International Business Economics

Syllabus

MBA-306: INTERNATIONAL BUSINESS ECONOMICS

Unit-1

International Trade: Trade Theories, Ricardo and Comparative Advantage, Heckscher Ohlin Model of Factor Abundance, Krugman’s Model of Intra-Industry Trade.

Unit-2

Trade Policies: Unilateral and Multilateral Trade Policies, Tariffs in Competitive Markets, WTO Tariff Policy, Quota, Tariff and Quota in Monopolistic Markets, Dumping and Antidumping Duty under the WTO, Subsidies and Countervailing Duties under the WTO, Export Taxes, Export Subsidies, Economic Integration - Custom Unions and Free Trade Areas - Major Regional Trade Agreements.

Unit-3

Currency and International Finance: Currency Market and Exchange Rate, Spot and Forward Markets, Types of Foreign Exchange Transactions – Reading Foreign Exchange Quotations – Forward and Futures Market – Foreign- Currency Options – Arbitrage – Speculation and Exchange-Market Stability, Currency Market and Basic Central Bank Operation, Product Market Approach to Determination of Exchange Rate, Asset Market Approach to Determination of Exchange Rate.

Unit-4

Exchange Rate Policies and Macroeconomic Management: Fixed and Flexible Rates – Central Banks Actions, Impact of Changing Exchange Rates on Exports and Imports, Volatility Managements by the Government and Exchange Rate Regimes, Open Economy Macroeconomics, Monetary Approach and Asset Market Approach to Predict Future Exchange Rate, International Financial Crises Models - Understanding the Recent Few Crises, The Euro Crisis/Crisis in Venezuela, Economic Risk Indicators for FDI and FII.

Unit-5

International Banking: Reserves, Debt and Risk: Nature of International Reserves – Demand for International Reserves – Supply of International Reserves – Gold Exchange Standard – Special Drawing Rights – International Lending Risk – The Problem of International Debt – Financial Crisis and the International Monetary Fund – Eurocurrency Market.