MB-301 1029 Odd Semester Examination, 2017-18 MBA (SEMESTER-III) INTERNATIONAL BUSINESS Time: 03:00 Hours Max Marks: 70 Q.1. Answer any four (4°3.5=14] 1. Write short notes on (any three) (a) TRIPS and TRIMS (b) Types of LiC’s (©) Asian Development Bank (AD) (4) Globalization (€) Cultural Risk in International Business. 2. What.is the impact of technology on business? 3. What do you mean by ‘Double Entry System’? Explain with a suitable illustration, 4, ‘Balance Sheet is a ‘Snap Shot’. Why it is so called? 5. Explain the term IPR. 2. Answer any four (4*3.5=14] 1. Define international business on the basis of actions. 2. Write down the causes of globalization. 3, Write down the trends in trade flow. 4, What are the determinants of exchange rate? 5. Explain the factors causing conflict in international business. MB-301/1520 (a) [P10]Q3. a4, Qs. Answer any two (2°7=14] 1. What are the barriers to international trade? List and explain all the types of barriers to international trade, 2. Explain Adam Smith's theory of absoliité advantage. How does Ricardo’s theory of comparative advantage differ from theory of absolute advantage? 3. Explain the functions of WTO. Describe the dispute resolution mechanism of WTO Answer any two (2"7=14] 1. Explain different factors affecting exchange rate. 2. Explain various performance indicators of a MNE in detail 3. Is globalization desirable in international business? Discuss how globalization would affect Indian Economy. ‘Answer any two [2°7=14] 1, Explain the role of information systems. 2. What are the functions of regional groups in international business? 3. Why do firms prefer FDI over exporting or licensing? What are the available modes of entry into foreign markets? MB-301/1520 (2)MB-301 110 Printed Pages : 3 Paper Code & Roll No. to be filled in your Answer Book Roll No. Odd Semester Examination-2016 MBA (Semester-IITI) INTERNATIONAL BUSINESS [Time : 3 Hours] {Maximum Marks : Note : Attempt All que 1. “India’s democratic system and its emphasis on small business development make it a promising market for another. Whether a concept will succeed in a given country isa function of taste, political environment, the economy and price range. Without careful analysis of the products and the market place, it may not work.” Comment on the above statement. What are your own views? [14] 12”. Discuss the statement from the view point of the both the home country and the host country. MB-301/2020 a [PTO]OR Differentiate between balance of trade and balance of payment, also indicate how balance of payments analysis can be usefil to international markets. [14] Attempt any two : [7*2=14] (a) Discuss the various barriers to trade that have been used by developing countries to protect their domestic producers. (b) Distinguish between AbsoJute advantage theory and Comparative Advantage Theory of International ‘Trade. (c) “International Business is not a bed of roses”. ‘Comment. Attempt any two : [7x2=14] (a) What are the different theories of international trade? Critically examine Bertil Ohlin’s Factor Endowment Theory. ‘MB-301/2020 2) (6) Discuss the objective, functions and the role played by the International Monetary Fund (IMF) in international business (c) “Give a brief note on WTO. What are advantages and disadvantages of WTO to India? 5 Attempt any two : [7*2=14] (a) Explain the following terms: spot transaction, exchange rate, Direct quotes, indirect quotes. (b) What is the rationale of regional economic groupings? Do you think that such a grouping may be beneficial for India. (©) What are the different niodes of entry into international business? Explain briefly, by bringing out their merits and demerits. MB-301/2020 GB)MBA-301 1028 Printed Pages : 3 Paper Code & Roll No. to be filled in your Answer Book Roll No. MBATI Year (III Sem.) Odd Semester Examination-2015 INTERNATIONAL BUSINESS Time : 3 Hours} [Maximum Marks :100 Unit 1 Answer Any Four (4x5=20) 1.1 Whatare the key differences between domestic business and intemational business? 1.2 Explain the different stages of development of intemational business. 1.3. Howisinternational business broader in scope as compared to intemational trade and international market? 1.4 Technology is application of knowledge which redefines the boundaries of global business.’ Comment 1.5 Analyse the impact of culture on the behaviour of a global consumer. qa MBA-301 / 1860Unit It Answer Any Four (4x5=20) 2.1 Whatis the difference between Balance of Trade and Balance ofpayments? 2.2 Whatare the various functions of World Bank? 2.3 Writea short note on Commercial Policy Instruments. 2.4 Whatare Special Drawing Rights? 2.5 Whatis UNCTAD? Why was it founded? Unit Answer Any Two (2x10=20) 3.1. Discuss the diversification principle in context of foreign investment vis-d-vis domestic investment? 3.2 "Regional cooperation is now considered the means of enhancing economic development and providing economic security withit theregions." Elucidate 3.3 What is economic integration? Explain the different kinds of economic integration, Q) 301 UnitIV Answer Any Two (2x10=20) 4.1 Explain the factors influencing the Intemational Logistics Management. 4.2 Discuss the distinct concept of Intemational Human Resource Management. 4.3 Howdo youre-engineer the international business strategies on the basis of e-commerce technologies prevalent these days? Unit V Answer Any Two (2x10=20) 5.1 Whatare the possible risks of the alliances? How can they be overcome or minimized? 5.2 Explain the impact of Flls and GDRs on the Indian economy? 5.3 Whatisajoint venture? Why do firms prefer joint venture to go global? @) PTO,QS. OR ‘The choice of the most suitable altemative of entering into international market depends on the relevant factors telated to the company, the foreign market and the government polices’. Discuss in detail. (14 Marks) A) ‘SEZs when operational are expected to offer (7 Marks) B) ‘Business risk involves the possibility of financial and operational difficulties in the business environment Explain, (7 Marks) OR ‘Most firms begin with no formal structure but as they grow, the organization is split into functions reflecting the firm's value creation activities’. Enumerate in detai (14 Marks) 4) MB-301 / 1650/4 MB-304 4 Printed Pages : 4 Roll No. to be filled in your Answer Book Roll No. MBA Third Semester Examination 2014 International Business Time : Three Hours} [Max. Mark: wote > Attempt all questions. Section-A Q. 1. Case Study: (16 marks) American Motors Corporation (AMC) for years had been ‘America’s fourth largest producer of automotive vehicles. It dropped to fifth position when Volkswagen began producing cars in US, after joining with Renault of France in 1980. AMC started to drop them, It began producing and selling Renault's designed cars instead of its own. AMC was also the world’s largest producer of four wheelers since its acquisition of Jeep from Kaiser in 1870.Joining with Renault did not threaten the viability of AMC's Jeep line because Renault had no four wheelers, In fact, Renault became exclusive distributor for Jeeps in France and elsewhere. By 1980, worldwide sales of jeep were over 2 lakhs per year with three fourth of that in US. and Canada, which represented the domestic business. The international sales in 1981 including communist countries were 45,000.Until the fall of Shah, Iran was the biggest market. Among four wheelers, Jeep was the a) MB-301 / 1650/4oud © (suew 2) ‘eped| /euoReUayU] Ul JuewKed Jo sepow juaeyip eyy uleldxy (g (sew 2) uones62yU1 d1WOUCDe Jo SPUD UJEWIp 94) UleIAxs ZuONesBO}UL 1woUucds Jo saBeyuenpesip pue seBejueape ay) aue yeu uOHesBeqU! 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Su'suaoy pue ajquesse yum sjoyrewl uBies0} maj @ ul BuuNyoejnUeW pay) peYy deer oWY ‘4EAOMOH “O1YO Woy paonpoid asaM sdaal sup Jo }SOY ‘BINZEUEA pUe e\SeUOPUI ysNIU| suOAeLAdo A\qUUOSSE SII JO SOU pey BOAO), '}SeNUOD U| ‘saLqUNOD 02 J8N0 Ul BuIsUEOY uo pue Aiquiasse ‘Buynjoesnuew ym osje sioyjeduioo eut Jo [eqo|6 sow a4) sem daar senoy puey pue UessiN 'e}0f0] 31am Jepi0 ul sioyjeduco sy J9|}98}s9610}1) 2) 3) 4) The bankruptcy of the importer is the reason for loss to the exporter and not the deficiency of service by the bank, The Supreme Court set aside the judgement of the National consumer forum and passed the judgement in favour of the bank, with costs, on March 15, 2007. Questions Elaborate the deficiency of service on the part of the bank pointed out by the National consumer redressal forum, the light of the uniform rules for collection ICC publication No.522. 4) ‘Advise the firm about the precautions they should have taken to avoid such a colossal business loss. (4) Discuss the remedial measures the bank in India should take to avoid such damaging judgements by the consumer forums, (4) Elaborate the Supreme Court judgementin the context ofthe international banking rules and practises, as guic by the ICC publications. (4) (8) MBA-301 / 3140/10 MBA-301. Printed Pages : 10 MBA Rall No, to be Re No. [ Sem. III) UTU EXAMINATION, 2013-14 international Business ime: 3.00 Hours] Note: Attempt all questions: Section A Case Study (18) M/S Taneja Exports, Mumbai Mr. Gurmeet Taneja and Mr. Rahul Khatri are partners of MIS Taneja exports, Mumbai Both of them qualified from IIFT, New Delhi in the year 2002. They declined lucrative corporate job offers, since they have decided to plunge into the world of international business. (a) MBA-301 / 3140 / 10MIS Taneja Exports is registered as a partnership firm, with Mr. Gurmeet Taneja and Mr. Rahul Khatri sharing the profits in the ratio of 60: 40. The partners had conducted in depth market survey in the domestic as well as international markets regarding the demand of women’s apparels in cotton and hosiery. They have taken the assistance of Apparel export promotion council and the marketing agencies in various countries of European Union. On account of their knowledge in foreign trade, they were able to quickly assess that Indian exporters have not succeeded in penetrating into the huge apparel market of Europe. They found out that the main reasons were ineffective marketing, improper quality control and non adherence to the shipping schedules. Mr. Gurmeet concentrated on marketing of the cotton and hosiery apparels abroad and Mr. Rahul ensured on the procurement of the raw materials and timely execution - shipments. The firm had taken an industrial gala, measuring 700 sq ft, at 501, Mangal Das market, Lower Parel, Mumbai. They were paying a monthly rent of Rs. 35,000/- for the office @) MBA-301 / 3140 / 10 premises and the stock of garments was keptin a godown in the same gala area, for which the rent payable was Rs. 15,000/- pm. The firm was sourcing their raw materials from the south Indian towns of Tirupur and Coimbatore. As per’ the export orders, they were providing the raw materials for job works in Mumbai and subject the samples to rigorous quality and specification checks. The firm had employed 2 accounts staff and 3 contract workers to attend to daily office and godown activities. The firm was able to achieve steady improvement in export sales due to the stringent quality control measures and timely execution of shipment schedules. The following were the credit facilities enjoyed from M/S International Bank of India, Fort branch, Mumb: “Towards the security of the credit facilities, the firm had __ se Mortgaged the residential house, valued at Rs 86 lakhs, ~ belonging to Mr. Vikram Taneja, father of Mr. Gurmeet Taneja, and stocks valued at Rs 15 lakhs was also hypothecated to the Bank. Mr. Vikram Taneja stood ies sanctioned to the firm. guarantee for the fa ) MBA-301M/S Taneja exports used to avail the export packing credit facility from International Bank of India and adjust the Is drawn same by purchase or negotiation of the export on their European buyers. Generally the bills carried a tenor period of 60 days. Most of the export bills were drawn and send for collection through international Bank of India, Mumbai Fort Branch, to the foreign buyer's bankers, based on the confirmed purchase order of the buyer. The bills were paid on the due dates and the conduct of the account on the bank's books was quite satisfactory. Based on the past history and the increase in sales turnover achieved by the firm, the bankers were its from Rs 7 lakhs in 2003 happy to increase the cred to Rs 17 lakhs in 2005, On June 17, 2005, the firm submitted an export document to International Bank of India, Fort Branch, for Euro 53000.00, drawn on M/S St Laur Fashions, Paris. The documents were drawn on 60 days DA terms as per th~ contract. The merchandise under the export were ladiey garments in cotton and hosiery. In the covering letter of the firm to the bank, they had instructed the bank to present the documents to St Laumn, Paris, through their bankers viz, Credit Lyonnais, Paris. The exporter had submitted (4) MBA-301 / 3140 / 10 of exchange, bills of lading, commercial invoice, packing ist, inspection certificate, certificate of origin and in the bill of exchange it was typed as ‘to be co-accepted by credit Lyonnais’ The International Bank of India took the documents in its books and sent the documents for collection to Credit “*” yonnais, Paris. In due course, they received communication from Credit Lyonnais that the documents were accepted by St Laum and due date of the documents were August 25, 2005. The bankers informed the due date of the bill to Taneja exports. On August 30, 2005, Taneja 1 Exports informed the bankers that they are yet to receive the payment of the bill for Euro 5300.00 in their books. ‘The bank sent a swift message enquiring about the fate and payment of the bill. Two days later the bank received message from Credit Lyonnais saying that the importer, St Laur, had become bankrupt and they were unable to nay the bi 10 Taneja Exports. They argued with the bank that they international Bank of India informed the same had clearly mentioned in the bills of exchange that the documents were to be released against the co- acceptance of the French bank only. Immediately the Indian bank send a message to Credit Lyonnais that since the bill of exchange contained the co-acceptance clause 6) MBA-301of Euro 3000.00 (approx Rs 24 lakhs) along with 15% interest, tillthe date of payment. by the French bank, they are liable to pay even though the importer had become bankrupt. The French bank Facility 2003 2004 200d refuted the claim of the Indian Bank and intimated that the bank’s collection instruction did not contain any co- acceptance clause by the French bank and they had acted Fund based as per the provisions in the uniform rules for collection in (Amount in Lakhs) ja) Exportpackingcredit | 5.00 7.00 | 10.09 the ICC publication No 522. 2 i . b) Foreign bill purchased/ | 5.00 7.00 | 10.09 ‘Since payments were not forthcoming, Taneja Exports ne rete led a suit with the National Consumer Forum, New Delhi iency of services by International Bank of India, Non Fund based Mumbai, on November 10, 2005. They put forth the argument that the bank was deficient in not mentioning about the co-acceptance clause in theircovering|etterto ” Export sales 20.00 30.00] 40.01 the French bank and in case of non-co acceptance by the French bank they would have retumed the documents to India and the exporter could have arranged for an alternate buyer or reimport of the merchandise. This negligence on the part of the bank had caused them total financial loss. After hearing the arguments of both the» - ¥ la) Performance guarantee} 2.00 5.00 7.01 The bank went on appeal against the order of the consumer forum in the Supreme Courton March 20, 2006. After hearing the counsels of both sides, the Supreme Court gave the judgement that since the original agreement between the exporter and importer do not have any co-acceptance clause by the importer’s banker, the parties, The National Consumer Forum gave the of exchange cannot be judgement, on February 6, 2006, that the International co-acceptance clause on the nding on the French Bank as well as on the Indian Bank. Bank of India was deficient and negligent in their services and ordered them to compensate the value of the export ” MBA-301 ©) MBA-301 / 3140 / 10