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Unit 1 Global Business Environment (2)

The document outlines a syllabus for a course on the Global Business Environment, covering various factors such as economic, political, social, technological, legal, and environmental influences on international business. It includes detailed topics like global trade, investment theories, multinational corporations, and the impact of political stability on business operations. Additionally, it emphasizes the importance of cultural understanding, technological advancements, and effective risk management in navigating the global marketplace.

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dhananjayh
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7 views23 pages

Unit 1 Global Business Environment (2)

The document outlines a syllabus for a course on the Global Business Environment, covering various factors such as economic, political, social, technological, legal, and environmental influences on international business. It includes detailed topics like global trade, investment theories, multinational corporations, and the impact of political stability on business operations. Additionally, it emphasizes the importance of cultural understanding, technological advancements, and effective risk management in navigating the global marketplace.

Uploaded by

dhananjayh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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GLOBAL

BUSINESS
ENVIRONMENT
SYLLABUS
Sr. No. Topic Lectures
Unit 1 An Overview of Global Business Environment Economic environment – political 7 hours
and regulatory environment – demographic environment – social, cultural and
technological environment
Unit 2 Global Economic Environment Regional integration and trade blocks – Types of 9 hours
integration – theory of customs union, European union – regional groupings –
integration of developing countries – SAARC, SAPTA, international commodity
agreements – quota agreements – Cartels – Bi-lateral & Multi-lateral contracts–
Economic institutions – International Monetary Funds (IMF) – World Bank, Asian
Development Bank, UNCTAD, UNIDO, International Trade Centre, WTO, GATT,
GATS, TRIM, TRIPS.
SYLLABUS
Unit 3 Global Trade and Investment Theory Historical developments of Modern Trade 11 hours

theory – Investment theories – Theory of capital movements – Market


imperfections – Internationalization – Location specific advantage – eclectic,
Global Trade and Payments, Government Influence on Trade: Trade in
merchandise – Trade in services – Global sourcing – degree of dependence –
balance of payments – trade and BOP of India. Cultural contacts of global
management –Understanding the role of culture – communicating across
cultures – cross cultural negotiations and decision-making.
SYLLABUS
Unit Global Investment Types and significance of foreign investments – factors affecting 11
4 hours
international investment – growth and dispersion of FDI – cross border mergers and
acquisitions – foreign investment in India – The New Policy – EURO/ADR issues – M & A –
Indian companies going global. Multi National Corporation, Definition and Meaning –
Importance and dominance of MNCs – Code of conduct – MNCs in India – Transfer of
Technology – global competitiveness – indicators of competitiveness - competitive
advantage of nations – technology and Global competitiveness. International Operations
– Global supply chain management – global manufacturing strategies – factors affecting
international HRM and staffing policy – International negotiations – international asset
protection –Protection of IPRs., International Monetary System and Foreign Exchange
Marketing, The Pre-Bretton Wood’s period, breakdown of Bretton Wood system and
emergence of EMS, EU and EURO.
Unit Social Responsibilities and Ethics, MNE Social Responsibilities, Efficiencies, Perspectives, 7 hours
5
Ethics, Technological Perspective, Foreign Corrupt Practices Act, Cases.
UNIT 1

• An Overview of Global Business Environment Economic environment – political and regulatory


environment – demographic environment – social, cultural and technological environment.
POLITICAL FACTORS

• Political Factors:
• Political Stability: The stability of political environments in different countries
affects the risk associated with international business operations. Political instability,
conflicts, and changes in government can impact business activities.
POLITICAL FACTORS ANALYSIS
1. Government Stability:
Stability of the government is crucial for the smooth functioning of businesses. Political instability, frequent changes in
leadership, and government unrest can create uncertainties and negatively impact business operations.

2. Government Type:
Different forms of government (e.g., democratic, authoritarian, socialist) can have different impacts on business regulations,
policies, and decision-making processes. Understanding the political structure is essential for navigating the regulatory
landscape.

3. Political Ideology:
The prevailing political ideology in a country may influence economic policies, trade agreements, and regulatory frameworks.

4. Political Risk and Instability:


Political risk refers to the potential for government actions, instability, or geopolitical events to negatively affect businesses.
Factors such as terrorism, civil unrest, or sudden changes in policies can pose risks to operations.

5. Government Regulations:
Business activities are subject to various regulations imposed by governments. These regulations may cover areas such as
trade, labor, environmental standards, taxation, and intellectual property. Compliance with these regulations is essential for
legal and ethical business conduct.

6. Trade Policies and Tariffs:


Governments play a crucial role in shaping international trade policies. Changes in tariffs, trade agreements, and
protectionist measures can impact the cost of doing business and affect market access for companies engaged in global
trade.
POLITICAL FACTORS ANALYSIS
7. Political Stability in Trade Partners:
For businesses engaged in international trade, the political stability of trade partners is critical. Political instability in
key trading countries can disrupt supply chains, affect market access, and lead to uncertainties in business
relationships.

8. Corruption Levels:
The level of corruption within a country's government and institutions can impact business operations. High levels of
corruption may lead to unfair business practices, bribery, and challenges in maintaining ethical standards.

9. Political Influence on Currency Exchange Rates:


Government policies can influence currency exchange rates, affecting the competitiveness of products in international
markets. Changes in monetary policies, inflation rates, and fiscal measures can impact currency values.

10. Government Interventions:


Governments may intervene in the economy through measures such as subsidies, stimulus packages, or industrial
policies. Businesses need to adapt to these interventions, which can create both opportunities and challenges.

11. Political Lobbying and Advocacy:


Engaging in political lobbying and advocacy efforts can be important for businesses to influence government policies
and regulations that directly impact their industries.

12. Political Alliances and Treaties:


Political alliances, regional collaborations, and international treaties can have implications for businesses. Companies
need to be aware of these agreements, as they may influence trade dynamics and market access.
ECONOMIC FACTORS

• Global Economic Trends: Factors such as economic growth, inflation rates,


and currency exchange rates influence the global business environment.
Changes in the global economy can affect demand for products and
services, supply chains, and overall business performance.
• Trade Agreements and Policies: International trade agreements, tariffs,
and trade policies impact the flow of goods and services across borders.
Businesses need to adapt to changes in trade regulations and tariff
structures.
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ECONOMIC FACTORS ANALYSIS

• Based on the Political factor analysis, the students’ do the factor analysis in
the class as discussion in small groups. This is facilitated by the faculty.
SOCIAL FACTORS

• Cultural Diversity: Understanding cultural nuances and differences in


consumer behavior, communication styles, and business practices is essential for
successful global business operations.
• Social Trends: Social factors, such as demographics, lifestyle changes, and
consumer preferences, influence market demand and product acceptance in
different regions.
SOCIAL FACTORS ANALYSIS

• Based on the Political factor analysis, the students’ do the factor analysis in
the class as discussion in small groups. This is facilitated by the faculty.
TECHNOLOGICAL FACTORS

• Technological Innovation: Advances in technology impact global business


by enabling efficient communication, product development, and supply
chain management. Companies need to stay technologically competitive to
thrive in the global marketplace.
• Digital Transformation: The increasing reliance on digital technologies
and e-commerce has transformed business models and created new
opportunities and challenges for global companies.
TECHNOLOGICAL FACTORS ANALYSIS

• Based on the Political factor analysis, the students’ do the factor analysis in
the class as discussion in small groups. This is facilitated by the faculty.
LEGAL FACTORS

Legal Systems: Variances in legal systems, regulations, and business laws across
countries pose challenges for global businesses. Adherence to international laws and
regulations is critical for legal compliance.
Environmental Factors:
• Sustainability and Environmental Regulations: Increasing awareness of
environmental issues has led to the implementation of regulations and consumer
preferences favoring sustainable practices. Global businesses must consider
environmental impact and compliance with regulations.
• Climate Change: Climate-related factors, such as natural disasters and changing
weather patterns, can affect supply chains and operations, particularly in industries
vulnerable to environmental conditions.
LEGAL FACTORS ANALYSIS

• Based on the Political factor analysis, the students’ do the factor analysis in
the class as discussion in small groups. This is facilitated by the faculty.
OTHER FACTORS

1. Infrastructure and Logistics:


1. Transportation and Communication Infrastructure: The quality of infrastructure, including transportation and
communication networks, influences the ease of doing business globally.
2. Logistics and Supply Chain Management: Efficient supply chain management is crucial for global businesses.
Companies need to address challenges related to transportation, warehousing, and distribution.

2. Market Entry and Competition:


1. Market Entry Strategies: Companies must choose appropriate market entry strategies, considering factors such
as direct investment, joint ventures, partnerships, or exporting.
2. Global Competition: Intense competition from both local and international players requires businesses to
differentiate themselves and adapt to changing market dynamics.

3. Risk Management:
1. Political and Currency Risks: Global businesses face risks related to political instability, changes in exchange
rates, and economic uncertainties. Effective risk management strategies are essential for mitigating potential
disruptions.

• Adapting to the global business environment requires strategic planning, flexibility, and a deep
understanding of the unique challenges and opportunities presented by international markets.
OTHER FACTORS ANALYSIS

• Based on the Political factor analysis, the students’ do the factor analysis in
the class as discussion in small groups. This is facilitated by the faculty.

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