sensitivity and adaptation are
critical for success in diverse markets.
5. Competitive Landscape: The competitive environment in international markets includes
local competitors, multinational corporations, and emerging players. Analyzing competitors'
strategies, market positioning, and strengths and weaknesses is essential for developing
effective market entry and competitive strategies.

Political Environment in International Business:

The political environment significantly impacts international business operations, as it shapes

the regulatory framework, market access, and overall business climate in foreign countries.
Here are some key ways in which the political environment affects international business:

1. Regulatory Framework: Political factors influence laws, regulations, and policies that
govern foreign investment, trade, intellectual property rights, taxation, and other aspects of
business operations. Political stability and consistency in regulations are crucial for
businesses to make long-term investment decisions.

2. Market Access and Trade Barriers: Political decisions, such as tariffs, quotas, trade
agreements, and sanctions, affect market access and trade relations between countries. Trade
policies can create opportunities or barriers for businesses seeking to enter or expand into
foreign markets.

3. Political Stability and Risk: Political stability is essential for businesses to operate
smoothly and make investment decisions with confidence. Political instability, such as coups,
civil unrest, or changes in government, can disrupt business operations, leading to financial
losses and reputational damage.

4. Government Policies and Incentives: Governments may implement policies and

incentives to attract foreign investment, promote domestic industries, or encourage specific
types of economic activities. Understanding these policies and incentives is critical for
businesses to capitalize on opportunities and mitigate risks.

5. Political Relations and Diplomacy: Political tensions, conflicts, and diplomatic relations
between countries can impact business relations and investment decisions. Businesses may
face pressure to comply with political agendas or navigate diplomatic challenges when
operating in politically sensitive regions.

6. Corruption and Bribery: Political corruption and bribery pose significant risks for
businesses operating internationally. Bribery of government officials, lack of transparency in
regulatory processes, and uneven enforcement of laws can create compliance challenges and
damage business reputation.

7. Political Ideologies and Nationalism: Political ideologies, nationalism, and protectionist

sentiments in some countries may lead to policies that prioritize domestic industries or
restrict foreign investment. Businesses need to adapt their strategies to navigate these
ideological and nationalist trends.

8. International Conflicts and Security Concerns: Political conflicts, terrorism, and

security concerns in certain regions can disrupt supply chains, affect business operations, and
pose risks to the safety of employees and assets.
Demographic Environment:

The demographic environment plays a significant role in shaping international business

strategies and operations. Demographic factors such as population size, age distribution,
income levels, education, urbanization, and cultural diversity influence market demand,
consumer behavior, workforce dynamics, and socio-economic trends in foreign countries.
Here's how the demographic environment impacts international business:

1. Market Size and Growth: Population size and growth rates determine the size of
potential markets for goods and services. Businesses often target countries with large and
growing populations to expand their customer base and drive sales growth.

2. Consumer Preferences and Behavior: Demographic factors such as age, income,

education, and cultural values influence consumer preferences, purchasing power, and buying
behavior. Businesses need to tailor their products, marketing strategies, and distribution
channels to align with the needs and preferences of target demographics in foreign markets.

3. Workforce Dynamics: Demographic trends, such as aging populations, labor force

participation rates, and skill levels, impact workforce availability, productivity, and labor
costs in foreign countries. Businesses may face challenges in recruiting and retaining talent or
adapting to changing workforce demographics.

4. Urbanization and Migration: Urbanization trends and patterns of internal and

international migration affect market access, infrastructure development, and distribution
networks in urban and rural areas. Businesses need to consider the spatial distribution of
populations and urban-rural divides when planning market entry and expansion strategies.

5. Income Levels and Economic Development: Demographic factors influence income

distribution, poverty levels, and economic development in foreign countries. Businesses may
target middle-class consumers in emerging markets or high-income segments in developed
countries based on income levels and purchasing power.

6. Cultural Diversity and Localization: Cultural factors, including language, religion,

values, and social norms, shape consumer preferences and business practices in foreign
markets. Businesses must adapt their products, marketing messages, and operational
strategies to local cultural contexts to build trust and credibility with customers.

7. Healthcare and Wellness Trends: Demographic factors impact healthcare needs, lifestyle
choices, and wellness trends in foreign markets. Businesses operating in industries such as
healthcare, pharmaceuticals, and consumer goods may need to tailor their products and
services to address specific health concerns and wellness preferences of target demographics.

8. Population Aging and Retirement Markets: Aging populations in many countries

present opportunities and challenges for businesses targeting retirement markets, healthcare
services, and elderly care solutions. Businesses may need to innovate products and services to
meet the needs of aging consumers and support healthy aging lifestyles.
Social and Cultural Environment:

The social and cultural environment significantly influences international business activities,
shaping consumer behavior, business practices, and market dynamics in foreign countries.
Here are some key ways in which the social and cultural environment impacts international
business:

1. Consumer Behavior and Preferences: Social and cultural factors such as values, beliefs,
customs, and traditions influence consumer preferences, purchasing decisions, and brand
perceptions in foreign markets. Understanding local consumer behavior is essential for
businesses to develop products, services, and marketing strategies that resonate with target
audiences.

2. Language and Communication: Language barriers and cultural nuances affect

communication channels, messaging, and customer engagement strategies in foreign markets.
Businesses may need to localize their marketing materials, websites, and customer support
services to effectively communicate with local audiences and build trust.

3. Social Norms and Etiquette: Social norms regarding behavior, etiquette, and social
interactions vary across cultures and can impact business relationships, negotiations, and
networking practices. Adhering to local customs and demonstrating cultural sensitivity are
essential for building rapport and fostering successful business partnerships.

4. Business Practices and Ethics: Cultural differences in business practices, negotiation

styles, and ethical standards require businesses to adapt their approach when conducting
international business transactions. Understanding cultural values related to honesty, trust,
and reciprocity is critical for navigating cross-cultural business environments and avoiding
misunderstandings.

5. Family and Community Influence: In many cultures, family and community ties play a
significant role in consumer decision-making, brand loyalty, and business relationships.
Businesses may need to consider the influence of familial networks and community
connections when designing marketing campaigns and targeting specific consumer segments.

6. Religion and Belief Systems: Religious beliefs and practices impact consumer behavior,
dietary preferences, and lifestyle choices in many countries. Businesses operating in
international markets need to be mindful of religious sensitivities and adapt their products,
services, and marketing strategies accordingly.

7. Education and Skill Levels: Differences in education systems, literacy rates, and skill
levels affect workforce capabilities, productivity, and talent availability in foreign markets.
Businesses may need to invest in training programs, skill development initiatives, and
workforce education to address skill gaps and meet labor market demands.

8. Cultural Diversity and Inclusion: Cultural diversity within countries and regions
presents opportunities for businesses to tap into diverse talent pools, cater to multicultural
consumer segments, and foster inclusivity in the workplace. Embracing diversity and
inclusion initiatives can enhance organizational performance and brand reputation in
international markets.
Technological and Natural environment:
The technological and natural environment significantly influences international business
operations, innovation strategies, and sustainability practices. Here's how these factors impact
international business:

Technological Environment:

1. Innovation and Competitive Advantage: Technological advancements drive innovation

and create opportunities for businesses to develop new products, services, and processes that
enhance competitiveness in global markets. Businesses that invest in research and
development (R&D), adopt emerging technologies, and leverage digital platforms can gain a
competitive advantage over rivals.

2. Communication and Connectivity: Technology facilitates communication, collaboration,

and connectivity across borders, enabling businesses to coordinate global operations, manage
remote teams, and engage with customers and partners in real-time. Digital communication
tools, such as email, video conferencing, and social media, facilitate cross-cultural
interactions and enhance business relationships.

3. E-commerce and Digitalization: The growth of e-commerce platforms and digital

marketplaces has transformed international trade, enabling businesses to reach global
audiences, expand market reach, and facilitate cross-border transactions. E-commerce
platforms offer opportunities for small and medium-sized enterprises (SMEs) to enter
international markets and compete with larger players.

4. Supply Chain Management: Technology plays a crucial role in optimizing supply chain
efficiency, visibility, and resilience in international business operations. Advanced analytics,
automation, and blockchain technology enhance transparency, traceability, and risk
management across global supply chains, reducing costs and enhancing operational
efficiency.

5. Data Analytics and Market Intelligence: Big data analytics and market intelligence tools
enable businesses to analyze consumer behavior, market trends, and competitive dynamics in
foreign markets, informing strategic decision-making and marketing strategies. Data-driven
insights help businesses identify growth opportunities, mitigate risks, and tailor their
offerings to meet customer needs.

Natural Environment:

1. Sustainability and Corporate Responsibility: Businesses face increasing pressure to

adopt sustainable practices, reduce environmental impacts, and demonstrate corporate
responsibility in international operations. Environmental regulations, consumer preferences,
and stakeholder expectations drive demand for eco-friendly products, renewable energy
sources, and sustainable supply chains.

2. Resource Scarcity and Environmental Risks: Natural resource scarcity, environmental

degradation, and climate change pose risks to international business operations, supply chain
resilience, and long-term sustainability. Businesses need to assess and mitigate environmental
risks, such as water scarcity, deforestation, and pollution, to ensure business continuity and
reputation protection.

3. Renewable Energy and Green Technologies: The transition to renewable energy sources
and green technologies presents opportunities for businesses to reduce carbon emissions,
lower energy costs, and enhance environmental performance in international operations.
Investments in renewable energy infrastructure, energy-efficient technologies, and
sustainable practices contribute to long-term profitability and environmental stewardship.

4. Regulatory Compliance and Environmental Standards: Businesses operating

internationally must comply with environmental regulations, standards, and certifications in
foreign markets to ensure legal compliance and environmental sustainability. Adhering to
environmental laws, obtaining permits, and implementing best practices demonstrate
commitment to environmental stewardship and social responsibility.

5. Eco-labeling and Green Marketing: Eco-labeling and green marketing initiatives help
businesses differentiate their products, communicate environmental benefits, and appeal to
environmentally conscious consumers in international markets. Certification schemes, such
as organic, Fair Trade, and Forest Stewardship Council (FSC) certifications, validate
sustainable practices and build consumer trust.