SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT

BBA460 – INTERNATIONAL BUSINESS

COURSE OUTLINE

OBJECTIVES:

The objective of this course is to introduce candidates to the concepts and theories of conducting business in an international business environment context, benefits and challenges as well as highlighting how the differences in the political, Economic, Legal, Cultures and levels of economic development affect the way businesses are run across in an international / global contexts. The course brings awareness to the learners that the World has become a global village by focusing on the precautions they have to observe in working in teams from different cultures.

SYLLABUS:

Globalization

- Definition of Globalization- Drivers of Globalization- Changing nature of the Global economy- Main arguments on the impact of Globalization

National Differences in Political Economy

- How the political systems of countries differ- How the economic systems of countries differ- How the legal systems of countries differ- The determinants of the level of economic developments of a nation- Transition economies moving towards market based economies / systems

- Implications for Management practice of national difference in political economy

Differences in Culture

- Definition of Culture- Forces leading to differences in social culture- How differences in social culture influence values in the workplace- Appreciation of the economic and business implications of cultural change- Ethical issues faced by International Businesses- Causes of unethical behavior by Managers and what Managers can do to

incorporate ethical considerations into their Decision making

International Trade Theory

- Definition and why nations trade with one another- Different theories explaining trade flows between nations- Unrestricted free trade between nations- International Trade theory

The Political Economy of International Trade

- Policy instruments used by Governments to influence International trade flows- Governments interventions in International Trade- Arguments against Strategic Trade Policy

Foreign Direct Investments (FDI)

- Definition of and trends in the World Economy - Different theories of FDI- Political ideology of Government ‘s attitude towards FDI- Benefits and Costs of FDI to Home and Host countries- Policy instruments Governments use to influence FDI

Regional Economic Integration

- Different levels of regional economic integration- Economic and Political arguments for Regional integration- Economic and Political arguments against Regional Integration

- Current scope and future prospects of the World’s most important regional economic agreements

- Business implications of Regional Economic Integration

The strategy and Structure of International Business

- Strategic positioning- Growth expansion, Profitability and Profit growth- Leveraging Subsidiary skills - The Organization of International Business, Organization architecture and

Structure- Vertical Differentiation : Centralization and Decentralization & Horizontal

Differentiation- Advantages and Disadvantages of vertical and horizontal differentiation- Entry Strategy and Strategic Alliances: Exporting, Licensing, Franchising,

Joint Ventures, Turnkey Projects and Wholly owned subsidiaries- Barriers to each of the common market entry methods- Greenfield ventures or Acquisitions (Brownfield acquisition); pros and cons of

each- First mover (prime mover) and late mover definitions, advantages and

disadvantages- Advantages and Disadvantages of Strategic Alliances & making alliances

work

Exporting, Importing and Countertrade

- Definitions of exporting , its advantages and disadvantages - International comparisons- Utilizing Export Management Companies- Export and Import Financing : Letter of credit, Bill of exchange and Bill of

Lading- Countertrade and incidents of countertrade; pros and cons of countertrade - Global Production, Outsourcing and Logistics- Locating Production facilities- Strategic role of foreign factories- Make or Buy Decisions; their advantages and disadvantages

Global Marketing and R & D

- The Globalization of Markets and Brands- Market Segmentation, Distribution strategy, Communication strategy, Pricing

strategy and Global advertising- Global Human Resource Management ; Strategic role of International HRM- Staffing policy, Expatriate Managers, Training for Expatriate Managers and

the Global mindset- Repatriation of Expatriates; management development & strategy,

performance appraisal, compensation, expatriate pay and international labour relations.

ASSESSMENTS

The course grade will be determined approximately as follows:-

40% from tests and assignments (continuous assessment), 60% from the final comprehensive examination.

RECOMMENDED TEXTBOOK(S)

1. CHARLES W.L. HILL. 2009. INTERNATIONAL BUSINESS: COMPETING IN THE GLOBAL MARKET PLACE. 7th Ed. McGRAW – HILL COMPANIES , NEW YORK

2. LOVELOCK, C & WIRTZ , J.2007. SERVICE MARKETING: PEOPLE, TECHNOLOGY, STRATEGY.7th ed. UPPER RIVER SADDLE RIVER , NEW JERSEY