MS97 International Business June 2005

MANAGEMENT PROGRAMME

Term-End Examination

June, 2005

MS-97 : INTERNATIONAL BUSINESS

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : (i) There are two sections : Section A and Section B.
(ii) Attempt any three questions from Section A, carrying 20 marks each.
(iii) Section B is compulsory and carries 40 marks.

SECTION A

1. (a) What is Mercantilism? Why is it not a useful theory is today's context ?

(b) What are the determinants of international investment decisions ? What different strategies could a firm follow ?

2. (a) "MNEs try to build understanding, identification and commitment of individual managers to the overall corporate agenda." What tasks are involved in bringing about such changes so as to develop a global perspective among its employees ?

(b) Differentiate between (i) Ethnocentric; (ii) Polycentric; and (iii) Geocentric approaches to structuring international business operations.

3. (a) Critically examine the various approaches to controlling international business.

(b) What is meant by intra-firm trade ? In what ways does this affect the host country ?

4. (a) Why do several multinationals not like to have a common compensation (pay and benefits) policy for their employees worldwide?

(b) How can an Indian company, which has recently gone international, manage its negotiations in the international field effectively?

5. Write notes on any three of the following :

(a) International Code on Transfer of Technology
(b) Motivations for MNE operations in LDCs
(c) ASEAN
(d) UNCTAD and its role
(e) The evolution of WTO from GATT

SECTION B

6. (a) What effects do MNC operations usually have on the management of domestic firms ? Discuss your answer in the light of the Indian experience, citing relevant examples.

(b) Analyse the policies that have been implemented in developing countries to attract higher volumes of FDI with special reference to India. Do you think that the policy shift in India has been successful ? Give reasons.