Fundamentals of International Business

Book description

Fundamentals of International Business is the fourth edition of International Business by Dr Sumati Varma. The content of the book has been revised and mapped to the latest syllabus by the UGC under the CBCS system.

Table of contents

  1. Cover
  2. About Pearson
  3. Title Page
  4. Contents
  5. Preface to the First Edition
  6. Preface to the Fourth Edition
  7. Acknowledgements
  8. About the Author
  9. 1. Globalization and International Business
    1. Journey of the Wimbledon Tennis Ball
    2. Introduction
    3. Elements of Globalization
      1. Economic Globalization
      2. Cultural Globalization
      3. Political Globalization
    4. International Business
    5. TNCs – A Classification
    6. Growth of International Business
      1. Economic Forces
      2. Political Forces
      3. Technological Forces
    7. Impact of Globalization
    8. International Versus Domestic Business
    9. Motives for Firm Internationalization
    10. International Orientations
      1. Ethnocentric Orientation
      2. Polycentric Orientation
      3. Regiocentric Orientation
      4. Geocentric Orientation
    11. Modes of Entry
      1. Trade-related Entry Modes
      2. Contractual Entry Modes
      3. Investment-related Entry Modes
    12. Chapter Summary
    13. Key Terms
    14. Discussion Questions
    15. Examination Questions
  10. 2. Economic and Political Environment
    1. The Sharing Economy
    2. Introduction
    3. Economic Environment
      1. Economic Systems
      2. Economic Indicators
    4. Demographic Environment
      1. Population Size
      2. Age Distribution
      3. Demographic Dividend
      4. Rural–Urban Distribution
    5. Political Environment
      1. Political Ideologies and Systems
      2. Political Risk
    6. International Business Negotiation
      1. Objectives of International Business Negotiation
      2. Bargaining Power of the TNC
    7. Chapter Summary
    8. Key Terms
    9. Discussion Questions
    10. Examination Questions
  11. 3. Cultural and Legal Environment
    1. Chocolate Fries and Pikachu Help McDonalds
    2. Introduction
    3. Elements of Culture
      1. Language
      2. Non-verbal Communication
      3. Religion
      4. Values and Attitudes
      5. Customs and Manners
      6. Aesthetics
    4. Legal Environment
      1. Global Legal Systems
      2. Legal Jurisdiction
    5. Ethics in International Business
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
    9. Examination Question
  12. 4. International Trade Theories
    1. The Logitech Mouse
    2. Introduction
    3. International Trade Theories
      1. Mercantilist Doctrine
      2. Classical Approach
      3. Factor Proportions Theory
      4. Leontief Paradox
      5. Linder’s Income-preference Similarity Theory
      6. Product Life Cycle Theory
      7. The New Trade Theory
      8. National Competitive Advantage
      9. Theory Assessment
    4. Developments in World Trade
      1. World Trade Trends
      2. Volume of Trade
      3. Composition of World Trade
      4. Direction of World Trade
      5. Trade in Services
      6. Digital Trade
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
    8. Examination Questions
  13. 5. Commercial Policy Instruments
    1. US Embargo on Kinder Joy Chocolate
    2. Introduction
    3. Government Intervention in Trade
      1. Economic Rationale
      2. Non-economic Rationale
    4. Instruments of Trade Control
      1. Tariff Barriers
      2. Non-tariff Barriers
    5. Analysis of India’s Foreign Trade
      1. Volume of India’s Foreign Trade
      2. Composition of India’s Foreign Trade
      3. Direction of India’s Foreign Trade
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
    9. Examination Questions
  14. 6. Multilateral Regulation of Trade
    1. Trade Wars
    2. Introduction
    3. General Agreement on Tariffs and Trade (GATT)
      1. Objectives and Principles
      2. Uruguay Round
      3. GATT: An Evaluation
    4. World Trade Organization (WTO)
    5. WTO Agreements
      1. General Agreement on Tariffs and Trade (GATT)
      2. General Agreement on Trade in Services (GATS)
      3. Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS)
      4. Agreement on Trade-related Investment Measures (TRIMS)
    6. Organizational Structure of WTO
    7. Principles of WTO
      1. Most-Favoured-Nation (MFN)
      2. National Treatment
    8. Functions of WTO
    9. WTO: An Evaluation
      1. Developing Country Issues
      2. Dispute Resolution Mechanism
      3. Subsidies in Agriculture
    10. Future Challenges for WTO
    11. WTO Achievements
    12. United Nations Conference on Trade and Development (UNCTAD)
      1. Functions of UNCTAD
      2. UNCTAD: An Assessment
    13. Chapter Summary
    14. Key Terms
    15. Discussion Questions
    16. Examination Questions
  15. 7. International Trade Finance and Promotion
    1. The New Indian Trade Policy
    2. Introduction
    3. International Trade Payment
      1. Cash in Advance
      2. Letter of Credit (L/C)
      3. Documentary Collection
      4. Open Account
    4. Terms of Trade
      1. Free on Board (FOB)
      2. Free Alongside Ship (FAS)
      3. Cost, Insurance, and Freight (CIF)
      4. Cost and Freight (CFR)
      5. Delivered at Frontier (DAF)
    5. International Trade Finance
      1. Private Sources
      2. Government sources
    6. International Trade Credit
    7. Trade Promotion in India
      1. Organizations for Export Promotion
      2. Export Incentives
      3. Marketing Assistance
      4. Market Development Assistance
      5. Market Access Initiative
      6. Foreign Exchange
      7. Trade Fairs and Exhibitions
      8. Export Risk Insurance
      9. Production Assistance/Facilities
      10. Special Economic Zones (SEZs)
      11. Export Processing Zones
      12. Free Trade Zone (FTZ)
      13. Export-oriented Unit (EOU)
      14. Export Houses
      15. Special Economic Zone
    8. Chapter Summary
    9. Key Terms
    10. Discussion Questions
    11. Examination Questions
  16. 8. Foreign Direct Investment
    1. TECNO Captures the African Market
    2. Introduction
    3. FDI: A Classification
      1. Asset-based View
      2. Nature of Business Activity
      3. Motive-based View
    4. Modes of FDI Entry
      1. Branch Office
      2. Strategic Alliances
      3. Wholly Owned Subsidiary
      4. Forms of Wholly Owned Subsidiaries: Greenfield Investment versus Mergers and Acquisitions
      5. Umbrella Holding Company
      6. Differences Between Joint Ventures and Mergers
    5. FDI: An Evaluation
      1. Host-country Perspective
      2. Home-country Perspective
    6. Global FDI Patterns
      1. Trends in FDI
      2. Direction of FDI
      3. FDI Outflows
    7. Foreign Investment in India
      1. Policy Perspective
      2. Sectoral Dimensions of FDI Flows
      3. FDI Policy Changes
      4. Geographical Composition
      5. Outward Indian FDI
    8. Chapter Summary
    9. Key Terms
    10. Discussion Questions
    11. Examination Questions
  17. 9. Regional Economic Integration
    1. Brexit Spells Doom for Wine, Ham and Cheese
    2. Introduction
    3. Levels of Economic Integration
      1. Free Trade Area (FTA)
      2. Customs Union
      3. Common Market
      4. Economic Union
      5. Political Union
    4. Effects of Integration
      1. Trade Creation and Trade Diversion
      2. Reduced Import Prices
      3. Increased Competition and Economies of Scale
      4. Higher Factor Productivity
    5. Regional Trading Agreements—A Global Overview
      1. European Union (EU)
      2. Euro
    6. North American Free Trade Agreement (NAFTA)
      1. NAFTA Provisions
      2. Importance of NAFTA
    7. Implications of a New Agreement
    8. Association of Southeast Asian Nations (ASEAN)
      1. Objectives of ASEAN
    9. ASEAN Evolution and Growth
    10. ASEAN Achievments
    11. South Asian Association for Regional Cooperation (SAARC)
    12. Chapter Summary
    13. Key Terms
    14. Discussion Questions
    15. Examination Questions
  18. 10. International Financial Environment
    1. Venezuela’s Experiments with the Bolivar
    2. Introduction
    3. International Financial System
      1. Foreign Exchange Markets
      2. Functioning of the Foreign Exchange Market
    4. Foreign Exchange Risk and Exposure
      1. International Capital Market
      2. International Money Markets
      3. International Bond Markets
      4. International Stock Markets
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
    8. Examination Questions
  19. 11. Exchange Rate Determination
    1. The Falafel Index
    2. Basics of Foreign Exchange
      1. Exchange Rate Determination
      2. Demand for a Currency
      3. Supply of a Currency
      4. Fixed and Flexible Exchange Rate Systems
      5. Currency Convertibility
    3. Factors Affecting the Exchange Rate
      1. Relative Inflation Rates
      2. Relative Interest Rates
      3. Relative Economic Growth Rates
      4. Political and Economic Risk
      5. Expectations and the Asset Market Model of Exchange Rates
      6. Central Bank Reputations and Currency Values
    4. Theories of Exchange Rate Determination Interest Rate Parity
      1. Purchasing Power Parity
    5. Fisher Effect
    6. Evolution of the Global Monetary System
      1. The Gold Standard (1876–1914)
      2. The Inter-war Years and World War II (1914–44)
      3. The Bretton Woods System (1944–73)
      4. The Post-Bretton Woods System: 1973–Present
    7. Contemporary Exchange Rate Systems
      1. Fixed Exchange Rate System
      2. Independent Float System
      3. Currency Board Arrangement
      4. Soft Pegs
      5. Crawling Peg
      6. Pegged Exchange Rates within Horizontal Bands
      7. Floating Arrangements
    8. Chapter Summary
    9. Key Terms
    10. Discussion Questions
    11. Examination Questions
  20. 12. International Financial Institutions
    1. The New BRICS Bank
    2. Introduction
    3. International Monetary Fund (IMF)
      1. Objectives of IMF
      2. Functions of the IMF
    4. World Bank Group
      1. Loans
      2. Grants
    5. Chapter Summary
    6. Key Terms
    7. Discussion Questions
    8. Examination Questions
  21. 13. International Balance of Payments
    1. Customs Duty to Curtail Balance of Payments Difficulties 215
    2. Introduction
    3. Fundamentals of Balance of Payments Accounting
      1. Defining International Economic Transactions
      2. The BOP as a Cash Flow Statement
      3. BOP Accounting: Double Entry Bookkeeping
    4. Components of the Balance of Payments Account
      1. Current Account
      2. Capital and Financial Account
      3. Net Errors and Omissions
      4. Official Reserves Account
    5. The Balance of Payments in Totality
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
    9. Examination Questions
  22. 14. International Marketing
    1. Selling Cookies in China
    2. Introduction
    3. International Market Assessment
    4. The Marketing Mix
      1. Market Segmentation
    5. Product
      1. Producer Goods
      2. Consumer Goods
      3. Determinants of Product Adaptation
      4. Brand Management
      5. New Product Development
      6. Promotion Strategy
      7. Pricing Strategy
      8. Distribution
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
    9. Examination Question
  23. 15. International Human Resource Management
    1. IKEA Says ‘No’ to Child Labor
    2. Introduction
    3. Recruitment and Selection
      1. Ethnocentric Approach
      2. Polycentric Approach
      3. Geocentric Approach
      4. Regiocentric Approach
    4. Training and Development
      1. Cross-cultural Training
      2. Language Training
      3. Specific Skills Training
    5. Compensation
    6. International Labor Relations
    7. International Labor Standards
    8. Chapter Summary
    9. Key Terms
    10. Discussion Questions
  24. 16. International Production and Supply Chain Operations
    1. The Pharma Supply Chain
    2. Introduction
    3. Supply-Chain Management
      1. Objectives of Supply Chain Management
    4. International Logistics
      1. Systems Concept
      2. Total Cost Concept
      3. Trade-off Concept
    5. Global Supply Chain Decisions
      1. Quality
      2. Third-party Logistics (3PL)
      3. Location Decisions
      4. Production Decisions
      5. Purchasing Decision
      6. Inventory Decisions
      7. International Packaging Issues
      8. International Storage Issues
      9. Transportation Decisions
      10. Transportation Infrastructure
    6. Chapter Summary
    7. Key Terms
    8. Discussion Questions
    9. Examination Question
  25. 17. Global E-commerce
    1. The Changing Online Marketplace
    2. Introduction
    3. E-commerce versus E-business
    4. Types of E-commerce
      1. B2B E-commerce
      2. B2C E-commerce
      3. B2G E-commerce
      4. C2C E-commerce
      5. C2B E-commerce
      6. M-Commerce
    5. E-commerce—An Evaluation
      1. E-commerce Advantages
      2. Disadvantages of E-commerce
    6. Drivers of E-commerce
      1. Global Factors
      2. Demographic Factors
      3. Economic and Financial Resources
      4. Information Infrastructure
      5. Industry Structure
      6. Firm Size
      7. Entrepreneurial Environment
      8. Consumer Preferences
      9. National Policy
    7. Chapter Summary
    8. Key Terms
    9. Discussion Questions
    10. Examination Questions
  26. 18. Environmental Issues in International Business
    1. Sustainability Initiatives at McDonald’s
    2. Introduction
    3. Climate Change
    4. Transboundary Pollution
    5. International Legal Frameworks for Environmental Protection
    6. Kyoto Protocol
      1. International Emissions Trading
    7. Chapter Summary
    8. Key Terms
    9. Discussion Questions
    10. Examination Questions
  27. 19. Global Outsourcing
    1. Past, Present and Future of Outsourcing
    2. Introduction
    3. Forms of Outsourcing
    4. Drivers of Outsourcing
      1. Theory of Comparative Advantage
      2. Concentration on Core Competency
      3. Developments in Technology
      4. Existence of Low-cost and Skilled Manpower
      5. Changes in Regulatory Environment
      6. Infrastructural and Institutional Development
    5. Factors Behind a Decision to Outsource
      1. Technical and Institutional Separability
      2. Standardization and Automation
      3. Cost Minimization
      4. Market Size
    6. Software Industry in India
      1. Large Skilled English Speaking Work Force
      2. Time Advantage
      3. Location Advantage
    7. Growth Drivers of India’s ITES–BPO Sector
      1. Abundant Talent
      2. Sustained Cost Competitiveness
      3. Continued Focus on Quality
      4. World Class Information Security Environment
      5. Rapid Growth in Key Business Infrastructure
      6. Enabling Business Policy and Regulatory Environment
    8. Problems and Pitfalls of the ITES–BPO Industry
      1. Changing Value of the Rupee
      2. Poor Infrastructure
      3. Increasing Demand for Trained Manpower
      4. Employee Dissatisfaction and High Attrition Rates
      5. Intensifying Competition
      6. Future Threats
    9. Chapter Summary
    10. Key Terms
    11. Discussion Questions
    12. Examination Questions
  28. Model Question Papers
  29. Index
  30. Copyright

Product information

  • Title: Fundamentals of International Business
  • Author(s): Sumati Varma
  • Release date: April 2019
  • Publisher(s): Pearson Education India
  • ISBN: None