This ppt will be helpfull for all those students who are doing b.com. or MBA in International Business

1. International Business
Environment

2. Block-1
Unit -1 Introduction to International Business
Environment
Unit-2 Theories to International Trade
Unit-3 balance of payments
Unit-4 Instruments of trade Policy

3. Block 1
OBJECTIVES
After going through this unit, you should be able to:
• explain the meaning, nature and relevance of international business
environment
• describe the domestic, foreign and global dimensions of international
business environment
•Explain the Theories of International Trade
• analyze geographical, economic, financial, socio-cultural, political,
legal and ecological components of a foreign country's environment
•Describe the meaning of BOP
•Explain the Instrument of Trade Policy

4. 1 INTRODUCTION
Business is defined as a set of activities relating to industry
and commerce. When these activities are performed on an
international level, these can be termed as international
business. Basic functions, processes and techniques of
international business are essentially the same as those
involved in domestic business.
But the task of managing international business is not that
easy. Because of operating in environments which are
unfamiliar and different from the domestic environment, one
needs to be extra careful and vigilant to these environmental
differences.
In this unit, you will learn the meaning, nature and relevance
of the international business environment. .

9. Controllable Environment
Uncontrollable
Environment

19. Political Environment of Business

23. Theories of

28. Unit-3
Balance of Payments
The balance of payments (also known
as balance of international payments and
abbreviated B.O.P. or BoP) of a country is the
difference between all money flowing into the
country in a particular period of time (e.g., a
quarter or a year) and the outflow of money to the rest of
the world.

32. Unit-4
Instruments of Trade Policy

33. 1. A tariff is a benefit given to an individual,
business, or institution, usually by the
government. It is usually in the form of
a cash payment or a tax reduction.

34. 2. The subsidy is typically given to remove some type of
burden, and it is often considered to be in the overall
interest of the public, given to promote a social good or an
economic policy.

35. 3. An import quota is a type of trade restriction
that sets a physical limit on the quantity of a good
that can be imported into a country in a given
period of time. Quotas, like other trade
restrictions, are typically used to benefit the
producers of a good in that economy.

36. 4. A voluntary export restraint (VER) is
a trade restriction on the quantity of a good that an
exporting country is allowed to export to another
country. This limit is self-imposed by the exporting
country.

37. 5.The fastest growing of these measures are local content
requirements (LCRs), which are policies imposed by
governments that require firms to use domestically-
manufactured goods or domestically-supplied services in
order to operate in an economy.
6.Administrative trade policies are bureaucratic rules that are
designed to make it difficult for imports to enter a country. In
addition to the formal instruments of trade policy, govt. of all
types sometimes uses informal or administrative policies to
restrict imports & boost exports.
7.To ensure dumping activities do not affect the domestic
market, the Indian government has imposed anti-
dumping duties against an exporter who causes any material
or substantial injury to a domestic industry in India. The anti-
dumping law in India is the Customs Tariff Act, 1975, which
was amended in 1995

38. Thanks
By: Dr. Neetu Sharma