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PROGRAM/SEMESTER-MBADS/
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SUBJECT CODE &
NAME-MB0053 –International Business Management
Q1. “The world economy is globalizing at an
accelerating pace”. Discuss this statement and list the benefits of
globalization.
Answer.
The world economy is globalizing at an accelerating
pace
The world economy is globalizing at an
accelerating pace as countries previously closed to foreign companies have
opened up their markets. Geographic distance is shrinking because of the
Internet, as the ambitious companies aim for global leadership. All this is
possible because of
Q2.
Compare the Adam Smith and David
Ricardo’s theories of international trade with examples.
Answer.
Adam
Smith talks about absolute advantage, a concept that’s easy to understand.
Absolute advantage merely refers to the advantage that someone has when they
can produce more output per unit of effort than someone else. For example, if
your next door neighbor Jim makes $25 per hour of work and you
Q3.
Regional integration is helping the
countries in growing their trade. Discuss this statement. Describe in brief the
various types of regional integrations.
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
Q4.
Write short note on:
a) GATS (General Agreement on trade in services)
b) ILO (International Labour organization)
Answer.
a)
General Agreement on Trade in
Services (GATS) –
The
General Agreement on Trade in Services (GATS) is the first and only set of
multilateral rules governing international trade in services. he General
Agreement on Trade in Services (GATS) is
Q5.
What is the difference between
domestic and international accounting and how will you measure this difference?
Answer.
Difference between domestic and international
accounting
The
management of finance in domestic and international business is considerably
different. The four major aspects which distinguish international management
from domestic financial management are
Q6.
Discuss the various payment terms
in international trade. Which is the safest method and why?
Answer.
Various payment terms and payment methods in
international trade
There
are four methods of payment for the international transactions. This includes
the Cash-in-advance method, Letter of Credit, Documentary collections and the
Open Account. Since
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