3rd Sem – International Business

DRIVE SPRING 2016

PROGRAM MBA

SEMESTER III

SUBJECT CODE &

NAME

IB0010 & INTERNATIONAL FINANCIAL MANAGEMENT

 

 

  1. Explain the difference between International Financial Management and Domestic Financial Management? Discuss the goals of international financial management?

Difference between international financial management and domestic financial management.

Goals of international financial management

 

Answer: Difference between international financial management and domestic financial management

  • Foreign exchange risks: The foreign exchange risks states the fluctuation or variation in the prices of currency which will have a tendency to convert a profitable deal to a loss making one. This creates a

 

 

  1. Explain the advantages and disadvantages of fixed and floating rates systems? Discuss foreign exchange transactions?

Explain advantages and disadvantages of floating rate systems.

Meaning, types

 

Answer: Advantages of fixed rates system

  1. The system provides exchange rates stability by eliminating uncertainty.
  2. Volatility of exchange rate is controlled as it insulates the economy from external disturbances.
  3. Foreign investors are

 

 

  1. Explain the concept of Swap. Write down its features and various types of interest rate swap.

[Introduction of Swap-2

Features of swap-4

Various types of interest rate swap-4]

 

Answer: Swap is an agreement between two or more parties to exchange sets of cash flows over a period in future. The parties that agree to swap are known as counter parties. It is a combination of a purchase with a simultaneous sale for equal amount but different dates. Swaps are used by corporate houses and banks as an

 

  1. Elaborate on meaning of foreign exchange exposure. Explain the types of foreign exposure.

Meaning of foreign exchange exposure

Explain the types of foreign exposure

 

Answer: The foreign exchange exposure of a firm can be defined as a measure of the sensitivity of its cash flows to changes in exchange rates. Due to the difficulty of measuring cash flows, exposure is examined by most of the researchers through the study of how a firm’s market value responds to the changes in

 

 

 

  1. Write short notes on:

International Credit Markets

International Bond Markets

[International Credit Markets-5

International Bond Markets-5]

 

Answer: a) International Credit Markets

International credit markets are the forum where companies and governments can obtain credit (loans in various

 

 

 

  1. Country risk is the risk of investing in a country, where a change in the business environment adversely affects the profit or the value of the assets in a specific country. Explain the country risk factors and assessment of risk factors.

[Introduction of country risk factors-5

Explanation of assessment of risk factors-5]

 

Answer: Country Risk Factors

We can define country risk as the risk of losing money due to changes that can occur in a country’s government or regulatory environment. The most common examples are acts of war, civil wars, terrorism and military coups, etc. It comes in various forms: for example, change in the government of a country, a new president or prime

 

 

DRIVE SPRING 2016

PROGRAM Master of Business Administration- MBA

SEMESTER 3

SUBJECT CODE &

NAME

IB0011– International Marketing

 

  1. Discuss the concept of international marketing. How is international marketing difference from domestic marketing?

A concept

difference

 

Answer: The concept of International Marketing primarily involves an application of marketing tools and techniques to develop and manage trade across international boundaries. The principle of international marketing in its simplest meaning is based upon an understanding of the consumer needs in global markets. Therefore,

 

 

  1. Explain Hofstede’s cultural dimension. Discuss the main elements of culture with examples

A Elements Hofstede’s cultural dimension

Elements of culture

 

Answer: Hofstede’s cultural dimensions

Power distance: The term “power distance” refers to the degree of inequality among people who are viewed equal. Power distance implies the ways through which people develop interpersonal relationship in a society. The hierarchy of relationships is of two kinds, namely, vertical and horizontal. In vertical hierarchy, there is a

 

 

  1. Define international marketing research approach? Discuss the international research process.

A International marketing research approach

Discuss the various steps in the process

 

Answer: International marketing research deals with the analysis of the market, information regarding the nature, size, organisation, profitability of different markets, changes in the market and various factors – economic, social and political – affecting those changes. International markets are characterised by rapid technology change and knowledge obsolescence. Due to this, the processes of production and the products become

 

  1. Discuss the various steps in the process of product development. Describe international product life cycle.

A Discuss the various steps in process of product development.

Describe international product life cycle

 

Answer: Product Development Process

Identifying new product ideas: The starting point for an effective worldwide new-product programme is an information system that seeks new-product ideas from all potentially useful sources and channels. Those ideas relevant to the company undergo screening at decision centres within the organisations. There are many

 

 

  1. Write short notes on:
  2. a) export documentation
  3. b) export import procedure

 

Answer: Export Documentation

Documentation protects the interests of both the exporter and importer and also helps in fulfilling the legal requirements of the two countries. The banks deal with documents and not with goods; therefore, to facilitate the flow of goods and payments, the export documents should be prepared with due diligence. An exporter has to prepare a list of documents for a shipment. Below is a list of documents required in an export

 

 

  1. Define ethical problems in international Marketing? Explain the 4ps of international marketing?

A Define ethical problems in IM

Explain 4ps of International marketing

 

Answer: Ethical Problems in International Marketing

The moral question of what is right or appropriate poses many dilemmas for domestic marketers. Even within a country, ethical standards are frequently not defined or always clear. The problem of business ethics is infinitely more complex in international markets, because value judgements differ widely among culturally diverse groups. That which is commonly accepted as right in one country may be completely unacceptable in

 

DRIVE: spring 2016

PROGRAM: MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3) PGDIB (SEM 1)

SUBJECT CODE & NAME: IB0012 – Management of Multinational Corporations

BK ID: B 1906

CREDIT & MARKS: 4 CREDITS, 60 MARKS

Q1. What are the benefits of MNCs to home and host countries?

(Benefit to home country, Benefit to host country) 5, 5

Answer:

Benefit to home country:

 

  • MNCs help the home country gain access to raw materials available in foreign markets, which is relatively cheaper in price.
  • MNCs create ample opportunities for marketing products manufactured in the home country

 

 

Q.2: What do you understand by global sourcing? What are the different forms of global sourcing? Elucidate.

Meaning of global sourcing (4 marks)

Forms of global sourcing (6 marks)

Ans:

Meaning of global sourcing

A procurement strategy in which a business seeks to find the most cost efficient location for manufacturing

 

 

Q3. What is the need and importance of global strategy for MNCs?

(Need of global strategy, Importance) 5, 5

Answer:

Need of global strategy:

 

When companies declare that they are ‘going global,’ what they actually mean is that they are entering global markets, i.e., markets outside their home countries. It is very important that a company clarifies its definition of ‘going global’ as the strategic implications are completely

 

Q.4: How is the performance of employees assessed and appraised in multinational corporations? Explain in brief.

Performance appraisal in MNCs (10 marks)

Ans:

The concept of multi-nationality has a number of dimensions. For some the criterion may be ownership of the organization whereas for others it may be nationalities of the senior

 

 

Q.5: What are the main reasons pertaining to the inadequate attention towards issues relating to labour relations in MNCs?

Reasons (10 marks)

Ans:

MNCs use the resources of the host countries in most efficient manner so as to gain the maximum ignoring the wishes of the local politicians. The MNCs no doubt bring capital and technology and create employment in host country.

The host

 

Q.6: Explain enterprise risk management ?Discuss types of risk in ERM

  1. Explain concept of ERM
  2. Discuss the types of risk in ERM

 

Answer:

Concept of ERM:

Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives.

 

DRIVE SPRING 2016

PROGRAM Master of Business Administration- MBA

SEMESTER 3

SUBJECT CODE &

NAME

IB0013 Export- Import management

 

1 What are the various approaches to exporting? Explain the benefits of export?

Approaches

benefits

 

Answer: The various approaches of exporting are classified as follows:

Golden Rule

The Golden Rule primarily focuses on the initial approach of doing marketresearch successfully in the overseas

 

2 Explain the procedure for Establishing a Business Firm.

Procedure

 

Answer: Establishing a Business Firm

  1. Selection of the name of the firm

An entrepreneur has the freedom to select any name for his proposed businessfirm. However, since it is proposed to start export business, it is desirable thatthe name should convey the meaning that this firm is engaged in export/ importbusiness. The name should be simple, short and precise. Various words

 

 

3 What are the Terms and Conditions of an Export Order?

Stag Terms and condition 10 10

 

Answer: Terms and Conditions of an Export Order

The terms and conditions of an export order would vary from order to orderdepending on the nature of product, parties involved and so on. The followingare the standard clauses of an export order:

  • Product and its description
  • Product

 

 

5 What are the various types of commercial documents used in export trade?

Explain in detail.

Types of commercial documents 10

 

Answer: Types of commercial documents

Invoice: An invoice is commercial document issued by a seller, indicating the productdetail, quantity and negotiated prices for product or service, the seller has toprovide to the buyer. It indicates sales detail (

 

 

 

6 What are the Various Schemes Offered to Exporters?

types of schemes offered

 

Answer: Various Schemes Offered to Exporters

Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme

Scheme for Assistance to States for Developing Export Infrastructure and AlliedActivities (ASIDE) is formulated to involve the States in the export effort byproviding assistance to the States Governments for creating appropriateinfrastructure for the development and growth of exports. The Scheme isadministered by Department of Commerce (DoC).The objective of scheme is to establish a mechanism for involving theState Governments to participate in funding of infrastructure critical for

growthof