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DRIVE-SPRING
2014
PROGRAM-MBADS
(SEM 3/SEM 5) MBAFLEX/ MBAN2 (SEM 3) PGDIB (SEM 1)
SUBJECT
CODE & NAME-IB0012 – Management of Multinational Corporations
BK
ID-B1200
CREDIT
& MARKS-4 CREDITS, 60 MARKS
Q1.
Discuss the relationship between international business and international
organizations. What could be the objectives of going international?
(Relationship,
objectives) 6, 4
Answer.
Relationship
between international business and international organizations
International business is
increasing day by day and its importance is widely recognized. A number of
international organizations have been setup to facilitate, regulate, measure
and even finance international trade. Some of these organizations are worldwide
and some are regional organizations. Some international organizations have
governmental powers and act as supranational entities. It is important for
people involved in international business to understand the
Q2.
Discuss the following theories of international trade:
a)
Comparative cost advantage theory
b)
Porter’s theory
(Comparative
cost advantage theory, Porter’s theory) 5, 5
Answer.
a)
Comparative cost advantage theory
David Ricardo in 1817 advocated
that even though a nation held an absolute advantage in production of two
goods, the two countries could still trade with mutual benefit. Two countries
could both benefit from trade if each had a relative advantage in production.
In simple terms it can be said that a country specializes in production of
those commodities
Q3.
Many countries are apprehensive about permitting MNCs operations. What are the
possible reasons for this?
(Case
against MNCs) 10
Answer.
Case
against MNCs
MNCs are not widely welcome by
many host countries. The critics of MNCs argue their case on following grounds:
i) On political grounds, it is
argued that MNCs indulge in violation of human rights, promotion of corruption
among politicians, support to terrorist groups and sometimes even in
destabilizing the government in the host countries. There is a great fear that
all these mal-practices may result in challenge to the sovereignty of smaller
nation states.
Q4.
Compare the management styles in USA and Japan.
(Management
styles in USA, Management styles in Japan) 5, 5
Answer.
Management
styles in USA
U.S.A. being a democratic
country, US managers are often under pressure to show better financial results.
Americans usually stay in their managerial positions only a relatively short
time. American management style can be described as individualistic in approach,
in so far as managers are accountable for the decisions made within their areas
of responsibility. Although important decisions might be discussed in open
forum, the ultimate responsibility for the
Q5.
Explain the scope of comparative management.
(Comparative
management’s scope) 10
Answer.
Comparative
management’s scope
The scope of comparative
management in managing multinational companies is discussed below:
(i) Ability to manage cultural
diversity: Managers
face difficulties when they work in another culture. People, having different
mental programmes, see situations differently and apply different approaches
and solutions to problems. When a person starts to function internationally, an
understanding of culture and its effect on behaviour,
Q6.
Write short notes on:
a)
Ethical issues in international management
b)
Social responsibility
(Meaning
and role of Ethical issues in international management, meaning and role of
Social responsibility) 5, 5
Answer.
a)
Ethical issues in international management
There are a number of ethical
issues which international managers are facing. The important among them are
discussed below:-
(i) Bribery and Corruption
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