Pir Mehr Ali Shah

Arid Agriculture University, Rawalpindi

Office of the controller of Examinations
Mid Exam / Spring 2021 (Paper Duration 12 hours)
To be filled by Teacher

Course No.: MGT-574 Course Title MGT-574 International Business (IB)

Total Marks: 18 Date of Exam: May 04, 2021

Degree: BBA (H) Semester: 6th Section:

Marks
Q.No. 1 2 3 4 5 6 7 8 9 10 Obtained/
TotalMarks
Marks
Obtaine
d
Total Marks in Words:
Name of the teacher: Tahir Masood
Who taught the course: Signature of Teacher / Examiner:

To be filled by Student
Registration No.: 18-ARID-6371 Name: Shagufta amin

Question. 1 [Marks:06]
As markets globalize and an increasing proportion business activity transcends national borders,
institutions are needed to help manage, regulate and police the global market place and to promote
the establishment of multinational treaties to govern the global business system.
Explain the following in your own words:
 General Agreement on Tariffs and Trade (GATT);
The General Agreement on Tariffs and Trade (GATT), signed on October 30, 1947, by way of 23
countries, turned into a legal settlement minimizing boundaries to worldwide alternate by means of
casting off or lowering quotas, price lists, and subsidies whilst preserving considerable guidelines.1
The GATT became supposed to enhance monetary recovery after World War II via reconstructing
and liberalizing international alternate.
The GATT was created to form policies to cease or limit the maximum luxurious and unwanted
features of the prewar protectionist duration, namely quantitative change barriers which include
change controls and quotas. The settlement also provided a machine to arbitrate business disputes
amongst countries, and the framework enabled some of multilateral negotiations for the discount of
tariff barriers. The GATT changed into regarded as a enormous success within the postwar years.

World Trade Organization (WTO);

From the early days of the Silk Road to the introduction of the General Agreement on Tariffs and
Trade (GATT) and the beginning of the WTO, change has performed an critical role in supporting
economic development and selling peaceful members of the family among nations.
The World Trade Organization (WTO) is the most effective global worldwide agency managing the
policies of alternate among international locations. At its coronary heart are the WTO agreements,
negotiated and signed by using the bulk of the world’s trading countries and ratified of their
parliaments. The intention is to help producers of products and offerings, exporters, and importers
behavior their commercial enterprise. There are a number of methods of searching at the World
Trade Organization. It is an organization for trade establishing. It is a forum for governments to
negotiate trade agreements. It is an area for them to settle change disputes. It operates a system of
change rules. Essentially, the WTO is an area in which member governments attempt to sort out the
alternate issues they face with each different.
The WTO is run by way of its member governments. All predominant decisions are made by the
club as a whole, either with the aid of ministers (who usually meet at least once each two years) or
by means of their ambassadors or delegates (who meet often in Geneva).
The WTO agreements are prolonged and complicated because they may be prison texts covering a
huge variety of sports. But some of simple, fundamental principles run for the duration of all of
these files. These principles are the foundation of the multilateral buying and selling machine

 FATF;
The Financial Action Task Force (FATF) is the worldwide cash laundering and terrorist financing
watchdog. The inter-governmental body unit’s international standards that goal to save you these
illegal sports and the damage they cause to society. As a policy-making frame, the FATF works to
generate the essential political will to result in national legislative and regulatory reforms in these
regions.

With extra than two hundred nations and jurisdictions dedicated to implementing them. The FATF
has developed the FATF Recommendations, or FATF Standards, which ensure a co-ordinate global
response to save you organized crime, corruption and terrorism. They help authorities go after the
cash of criminals dealing in illegal drugs, human trafficking and other crimes. The FATF also
works to prevent investment for weapons of mass destruction.
The FATF reviews cash laundering and terrorist financing techniques and continuously strengthens
its standards to cope with new risks, such as the regulation of virtual assets, which have spread as
crypto currencies advantage popularity. The FATF monitors nations to make certain they
implement the FATF Standards absolutely and efficaciously, and holds nations to account that don't
comply.
The goals of the FATF are to set requirements and promote effective implementation of prison,
regulatory and operational measures for combating cash laundering, terrorist financing and other
associated threats to the integrity of the worldwide financial gadget. Starting with its own
participants, the FATF monitors nations' development in implementing the FATF
Recommendations; opinions money laundering and terrorist financing strategies and counter-
measures; and, promotes the adoption and implementation of the FATF Recommendations globally

International Monetary Fund (IMF);

The IMF was installed in 1944 inside the aftermath of the Great Depression of the Nineteen
Thirties. Forty four founding member nations sought to construct a framework for global financial
cooperation. Today, its membership embraces one hundred ninety countries, with body of workers
drawn from 150 nations.

The IMF is governed with the aid of and accountable to the ones one hundred ninety nations that
make up its near-worldwide club.
The IMF's resources mainly come from the money that nations pay as their capital subscription
(quotas) when they end up individuals. Each member of the IMF is assigned a quota, based totally
widely on its relative function within the global economic system. Countries can then borrow from
this pool while the fall into monetary trouble.
The IMF monitors the global economic machine and global monetary developments to become
aware of dangers and suggest guidelines for boom and financial balance. The Fund also undertakes
an everyday health take a look at of the monetary and financial policies of its a hundred ninety
member countries. In addition, the IMF identifies viable dangers to the economic stability of its
member nations and advises their governments on viable coverage modifications.
 United Nations (UN).

The most important feature of the United Nations is to preserve worldwide peace and security. The
Security Council might also look into any dispute or state of affairs to decide whether it's far likely
to endanger worldwide peace and protection. At any degree of the dispute, the council might also
advocate appropriate processes or methods of adjustment, and, if the parties fail to settle the dispute
by way of peaceful manner, the council may additionally endorse phrases of settlement.
The United Nations (UN) is an intergovernmental organization that pursuits to keep global peace
and safety, expand pleasant members of the family among international locations, obtain global
cooperation, and be a centre for harmonizing the moves of countries. It is the biggest, maximum
familiar, maximum the world over represented and most powerful intergovernmental organization
within the international. The UN is centered on global territory in New York City, with its other
main offices in Geneva, Nairobi, Vienna, and The Hague.
The employer's mission to keep world peace changed into complex in its early many years by using
the Cold War between the US and Soviet Union and their respective allies. Its missions have
consisted often of unarmed military observers and lightly armed troops with in most cases tracking;
reporting and self belief-constructing roles.UN club grew drastically following vast decolonization
beginning in the 1960s. Since then, 80 former colonies have won independence, consisting of
eleven agree with territories that have been monitored by way of the Trusteeship Council. By the
Seventies, the UN's price range for financial and social development programmers far outstripped
its spending on peacekeeping. After the give up of the Cold War, the UN shifted and extended its
field operations, task an extensive form of complex duties

Question. 2 [Marks:06]
Free market economies stimulate greater economic growth, whereas state-directed economies stifle
growth. Do you agree or disagree with the above statement? Give reasons. (Write one reason in one
paragraph)

Honestly loose market, all assets are owned by people, and the choices about how to allocate such
resources are made by using the ones individuals in place of governing bodies. This economic idea,
known as laissez-faire, believes that governments need to have no hand in enterprise and if they do,
it most usually leads to marketplace inefficiencies.

Yes I agree with above statement and I mention reasons below here.

Business Efficiency
Unlike other varieties of economies, a market economy will increase the efficiency of groups. The
authorities is restricted in how it regulates transactions inside a marketplace economic system and
maximum rules it enacts are to defend purchasers, the surroundings, market contributors, and
country wide protection. The restricted function of governments promotes improved performance
and free and accelerated opposition. With the lifestyles of opposition, a business has a tendency to
do whatever is important to decrease its costs and gain a higher wide variety of sales to boom
earnings.
Because groups compete with one another, they have to decide ways in which to have a aggressive
benefit so they can seize a larger marketplace proportion for his or her service or product. This
leads them to discern out a way to reduce prices, enhance their product, and so forth so that it will
seize that extra marketplace proportion.

Increased Productivity
Increased productiveness is also related to a market economic system. In any economic system,
people need money to buy items and offerings. In a marketplace economy, this need leads to
elevated motivation due to the fact employees want to earn extra cash to deliver their needs and to
stay without problems.

When human beings are influenced to work, there may be accelerated productivity and output for
the economy. In a command financial system, wherein wages, levels of manufacturing, fees, and
investments are set by way of a government or government, there may be much less worker
motivation because no matter how a good deal tougher you work, you will no longer see any extra
economic benefit.

Innovation for a Competitive Edge

A country with a market financial system also has accelerated innovation. With money as the
principle motivating aspect for companies and people, they appearance to create new merchandise
and technologies to generate better incomes. In a marketplace financial system, companies and
individuals are advocated to innovate to benefit an aggressive edge. This isn't the same as a
command economic system, where the government controls manufacturing, consisting of supply
and call for, so there is no motive for businesses to compete. Innovation also ends in an expansion
of products and offerings, which provides a much wider choice for clients.

Competition generally ends in higher excellent merchandise for customers at decrease charges due
to the fact groups want to determine out how to appeal to clients. This allows them to innovate not
most effective in the manufacturing of the coolest or carrier but also in its first-class. Innovation
leads to higher generation that in addition improves society.

A market economic system is one in which the allocation of resources and the expenses of products
and services are decided through market factors, basically the regulation of deliver and call for.
Market economies have little government intervention, permitting personal possession to determine
all enterprise choices based totally on marketplace factors. This sort of economic system leads to
extra performance, productiveness, and innovation.

Question. 3 [Marks:06]
Outline the determinants of culture and Explain in your own words using diagram.

Culture is a critical a part of International Business. Culture is defining the collection of values,
beliefs, behaviors, customs and attitudes of the member within the society. Culture is the behavior
that humans act within the network. The function of lifestyle is also reflects discovered behavior
that is transmitted from one member to every other in society. There also are primary factors
cultures consisting of social shape, language and religious. So the foreigner who desires to operate
the enterprise at the overseas market has to apprehend the way of life on the nearby market to turn
out to be successful.

Religion
Social structure

Culture norms
and values
Economic
Language
philosophy

Education Political
philosophy

Social structure; Social structure, in sociology, the different, stable association of

establishments wherein people in a society engage and live together. Social shape is regularly
treated collectively with the concept of social change, which deals with the forces that change the
social structure and the employer of society.
Social structure composed of
Grouping
Social stratification
Grouping
A Group is largely an assemblage of human beings. It can be understood as a collection of
individuals ( or more), who come together and interact with every different, so as to attain the
objectives of the business enterprise. These are the muse of a company.

Social stratification
Social stratification refers to a society's categorization of its human beings into agencies primarily
based on socioeconomic elements like wealth, income, race, training, ethnicity, gender, profession,
social status, or derived electricity (social and political). As such, stratification is the relative social
role of humans within a social institution, class, geographic place, or social unit.
Caste machine
A closed device of stratification wherein social role is described through the family into which a
person is born.
Change in that function isn't viable in the course of a character lifetime.
Class device
Open device
Is a much less inflexible shape of social stratification in which social mobility is viable.
Rich to terrible or poor to wealthy

Religious & Ethical Systems

These will have an impact on worldwide commercial enterprise, especially when conducted from
inside every other. However, it's miles vital for researchers to take into account that the same ethics
and values aren't held with the aid of each person in a goal marketplace. They are constantly
depending on status, place, ethnicity and faith. Researchers ought to additionally recall the human-
rights behavior of any capability marketplace

Cultural options Each worldwide marketplace may have varying choices for merchandise,
meals, product/meals great tiers, or even manufacturers. The meaning of shapes, colors and iconic
functions also can have special cultural importance. These cultural variations should be taken under
consideration to determine whether or not merchandise are appropriate for a marketplace or
whether or not they may be tailored for more commercial enterprise fulfillment.

Languages
The languages spoken and used in a country have an impact on marketing, emblem names, the
gathering of information thru surveys and interviews, marketing and the behavior of commercial
enterprise relationships. Languages would possibly vary among areas of a rustic, and a few
countries have more than one professional language. The quantity of languages spoken in a country
usually gives a completely clear indication of the level of range in subculture and attitudes.
However, even nations in which handiest one language is spoken may have regions of extensive
cultural variety.

EDUCATION
An IB education is designed to expand inquiring, knowledgeable and caring younger folks that will
assist to create a higher and more non violent international. Today, as new worldwide challenges
emerge beneath an unprecedented pace of exchange, an IB education is more relevant and vital than
ever.
The IB and its programmers are precise in lots of approaches. We are a not-for-profit organization,
which means that there are no shareholders and any surplus income is invested in our paintings. We
are independent of political and business pastimes, and IB programmers are provided in a hugely
various range of schools around the world; each country and personal, countrywide and worldwide,
big and small.

Political philosophy
Political philosophy is the examiner of human beings in societies, focusing at the claims they've on
each different inside the shape of rights and duties, and their demands for justice, equality and
liberty. Political philosophy is also involved with the evaluation of the kingdom and its institutions.

Economic philosophy
International economics is concerned with the results upon monetary activity from international
differences in effective assets and consumer choices and the international establishments that have
an effect on them. It seeks to explain the styles and effects of transactions and interactions among
the population of various nations, such as alternate, funding and transaction

Good Luck