IB0012 – Management of Multinational Corporations

DRIVE: spring 2016


SUBJECT CODE & NAME: IB0012 – Management of Multinational Corporations

BK ID: B 1906


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

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


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)


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


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)


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)


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



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.


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