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Complete MBA International Business Library

International Business Environment

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All Important International Business Concepts

Introduction to International Business EnvironmentMeaning, nature, scope and importance of international business environment. GlobalisationIntegration of economies, markets, trade, technology and culture. Drivers of GlobalisationForces that accelerate global business integration. International Trade TheoriesMajor theories explaining why countries trade. Absolute Advantage TheoryCountries trade when one can produce goods more efficiently. Comparative Advantage TheoryTrade based on lower opportunity cost. Heckscher-Ohlin TheoryTrade based on factor endowment differences. Porter Diamond ModelNational competitive advantage model. Foreign Direct InvestmentInvestment by a foreign entity with control in another country. Types of Foreign Direct InvestmentHorizontal, vertical, conglomerate and platform FDI. Multinational CorporationsCompanies operating in more than one country. Entry Modes in International BusinessExporting, licensing, franchising, joint venture and FDI. Exporting and ImportingSelling goods abroad and buying goods from abroad. Balance of PaymentsRecord of all economic transactions with rest of the world. Balance of TradeDifference between value of exports and imports of goods. Foreign Exchange MarketMarket where currencies are bought and sold. Exchange Rate SystemsFixed, floating and managed exchange rate systems. International Monetary FundGlobal institution for monetary cooperation and financial stability. World BankInternational institution for development finance and poverty reduction. World Trade OrganizationGlobal organisation regulating international trade. Regional Economic IntegrationCountries cooperate economically through trade agreements and unions. European UnionAdvanced regional economic and political integration bloc. BRICS and Global BusinessRole of BRICS economies in global trade and investment. International Marketing EnvironmentGlobal factors affecting marketing strategy across countries. Cultural Environment in International BusinessRole of values, beliefs, language and customs in global business. Political Risk in International BusinessRisk from government actions and political instability. Legal Environment in International BusinessRules, laws and regulations affecting global business. Trade BarriersRestrictions imposed on international trade. Protectionism vs Free TradeComparison of restricted and open trade policies. International Business EthicsEthical standards in global business operations. Corporate Social Responsibility in Global BusinessResponsibility of firms towards society and environment worldwide. Global Supply Chain ManagementManaging sourcing, production and delivery across countries. Outsourcing and OffshoringUsing external or foreign locations for business activities. International Strategic AlliancesCooperation between firms across countries for mutual benefit. Country Risk AnalysisAssessment of political, economic and social risks before international entry.

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