PAPER No. DC-II: MGB: 3.1
INTERNATIONAL TRADE: POLICIES AND STRATEGIES

Learning objective: The paper aims to provide a thorough understanding of the basis for international trade and strategies. The role of the global institutional  structure and trade strategies of developing countries and trade partners of India will be studied.

Course Contents:

Unit I           Lectures: 10

Review  of  Economic  Theory  on  International   Trade:  Basis  for  international   trade;  gains  from  trade; distributional issues, policy instruments and their impact, political economy.

Unit II         Lectures: 8

Trends in Global Trade and Balance of Payments with special reference to India: Historical roots of today’s international  trade, Composition,  origin and destination  of global exports  and imports,  Trade in invisibles, Balance  of payments:  current  account  and  capital  account,  Capital  flows  and foreign  exchange  revenues, External Debt

Unit III        Lectures: 12

The Global Institutional  Structure:  GATT (General  Agreement  on Trade and Tariffs),  WTO (World Trade Organisation), Regional Trade Blocks and Trade Agreements.

Unit IV      Lectures: 8

India’s Industrialization Strategy and International Trade: Review of Economic planning strategies and issues: early  phase;  the  1970s  and  1980,  Policies  since  1991,  Exim  policy,  structure  of  tariffs  and  restrictions, currency depreciation and convertibility, Export Promotion Zones

Unit V           Lectures: 18

Experience of Select Developing Countries: Analysis of the trade strategy and the policy framework in two select large countries and comparison with India, Impact of trade on growth, agriculture, inequality, poverty, and other developmental indicators Case Studies on Trade Strategies  of Emerging  Economies-  China and ASEAN  (Association  of South East Asian Nations).

Text Books:

1.   Tendulkar and Srinivasan (2006).  Reintegrating India with the World Economy. Pearson Education

2.   Connor, David E. O’ (2006). Encyclopedia of the Global Economy: A guide for students and researchers. New Delhi: Academic Foundation

References:

1.   The Trade Game: Negotiation trends at WTO and concerns of developing countries, 2006. New Delhi : Academic Foundation

2.   Krugman, Obstfeld and Melitz (2008): International Economics. (8th ed.). Pearson Education

3.   www.wto.org

PAPER No. DC-II: MGB: 4.1

INTERNATIONAL  ACCOUNTING AND REPORTING SYSTEM

 Learning Objective: – To develop skill and competencies of various practices in the International Accounting and  Reporting  Systems.  A  comparative  perspective  of  the  accounting  standards  and  practices  across  the different countries shall be taught.

Unit I           Lectures: 12

Global accounting standard: Meaning, needs, benefits of accounting standards, types of accounting standards, Argument  for  and  against  Global  accounting  standards,  Concept  of  Harmonization   and  Convergence, Obstacles  in Harmonization  and Convergence,  Suggestions  for increased  convergence  and harmonization.

Unit II            Lectures: 10

International Accounting Standard Committee (IASC): Objectives, Working, Composition of IASC, Reasons of  Failure  of  IASC,  IAS-I  (Presentation  of  Financial  Statements),  Process  of  developing  International Accounting Standards.

Unit III             Lectures: 9

International  Accounting  Standard  Board  (IASB):  Creation  of  IASB,  Organizational  Structure,  Standard Setting Procedures, enforcement powers of IASB and Achievements of IASB.

Unit IV                  Lectures: 10

International Financial Reporting Standards (IFRS): Main feature, Uses and objectives of IFRS, IFRS issued by IASB, Principle based vs. Rule based standards, Fair Value Accounting (FVA), Public sector and IFRS.

Unit V              Lectures: 15

A Comparative Perspective of Accounting: Accounting Standards & Practices in Europe, USA, Asia and UK, Reporting   &   Disclosure   Practices   across   countries,   Global   Accounting   Standards   and   International Convergence.

Text Books

1.  Frederick, D.S. Choi and G. Mueller (1984): International Accounting. Englewood Cliffs.  Prentice Hall

2.  Radebaugh, Lee H., Gray, Sidney J. & Black, Ervin L. (2005). International Accounting and Multinational Enterprises (6th ed.). Wiley Publications

References:

1. Miller Paul B.W and Bahnson, Paul R. (2005). Quality Financial Reporting. Tata McGraw-Hill Edition

2. Evans, Thomas G., Taylor, Martin E. and Holzman. Oscar: International Accounting and Reporting. New York: Macmillan Publishing Company

3. Rathore, Shirin.  International Accounting. Prentice Hall of India

TRANSNATIONAL  AND CROSS CULTURAL MARKETING

 Learning  Objective:  The purpose  of this paper is to provide  an understanding  of the impact  the cultural differences have on global marketing. The methods of price decisions in international  markets shall also be taught.

Unit I               Lectures: 7

Global Marketing,  the scope and challenge  of international  marketing,  the Global Manager,  importance  of Global Markets, development of Global Marketing.

Unit II           Lectures: 7

Cultural  and  social  forces,  definition  of  culture,  cultural  values,  language  and  communication.  Cultural differences. impact of social and cultural environment on marketing industrial and consumer products.

Unit III        Lectures: 12

Developing a global vision through marketing research. Scope of international marketing research. Problems: Collecting  primary  data,  Use  &  non-availability   of  secondary  data.  Multicultural  research-Research   on internet.   Estimating   market   demand,   problems   in   analyzing   and   interpreting   research   information. Responsibility for conducting marketing research, communicating with decision makers.

Unit IV           Lectures: 18

Outsourcing Research, developing a Global Information System, Global Product Strategies, Product Design, Packaging  and Labeling,  Warranty  and Service  Policies,  New Product  Development,  Global Strategies  for Services & Brands, Marketing Services including Social Marketing.

Unit V        Lectures: 12

Pricing  decisions:  Global  Pricing  Framework,  Pricing  Basics,  Marginal  Cost  Pricing  and  its  importance, Transfer  Pricing, Counter  trade, Systems  Pricing, Pricing and Positioning,  price quotation  – preparation  of quotations.  Promotion  Decisions:  Promotions  – international  advertising  – sales promotion  in international markets – international  advertising  – direct mailing – personal selling – exhibition – generic promotions  in international marketing

Text Book

1.   Cateora, Philip R. & Graham, John L. International Marketing (13th ed.). Tata Mc Graw Hill.

2. Cherunillam, Francis (2004). International Marketing, (7th ed.). Himalaya Publishing House

References:

1. JJ Shaw & Sak Onkvisit (2008). International Marketing- Analysis and Strategies. Prentice Hall India.

2. Warren J. Keega (2008), Global Marketing Management. Prentice Hall India.

INTERNATIONAL  SUPPLY CHAIN MANAGEMENT

 Learning   Objective:   To  familiarize   the  students   with  the  essential   elements   of  the  Supply   Chain Management.   Strategic   issues   in  the  International   Supply   Chain   Management   and  logistics   network configuration along with performance measurement and evaluation shall be studied thoroughly.

Unit I                Lectures: 12

Introduction   to  Supply   Chain   Management   –  Concepts,   Objectives   and   functions   of  Supply   Chain Management, Issues in Supply Chain Management; Managing networks and relationships; Sourcing Internationally,  Subcontracting  within  an International  Dimension,  International  Distribution  Management: Types of Intermediaries, Channel Selection and Management.

Unit II                  Lectures: 12

Strategic  issues  in Supply  Chain  – Strategic  Partnership,  Logistics  Management:  Concept,  Objective  and Scope, Transportation,  Warehousing,  Inventory  Management,  Packing  & Unitization,  Control  & Communication,  Role  of  Information  Technology  in  Logistics,  Logistics  Service  Firms  and  Third  Party Logistics, Logistics in Maximizing profitability and cash flow, 3PL (Third Party Logistics), 4PL(Fourth Party Logistics), Reverse Logistics.

Unit III               Lectures: 12

Logistics   Network   Design  for  Global  Operations   Global  Logistics   Network   Configuration,   Orienting International Facilities: Considerations and Framework, Trade-offs Associated with each Approach, Mapping the different Approaches, Capacity Expansion Issues; Information Management for Global Logistics: Characteristics of Logistics Information and Telecommunication Systems, Capabilities and Limitations.

Unit IV         Lectures: 8

Performance  Measurement  and  Evaluation  in  Global  Logistics:  Operations  and  Logistics  Control:  Key Activities  Performance  Information,  Measuring  Performance  in Functional  Integration,  Measuring Performance in Sectoral Integration

Unit V           Lectures: 12

Global  Supply  Chains  and  their  societal,  business,  and  cultural  contexts  and  impacts.  Perspectives  for business, social science, engineering, and legal environment, Drivers for economic globalization (labor costs, resources, regulation, etc.), Influence on world and national economies, Design of Supply Chains.

Text Books

1. Rushton, A., Croucher, P. and Peter Baker (2006): Handbook of Logistics and Distribution Management, (3rd Ed.). Kogan Page Pub

2. Christopher Martin (2005): Logistics and Supply Chain Management, Creating Value-adding Networks, (3rd Ed.). Pearson Education

References:

1. Chopra Sunil and Peter Meindl (2009): Supply Chain Management, (4th Ed.). Pearson Education

2. Ballou, R. H. (2004): Business Logistic Management, (5th Ed.). New Delhi: Prentice Hall

3. Bowersox, D. J., David, J & Cooper (2002): Supply Chain Logistics Management. McGraw Hill

4. Alan Harrison, Remko Van Hook (2007): Logistics Management and Strategy-Competing  Through the Supply Chain, (3rd Ed.), Pearson Education

MULTINATIONAL  BUSINESS FINANCE

Learning  Objective:  The course has been designed to familiarize the students with International  Monetary System and Financial Institutions.   Functioning of the Foreign Exchange Markets and Financial Management of a multinational firm will be the essential component of this course.

UNIT I             Lectures: 6

Multinational   Business   Finance   –  MNCs  (Multinational   Corporations)   and  transnational   corporations, Difference between domestic and International financial management, Motivations for International finance.

UNIT II                  Lectures: 8

International  Monetary  System  – The  Gold  standard,  The  Bretton  Woods  system,  the  flexible  exchange, alternative  exchange  rate  system,  the  European  monetary  system,  Euro  and  its  implications  for  Indian banking, International Financial Institutions – International Monetary Fund (IMF), Asian Development Bank (ADB), International  Bank for Reconstruction  and Development  (IBRD), Bank for International  Settlement (BIS) and Organization for Economic Cooperation and Development (OECD).

UNIT III            Lectures: 12

The Foreign Exchange Markets – Functions of the Foreign Exchange Markets, The Foreign Exchange Rates – direct  and indirect  quotations,  spot market  and forward  market  – determination  of forward  premiums  and discounts, bid-ask spread, interest arbitrage – covered interest arbitrage and interest parity theory – forecasting of foreign exchange rates.

UNIT IV               Lectures: 22

Financial management  of the Multinational  Firm – Cost of Capital and Capital Structure of a Multinational Firm – determining capital structure components, Cost of capital for MNCs (Multinational Corporations) and Domestic Firms, Multinational capital budgeting – Problems and issues in foreign investment analysis.

UNIT V               Lectures: 8

Payment Systems Payment terms and financing international trade, international flow of funds and portfolio investment in India, FDI (Foreign  Direct Investment)  vs. FIIs (Foreign  Institutional  Investors),  investment  strategies  of FIIs in India,  FIIs  and  volatility,  impact  of  FIIs  investment  on  stock  markets  and  public  policy.  Netting  (with numericals),  pooling, leading and lagging as international  payment settlement. P.S. Case study would be an integral part of the curriculum.

Text Books:

1. Shapiro, Allen C. (1995). Multinational Financial Management, Prentice Hall India Pvt Ltd. New Delhi.

2. Eiteman, David K. Stonehill, Arthur I., and Moffett, Michael H. (2001). Multinational Business Finance (9th ed.). Addison Wesley, New York.

References

1. Buckley, A. (2004). Multinational Finance (5th ed.). Pearson Education.

2. Vij, Madhu (2010). International Financial Management (3rd ed.). Excel Books, N3.

3. Levi, Maurice(1996), International Finance, McGraw Hill Inc., (4th ed.). New York, New Delhi.

4. Madura, J. (2009). International Financial Management (10th ed.). New Delhi, Cengage Learning.

JOINT VENTURES, MERGERS AND ACQUISITIONS

Learning Objective:  This course is designed to provide an understanding  of the essential elements of Joint Ventures, Mergers and Acquisitions  with the basic methods of valuation, post-merger valuation, methods of payment and financing options.

Unit I            Lectures: 5

Joint  Ventures:  Concept  &  Meaning  of  Joint  Ventures,  Need  &  Types  of  Joint  Ventures,  Structures  & Problems faced in Joint Ventures, Joint Ventures and Strategic Alliance

Unit II             Lectures: 10

Mergers  and Acquisitions:  Introduction  to mergers,  types  of mergers,  theories  of mergers  & acquisitions. Demerger, types of demerger, reverse merger, buyback of shares, leverage buy-out strategy, merger strategy – growth,  synergy,  operating  synergy,  financial  synergy,  diversification.  Takeover  and  its  types,  takeover strategy, takeover bids, legal framework for mergers and acquisitions, leverages and buyouts.

Unit III                    Lectures: 15

Deal  Valuation   and  Evaluation:   Factors   affecting   valuation   basics,   methods   of  valuation,   cash  flow approaches, economic value added (EVA), sensitivity analysis, valuation under takeover regulation, valuation for slump sale, cost-benefit analysis and swap ratio determination

Unit IV                         Lectures: 12

Post-Merger Evaluation: Financial Evaluation of Mergers & Acquisitions, Impact on shareholders’ Wealth Case Studies on Cross-border Mergers & Acquisitions: Analysis of Post-Merger Performance.

Unit V                    Lectures: 14

Methods of payment and financing options in mergers & acquisitions, financing decision, Merger, Acquisition and Competition law 2002, SEBI (Securities & Exchange Board of India) Takeover Code 2011 and criteria for negotiating friendly takeover.

Text Books

1. Gupta, Manju (2010): Contemporary Issues in Mergers and Acquisitions. Himalaya Publishing

2. Weston, Fred; Chung, Kwang S. & Siu, Jon A.: Takeovers, Restructuring and Corporate Governance, (2nd ed.). Pearson Education

References:

1. Sundarsanam (2006); Creating Value from Mergers and Acquisitions, (1st ed.) Pearson Education

2. Ramanujan. S. (1999); Mergers: The New Dimensions for Corporate Restructuring, McGraw Hill

3. Narayankar, Ravi, (2013): Merger and Acquisitions Corporate Restructuring, Strategy and Practices, (2nd ed.). International Book House Pvt. Ltd.

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