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PGCPIB

International Trade Policy and Management

Course Coordinator: Prof. Sunitha Raju

About the Course Coordinator

Dr. Sunitha Raju is a Professor of Economics and teaches courses like Business

Economics, Macroeconomics and International Economics. She is engaged in various

research and consultancy assignments at IIFT. She is a guest-faculty for a number of

management and research institutes. Some of these are MDI, IMI, IEG, Foreign Service

Institute etc. She is on the panel of Ph.D examiners at the Indian Institute of Science,

Bangalore.

Dr. Raju has research interest in the area of Agriculture and Trade. She has been

involved in a number of research projects at the IIFT. Some of the important projects

are: Export Competitiveness of Select Agro-Products in collaboration with CID, Harvard

University; Millennium Study: India’s External Trade in Agriculture. As a member of

the policy group, she has provided research support for the ongoing WTO agricultural

negotiation to the Department of Agriculture & Co-operation, Ministry of Agriculture

and Ministry of Food Processing Industries. She is, currently, engaged in policy research

for Ministry of Commerce and Ministry of Agriculture. She is providing research

support to various commodity boards.

Dr. Raju has been a member of the Expert Committee on Agreement on

Agriculture for the Gujarat government. She has been trained by Purdue University in

General Equilibrium Economic Modeling. She was selected for training in PSE

Methodology by APO, Tokyo

Dr. Raju has presented a number of papers in both national and international

seminars. Her presentation at the MSM, Maastricht was selected and brought out in a

book. Dr. Raju has research & teaching experience of 20 years.

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1. Objective

Major developments in the world economy have a direct or an indirect

bearing on international business. This course aims to sensitize the participants to

important international developments and develop a structured framework for

analyzing the same.

The growing economic interdependence between countries essentially

translates into increased trade in goods & services. Cross border movements of

goods & services raise a number of issues that are different from domestic

transaction. Some of these issues are: why and how do countries form trade?

How do exchange rate policies determine trade competitiveness? What is the

basis of trade interventionist policies?

In addressing the above issues, the course aims to present a clear

exposition of the principles of international trade and transactions that are

essential for understanding global trade issues and evaluating countries’ policy

solutions to international economic problems. Particularly, the focus of the

course is to provide an analytical framework for understanding the recent

developments in global trade such as economic & regional integration,

international resource movements and trade policies of developing countries.

The course is divided into 6 modules. Modules 1, 2 and 3 cover global

trade developments and basic framework for understanding trade issues. Module

4 presents the issues pertaining to regional integration and trade blocs. Module 5

covers the issues pertaining to cross border investments particularly in the context

of MNCs. Module 6 presents a review of India’s trade policy.

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2. Pedagogy

The course covers 15 sessions of 2 hrs each. To facilitate meaningful

discussion in the class, the participants are required to follow the detailed session

plan and come prepared to the class by reading the suggested readings.

3. Evaluation

(a) Four quizzes will be conducted. For final grading best three will be

considered. The weight age of each is 15%.

(b) Group assignment: Each group will be required to critically review a

published article. The articles (which will cover the various modules)

and guidelines for review & presentation will be given separately to each

group. The weight age is 15%.

(c) End Term Exam weight age is 40%.

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4. Session Plan

Module I Sessions

Overview of Global Trade Development 1

Session1: Overview of Global Trade Development

Session Objective: to provide an overview of global trade trends, structure of trade and institutional set up. The focus of the session will be on:

• Review of trends in global trade

• Structure of trade-by countries, regional blocs

• Institutional structure for trade – WTO, UNCTAD, IMF

• Trade Policy Framework

Readings: Chapter 1 & Handout 1

Module II Sessions

Basics for Understanding Trade Transactions 2, 3, &4

Session 2: Balance of Payments Account

• Current account and capital account

• BoP surplus and deficit

• Trade implications of BoP disequilibrium

Session 3: Exchange Rate

• Exchange rate determination

• Fixed and flexible exchange rate regimes

• Inflations and exchange rate adjustment

• Exchange rate indices

• Capital and Current account convertibility

Session 4: International Monetary System

• Gold standard

• Bretton wood system

• SDR

• Gold-Dollar Link

• European Monetary System

Readings: Chapters 12, 13 & 20

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Module III Sessions

Basic Trade Theory and Approaches to Trade Interventions 5, 6, 7, 8 & 9

Sessions 5& 6: Basic Trade Models 1 & 2

• Basic trade models

• Commodity price determination under constant and increasing cost

• Gains from trade

Session 7: Imperfect Competition and International Trade

• Intra-industry trade

• Economies of scale

• Transport costs as a determinant of trade

Session 8: Trade Intervention Policies – Tariffs

• Types of tariffs and their measurement

• Impact of an import tariff (small country case)

• Impact of an import tariff (large country case)

• Tariffs and factor prices

Session 9: Trade Intervention Policies – Non-Tariff Barriers

• Import quotas

• Export quotas

• Subsidies

• Dumping

• Standards

• Measureisng NTBs

Readings: Chapters 2, 3 & 5 (for sessions 5, 6 & 7) Chapters 6 & 7 (for sessions 8 & 9)

Module IV Sessions

Regional Integration & Trade Blocs 10 & 11

Session 10: Regional Trade Agreement 1

• Types of economic integrations

• Static effects of economic integration � Trade creation � Trade diversion

• Basis for tariff negotiations

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Session 11: Regional Trade Agreement 2

• Trends in interregional trade

• Review of EU

• Review of NAFTA

Module V Sessions

Direct Foreign Investments & MNCs 12 & 13

Sessions 12 & 13: Direct Foreign Investment & MNCs

• Economic growth and factor mobility

• Economic growth with more inputs � Labour � Capital

• Economic growth with more productivity

• Inter-country labour and capital mobility

• MNCs and FDI

Module VI Sessions

Review of India’s Foreign Trade Policy 14 & 15

Sessions 14 Review of India’s Foreign Trade Policy

• Review of India’s external sector policies

• Evolution of trade policy reforms in India

• Impact of reform: an analysis

• Approaches to FDI

• Internationalization of Indian firms

Session 15: New Foreign Trade Policy (2004-09)

5. Details of Quizzes

To be held Coverage

Quiz 1 After session 4 Session 1, 2, 3, & 4

Quiz 2 After session 7 Session 5, 6 & 7

Quiz 3 After session 9 Session 8 & 9

Quiz 4 After session 13 Session 10, 11, 12, & 13

6. Details of Assignments

Group wise assignments submission. Each group will be given an article for a critical review.

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7. Text Books/Readings

(i) The text book followed is: B.V. Yarbough & R.M. Yarbough, “The World Economy”, Thomson, South-Western, 2007.

(ii) Supplementary Readings are also provided.

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PGCPIB

International Trade Logistics &Operations

Course Coordinator: Dr. G.P. Sharma

About the Course Coordinator

Prof. G.P. Sharma was a full-time functional Director on the Board of MMTC

Ltd. (Schedule `A’ PSU under the Ministry of Commerce & Industry) which is India’s

leading international trading giant with a turnover of around US $6 billion. He was also a

Director on the Board of Nilachal Ispal Nigam Limited (a Steel Plant promoted by

MMTC and Government of Orissa) and MTPL, Singapore, a subsidiary company of

MMTC looking after India’s offshore and third country trade with the Far Eastern and

other global markets. Prof. Sharma has been associated with various Management bodies

like AIMA, IMI and Industry Associations. Prof. Sharma obviously brings with him very

rich experience of International Trading in critical sectors like Minerals, Fertilizers,

Agro-products, Precious Metals including Gems & Jewellery, Non-ferrous Metals,

Industrial Raw Material, Coal & Hydro Carbon and Steel.

Among the presentations made by Prof. Sharma on contemporary strategic

business issues are (a) “MMTC – A Strategic Driver of India’s Foreign Trade” to CEOs

of Coal / Fertilizer / Oil / Steel Sector Companies at the Indian Institute of Industrial

Engineering, Mumbai; (b) “ITES Sector : Outsourcing a Threat or Opportunity or an

Advantage” to the students of Master of International Business (MIB) and Master of

Human Resource Organizational Development (MHROD) at the Department of

Commerce, Delhi School of Economics, Delhi University; (c) “India’s Non-Ferrous

Metal Imports : Problems and Prospects” an article appeared in a journal called MINES,

METALS & FUELS; and (d) “Global Sourcing of Raw Material for the development of

India’s Metal Industry” to CEOs of Mining/Metallurgical Companies at National

Metallurgical Laboratory, Jamshedpur.

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Prof. Sharma has been a visiting faculty to leading Institutes like ASCI,

Hyderabad and IIFT. On completion of his term as Director in MMTC, he joined IIFT at

the level of a Professor as full time faculty with effect from April 2006. His areas of

specialization are International Trade Logistics, International Trade Operations and

Global Sourcing for Business Development. He was nominated by IIFT as Member,

Sub-group (Shipping) of the Working Group on Shipping & Inland Water Transport,

constituted by Ministry of Shipping & Transport, and Government of India for

preparation of the 11th Five Year Plan (2007-2012).

Prof. Sharma holds a Masters Degree in English Literature from Delhi University

and his legal and management education is from Faculty of Management Studies, Delhi

University. His appointment as a Lecturer in English Literature in a Delhi University

College was approved by the University in 1973.

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1. Objective

The primary objective of the course is to develop among participants a

closer appreciation of the critical role which business logistics management plays

in today’s fiercely competitive global environment. It is widely recognized that

through efficient logistics management systems, corporates are able to leverage

their competitive strategies thereby creating value for their customers. The role of

logistics has obviously gained pre-eminence in today’s global business.

The course is, therefore, designed to lay emphasis on how effective and

efficient logistics management in international trade with special reference to the

Indian perspective can create time and place value at micro and macro levels.

The course also gives a broad spectrum of EXIM Operations and Documentation

including a discussion on objectives and strategies of Foreign Trade Policy 2004-

09. Besides covering salient features and standardization of export sale contract,

international conventions / trade practices, we have a session on role of trade

facilitation in global trade. Trade Facilitation is a virtual infrastructure for

efficient logistics management

2. Pedagogy

The Course will involve lectures, class room discussions and case studies.

Besides, the participants will also be required to present group

assignments/project reports on some of the contemporary issues impacting

logistics, infrastructure and global business environment.

3. Evaluation Parameters

Attendance / Class Participation 10 marks

Class Test / Assignment 20 marks

Project Report 30 marks

End-Term Exam 40 marks

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4. Session Plan

Module I Sessions

Understanding Logistics & Supply Chain Management 1, 2 & 3

• Global Business Environment

• Defining Logistics Management

• Critical Role and Importance of Logistics Management

• Evolution of Logistics as Integral Management Function

• Case Study

Module II Sessions

Logistics Outsourcing 4

• Emergence of 3PLs in Global Logistics Industry

• Role & Importance of 3PLs

• Road Ahead for 3 PL Industry

• Indian Perspective

Module III Sessions

International Logistics Infrastructure - I 5 & 6

• Physical & Virtual Infrastructure

• Role of Transportation in Logistics/SCM

• Warehousing Networks

• Packaging Infrastructure for Exports

• Role of Inventory in SCM

Module IV Sessions

International Logistics Infrastructure - II 7 & 8

• Shipping Transit Risk

• Communication Infrastructure

• Utilities Infrastructure

Module V Sessions

Indian Maritime Logistics 9 & 10

• Shipping & Ports: Role/Growth

• IWT/Coastal Shipping

• Draft Maritime Policy

• Global Perspective (UNCTAD Report 2007)

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Module VI Sessions

Organisation Of Global Shipping Services 11

• Global Shipping & Merchandise

• Charter Party

• Liner Shipping

• Lay-Days Statement /SOF

• Demurrage / Dispatch

Module VII Sessions

Multimodalism 12

• Multimodal Emphasis

• Containerization / Unitization / Pelletization

• Role of CONCOR in International Trade

• Current Issues & Developments

Module VIII Sessions

Global Logistics & Supply Chain Management 13

• Challenges

• World’s Best Supply Chains

• Supply Chain Performance Evaluation

Module IX Sessions

Trade Facilitation In Global Trade 14 & 15

• Critical Role & Importance

• Customs & EDI

• World Bank Studies on APEC & OECD

• T.F. under WTO / GATT

• Connecting to Compete – World Bank / UNCTAD Study

• T.F. under FTP (2004-09)

Modules III, IV and VIII will be covered by Gen. D.V. Kalra during on-campus/subsequent interaction in five sessions.

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PGCPIB

International Marketing Management

Course Coordinator: Prof. R.M. Joshi

About the Course Coordinator

Dr. Rakesh Mohan Joshi, is the Professor and Chairperson, Management

Development Programme at Indian Institute of Foreign Trade, New Delhi. He has over

two decades of teaching, consultancy and training experience in international marketing

and business management. He has had extensive exposure to the international marketing

and has been associated with multilateral organizations, such as the World Bank and the

Asian Development Bank. He has authored a book on “International Marketing”,

published by Oxford University Press that is widely adopted as a core text-book across

the world. His case studies have been awarded by London Business School, University

of London and used internationally. He has also authored numerous research papers in

leading journals.

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1. Objective

In view of globalisation and opening up of national economies, the

marketing scenario has changed considerably. For growth and survival of

companies in this era of global marketing challenges, skills and knowledge of

international markets and opportunities thereof has become vital. Therefore, this

course has been designed to equip the students with the concepts, skills and

techniques in the area of international marketing in the following aspects:

� Develop a conceptual understanding of international marketing

� Research for International Marketing Decisions

� Decision making process for international markets

� Entry Modes for international markets

� International marketing mix decisions

2. Pedagogy

Selected case studies would be given so as to facilitate participants to

relate the theoretical concepts with the real life situations in global marketing.

Subsequently, these practical situations would be discussed with theoretical

concepts. To make classroom interactions more meaningful, the participants are

advised to come prepared and collect information from various contemporary

newspapers and research articles. To develop comprehensive understanding of

various concepts, the participants will carry out project work. The details of the

Projects and the guidelines are annexed.

3. Evaluation

Class participation including case analysis 20% Project Assignment 30% End Term 50%

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4. Session Plan

Sessions

The Concept of International Marketing 1, 2 & 3

• To explain the concept of international marketing

• To distinguish between domestic and international marketing decisions

• To identify the reasons for entering international markets

• To understand evolutionary process of global marketing

Readings: Chapter 1 of Joshi, R.M, “International Marketing”

Case: Essel Propack : The World’s Largest Manufacturer of Laminated Tubes

Sessions

Decision Making Process for International Markets 4 & 5

• To explain the concept of decision making in international markets

• To discuss identification of international markets

• To explain various methods of segmenting international markets

• To explain tools and techniques for selecting international markets

Readings: Chapter 6 of Joshi, R.M, “International Marketing” Case: Identifying International Marketing Opportunities in Medical Services

Sessions

How to Enter the International Markets 6, 7, 8, & 9

• To explain the concept of international market entry

• To discuss modes of entry involving production in the home country

• To learn modes of entry involving production in a foreign country

• To evaluate various factors affecting the selection of entry mode

Readings:Chapter 7 of Joshi, R.M, “International Marketing”

Case: Indian Oil Corporation’s Internationalisation Strategy

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Sessions

Product Strategy for International Markets 10 & 11

• To describe the concept of product decisions for international markets

• To explain product standardization vs. adaptation in international markets

• To discuss the process of new product launch and diffusion in international markets

• To discuss building brands in international markets

• To examine international product strategies

Readings: Chapter 8 of Joshi, R.M, “International Marketing”

Case: Homologation of ‘Motor Vehicles’ in International Markets

Sessions

Pricing Decisions for International Markets 12

• To explain the significance of pricing in international markets

• To examine various pricing approaches in international markets

• To discuss various forms of counter trade

• To describe transfer pricing in international markets Readings: Chapter 10 of Joshi, R.M, “International Marketing”

Case: Drug Pricing in International Markets

Sessions

International Distribution Decisions 13

• To discuss channels of distribution in international markets

• To describe various channel intermediaries in international markets

• To understand the structure of distribution channels in international markets

• To explain international retailing

• Readings: Chapter 11 of Joshi, R.M, “International Marketing”)

Case: Channels of International Distribution for Floriculture

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Sessions

Promotional Decisions for International Markets 14 & 15

• To understand the concept of international marketing communication mix

• To explain the process of communication in international markets

• To describe various tools of international marketing communication

• To discuss factors influencing international marketing communication decisions

Readings: Chapter 12 of Joshi, R.M, “International Marketing”

Case: APEDA’s International Mango Promotion Campaign

5. Compulsory Readings

• Joshi, R.M., International Marketing, Oxford University Press (2005), New Delhi.

6. Supplementary Readings

• Dana-Nicoleta Lascu, International Marketing, - Managing Worldwide Operations in a Changing International Environment, Biztantra.

• Jain, Subhash, International Marketing Management, South Western Publishing

• B. Bhattacharyya, Going International, Response Strategies of the Indian

Corporate Sector, Wheeler Publishing, India

• Kapferer, Jean- Neol, Strategic Brand Management, Kogan Page

• Kumar V., International Market Research, Prentice Hall of India Pvt. Ltd.

• Witliam J. Stanton, Michael J. Etzel and Bruce J. Walker, Fundamentals of

Marketing, McGraw Hill

• International Business Week (Weekly)

• Fortune (Weekly)

• International Marketing Review (Quarterly)

• Journal of International Business Studies (Quarterly)

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7. Websites

www.indiagov.org/economy www.foreigntrade.com www.eiu.com www.indiainfoline.com www.ama.org www.wto.org www.mckinseyquarterly.com www.trbi.co.uk www.ita.doc.gov www.ictsd.org www.uber.org www.rfe.org/sc www.ala.org/library www.library.umass.edu/subjects/business

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PGCPIB

International Financial,Trade , Forex & Risk Management

Course Coordinator: Prof. Ashok Kapoor

About the Course Coordinator

Professor Ashok Kapoor specialises in International Financial & Forex

Management and Banking & Financial Services. He was a first division and merit rank

holder throughout his academic career.

Professor Kapoor has 26 years of active experience in the Banking and Financial

Services Industry at Senior and top Positions, viz. CEO & Executive Director, Country

Head and Assistant General Manager in an MNC Financial Institution, a leading new

generation Private Sector Bank and the country’s premier Public Sector Bank

respectively both in India and abroad. He has handled all functional areas including

Corporate Credit & Forex dealing in overseas markets as well as in India. He was

instrumental in conducting a number of simulation based Bourse Programmes on the

Forex Market for Corporates in the early nineties at the time when the Indian Forex

Markets were being liberalized. These programmes were widely covered and appreciated

in the Financial Press. In addition, he has over 8 years of training and teaching

experience as well.

Professor Kapoor was part of a core team for a project on improvement of the

Credit Delivery System in the country’s premier Bank. Also brought out inhouse

booklets on `New Schemes for Export Finance’ and `International Financial Markets’.

He was Project Leader for a Research Study conducted on “Appreciation of

Indian Rupee:Impact On Indian Handicrafts Exports” sponsored by Ministry of Textiles.

Professor Kapoor is a Visiting Faculty to various premier Management Institutes in

India and abroad, Consultant and Advisor to Financial Institutions in the country and

overseas. He had also been an independent Director on the Board of a leading Financial

Institution in India.

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1. Objective

Globalization and integration of financial markets present unique

opportunities and unique risks for all kinds of firms. This course is designed to

provide you with a strong conceptual background to allow better financial

management decisions relating to international operations of MNCs. The course

begins with an in-depth analysis of exchange rates, contemporary currency

regimes, and current financial crises. After an understanding of currencies, the

course introduces global opportunities open to firms for raising finance and

managing currency and interest rate risk. Special topics will cover other issues

that are specific to international markets. The course is designed to provide a

Global perspective alongwith relevance to an Indian context.

2. Pedagogy

The course methodology uses cases, problems as well as class room

lectures and discussions.

3. Evaluation

End Term Examination 40%

Class Attendance 10%

Class Tests 20%

Individual Assignment 30%

Exams will be based on the material covered in class and assigned

readings. The exams will consist of short answer questions or problems. Please

read the chapters assigned before each class. This will make the in-class

discussions more interesting and rewarding. The course will be in a lecture-

discussion and case-discussion format.

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4. Session Plan

Sessions

1

• Introduction, Course Outline and Term Paper discussion

• Managing International Finance- An overview

Readings: Chapter 1

Sessions

2

• International Fund Flows

• International Financial Markets

Readings: Chapter 6

Sessions

3

• Determining Exchange Rates

• Exchange Rate Derivatives

Readings: Chapters 4 & 5

Sessions

4

• Exchange Rate Systems

• Interest Rate Parity & International Arbitrage Readings: Chapters 6& 7

Sessions

5

• Relationships among Exchange Rates, Inflation & Interest Rates

• Exchange Rate Forecasting Readings: Chapters 8 & 9

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Sessions

6

• Class Test 1

• Currency Exposure Measurement

• Transaction Exposure Management Readings: Chapters 10& 11

Sessions

7

• Transaction Exposure Management

• Management of Economic and Translation Exposure Readings: Chapters 11 & 12

Sessions

8

• Exchange Markets in India

Readings: Chapters 5 & 6- A.V. Rajwade

: IIFT background material

Sessions

9

• Class Test 2

• Financing International Trade

• Methods of Trade Payments

Readings: Chapter13

Sessions

10

• Trade Finance Methods

• Export Finance Schemes for Indian Exporters

Readings: Chapter 13 :Background material – RBI master circular on Export Credit & Customer Service to Exporters, www.rbi.org.in

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Sessions

11

• Financing Short Term Commitments

• Deciding on Domestic or Foreign Financing Readings: Chapter 14

Sessions

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• Class Test 3

• Direct Foreign Investment Readings: Chapter 16

Sessions

13

• Analysing Country Risk

• Long Term Financing Readings: Chapters 19 & 21

Sessions

14

• External Commercial Borrowings and Trade Credits

Readings: Background material � RBI master circular on External Commercial Borrowings and Trade Credits

Sessions

15

• Basel Norms & its effect on Corporate Financial Decisions

• Discussions on the Asian Crisis Case

• Submission of Term Paper

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5. Text Book-

Jeff Madura, International Corporate Finance , 8e. Thomson SW, 2006

6. Reference Books

A.V. Rajwade, Foreign Exchange, International Finance, Risk Management, 4e, Academy of Business Studies, 2004

P.G. Apte, International Financial Management, 4e , Tata Mcgraw Hill, 2006

Alan C. Shapiro, Multinational Financial Management, Wiley, 2003

Cheoul S. Eun and Bruce G. Resnick, International Financial Management, 4e, Tata McgrawHill, 2008

You should read the Economic Times, Business Standard or the Financial Express

on a regular basis. The Economist, Euromoney and Asia money publications

would also be useful for real life examples.

7. Term Paper

Each executive will select a company actively involved in International

Business. Write an in house proposal based on research work and discussions

with company professionals, suggesting whether, how &when the company

should raise foreign currency loan and improve upon currency risk and cost

reduction strategies.

Focus should be on issues pertaining to International Finance & Currency

Risk Management. Suggest measures to reduce cost of finance. The company

should adopt to create more wealth from International Business. You may also

study existing loan portfolio of your company & develop strategy to reduce cost

of funding and or risk management.

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