International Business ( 2 Credits )
Nature of Course: Capstone
Course Title: International Business Credit Hours: 2
Course Code: CAP 402 Teaching Hours: 32
Unit I: Introduction LH 5
International Business –Definition; Internationalizing business-Advantages –factors causing
globalization of business; International business environment; Protection Vs liberalization of global
business environment.
Unit II: International Trade and Investment LH 8
Promotion of global business – the role of WTO – Multilateral trade negotiation and agreements,
Tariff and Non-tariff Barriers, Regional trade blocks; Challenges for global business; Global trade
and investment scenarios; Theories of international trade and theories of international investment.
Balance of Trade and Balance of Payment
Unit III: International Business Strategy LH 8
Foreign market entry strategies; Country evaluation and selection, Country Risk Analysis – Political,
Social and Economic – Cultural and Ethical practices – Halsteade model; Factors affecting foreign
Investment decisions; Impact of FDI on home and host countries; Types and motives for foreign
collaboration; Control mechanisms in IB.
Unit IV: Financial Management of International Business LH 6
Methods of payment in International Trade; Harmonizing accounting difference across countries;
currency translation methods for consolidating financial statements; the LESSARD-LORANGE
Model;
Unit V: Challenges in IB LH 5
Cross cultural challenges in IB; International staffing decisions; Expatriate staff; Conflict in
international business- sources, types and negotiation, Ethical dilemmas in International Business,
and social responsibility issues.
References:
Charles W.I. Hill and Arun Kumar Jain, International Business, 6th edition, Tata McGraw Hill,
2009.
John D. Daniels and Lee H. Radebaugh, International Business, Pearson Education Asia, New
Delhi, 2000.
Sundaram, Anant K and Steward J. Black, The International Business Environment: Text and
Cases, Prentice Hall of India, New Delhi
K. Aswathappa, International Business, Tata McGraw Hill, 2008.
Michael R. Czinkota, Ilkka A. Ronkainen and Michael H. Moffet, International Business, Thomson,
Bangalore, 2005.
Aravind V. Phatak, Rabi S. Bhagat and Roger J. Kashlak, International Management, Tata
McGraw Hill, 2006.
Oded Shenkar and Yaong Luo, International Business, John Wiley Inc, Noida, 2004.
Nature of Course: Specialization International Business
Subject: Intellectual Property Right Credit Hours: 3
Course Code: IB-543 Teaching Hours: 48
Course Objective:
The course provides an understanding, overview and functioning of various laws and agreement in
protecting intellectual’s property of companies at national and international level.
Course Content:
Unit I: Introduction L.H 14
Concept and meaning of Intellectual Property, Importance of Intellectual Property, Kinds of
Intellectual Property,
Industrial Property:
a. Patent: Meaning and nature of patent, invention, Novelty and Utility, Infringement of patent rights,
inventive step
b. Trademark: Meaning and nature, Distinctiveness, Similarity and Deceptive similarity, Statutory
rights, infringement of trademark rights, remedies
c. Design: meaning and nature, ownership of design, acquisition of design rights, remedies against
infringement of the rights
Copyright: Nature and meaning, kinds, ownership of copyright, infringement of copyright, remedies
against infringement of copyright.
Other intellectual properties like: geographical indications, trade secrets, traditional knowledge,
protection plant varieties, farmers’ rights, bio-diversity, bio-technology,
Sources of Intellectual Property Law
Licensing, registration, ownership, transfer, assignment of IP
Unit II: Historical Development in general L.H 12
International Conventions on Intellectual Property: Paris Convention for the Protection of Industrial
Property, 1883; Berne Convention for the Protection of Literary and Artistic Works, 1886; Hague
Agreement Concerning the International Deposit of Industrial Designs, 1923; NICE Agreement
Concerning the International Classification of Goods and Services, 1957; Rome Convention, 1961;
Locarno Agreement Establishing International Classification of Industrial Designs, 1968;
Agreement on Trade Related Aspects of Intellectual Property Rights, 1994; Trademark Law Treaty,
1994; TRIPs
World Intellectual Property Organization (WIPO) –function, role, membership
Unit III: Existing legal provisions in Nepal L.H 16
a. Patent, Design and Trademarks Act, 1965
b. Copyright Act, 2002
c. Foreign Exchange Regulation Act, 1974
d. Foreign Investment and Technology Transfer Act, 1992
e. Consumer Protection Act,1998
f. Export Import (control) Act, 1957
g. Electronic Transactions Act, 2006
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Institutional mechanism in Nepal:
a. Functions of Nepal Copyright Registrar’s Office
b. Functions of Nepal Copyright Protection Society
c. Functions of Music Royalty Collection Society-Nepal
d. Functions of Computer Association of Nepal
e. Functions of Film Producer’s Association Nepal
f. Functions of Film Development Board
Unit IV: L.H 6
IPR dispute settlement: IPR disputes; IPR dispute settlements (Under Nepalase laws, Under
TRIPs)
Some leading court cases on IPR in Nepal and abroad
References:
Patent, Design and Trademarks Act, 1965
Copyright Act, 2002
Copyright Rules, 2004
Foreign Exchange Regulation Act, 1974
Foreign Investment and Technology Transfer Act, 1992
Consumer Protection Act, 1998
Export Import (control) Act, 1957
Electronic Transactions Act, 2006
Competition Promotion and Market Protection Act, 2063 (2007)
Srijana Sharma, Intellectual property Right, Nepal American Legal Information Center, January, 2008
74
PURBANCHAL UNIVERSITY
MBA
Semester IV
Nature of the Course: Specialization International Business
Course Title: International Marketing Credit Hours : 3
Course Code: IB 544 Teaching Hours: 48
Course Objective:
The course seeks to develop international marketing skills on a sound theoretical and conceptual
foundation. It provides an insight into global marketing environment and the managerial decision
making in the context of contemporary dynamics of the global markets.
Course Contents:
UNIT – I: Introduction: L.H. 8
• Concept and Features of International marketing;
• Development of International Marketing;
• Differences in Domestic and International Marketing;
• Growing Trend of Internationalization and Globalization;
• Attractions of International/ Global Marketing;
• The International Marketing Task: Environment Analysis, preparation and implementation of
international marketing program;
• Implication of trade theories to international marketing;
UNIT – II: International Market Environment: L.H 10
• Political Environment: Political Risk and its mitigation.
• Legal Environment: Multiplicity of Legal Environment, Jurisdiction and Extraterritoriality.
• Economic Environment: Regional and Global Integration
• Cultural Environment: Dimension of Culture (IDV, PDI, UAI, MAS); Influence of culture on
consumption, Thinking process and Communication process.
• Communication through Verbal and Non-verbal language.
UNIT – III: International Product Decision: L.H. 10
• Market segmentation, Product -Positioning, Product Adoption
• Theory of IPLC: Stages and Characteristics, Marketing Strategies
• Product Standardization vs Product Adaptation
• Branding Decisions, Branding Levels and Alternatives
• Brand Protection
• Packaging: Functions and Criteria, Modification
UNIT – IV: International Pricing Strategies: L.H. 6
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• Pricing Decisions; Pricing standardization; Price Distortion; Inflation and dumping; transfer
pricing.
• Terms of Sales and Payment: Counter trade, Price Quotation,
• Terms of Sales, Means of Payment
UNIT – V: International Promotion Strategies: L.H. 6
• Promotion and Communication, Promotion mix
• Personal selling – Telemarketing;
• Advertising- Expenditure patterns, Advertising under regulation, Advertising media and its
mix,
• Standardized International Advertising
UNIT – VI: International Distribution System L.H. 8
• Channels of distribution: Direct and indirect selling channels
• Channel Development, Channel Adaptation, Channel Decisions, Channel Decisions.
• Modes of Transportation; Cargo or Transportation Insurance; Freight Forwarder and
Customhouse Broker,
• Documentation – Shipping documents, Collection documents.
(Note: At least one case study should be conducted after the completion of each unit.)
Suggested Reference
1. Harrod, Sir Roy, International Economics, James nesbet & Co. Ltd., Chicago.
2. Mannur, H. G., International Economics, Vikash Publishing House, New Delhi.
3. Hollensen, Svend, Global marketing: a decision-oriented approach, FT Prentice Hall,
England.
4. Cateora, Philip R. and Graham, Hohn L., International Marketing, Irwin McGraw-Hill,
USA.
5. Keegan, Warren J., Global Marketing Management, Pearson prentice-Hall, Delhi.
6. Shrestha, Shyam K., International Marketing: Nepalese perspective, Buddha Publication,
Kathmandu.
7. Shrestha, Shyam K., Global Marketing, Buddha Publication, Kathmandu.
8. Kotabe, Masaaki and Dristiaan Helsen, Global Marketing, John Wiley & Sons, India.
9. Terpstra and Sarathy, International marketing, Harcourt Asia Pte Ltd., Delhi.
10. Publications of TEPC, WTO, SAARC, FNCCI, etc.
76
PURBANCHAL UNIVERSITY
MBA
Semester IV
Nature of the Course: Specialization- International Business
Course Title: International Financial Management Credit Hours : 3
Course Code: IB 545 or FN 546 Teaching Hours: 48
Course Objectives:
This course aims at providing knowledge to the students on the concepts and theories and their applications in
international business and finance, international trade and foreign investment, and foreign exchange rate risk
management.
Unit 1: An Overview of Multinational Financial Management LH 5
Goals of international Financial Management; Globalization of world Economy; Emerging global
markets and international opportunities; Overview of multinational corporations (MNC); MNC’s cash
flows and valuation model for an MNC.
Unit 2: International Monetary System LH 5
Evolution of international monetary system; international flow of funds; Factors effecting
international trade flows; Balance of payment and correcting balance of trade deficits;
International capital flows.
Unit 3: International Financial System LH 5
International financial market; foreign exchange market; Euro currency market; Euro credit market;
Euro bond market; interest rate comparison among countries; International stock market; Effects of
financial market on MNC’s value.
Unit 4: The Foreign Investment Decision LH 6
Direct foreign investment (DFI): Motives and benefits; International diversification and its benefits on
multiple project; Risk and return analysis of international projects; Impact of DFI on MNC’s value.
Unit 5: Multinational Capital Budgeting LH 7
Subsidiary Vs parents prospective; Inputs for multinational capital budgeting; Analysis and example
of multinational capital budgeting; Risk adjustment; Impact of multinational capital budgeting on
MNC’s value.
Unit 6: Country Risk and Political Risk Management LH 6
Types of country risk assessment; Techniques of assessing country risk; Quantifying and rating
country risk; Capital budgeting and country risk; Political risk measurement and management; Post
expropriation policies; Growth optional and project evaluation
Unit 7: Multinational Cost of Capital and Capital Structure LH 7
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Cost of capital for MNC; Cost of capital across countries; Capital structure decision; Interaction
between subsidiary and parent financing decision; Target capital structure on local Vs global basis;
Capital structure across countries
Unit 8: Taxation of Multinational Firm LH 5
Taxation of multinational corporation and tax incentives for foreign trade; Tax haven and MNC;
Taxation and corporate organization
Unit 9: Long Term Financing Decision LH 8
Actual bond financing cost; Comparing bond denomination alternatives; Financing with floating rate
euro bonds; Exchange risk of foreign bonds; Long term financing in multiple currencies; Swaps to
hedge financing cost; Foreign debt maturity decision; impact of long term financing decision on
NMC’s value.
References:
Jeff Madura, International Financial Management, Asian Books Pvt Ltd, New Delhi.
A.C. Shapiro, Multinational Financial Management: John Wiley & Sons, NY.
Bekaert, Geert, Hodrick, Robert J., International Financial Management, Prentice-Hall India
78
PURBANCHAL UNIVERSITY
MBA
Semester IV
Nature of the Course: Specialization International Business
Course Title: Strategies of Multinational Companies Credit Hours : 3
Course Code: IB 546 Teaching Hours: 48
Course Objectives:
The objective of this paper is to make students understand strategy making process that is informed
integrative and responsive to rapid changes in an organization’s globally oriented environment and
also to help them understand tasks of implementing strategy in a global market.
Unit 1. Introduction: LH. 8
Strategy making, Strategy implementing; Developing strategic vision and mission; Setting objectives
and forming a strategy; Globalization – Meaning and its Impact on Business; Globalization and
strategic management;
Unit II. Environmental: LH. 6
Scanning and Competitiveness Analysis; Appraising company’s external strategic situation,
company situation, competitive strategy and competitive advantage in global market
Unit III. Organization and International Strategy: LH. 6
Evolution of MNC; Multinational, Transnational, Global Organizations; Organizational Structures of
MNC; MNC Subsidiary and its impact on Strategy;
Unit IV. Modes of Entry Strategy: LH. 10
Choices of International Entry – Exporting, Licensing, Acquisitions, Wholly Owned Subsidiary;
Strategic Alliance – Meaning, Types, Reasons to use; Problems with Strategic Alliances; Partner
Selection Criteria – Strategic Fit, Organizational Fit;
Alliance Management – Stability in Alliances, Conflict between Partners and its management, Cross
cultural differences; Creating Successful Alliances;
Unit V. Other Strategic Issues: LH: 10
Multi-country and global strategies; Concepts of critical markets, global market dominance and
global competitiveness, retrenchment and portfolio restructuring strategies; Multinational
diversification strategies; Outsourcing strategies; Exit Strategies
Unit VI. Strategic Issues in Corporate Governance: LH 8
Corporate Governance – Nature of Corporate Governance, Its effect on the multinational firms;
Relationship between strategy and Corporate Governance; Ethics – Importance in Global Business;
Ethical Guidelines and Laws; Formal Corporate Ethics Programs;
Suggested Readings:
79
George Stonehouse, David Campbell, Jim Hamill, Tony Purdie, Global and Transnational
Business: Strategy and Management, 2nd Ed, Wiley India
Sumantra Ghoshal, Global Strategy: An Organizing Framework, Strategic Management Journal,
Vol 8, No. 5, 1987
Katarzyna Twarowska and Magdalena Kąkol, International Business Strategy Reasons and
Forms of Expansion into Foreign Markets, Management, Knowledge and Learning International
Conference 2013
Andreas Bindrik and Richard Moat, Mapping Multinational Operations, Business Spring Review,
Spiring 2009, London Business School,
Pankaj Ghemawat, Managing Differences: The central challenge of Global Strategy, Harvard
Business Review, March 2007
V Kumar and Velavan Subramaniam, A contingency Framework for the Mode of Entry Decision,
Journal of World Business, Vol. 32, No. 1, 1997
Charles W L Hill, Peter Hwang, Chan Kim W, An Eclectic Theory of The choice of International
Entry Mode, Strategic Management Journal, Vol. 11, No. 2, 1990
Tarun Khanna, Krishna G Palepu, Jayant Sinha, Strategies that Fit Emerging Markets, Harvard
Business Review, June 2005