CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
SMUAPR15
ASSESSMENT_CODE MB0053_SMUAPR15
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
17607
QUESTION_TEXT
Explain in details the motives for foreign investments
Political motive
SCHEME OF EVALUATION Competitive motive
Economic motives
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73307
QUESTION_TEXT
What are the advantages of Global sourcing?
SCHEME OF
EVALUATION
1. Benefits of core competency (1.5 marks)
2. Effective and efficient business operations (1.5 marks)
3. Reduced overhead expenses (1.5 marks)
4. Better control on operations (1.5 marks)
5. Manpower staffing flexibility (2 marks)
6. Sustainable business operations and reduced risks (2
marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73308
QUESTION_TEXT
What is a letter of credit? What are the financing techniques used in
foreign trade apart from direct bank financing?
SCHEME OF
EVALUATION
Letter of credit – this is a commitment made by the bank that the
payment will be made to the exporter if the terms and conditions
are met. It is written by the financial institution in favour of the
importer of goods to the seller. (2 marks)
Financing techniques:
1. Bankers acceptance (3 marks)
2. Factoring (3 marks)
3. Forfaiting (2 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125915
QUESTION_TEXT Explain the advantages of International Business.
Advantages of international business
Low cost production – A company can take advantage of low cost
production outside its domestic operations by identifying a nation
where the labour is cost effective and in abundant supply. For
example, countries like China, Philippines, and Mexico offer such
low cost production opportunities.
Strategic resources – A company utilises many valuable resources
available in a foreign country either by importing from that country
or by setting up a subsidiary, manufacturing, or production plant in
that country. These resources can be human or natural resources like
minerals. For example, India has an abundance of skilled engineers,
and many global companies take advantage of this resource by either
setting up a subsidiary in India or through their partners. Similarly,
Australia boasts of rich mineral deposits and so it houses the world’s
largest mining companies.
SCHEME OF
EVALUATION
Large customer base – Expanding into markets of foreign countries
leads to exposure to more customers, better revenues, increased
profits, and lateral growth. This scenario is ideal when the company
has already established products in its domestic market. For example,
Sweden based IKEA is the world’s largest furniture retailer, and
operates in 37 countries after a modest beginning in Sweden.
Competitive advantage – A company with unique competencies and
capabilities gain benefits in the international market. For example,
Intel’s (USA) competencies and capabilities in semiconductors and
chips have propelled it to global market leadership in
microprocessors.
Diversify risk – Any company can dilute its business risk by
spreading its operations to a number of different and diverse
countries rather than depending on any one market or region. For
example, during the 1997 Asian financial crisis, companies with
exposure in European and American countries were able to sustain
far better than their counterparts in Asia.
(Each point carries 2 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125916
QUESTION_TEXT Explain the important functions of WTO.
SCHEME OF
EVALUATION
The important functions of the WTO:
Developing transitional economies – Majority of the WTO
members are the developing countries. The developing countries such
as India, China, Mexico, Brazil and others have an important role in
the organisation. The WTO helps in solving the problems of
developing economies. The developing states are provided with trade
and tariff data. This depends on the country’s individual export
interest and their participation in WTO-bodies. The new members
benefit hugely from these services.
(2 marks)
Providing help for export promotion – The WTO provides
specialised help for export promotion to its members. The export
promotion is done through the International Trade Center established
by the GATT in 1964. It is operated by the WTO and the United
Nations. The International Trade Center accepts requests the member
countries, usually developing countries in assisting to plan and
execute programmes for export promotion. The center provides
information on export market and marketing techniques. The center
also provides assistance in establishing export promotion and
marketing services. The WTO proves its commitment in the
upliftment of the world economy through this.
(2
marks)
Cooperating in global economic policy-making – The main
function of the WTO is to cooperate in global economic policymaking. In the Marrakesh Ministerial Meeting in April 1994, a
separate declaration was adopted to achieve this objective. The
declaration specifies the responsibility of WTO as, to improve and
maintain the cooperation with international organisations such as the
World Bank and International Monetary Fund (IMF) that are
involved in monetary and financial matters. WTO analyses the
impact of liberalisation on the growth and development of national
economies which is the important factor in the success of the
economy.
(2 marks)
Monitoring implementation of the agreement – The WTO
administers sixty different agreements that have the statue of
international legal documents. The member-governments sign and
confirm all WTO agreements on attainment.
(1 mark)
Providing forum for negotiations – The WTO provides a permanent
forum for negotiations among members. The negotiations can be on
matters already stated in the WTO agreements or matters not
addressed in the WTO law.
(1 mark)
Administrating dispute settlement – The important function of
WTO is the administration of the WTO dispute settlement system. It
helps in settling multilateral trading dispute. A dispute arises when a
member country adopts a trade policy and other fellow members
consider it as a violation of WTO agreements. The Dispute
Settlement Body (DSB) is responsible for the settlement of disputes.
The dispute settlement system is prohibited from adding or deleting
the rights and obligations provided in the WTO agreements. The
WTO dispute settlement system helps to:
*
Preserve the rights and responsibilities of the members.
*
Clarify the current provisions of the agreements
marks)
(2
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125921
QUESTION_TEXT
What do you mean by Human Resource Planning? Discuss the
different approaches to staffing in an international business.
Human resource planning: It is the process of assessing staffing
requirement for the future and taking care of the adequate and
timely supply of human resources for the same. (2 marks)
Staffing policies in international business:
SCHEME OF
EVALUATION
1.
Ethnocentric approach (2 marks)
2.
Polycentric approach (2 marks)
3.
Region centric approach (2 marks)
4.
Geocentric approach (2 marks)