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DRIVE- SPRING 2014
PROGRAM -MBADS/
MBAFLEX/ MBAHCSN3/ MBAN2 – SEM 4 PGDBMN/ PGDENMN/ PGDFMN/ PGDHRMN/ PGDHSMN/
PGDIB/ PGDISMN/ PGDMMN/ PGDOMN/ PGDPMN/ PGDROMN/ PGDSCMN/ PGDTQMN – SEM 2
SUBJECT CODE &
NAME- MB0053 –International Business Management
Q1. “Environment
scanning is an important part of international business.” Explain your views on
this statement and discuss what factors need to be scanned. (Discuss the
statement, factors) 4, 6
Answer:
Environmental scanning is one essential component of the global environmental analysis. Environmental monitoring,
environmental forecasting and environmental
assessment complete the
global environmental analysis. The global environment refers to the macro
environment which comprises industries, markets, companies, clients and
competitors. Consequently, there exist corresponding analyses on the
micro-level. Suppliers, customers and competitors representing the micro
Q2. What is green
field investment? Why is it considered as the best option for a developing
country like India? (Green field investment, benefits) 5, 5
Answer:
Greenfield Investments: When the FDI comes into new
facilities or expansion of existing facilities, it is known as ‘green field
investment’. Greenfield investments are most welcome in any country of the
world, be it developed or developing as the primary target of green field
investments is to create new production capacity and jobs, transfer technology
and know-how in the host country. Brown field investments, on the other hand
refer to ‘the purchasing of an existing production or business facility that
has become sick or its products do not have significant demand in the markets
or its sales are on decline due to variety of factors like obsolete technology,
higher unit cost, poor distribution etc.’ Such a firm is acquired by
Q3. Regional
integration is helping the countries in growing their trade. Discuss this
statement. Describe in brief the various types of regional integrations.
(Regional integration, types) 3, 7
Answer: Regional integration
Regional integration is the process by which two or
more nation-states agree to co-operate and work closely together to achieve
peace, stability and wealth. Usually integration involves one or more written
agreements that describe the areas of cooperation in detail, as well as some
coordinating bodies representing the countries involved. Some of these are to:
·
Facilitate
trade growth.
Q4. Write short
note on:
a) Foreign
subsidiary structure
b) International
matrix structure
Answer:
Foreign subsidiary structure – In this structure, each of the
company’s foreign subsidiary reports directly to the headquarters. This
structure eliminates the necessity of a regional manager. Though strategic
decisions are taken at the headquarters, each subsidiary acts autonomously for
their local operations. Figure depicts the foreign subsidiary structure in an organization.
Q5. Explain the
Top-down and Bottom-up approach of planning. (Top- down, Bottom-up) 5, 5
Answer:
Top-down planning
Top-down
planning is a common strategy that is used for project planning. It helps
maintain the decision making process at the senior level. Goals and allowances
are established at the highest level. Senior-level managers have to be very
specific when laying out expectations because the people following the plan are
not involved in the planning process. It is very important to keep the morale
of the employees high and motivate them to perform the job. Since employees are
not included in any of the decision making
Q6. Discuss the
importance of ethics in international business. (Importance of ethics) 10
Answer:
The importance of
international business ethics has been rising steadily along with the growth of
international business. Technologies like the Internet have made international
business all the more viable, and many companies can only find the desirable
growth and profit they seek by expanding into new markets. This means that just
as business ethics domestically have grown in importance along with the power
and significance of major businesses, so must international business ethics
take center stage as a major concern of the modern era.
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