Business Environment

Course Code: MGBGM 10201 Credit Units: 03

No of hours : 33

Course Objective:The main purpose of this paper is to educate the students about the broad Economic Environment, its contents and the Indian Economic scenario in the Global Picture. The course illustrates a wider picture of the Indian Business Environment, Role of Government, state of Indian Economy with a view that conducting business is exciting, challenging and globally oriented.

Course Contents:

Module 1: Introduction to Business Environment 2 HrsConcept of Business EnvironmentBasic Indicators and factors

Module 2: Business Planning Environment in India 6 HrsProcess of PlanningIndia’s five year PlansBusiness Policies and ReformsTrade & Foreign Exchange PolicyForeign Investment & Technology PolicyFiscal & Monetary Policy

Module 3: Globalization and trends in Management System 7 HrsIntroduction, definition and explanation of globalizationDrivers of GlobalizationManaging in Global MarketplaceStrategies for going globalDifferent Entry ModesStrategic Alliances Need & Components of Foreign CapitalFDI and FII inflow in India: Trends & PatternAdvantages & Disadvantages of Foreign Investment InflowsMultinationals in India

Module 4: The, Political, Legal and Economic environment facing Global Business

The Political and Legal Environment 4 HrsThe Political system and its functionsImpact of Political system on management decisionFormulating legal & political strategies in International Business

The Economic Environment Facing Global Business 4 HrsClassifying Economic SystemKey Macroeconomic issuesAdapting to Foreign Economic System

Module 5: Corporate Governance 4 HrsThe concept of Corporate GovernanceLeading Indicators of Corporate GovernanceNorms in India:

Kumar Manglam Birla Committee ReportNaresh Chandra Committee Report

Module 6: Stock Exchange and its regulations 4 HrsDealings on Stock ExchangesOrganization of Stock Exchange in IndiaNational Stock Exchange of IndiaSEBI- Capital market reforms and developments

Current Development 2 hrs

Teaching and Learning Methods

Tutorials, Interactive sessions, Case studies, Field visits, Management games. The course is covered by adopting a combination of lecture methods, class presentation by groups of students, self study sessions. Each student is required to do the back ground reading from the specified chapters of the prescribed book before coming to class. Cases are also to be analyzed, discussed in groups (teams) outside the class as preparatory work.

Examination Scheme:

Components P1 CI CT1 EEWeightage (%) 10 10 10 70

Text & References:

Text: Francis Cherulinum; Business Environment, Text & Cases, Latest Edition, Himalaya

Publishing House

References: Economic Environment of Business, Millennium Edition , Himalaya Publishing House,

S.K. Mishra & V.K. Puri Bedi Suresh, Business Environment, 1st Edition 2004, Excel Books, Fabozzi, Frank J, Foundation of Financial markets and institutions, 3rd Edition, Tata

McGraw Hill New Delhi 2006

Hodgetts Richard M. Luthans Fred (2003), International Marketing Cultural Strategy & Behaviour, Tata McGraw Hills Publishing Co. Ltd.

Daniels John D., Radebaugh Lee H., Sullivan Daniel P., (2002), Globalization and Business, Prentice Hall

Daily Newspaper: Business Standard, Economic Times, Business Line, The Financial Express

Periodicals: The Week, Economist, Forbes, Fortune, Business World, Business Week

Suggested Schedule of Session

TOPICS NO OF SESSIONS

Introduction to Business Environment 2

Planning Environment – Five Year Plans 2

Government Policies – Trade and Forex, Fiscal, Monetary, Foreign

Investment4

Globalization – Drivers and needs 4

FDI and FII 3

Political and Legal Environment 4

Economic Environment 4

Corporate Governance 4

Stock Exchanges 4

Current Developments 2

Total 33

4 th Semester MBA IB ELECTIVE

RISK AND INSURANCE IN INTERNATIONAL TRADE

Course Code: MGBIB 20403 Credit Units: 04

Course Objectives:The course aims at making the students conversant with risk of cross border business (Trade, Investments and Long Term Projects) and the techniques available for mitigating those risks. The role of Insurers and the products and services offered by them would be gone in detail to equip the students with decisions making tools.

Learning Outcomes:At the end of the course, the student will be able to: understand the concept of risk in business managementlearn various techniques available to assess and mitigate those risksdevelop strategic alternativesevaluate different kinds of risks and their impact on different areas

Course Contents:

Module I: Concept of RiskConcept of Risk and Objectives of Risk ManagementRisk Management TechniquesReview Session

Module II: InsuranceConcept of InsuranceMarine, Aviation and Transport RisksMarine Insurance LawMarine Insurance Policies – major insurance clausesPrinciples of assessment and underwritingClaim ProceduresLiability InsuranceGroup discussion of marine and air cargo policies issued by Indian and foreign companies

Module III: Political RiskPolitical Risk analysis, Sovereign Risk, Country Risk, Human Development Index, Corruption Index, Ratings Trade and Investment BarriersMeasures for containing Political Risk

Module IV: Credit Risk

Credit Risk of Payment ProceduresCredit Management and Credit InsuranceRole of Export Credit Guarantee CorporationProducts and Services Recovery and Claim Procedures

Module V: Interest Rate RiskImportance of Interest rate riskMeasurement of interest rate riskInterest rate risk managementFutures, Options and Swaps

Learning Methods:Tutorials, Interactive sessions, Case studies, Field visits, Management games, Extensive research projects, Seminars, Weekend experience in companies - the course is covered by adopting a combination of lecture methods, class presentation by groups of students, self study sessions. Each student is required to do the back ground reading from the specified chapters of the prescribed book before coming to class. Cases are also to be analyzed, discussed in groups (teams) outside the class as preparatory work.

Examination Scheme:

Components P1 C1 CT1 EEWeightage (%) 10 10 20 60

Text & References:Singh MP & Chopra VS, 2005, Risk Management in International Trade, Universal Publishers, 1st EditionShapiro A C, 2004, Multinational Financial Management, Prentice Hall of IndiaJain P K, Peurard J and Yadav S, 2003, International Financial Management, Prentice

Hall of IndiaE C G C Brochures and Marine Risk Policy