International business

SubjectInternational business
Semester2nd semester (spring)
Study programme:Business studies (Master)
Primary language:Slovene
This course will be taught in Slovenian language and is a compulsory course in the official course syllabus for the Masters Program in Business Studies. The course covers traditional and contemporary theorise as well as practice in the field of international economic relations.
Pre-course requirements
Prerequisite for students for entering into the course is mastering the basics of macroeconomics and microeconomics taught on the undergraduate level. Students must master basics of mathematics, which among others also make them possible to use mathematical functions, integral and derivative. Students should have sufficient knowledge of Slovenian language to be able to communicate with lecturers and students, to follow the lectures and to understand the study materials that will be provided within the course.
  1. To position international business into the context of macroecomics as well as to introduce the role of international institutions in the field of international economic relations.
  2. To introduce to students the theoretical basis which are used to understand the causes, mechanisms and benefits of international economic relations from the perspective of traditional and contemporary theories.
  3. To develop a capability of students of an autonomous understanding and critical evaluation of match and mismatch between theory and practice in the field of international trade flows.
  4. To develop a capability of students of an autonomous understanding and critical evaluation of foreign investments in the context of international economic relation.
  5. To develop a capability of analysing causes and consequences of particular measures and instruments of international business (instruments of restricting international trade…).
  • capability to understand the laws and principles of international business and international economic relations;
  • capability of an in-depth understanding of the quantitative approach to the analysis of causes and consequences of international trade and foreign investments;
  • capability of a comprehensive, critical thinking as well as capability of analysis, synthesis and anticipation of solutions in the field of international economic relations.
Learning outcomes
After completing the course, the student should be able to:
  • understand the basic concepts and specificities of international business and the motive for international business in the case of differences in the productivity of factors of production;
  • explain the patterns of international production specialization;
  • understand concepts such as terms of trade, the offer curve;
  • understand causes and consequences of foreign investment;
  • to understand and analyse the mechanisms, causes and consequences of international trade, in accordance with basic international trade theory, the classical theory of international trade, theoretical model of Heckscher and Ohlin, as well as alternative theories of international exchange;
  • to understand the basic characteristics of the liberalization of international trade within the framework of the GATT/WTO, to understand the features of the global economy and the characteristics of the European integration.
Syllabus outline
  • Introduction to international business and basic information about the course.
  • Concepts and specificities of international trade.
  • Doctrine and the theory of international economic relations.
  • The role and functioning of the international institutions (WTO, IMF, World Bank) and the importance of regional integration in the modern world (EU, NAFTA, ASEAN, MERCOSUR, etc.) 
  • The basic theory of international trade.
  • The classic theory of the absolute and relative comparative advantages.
  • The theoretical model of Heckscher and Ohlin and alternative theories of international trade.
  • The optimal production specialisation in terms of free international trade.
  • Regulation of international trade and latest trends in the field of theory and practice.
  • Foreign investments.
Types of learning/teaching
  • frontal type of teaching
  • independent work and individual study of students
Methods of learning/teaching:
  • explanation
  • discussion
  • case studies
  • solving exercises
  • including guest experts from companies in the teaching
Evaluation system and criteria
The assessment is performed through a written final exam. To pass an exam, minimum of 50 % of all points is required.
Teaching and learning material
  • Krugman, P., Obstfeld, M.: International Economics: Theory and Policy. New York: Addison Wesley, 2003. XXIX, 754 pgs.
  • Kumar, A.: Mednarodna ekonomika, Ljubljana: Ekonomska fakulteta, 2007.
  • Borkakoti, J.: International trade: Causes and Consequences. London: MacMillan, 1998. XVI, 602 pgs.
  • Šenk Ileršič, I.: Mednarodno poslovanje (izbrana poglavja). Ljubljana: GV Založba, 2013.
  • Vaupot, Zoran. Gravitacijski modeli in mednarodne transakcije v srednji in vzhodni Evropi. Bančni vestnik : revija za denarništvo in bančništvo, jul.-avg. 2017, letn. 66, št. 7-8, str. 59 – 65.
  • Selected articles from the selected international journals in the field of international business.
  • Power point presentation handouts, additional exercises and other additional study material provided via faculty intranet.
Office hours
  • before and after the class
  • by appointment


Čepar, Žiga