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DRIVE-fall
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
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 where it has comparative cost advantage, i.e,
where its
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.
ii) On sales and
marketing grounds, MNCs are accused
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 b
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, particularly management
behavior and practices, becomes es
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
Bribery is the main
root of corruption in many countries, particularly so in developing and
underdeveloped countries. Bribery has different meaning in different countries.
A practice which
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if urgent
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