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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
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
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
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
(b)
Obstacles of foreign capital in developing economies: These are a few factors
Political Instability: In most of the developing countries, the
governments are not stable. A new government comes into power overnight; either
through coup defeat or army takeover. The new
Q5.
Write a brief note on international HRM strategy.
Ans. Human Resource Management is becoming more
and more important for multinationals as it is
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
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