MB0053 –International Business Management

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ASSIGNMENT

DRIVE
SPRING 2015
PROGRAM
MBADS / MBAN2 / MBAHCSN3 / MBAFLEX – (SEM 4)
PGDENMN /PGDFMN/ PGDHRMN / PGDHSMN / PGDIB /
PGDISMN / PGDMMN / PGDOMN / PGDPMN / PGDROMN / PGDSCMN / PGDTQMN – (SEM 2)
SUBJECT CODE & NAME
MB0053 –International Business Management
BK ID
B1724
Credit and Max. Marks
4 credits; 60 marks

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.


1 “The world economy is globalizing at an accelerating pace”. Discuss this statement and list the benefits of globalization.

Answer : Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Put in simple terms, globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. Though several



2. Discuss the role of demographic environment in international business.

Answer : Demographic factors such as size of the population, population growth rates, age composition, family size, nature of the family, income levels etc. have very significant implications for business.

The size of the population is an important determinant of demand for many products. There are countries with only a few lakh of people on the one hand and those with hundreds of millions on the other hand. According to a World Development







3 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 is vital to creating the infrastructure that many poor countries are unable to build on their own: trade corridors, transport networks, energy development, water resources management, and telecommunications connectivity. Effective collaboration among countries can meet the critical gaps in basic access and service delivery that promote growth and development.
Types

Complete economic integration is the final stage




4. Write short note on:

a) Foreign currency derivatives

Answer : With a foreign exchange (forex) derivative, the owner has the right but not the obligation to exchange money denominated in one currency for another currency at a pre-determined exchange rate and date. The forex derivatives market is the largest market in the world, with over $1 trillion traded every single day.

Speculation and Hedging
Forex derivatives are principally used for speculation and hedging. Hedgers use forex financial futures contracts to




b) bases of international tax systems

Answer : Countries that tax income generally use one of two systems: territorial or residential. In the territorial system, only local income – income from a source inside the country – is taxed. In the residential system, residents of the country are taxed on their worldwide (local and foreign) income, while nonresidents are taxed only on their local income. In addition, a very small number of countries, notably the United States, also tax their nonresident citizens on worldwide income.





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.

Answer : Following the generation of a vision and mission statement, and the subsequent operations that will allow these to be achieved, smaller facets of the planning process begin to come into play. These include five general planning frames, which can be applied to different aspects of the operational process:




6 Discuss the various payment terms in international trade. Which is the safest method and why?
Answer : Introduction

There is no predefined definition of personal import. In general a personal import is a direct purchase of foreign goods from overseas mail order companies, retailers, manufacturers or by an individual for the purpose of personal use.

The most common terms of purchase are as follows:

Consignment Purchase
Consignment purchase terms can be the most beneficial method of payment for the importer. In this method of purchase, importer makes the

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Send your semester & Specialization name to our mail id :
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