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BUSINESS ENVIRONMENT– MGT16102

UNIT  CONTENTS

 1 Business  Environment:  An  Introduction  :  Concept;  Significance;  Constituents  of Business  Environment,  Internal  Environment,  External  Environment,  Micro  Environment; Business and Society.

 2 Social  Environment:  Business  and  Ethics;  Business  and  Culture;  Social  Responsibility, Responsibilities  to  Shareholders,  Responsibilities  to  Employees,  Responsibilities  to Consumer, Responsibilities to Community; Business and Government, Role of Government in Business; Political System and its influence on Business; Indian Constitution; Directive Principles of State Policy.

3 Indian  Economy:  Economic  System;  National  Income;  Expenditure;  Investment,  FDI  in India; Economic Planning, Brief View of Five-Year Plans; Priorities of IX Plan.

 4 Economic Environment of Business: Income Distribution and Poverty; Capital Formation  and Domestic Savings; Public and Private Sectors; Privatisation Move; Fiscal Policy.

 5 Industrial  Policy  and  Regulatory  Structure:  Industrial  Development;  Industrial  Policy Resolution; Small Scale and Cottage Industries; Problem Solutions; New Economic Policy and its impact on Economy.

 6 Legal  Environment  of  Business  :  Legal  Environment  of  Business,  Monopolistic  and Restrictive Trade Practice (MRTP) Act, Foreign Exchange Regulation Act (FERA). Foreign Exchange  Management  Act  (FEMA),  Difference  between  FERA  and  FEMA,  Intellectual Property  Rights  (IPR),  Right  to  Information  (RTI);  Forms  of  Business  Organisation; Business  Legislation,  Indian  Contract  Act,  1872,  Indian  Partnership  Act,  1932,  Sale  of Goods Act, 1930, Negotiable Instruments Act, 1881, Companies Act 1956.

 7 Ecological Environment of Business:  Environmental Pollution and Economy; Ecosystem Concepts; Industrial Ecology and Recycling Industry.

 8 International  Business  Environment  :  International  Business:  Overview,  Types  of International Business,  External Environment;  Economy and Political Environment,  Human and  Cultural  Environment,  Influence  on  Trade  and  Investment  Pattern;  Work  Financial Environment;  Cross  National Co-operation and Agreement; Tariff and Non-tariff Barriers, GATT;  Regional  Trade  Block,  Some Regional Groupings; Globalisation, Dimensions and Stages of Globalisation; International Trade Environment; Theories of International Trade, Hecksher-Ohlin Theory, The Absolute Advantage (Adam Smith Model), The Comparative Advantage (David Ricardo Model); Country Risk Analysis, Political, Social and Economic Risk; Cultural and Ethical Practices; Rise of New Economics, Rise of China as Compared to India, Rise of South East Asia as compared to India, Rise of Japan as compared to India.

 9 Managing Multinational Enterprises: Definition of MNEs; Multinational, Global, Multidomestic and Transnational; International Business Approaches,  Potential Need of MNEs; Impact  of  MNEs,  Impact  on  the  Trade  Balance,  Promote  Small  Scale/Ancillary  Industry, Knowledge  Transfer,  Improves  the  Level  of  Technology  of  Local  Firms,  Utilization  of Resources,  Development  of  Infrastructure  and  Economic  Development,  Inter-industry Linkage  Effects,  Forward  and  Backward  Linkages,  Increases  Employment;  Problems  of MNEs,  Multinational  Enterprises  put  Profits  before  People,  Exploitation  of  Workers, Oligopoly of MNE (Impact on Host Country), M&A Activities by MNEs (Impact on Host Country); Indian Companies becoming Multinational.