MBA209 ANS

Question 1. Ans-International business helps in strengthening the economic relations

among nations. These business helps other nations by exporting them
goods of their requirements. It helps in developing better mutual
understanding among countries due to which they are ready to support
each other in time of needs.Running a company in accordance with
international corporate social responsibility (ICSR) principles means taking
the impact your business on man, the environment and society into
account. ICSR affects areas such as working conditions, the environment,
human rights and corruption.
Question 2. Ans-Cultural ethics, as the name to culture. In spite of that, suggests deals
with the certain values remain the same morality, integrity, principles
simply because they are and values of a culture, and in ethically and
morally some case, even religion. justifiable.Ethics are the set of moral
principles that guide a person's behavior. These morals are shaped by
social norms, cultural practices, and religious influences. Ethics reflect
beliefs about what is right, what is wrong, what is just, what is unjust, what
is good, and what is bad in terms of human behavior.
Question 3.
Ans-Risk Rating is assessing the risks involved in the daily activities of a
business and classifying them (low, medium, high risk) on the basis of the
impact on the business.Financial risk is the possibility of losing money on an
investment or business venture. Some more common and distinct financial
risks include credit risk, liquidity risk, and operational risk. Financial risk is a
type of danger that can result in the loss of capital to interested parties. For
governments, this can mean they are unable to control monetary policy and
default on bonds or other debt issues. Corporations also face the possibility
of default on debt they undertake but may also experience failure in an
undertaking the causes a financial burden on the business.
Question 4. Ans-A trade bloc is a group of countries joined together through a trade
agreement. Typically, this involves countries in a particular region, for
example, the ASEAN Economic Community in Southeast Asia, the European
Union in Europe, and NAFTA in North America.The bloc formation’s objective
is to increase the flow of goods, services, capital, and labor, depending on
the agreement’s stage. This ultimately increases member countries’
economic power, spurs economic growth, and encourages a more efficient
resource allocation.Some of the benefits of forming a trade bloc include:
Lower prices and more varied products. Tariff elimination leads to lower
prices for consumers in member countries. Free flow also increases access
to a wider variety of goods.
Question 6. Ans-multinational corporation (MNC), also called transnational corporation,
any corporation that is registered and operates in more than one country at
a time. Generally the corporation has its headquarters in one country and
operates wholly or partially owned subsidiaries in other countries.Examples
like; Apple, Amazon, Microsoft, Dell, and other world's largest corporations.
Every multinational firms generally have offices and workshops in different
countries and a centralized headquarters where they coordinate global
management.A multinational corporation (MNC) has facilities and other
assets in at least one country other than its home country. A multinational
company generally has offices and/or factories in different countries and a
centralized head office where they coordinate global management. Some of
these companies, also known as international, stateless, or transnational
corporate organizations, may have budgets that exceed those of some
small countries.
Question 7. Ans-A multinational corporation (MNC) has facilities and other assets in at
least one country other than its home country. A multinational company
generally has offices and/or factories in different countries and a centralized
head office where they coordinate global management.A functionally
organized multinational company uses corporate functions as the basis for
its organizational structure. Production, human resources, design and
customer service are typical functional units.

Question 10. Ans-Framework for Understanding International Business Environment:

Analysis of Physical, Demographic, Economic, Socio-cultural, Political, Legal
and Technological. The (IBE) International Business Environment is
multidimensional including the political risks, cultural differences, exchange
risks, legal & taxation issues.It is a sum total of cultural, political,
economical, social, physical, technological, legal and global forces which
move around the business organization. These forces collectively create a
socio-economic-political situation called business environment.The analysis
of the global environment of a company is called global environmental
analysis. This analysis is part of a company's analysis-system, which also
comprises various other analyses, like the industry analysis, the market
analysis and the analyses of companies, clients and competitors.Analyze
environmental factors, such as new laws, trends, and technology. Consider
all environmental factors which would affect your business and how they
can be monitored. Analyze each environmental factor in detail to determine
how much impact they will have on your business.Types of Business
Environment – Economic, Political, Legal, Technological, Socio-Cultural,
Geographic and International Environment.These business sectors operates
in the three business environments, i.e. micro, market and macro. The
owners of these sectors have a certain amount of control over the three
business environments.

Question 12. Ans-(i) Global expansion plan

A global expansion strategy is a formal business plan that outlines how a
company intends to expand its operations into foreign countries and
markets, while mitigating risks and enhancing revenue growth.Expanding
globally gives your company the opportunity to access high-quality talent
from around the world. Hiring global employees can provide unique insights
into local cultural norms. Additionally, many workers from emerging
markets may be less expensive than workers from Western
countries.Expanding abroad allows you to get out of a saturated market.
Expanding abroad gives you access to new customers and in a market
where your competitors do not operate. One of the reasons why businesses
expand globally is to be able to provide a reliable service to their
international clients.Global expansion is taking operations into a new,
overseas market. Companies establish a legal presence in the new country
through a foreign subsidiary or one of the agile methods that we will explain
later in this article.
(ii) Exit strategies
 An exit strategy is a contingency plan that is executed by an investor,
trader, venture capitalist, or business owner to liquidate a position in a
financial asset or dispose of tangible business assets once predetermined
criteria for either has been met or exceeded.An exit strategy may be
executed to exit a non-performing investment or close an unprofitable
business. In this case, the purpose of the exit strategy is to limit losses.An
exit strategy may also be executed when an investment or business
venture has met its profit objective. For instance, an angel investor in a
startup company may plan an exit strategy through an initial public offering
(IPO).
Question 13. Ans-Centralization refers to the process in which activities involving
planning and decision-making within an organization are concentrated to a
specific leader or location. In a centralized organization, the decision-
making powers are retained in the head office, and all other offices receive
commands from the main office. The executives and specialists who make
critical decisions are based in the head office.Similarly, in a centralized
government structure, the decision-making authority is concentrated at the
top, and all other lower levels follow the directions coming from the top of
the organization structure.Centralized organizations have all decisions
coming from the same place. Centralized management is the organizational
structure where a small handful of individuals make most of the decisions in
a company. For example, a small family diner owned by a married couple
probably uses centralized management.
Decentralization or decentralisation is the process by which the activities
of an organization, particularly those regarding planning and decision
making, are distributed or delegated away from a central, authoritative
location or group.Concepts of decentralization has been applied to group
dynamics and management science in private businesses and
organizations, political science, law and public administration, economics,
money and technology. For example, if a restaurant decides to open
another location in a different state, decentralization can give the new
location freedom to operate independently. As a result, they'll be able to
customize their approach to better meet the needs of the new market.

Question 14. Influencing variable means a specific financial indicator used in the SCALE
model, which has a benchmark within OPCS that does not need to be met
by a financial institution in order to be initially approved for a reduced
collateral floor, but a financial institution may be ineligible for a reduced
collateral floor if it does not meet a certain number of influencing
variables.nfluencing variable cost of transportation (e.g. fuel, maintenance)
may not be easily achievable by simple policy measures and require
substantial lobbying or multi- stakeholder work.For example, a cost impact,
service impact, environmental impact, damage to healthContext indicator
Influencing variable potentially affecting failure probability e.g.temperature,
water aggressivityIndicator A general term covering measures, metrics and
parameters for measuring risk to service.
Centralized Message Distribution System (CMDS) means the industry-wide
data collection system, which handles the daily exchange of message
details between CMDS participating telephone companies (also known as
CMDS Direct Participants). AT&T-21STATE is a CMDS Direct Participant.
Centralized Message Distribution System or "CMDS" means the operation
system that Local Exchange Carriers use to exchange outcollect and IABS
access messages among each other and other parties connected to CMDS.