We have great pleasure in presenting the First Edition of the book “International Business” written for the students of Post Graduate Programme of the Commerce and Management Courses of various state of Universities of Tamilnadu especially in Periyar University. It also covers the TANSCHE syllabus in the subject of International Business. The related matters are written in a simple and easily understandable.
This volume is an attempt to provide the pathway to the student’s community for launching Export Entrepreneurship as their career choice. It is also support to the Faculty Members and Research Scholars for enriching their knowledge in the area of International Business. This book also provides the appropriate information to the Export Entrepreneurs based on the State and Union Government Policies with relevance to the International Business. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.
Contents –
Unit – 1 Introduction to International Business
Introduction to International Business
Importance of International Business
Nature of International Business
Scope of International Business
International Business Vs. Domestic Business
Tariff and Non-tariff Barriers
Transition from Domestic to International Business
Advantages of International Business
Disadvantages of International Business
Balance of Payments
Balance of Trade
Balance of Current Account
Modes of Entry into International Business
Internationalization Process and Managerial Implications
Multinational Corporations and their Involvement in International Business
Issues in Foreign Investments
Technology Transfer
Pricing and Regulations
International Collaborative Arrangements and Strategic Alliances
Counter Trade
Import-Export Process and Documentation
Review Questions
Unit – 2 International Business Environment and Cultural Differences
Introduction
International Business Environment
Economic, Political, Cultural and Legal Environments in International Business
Framework for Analysing International Business Environment
Differences in Culture:
Social Structure Religion
Language
Education
Culture
Workplace
Cultural Change
Cross-cultural Literacy
Culture
Competitive Advantage
Review Questions
Unit – 3 International Trade Theory
Introduction
Mercantilism
Neo-Mercantilism
Theory of Absolute Advantage Theory of Comparative Advantage
Heckscher
Ohlin Theory
The New Trade Theory
National Competitive Advantage
Porter’s Diamond
General Agreement on Tariff and Trade (GATT)
World Trade Organization (WTO)
GATS
UNCTAD
Trade Blocks
Customs Union-EU- PTA- European Free Trade Area (EFTA)
Central American Common Market (CACM)
Latin American Free Trade Association (LAFTA)
North American Free Trade Agreement (NAFTA)
Association of South East Asian Nations (ASEAN)
CARICOM
GSTP
GSP
SAPTA
Indian Ocean RIM Initiative
BIMSTEC
Bretton Woods Twins
World Bank & IMF
International Finance Corporation
Multilateral Investment Guarantee Agency (MIGA)
Review Questions
Unit – 4 Global Trading and Investment Environment
Introduction
Recent Trends in India’s Foreign Trade
India’s Commercial Relations
Trade Agreements with other Countries
Institutional Infrastructure for Export Promotion in India
Export Assistance-Export Finance
Export Processing Zones (EPZs)
Special Economic Zones (SEZs)
Exports by Air, Post and Sea
Small Scale Industries (SSI)
Exports-Role of ECGC
Role of EXIM Bank of India
Role of Commodity Boards
Role of State Trading Agencies in Foreign Trade
STC
MMTC
Foreign Exchange Market
Functions of Foreign Exchange Market
Foreign Direct Investments (FDI)
Forms of FDI
Horizontal Foreign Direct Investment
Vertical Foreign Direct Investment
Advantages of FDI to Host and Home Countries.
Review Questions
Unit – 5 Contemporary Issues
Introduction
Contemporary Issues in International Business
International Sales Contract
Major Laws
INCO Terms
Standard Clauses of International Sales Contract
Role of Indian Council of Arbitration / International
Chamber of Commerce in Solving Trade Disputes
Export Regulations
Procedure for Export of Goods
Quality Control
Pre- shipment Inspection
Customs Clearance
Port Formalities
Exchange Regulations for Export
Role of Clearing
Forwarding Agents
Review Questions
