IB06 International Business

Assignment No.I
Assignment Code: 2012IB06A1 Last Date of Submission: 15th April 2012 Maximum Marks:100

Attempt all the questions. All the questions are compulsory and carry equal marks.

Section-A Ques. 1

(a). (b).

Describe in detail the opportunities and challenges that Globalization has presented. Support your answer with examples. What are the functions of Ministerial Conference?

Ques. 2

(a) Write short notes on any two: 1- Futures and options contract 2- WTO agreement on Services 3- Counter Trade

(b)

Why some joint ventures succeed and why some fail to deliver?

Ques. 3

(a).
(b).

Discuss in detail factors determining exchange rates How does exchange rate fluctuations affect the profitability of companies engaged in Export Import.

Ques. 4

Choice of a strategy for a multinational firm depends on a comparison of benefits and costs of implementation. On this basis, it may be logical for a firm to pursue a multidomestic strategy, for others a global strategy or an international strategy, and still for others, a transnational strategy? Explain. Section-B

Case Study: Monsanto’s Repatriation Program Monsanto is a global provider of agricultural products with revenues in excess of $4 billion and 10,000 employees. At any one time, the company will have 100 mid and higher-level managers on extended postings abroad. Two thirds of these are Americans who are being posted overseas, while the At Monsanto, managing remainder are foreign nationals being employed in the United States.

expatriates and their repatriation begins with a rigorous selection process and intensive cross-cultural training, both for the managers and for their families. As at many other global companies, the idea is to build an internationally minded cadre of highly capable managers who will lead the organization in the future.

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transitioning to a new job. Monsanto has found that difficulties with repatriation often have more to do with personal and family-related issues than with work-related issues. Questions: (a). the children may be going to a new school. since the program was introduced in the early 1990s. This is why Monsanto offers returning employees an opportunity to work through personal difficulties. This is a kind of oasis. The debriefing allows the employee to share important experiences and to enlighten managers. “It sounds silly. The debriefing session is a conversation aided by a trained facilitator who has an outline to help the expatriate cover all the important aspects of the repatriation. colleagues and friends about his or her expertise so others within the organization can use some of the global knowledge. According to one participant. and what their contribution to Monsanto will be when they return. subordinates. the attrition rate among returning expatriates has dropped sharply.it works. but it’s such a hectic time in the family’s life . However Monsanto’s repatriation program focuses on more than just business. Once they arrive back in their home country. it also attends to the family’s reentry. a new house. expatriate managers meet with cross-cultural trainers during debriefing sessions. and superiors in special information exchanges. (b). Why does Monsanto need to recruit expatriates for their US Operations? Why & How does the repatriation programme of Monsanto is helping reduce attrition rates? Page No. or sponsors. develop an agreement about how this assignment will fit into the firm’s business objectives. 2 of 4 .” Apparently. You’re going through the move.One of the strongest features of this program is that employees and their sending and receiving managers. you don’t have time to sit down and take stock of what’s happening. a time to talk and put your feelings on the table. They are also given the opportunity to showcase their experiences to their peers. The focus is on why employees are going abroad to do the job. About three months after they return home. expatriates meet for three hours at work with several colleagues of their choice. But the personal matters obviously affect an employee’s on-the-job performance. so it is important for the company to pay attention to such issues. Sponsoring managers are expected to be explicit about the kind of job opportunities the expatriates will have once they return home.

3 Ques. By April 2000. Bank 24. bank 24 was at the heart of a new strategy by Deutsche Bank to build a panEuropean retail channel. including Citicorp and Merrill Lynch. 2000 retail branches. Germany’s third largest bank. Increasingly. Section-A Ques. At the time. instead concentrating on the wholesale side of the business (investment banking and money management). few thought that this would lead to a change in strategy at Deutsche Bank.IB06 International Business Assignment No. Suddenly. but six months later the bank announced it had rethought its retail strategy. The change of strategy stemmed form a growing realization that Deutsche Bank’s branch and online banking platform provided a powerful sales channel to a rapidly growing “money class” – Europe’s highly educated and prosperous 30 and 40 year olds. Section-B Case Study In March 2000. 2 Ques. ‘Just in Time’ manufacturing Discuss various pre-ship documents to be made by an exporter of Engineering goods. estimated there are more than 60 million people in this demographic with the European Union. FEMA (c). In addition to its. Bank 24 had some 11 million customers.000 in Spain. FOB & CIF. the majority in Germany but 1. Deutsche Bank. realized it could use its retail branch Ques. The plan to spin off bank 24 indicated the two banks had decided to withdraw from retail banking. What is meant by the term ‘Flexible manufacturing’ and JIT? What is ‘transfer pricing’? Explain terms like. however the proposed deal had collapsed following significant disagreements between management teams at the two companies. Deutsche Bank. Deutsche Bank. 3 of 4 . All the questions are compulsory and carry equal marks. FDI in Retail Business in India (b).II Assignment Code: 2012IB06A2 Last Date of Submission: 15th May 2012 Maximum Marks:100 Attempt all the questions. this group is switching their savings from deposit accounts into equities and investment funds as they begin to plan for their retirement. Incoterms (d). and by 2000 some 20 percent of all transactions were online. Germany’s largest bank. The stated strategic goal of the merger was to create a European investment and asset management institution that would have the economics of scale required to compete with the top global investment banks. and then spin off bank 24 as an independent entity in which the merger company would have no more than a 10 percent ownership stake. Initially. An important component of the proposed merger was a plan by Deutsche Bank and Dresdner to combine their retail bank operations into Deutsche Bank’s retail banking division. announced it would merge with Dresdner bank. Most analysts applauded the proposed deal. 4 Page No. noting that retail banking in Germany was a low-margin business that held few attractions. Bank 24 had also been a pioneer in using the Internet to sell banking services. 1 Write short note on : (a).5 million in Italy and another 600. while investment banking was a high-margin business.

many of whom would be outside of Germany. But in an effort to curb costs.5 million by 2008. however. particularly in information technology. The geographical distribution of branches will change. The company. Before the change in strategy. Spain.network to sell the investment banking and asset management operations. Maxblue. France and Belgium. unifying information technology. the company wants to grow its retail customer base to 14 million by 2004. while retail branches are opened in other European countries. however. Questions: 1. If attained this would give Deutsche bank a 3 percent share of the global online market is expected to exist by 2008. the impediment to the cross-border sale of money management products had been significantly reduced. Maxblue had some 300. The model in each country will be the same.000 and reducing total employment by about 10 percent. with some branches in Germany being consolidated or closed. while keeping the number of branches constant at 2. the emphasis is likely to be the Internet. at least within the Euro-zone. Despite this investment. as well as some non – EU countries. What are the main elements of Deutsche Banks strategy for Bank 24? Does this strategy hold appeal given (a) the creation of a single market in the European Union and (b) the introduction of the euro? 2. into a coherent whole. Deutsche Bank also realized that with the advent of the euro. Deutsche Bank also indicated that Bank 24 might make selected acquisitions to establish a larger retail presence in other EU nations. Deutsche Banks claims the shift in strategy will boost Bank 24’s profits from euro 400 million in 2004 to euro 1 billion by 2008. Now estimates suggest it will take some $ 250 million of marketing expenditure just to achieve brand recognition across Europe. What potential impediments do you think might get in the way of Deutsche Bank’s aspirations to establish a pan-European retails presence and a pan-European discount brokerage? Page No. telephones and increasingly the Internet. it will move into the Netherlands and the United Kingdom. where Bank 24 already has a presence. Another element of the strategy calls for Deutsche bank to expand the reach of its online brokerage unit. including redesigning branches abroad. Bank 24 will be used to market Maxblue. also states that if the concept works.000 client accounts. and significant additional investments will be required in information technology. To implement the strategy. In late 2004. The plan calls for this number to grow to 1. the majority in Germany. 4 of 4 . Deutsche Bank plans to weld bank 24’s operations. into a pan-European discount broker. Deutsche Bank had budgeted some $ 110 million for building up Bank 24. The basic idea will be to offer a full range of financial services via branch offices. Implementing this strategy will require heavy investments. Thus. which are scattered across seven European countries. such as Poland and the Czech Republic (both of which have applied to enter the EU). and marketing the new look. The initial plans call for further expansion in Italy.

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