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DRIVE: Fall 2015
PROGRAM: MBADS (SEM
3/SEM 5) MBAFLEX/ MBA (SEM 3) PGDIB (SEM
1)
SUBJECT CODE &
NAME: IB0012 – Management of Multinational Corporations
BK ID: B 1906
CREDIT & MARKS: 4
CREDITS, 60 MARKS
Q.1: ‘The
eclectic theory is an analytic approach towards understanding foreign direct
investment as well as the organizational issues of MNCs pertaining to
international production.’ Critically examine this statement.
Discussion on the
statement (10 marks)
Ans:
Under FDI an MNC enters a foreign country to produce
the same products or provide the same service which are produced or provided in
home country. In this way the same technology is
Q.2: What do you
understand by global sourcing? What are the different forms of global sourcing?
Elucidate.
Meaning of global
sourcing (4 marks)
Forms of global
sourcing (6 marks)
Ans:
Meaning of global
sourcing
A procurement
strategy
in which a business
seeks to find the most cost
efficient location
for manufacturing
a product,
even if the location is in a foreign country.
For example, if a toy manufacturer
Q.3: Why is a good
organizational structure needed? Also discuss the benefits of a good
organizational structure.
Need of good
organization structure (5 marks)
Benefits (5 marks)
Ans:
Need of good organization
structure:
Organization structures are related to setting up of
internal authority relationships, responsibility for
Q.4: How is
the performance of employees assessed and appraised in multinational
corporations? Explain in brief.
Performance
appraisal in MNCs (10 marks)
Ans:
The concept of multi-nationality has a number of
dimensions. For some the criterion may be ownership of the organization whereas
for others it may be nationalities of the senior management. Some may decide on
the basis of multi-country organization structure and operations.
Q.5: What
are the main reasons pertaining to the inadequate attention towards issues
relating to labour relations in MNCs?
Reasons
(10
marks)
Ans:
MNCs use the resources of the host countries in most
efficient manner so as to gain the maximum ignoring the wishes of the local
politicians. The MNCs no doubt bring capital and technology and create
employment in host country.
The host countries on the other hand provide labour,
raw materials and their natural resources and provide markets for the products
of MNCs. MNCs argue that the high profits are generated by
Q.6: Write
short notes on:
a. Indian
MNCs (5
marks)
b.
FDI and MNC (5 marks)
Ans:
a. Role and growth of Indian MNCs with examples
Indian MNCs are small in size. In recent years, due
to the policy of economic reforms, Indian Companies are also becoming global.
Some of the prominent Indian MNCs are:
i)
Get fully solved assignment. Buy online from website
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