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Bachelor of Business Administration-BBA Semester 5
BB0023 Multinationals & their Roles
(Book ID: B0102)
Assignment (60 Marks)
Note: Each question carries 10 Marks. Answer all the
questions.
Q1.
What is a MNC? Discuss the impact of Foreign Direct Investments in at least two
sectors of the Indian economy with examples.
Ans. MNC: An enterprise operating in
several countries but managed from one country. Generally,
any company or group that derives a quarter of its revenue from operations outside of
its home country is considered a multinational corporation.
There
are four categories of multinational corporations:
(1)
A multinational, decentralized corporation with strong home country
presence,
(2)
A global, centralized corporation that acquires cost
advantage through centralized production wherever
cheaper resources are available,
Q2.
“The technologies transferred by the MNC to their production units in the
underdeveloped countries are appropriate for the latter’s social and economic
development needed”. Do you agree or disagree with this statement. Support your
answer with relevant examples.
Ans. Technology diffusion in developing nations
is dependent on a continuous flow of good training for all users and potential
users. Yet relatively little analysis of the results of this training has been
done beyond cursory post-course evaluations. Despite the extensive investments
in IT training by donors, multilateral organizations and the national
governments, the return on investment for these courses and programs is not
clear. This study aims to give a more explicit,
Q3.
Briefly discuss the advantages and disadvantages of MNCs.
Ans. Advantages
of MNC's for the home country
MNC's
home country has the following advantages.
1.
MNC’s create opportunities for marketing the products produced in the home
country throughout the world.
Q4.
Write short notes on the following:
(a)
FERA: The Foreign Exchange Regulation Act (FERA)
was legislation passed by the Indian Parliament in 1973 by the
government of Indira Gandhi and came into force with effect from
January 1, 1974. FERA imposed stringent regulations on certain kinds of
payments, the dealings
(b)
Q5.
Write a brief note on international HRM strategy.
Ans. Human Resource Management is becoming more
and more important for multinationals as it is believed to be an important
mechanism for co-ordination and control of international operations. At the
same time it has been acknowledged that HRM constitutes a major constraint when
MNCs try to implement global strategies, mainly because of the different
cultural and
Q6.
Discuss the organizational structures for multinational strategies.
Ans. Multinational companies are faced with two
opposing forces when designing the structure of their organization.
They are faced with the need for differentiation that allows them to be
specialized and competitive in their local markets. They are also faced with
the need to integrate. The structures adopted therefore have to find a balance
between these opposing needs and also
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