MB0053 –International Business Management

 

 

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MB0053 –International Business Management -4 Credits(Book ID:B1315)

Assignment (60 marks)

Note: Assignment Set -1 must be written within 6-8 pages. Answer all questions.

1-5 Question number 10 Marks (350-400 words)

Q1. Write a short note on GATT and WTO, highlighting the difference between the two. 

                                                                                                                          10 marks(350-400 words)

Answer : General Agreement on Tariff and Trade(GATT) :

The GATT, was established on a provisional basis after the Second World War in the wake of other new multilateral institutions dedicated to international economic cooperation – notably the “Britton Woods” institutions now known as the World Bank and the International Monetary Fund.

The original 23 GATT countries were among over 50 which agreed a draft Charter for an International Trade Organization (ITO) – a new

 

 

Q2. Describe various entry strategies available to a firm when it wants to enter a

foreign market.                                                                                              10 marks(350-400 words)

 

Answer : MARKET ENTRY STRATEGIES

There are a variety of ways in which a company can enter a foreign market. No one market entry strategy works for all international markets. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another you may well license your manufacturing.

 

Direct Exporting

 

 

Q3. Write a note on ‘Globalization’.                                                            10 marks(350-400 words)

 

Answer : The term “globalization” has acquired considerable emotive force. Some view it as process that is beneficial – a key to future world economic development – and also inevitable and irreversible. Others regard it with hostility, even fear, believing that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. This brief offers an overview of some aspects of globalization and aims to identify ways in which countries can tap the gains of this process, while

 

 

 

Q4. What does FDI stand for? Why do MNCs opt for FDI to enter international market?

                                                                                                                         10 marks(350-400 words)

 

Answer :   FDI stands for Foreign Direct Investment. New MNCs do not pop up randomly in foreign nations. It is the result of conscious planning by corporate managers. Investment flows from regions of low anticipated profits to those of high returns. When Unincorporated in one country, invests in another country, it is said that the FDI has flowed into the other country from some foreign origin.

 

The main reasons for MNCs to opt for FDI to enter

 

 

 

 

Q5. What is the need to understand cultural differences? Explain Hofstadter’s cultural dimensions. 

                                                                                                                              10 marks(350-400 words)

 

Answer : Understanding differences in culture

 

If exporting to a new market you need to be aware of cultural differences between yourself and your international business partners. Familiarity with customs and etiquette ranging from business methods, dress and diet to history and religious customs will improve your chance of success.

 

 

Q6. Write short notes on:

 

a) Ethnocentric approach

 

Answer : When a company follows the strategy of choosing only from the citizens of the parent country to work in host nations, it is called an ethnocentric approach. Normally, higher-level foreign positions are filled with expatriate employees from the parent country. The general rationale behind the ethnocentric approach is that the staff from the parent country would represent the interests of the headquarters effectively and link well with the parent country. The recruitment process in this method involves four stages: self-selection

 

 

b) Polycentric approach                                                                 5 + 5 = 10 Marks(200 – 250 words Each

 

Answer :  When a company adopts the strategy of limiting recruitment to the nationals of the host country (local people), it is called a polycentric approach. The purpose of adopting this approach is to reduce the cost of foreign operations gradually. Even those organizations which initially adopt the ethnocentric approach may eventually switch over to the polycentric approach. The primary purpose of handing over the management to the local

 

 

 

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