This document provides an introduction to international business. It defines international business as economic transactions that occur across national boundaries between two countries. It discusses several theories of international trade and factors that influence international business such as different legal, political, and social environments between countries. The document also lists assignments for students and references for further reading on international business.

1. Introduction To International Business Prof. S P Das M. Phil (Economics), M.B.A. (Finance), M.A. (Economics), MCCP, PGDM, PGDFM, DBM, DHMCT, B.Com, UGC-SET

2. WHAT IS INTERNATIONAL BUSINESS? Economic Transaction Two Countries / Across National Boundaries

3. Features Operating Units Outside the country Institutional Arrangement Massive in Scale Influence Political, Social and Economic Development

4. International Trade Theories Mercantilsm Theory Theory of Absolute Advantage (Adam Smith) Comparative Advantage Theory (David Ricardo) Factor Proportion Theory Theory of Country Size Country Similarity Theory Product Life Cycle Theory (Vernon) Human Capital Approach Natural Resources Theory Economies of Large Scale Theory Research and Development Theory

5. Growing Importance Interdependence Intense Competition Globalization Price Difference Development in ICT

6. International Business vs Domestic Business Different Legal Systems Different Political Systems Different Social Environment Different Currencies Different Business Practices Different Technology Wider Market High Transportation Cost Higher Counter Party Risk

7. Environmental Factors of International Business Political Environment Economic Environment Social and Cultural Environment Technological Environment

8. Assignments Trace out the Growth of International Business from 1991 till 2009. Explain the Importance of International Business with special reference to India

9. Reference Texts International Business – Dr. P K Bandgar International Business – Hills & Jain International Business – Francis Cherunilam International Business – P Subbarao International Business – ShyamShukla International Business Management – P K Sinha International Business – R Chandran

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