Answer Sheet For The Subject Of International Business

Ans2-WTO-The International trade is based on multilateral trading system. It is a system involving trade amongst various countries. it is therefore, necessary that the rules and regulation of such system are properly define. In the year 1947, an attempt was made by 23 countries in the world to define the basic norms for conduct of international trade. The trade negotiation amongst these 23 countries in multilateral treaty called general agreement On Traffic and Trade (GATT) in the year 1948. The GATT was established to secure the conduct of international trade based on the principles of non-discrimination, transparency and liberalization. Function of World Trade Organization (WTO) * Administering World Trade Organization (WTO) trade agreement * Forum the trade negotiation * Handling trade disputes * Monitoring national trade policy * Technical assistance and training for developing countries * Co-operation with other international organization (like help from World Bank and IMF). ANS3- International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more regions, countries and nations beyond their political boundary. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons.[1] It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction .A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota,

Answer Sheet For The Subject Of International Business

consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next. The conduct of international operations depends on companies' objectives and the means with which they carry them out. The operations affect and are affected by the physical and societal factors and the competitive environment. ANS5- Todays business environment is very fluid and high risk. This makes it all the more challenging for SMEs to develop a Corporate Governance program that is clear and straightforward. This will show the investors and customers that the intentions of the company are noble and that it is committed to being a responsible entity in the global marketplace. SMEs should be able to learn from the best practices, procedures and core set of beliefs of the bigger corporations and go about ameliorating them. Fundamentally the owners and managers in SMEs must harmonize the competitive aspects of tempting profiteering with concerned citizenship. They must take individual responsibility for the decisions and activities of their enterprises and their impact on the culture of their enterprise and its stakeholders. All organizations should look at the big picture with respect to the physical environment and the prospects for the ensuing ANS7-Foreign direct investment (FDI) or foreign investment refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.[1]. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. It usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares.[2] FDI is one example of international factor movement.

Answer Sheet For The Subject Of International Business

Starting from a baseline of less than USD 1 billion in 1990, a recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010-2012. As per the data, the sectors which attracted higher inflows were services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, the US and the UK were among the leading sources of FDI. FDI for 2009-10 at USD 25.88 billion was lower by five per cent from USD 27.33 billion in the previous fiscal. Foreign direct investment in August dipped by about 60 per cent to aprox. USD 34 billion, the lowest in 2010 fiscal, industry department data released showed. [6]In the first two months of 2010-11 fiscal,FDI inflow into India was at an all-time high of $7.78 billion up 77% from $4.4 billion during the corresponding period in the previous year. ANS8- UNO-The United Nations is an international organization designed to make the enforcement of international law, security, economic development, social progress, and human rights easier for countries around the world. The United Nations includes 192 member countries and its main headquarters are located in New York City. Functions of the United Nations Today As it was in the past, the main function of the UN today is to maintain peace and security for all of its member states. Though the UN does not maintain its own military, it does have peacekeeping forces which are supplied by its member states. On approval of the UN Security Council, these peacekeepers are often sent to regions where armed conflict has recently ended to discourage combatants from resuming fighting. In 1988, the peacekeeping force won a Nobel Peace Prize for its actions. In addition to maintaining peace, the UN aims to protect human rights and provide humanitarian assistance when needed. In 1948, the General Assembly adopted the Universal Declaration of Human Rights as a standard for its human rights operations. The UN currently provides technical assistance in elections, helps to improve judicial structures and draft constitutions, trains human rights officials, and provides food, drinking water, shelter, and other humanitarian services to peoples displaced by famine, war, and natural disaster. Finally, the UN plays an integral part in social and economic development through its UN Development Program. This is the largest source of technical grant assistance in the world. In addition, the World Health Organization, UNAIDS, The Global Fund to Fight AIDS, Tuberculosis, and Malaria, the UN Population Fund, and the World Bank Group to name a few

Answer Sheet For The Subject Of International Business

play an essential role in this aspect of the UN as well. The UN also annually publishes the Human Development Index to rank countries in terms of poverty, literacy, education, and life expectancy. For the future, the UN has established what it calls its Millennium Development Goals. Most of its member states and various international organizations have all agreed to achieve these goals relating to reducing poverty, child mortality, fighting diseases and epidemics, and developing a global partnership in terms of international development by 2015. Some member states have achieved a number of the agreement's goals while others have reached none. However, the UN has been successful over the years and only the future can tell how the true realization of these goals will play out.

Answer Sheet For The Subject Of International Business

Part=B
Ans6= The continuing growth in the international job market is becoming more and more challenging as expectations for new international job and career opportunities rises. A lot of people are considering international business careers mainly because of the great opportunities and rewards it offers to the qualified. International business careers are not only rewarding and challenging, but fast paced as well. If youre considering an international career then you may want to check on a few things to help you decide if you have what it takes for working in an international job environment: Are you judgmental? The most important factor in international business careers environment is the ability to accept and work within the customs, beliefs, culture, and attitudes of a particular country. Having a strong personality and personal background experience which makes a majority of successful business executives may be the worst attitude in an international business environment. The only way to succeed in international business careers is to build strong relationships that encourage local employees to cooperate. Are you the task-oriented type or the people-oriented type? Accomplishing corporate goals and objectives are primary in an international assignment, however many cultures throughout the world considers people, family, and community as the most important aspect and so being too task-oriented may jeopardize productivity. Knowing everything possible about the culture you are possibly going into is a good place to start to identify whether or not you can accept this culture. Do you welcome changes or are you a flexible person? Being open to unexpected challenges and situations which may sometimes be uncontrollable, is one of the important qualities a person considering international business careers must possess. Is the thought of family and friends around you more appealing? International business careers means a little sacrifice on the family and friends, as it is less likely in the present economic environment that companies will pay for family relocation. Nowadays, international business careers contracts have been shortened to the 12-18 month contracts than

Answer Sheet For The Subject Of International Business

the older 2-3 year agreements. This allows companies to get around the expensive relocations. International business careers require your ability to function efficiently and effectively away from home, family, and friends. Is having your spouse with you a must? A spouse of a person considering international careers should also be aware of the changes that will be gone through. It is nice for a spouse to be in a foreign assignment, but it is not likely that the spouse can also have work in the foreign country which means that they may be at home all day adjusting to the new environment. In fact, it much more difficult for the spouse to be in a foreign country doing nothing and feeling isolated which may cause problems. Are you willing to take the risk? Does the fear of a risky place for certain nationalities bother you? Although the chances of being injured by a terrorist act is very small, some people in countries tend to act differently around foreigners and can make for a psychologically hostile and may result to an unhappy working and social environment.

International Business careers opens a wide range of great opportunities for people, but knowing and understanding what you are getting into is very important, this will determine your success and failure in your chosen field. Ans-3-How important is privatisation in India. The first order issue is that of competition policy. When the government hinders competition by blocking entry or FDI, this is deeply damaging. Once competitive conditions are ensured, there are, indeed, benefits from shifting labour and capital to more efficient hands through privatisation, but this is a second order issue.The difficulties of governments that run businesses are well-known. PSUs face little "market discipline". There is neither a fear of bankruptcy, nor are there incentives for efficiency and growth. The government is unable to obtain efficiency in utilising labour and capital; hence the GDP of the country is lowered to the extent that PSUs control labour and capital.

Answer Sheet For The Subject Of International Business

When an industry has large PSUs, which are able to sell at low prices because capital is free or because losses are reimbursed by periodic bailouts, investment in that entire industry is contaminated. This was the experience of Japan [ Images ], where the "zombie firms" - lossmaking firms that were artificially rescued by the government - contaminated investment in their industries by charging low prices and forcing down the profit rate of the entire industry. Further, in many areas, the government faces conflicts of interest between a regulatory function and an ownership function. As an example, the Ministry of Petroleum crafts policies which cater for the needs of government as owner, which often diverge from what is best for India. There is a fundamental loss of credibility when a government regulator faces PSUs in its sector: there is mistrust in the minds of private investors, who demand very high rates of return on equity in return for bearing regulatory risk. These arguments have led many economists to advocate large-scale privatisation, so as to clear the slate, and get on with the task of building a mature market economy. The role model in this regard is Germany [ Images ]. After the collapse of communism and the unification of East and West Germany, an auction was held for selling off all East German PSUs. Negative bids were permitted; i.e. the government was willing to even pay a private manager to take over a loss-making business if no higher bid was to be found. Through this, Germany was able to erase the heritage of socialism, and get on with the task of running an efficient market economy. While such a game plan is entirely feasible in India, the present Parliament desires no privatisation. Does this mean that in the immediate future, progress in economic policy on privatisation must merely wait for the next elections? When we look at various industries in India, the gains from privatisation are quite heterogeneous. In some cases, there are hopelessly loss-making PSUs. These operate in industries where private and foreign firms have been able to come in, and the PSU has been left far behind the standards of quality and price set by the private sector.

Answer Sheet For The Subject Of International Business

The PSUs should ideally have been sold off long ago, but today, these firms are irrelevant for the competitive dynamics of the industries that they operate in. The only issue is that of getting the land, the labour and some machinery out of public hands. When privatisation is achieved, India will benefit because the private buyer will produce more GDP using the same resources, and the flow of budgetary support to these firms will cease. The government should be happy to get these firms out of its hands with negative bids. The next and most interesting category comprises industries like telecom and airlines. In these areas, India has witnessed the dramatic benefits that come from the entry of private players. Telecom and airline services in India are now dramatically improved, if not yet up to worldclass, by changing rules in a way that permitted limited entry to domestic and foreign players. The privatisation of VSNL [ Get Quote ] was critically important because it was part of the opening up of the ILD sector to competition: the government would arguably have been more tardy in opening up if it had a vested interest through ownership of VSNL. However, the key innovation, which broke with the stasis of socialism was opening up entry barriers - not privatisation. In both sectors, the full benefits from permitting foreign competitors, which are only present in very muted fashion, remain to be harnessed. While Spicejet is a good airline, there are bigger benefits waiting to be obtained by having domestic flights run by Lufthansa and Singapore Airlines. In both sectors, the defining issue in policy is the removal of entry barriers, not privatisation. Looking forward, there is a good chance that in some years, BSNL, MTNL [ Get Quote ] and the merged airline will end up like one of the many defunct PSUs of today. It makes sense for the government to sell today - while the going is good. But the privatisation of these three firms is no longer the most important issue - the further elimination of entry barriers faced by domestic and foreign firms is.

Answer Sheet For The Subject Of International Business

What does this tell us about banking? The decline in market shares of PSU banks, while helped along by strikes of PSU bank unions, has proceeded only slowly. This is partly because there is a fundamentally non-level playing field where private and foreign banks have deposit insurance for only Rs 100,000 of deposits while PSU banks have unlimited deposit insurance. This gives one reason in favour of bank privatisation: it is inherently difficult to achieve competitive conditions without privatisation. But equally, there is no industry in India where the licence-permit raj hinders entry more than in the case of banking. At a time when the Indian economy is booming, and every kind of business is being created, the one industry where we see no new firms starting up is banking. This has surely got to do with government restrictions on entry. There is absolutely no industry in India where the opening of branch offices by foreign firms and private firms requires permission from the government. When Ford [ Images ] operates in India, it has to obey rules on FDI, but after that, it never has to go back to the government to take permission to open offices. What is worse, all foreign banks - put together - are given permission to open 12 branches per year in the full country. There is no worse instance where contemporary Indian policy-making is animated by ideas from the 1960s. Uses: 1)Development would be faster(due to competetion with the other private parties) 2)Innovative solutions (due to again competetion with the other private parties) 3)effective & time bound results 4)cost cuttings 5)improves quality in work 6)in turn more services to public are possible 7)increase the productivity

Answer Sheet For The Subject Of International Business

8)significant Growth in the business 9)controlled monitoring of public property gives public in turn good services possible Losses 1)allways a threat to working staff. 2)as private parties try to extract work from minimum resources,downsizing is the common problem 3)un-employement increases 4)if the private party is inefficent, there is every possiblity of the business winding up. 5)more restrictions on many things 6)purely commercial in natrure and lacks ethical / human morales at times.