Syllabus (COMMERCE)

Course Type: MAJ-17

Semester: 8

Course Code: BCOMMAJ17T

Course Title: International Business and Finance

(L-P-Tu): 5-0-1

Credit: 6

Practical/Theory: Theory

Course Objective: The course aims to: 1. Impart the core body of knowledge in international business to the students. 2. The course would introduce students to the international trading and investment environment 3. Create awareness about emerging issues such as outsourcing and sustainable development in the context of international business.

Learning Outcome: After completion of the course, learners will be able to: 1. Analyse the process of globalization and its impact on growth of international business; 2. Evaluate the changing dynamics of the diverse international business environment; 3. Analyse the theoretical dimensions of international trade as well as intervention measures adopted; 4. Analyse the significance of different forms of regional economic integration and the role played by various international economic organisations; 5. Summarize the concept and components of the Balance of Payments statement; 6. Evaluate the forms of foreign direct investment and analyse benefits and costs of FDI;

Subject: International Business and Finance

Unit 1. Introduction to International Business: (Lectures:10 )

Concept, nature, scope and Importance of international business; Theories of international trade –absolute advantage, comparative advantage, H-O theory; Balance of Payments (BOP)- Principles of BOP Accounting, Components of BOP, Significance of Equilibrium and Disequilibrium in BOP, India’s BOP and Economic Performance, Capital and Current Account Convertibility.

Unit 2. Vehicles of International Business: (Lectures: 15)

Concept of MNCs; Foreign Direct Investment and Cross Border Acquisitions; Major Vehicles of FDI – costs and benefits of FDI to host and home countries; Modes of entry to a foreign market; Regionalism vs. Multilateralism; some important regional economic arrangements like EU and NAFTA, SAARC; Multilateralism and WTO.

Unit 3. Foreign Exchange Market and Exchange Rate Determination: (Lectures:15 )

Demand and Supply of Foreign Exchange –Exchange Rate – Devaluation and Up valuation of Domestic Currency –Theories of Determination of Exchange Rate– Purchasing Power Parity, Interest Rate Parity.

Unit 4. Introduction to International Finance: (Lectures:10 )

International money and capital markets; International Monetary System; International Financial Markets; The Euro Markets; International economic institutions - IMF, World Bank, UNCTAD, Asian Development Bank.

Unit 5. Foreign Investment Analysis: (Lectures: 15)

International Portfolio Investment; International Capital Budgeting; International Working Capital Management- Current Asset Management – Financing Current Assets.

Unit 6. International Transfer Pricing and International Taxation: (Lectures:10 )

Concept and mechanisms of International Transfer Pricing, Concept and Issues of International Taxation- Double Taxation, Tax havens, Tax Treaties, Methods to avoid double taxation.

Suggested Readings:

1. Danoes, John D. Radebaugh, Lee H., and Daniel P. Sullivan International Business: Environment

and Operations, 12th ed., Prentice Hall, 2009.

2. Hill, Charles, W.L., International Business, McGraw Hill Company, New York, 2009.

3. Ball, Donald, Wendall H. McCulloch, Michael Geringer, Michael S. Minor and Jeanne M.

McNett, International Business: The Challenge of Global Competition, 12th edition, 2009,

McGraw Hill Co.

4. Griffin, Ricky W. and Pustay, Michael W, International Business: A Managerial Perspective,

Prentice Hall, 2009.

5. Levi, Maurice, International Finance, New York, McGraw Hill Inc., 1996.

6. Apte P.G., Multinational Financial Management, New Delhi, Tata McGraw Hill, 1998

7. Seth A.K., International Financial Management, New Delhi, Galgotia Publishing

Company, 2000.