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DRIVE
SPRING 2016
PROGRAM
Master of Business Administration- MBA
SEMESTER
4
SUBJECT
CODE &
NAME
MB0053
–International Business Management
1
Explain the different international trade theories?
Mercantilism
Absolute
advantage theory
Comparative
advantage theory
Product
lifecycle theory
Porter’s diamond
model
Answer: The
following trade theories explain the basics behind international trade:
Mercantilism: Mercantilism
theory of international trade has its origin in England in the middle of 16th
century. Mercantilism theory is based on the principle assertion that
government control of foreign trade is of paramount importance for ensuring the
prosperity and military
2
Hofstede said “Culture is more often a source of conflict than of synergy”.
Discuss this statement and explain the five cultural dimensions.
[Views on
statement
5 cultural
dimensions]
Answer: According
to Dr. Geert Hofstede, ‘Culture is more often a source of conflict than of
synergy. Cultural differences are a trouble and always a disaster.’ Professor
Hofstede carried out a detailed study of how values in the workplace are
influenced by culture. He worked as a psychologist in IBM from 1967 to 1973. At
that time he gathered and analysed data from many people in several countries.
Professor Hofstede established a model using the results of the study which
3
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]
Answer: Regional
integration can be defined as the unification of countries into a larger whole.
It also reflects a country’s willingness to share or unify into a larger whole.
The level of integration of
4
Write short note on:
a) Foreign currency derivatives
b) bases of international tax systems
[Meaning and
role of foreign currency derivatives
Bases of
international tax system]
Answer: a) Foreign currency derivatives
Currency derivative is defined as a financial contract
that seeks to swap two currencies at a predetermined rate. It can also be
termed as the agreement where the value can be determined from the rate of
exchange of two currencies at the spot. The currency derivative trades in
markets that correspond to the spot (cash) market. Hence, the spot market
exposures can be enclosed with the currency derivatives. The main advantage
from derivative hedging is the basket of currency available. The derivatives can
be hedged with other derivatives. In the foreign exchange
5
Strategic planning involves allocation of resources to firms to fulfil their
long term goals. What are the types of strategic planning? Compare Top-down Vs
Bottom-up planning.
[Types of
strategic planning
Top-down vs
bottom-up planning]
Answer: Any business plan can be classified into three types. They are:
Ø Strategic planning: This planning process is the
best among the three business planning processes. It is a long-term process
thatthe business owners utilise to unveil their business’ vision and mission.
It also determines a gateway for business owners for
6
Explain the function of human resource planning
Discuss
the scope of International Human Resource Management
Explain the
function of human resource planning
Discuss the
scope of IHRM
Answer: The
purpose of HRM is to make the maximum utilisation of the firm’s human resources
so that both employer and employee benefit from their association. The
following are some of
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