CUSTOMER_CODE SMUDE DIVISION_CODE SMUDE EVENT_CODE OCTOBER15 ASSESSMENT_CODE IB0012_OCTOBER15 QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 204967 QUESTION_TEXT Explain in detail the advantages and disadvantages of MNCs to the host country. Advantages SCHEME OF EVALUATION a. MNCs bring new technology (0.5M) b. MNCs create employment (0.5M) c. MNCs increase exports (0.5M) d. Business segment enhanced (0.5M) e. Local traders and market intermediaries (0.5M) f. g. h. Balance of payment (0.5M) Break local monopolies (0.5M) Increase level of economic activity and industrial development (0.5M) i. Bring in FDI (0.5M) j. Equalize cost of factors worldwide (0.5M) Disadvantages a. MNCs do not transfer new technology to host country (1M) b. Economic and political challenges (1M) c. Predatory pricing harm domestic industry (1M) d. Depletion of natural resources (1M) e. Repatriate money to home country (1M) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 204968 QUESTION_TEXT Describe in detail the product life cycle theory. a. Introduction stage (2.5M) b. Growth stage (2.5M) SCHEME OF EVALUATION c. d. Maturity (2.5M) Decline (2.5M) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 204970 QUESTION_TEXT Elucidate in detail the characteristics of effective controls. a. Accuracy (1M) b. Timeliness (1M) c. Flexibility (1M) d. Acceptability (1M) e. Integration (1M) f. Economic feasibility (1M) g. Strategic placement (1M) h. Corrective action (1M) i. Emphasis on exception (1M) j. Better utilization of resources (1M) SCHEME OF EVALUATION QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 204971 QUESTION_TEXT Explain in detail the key components and approaches of International Compensation Programs. Components of International Compensation Programs SCHEME OF EVALUATION a. Base Salary (2M) b. Allowances (1M) c. Benefits (2M) d. Issue of taxation (1M) Approaches of International Compensation Programs Going Rate Approach (2M) Balance Sheet Approach(2M) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 207147 QUESTION_TEXT Describe in detail the benefits of a good organizational structure. (Explanation of each point in detail) a. Facilitates attainment of objectives through proper coordination of all activities (1M) b. The conflicts between individuals over jurisdiction are kept to a minimum (1M) SCHEME OF EVALUATION c. It eliminates overlapping and duplication of work (1M) d. It decreases likelihood of ‘runarounds’ (1M) e. It facilitates promotion of personnel (1M) f. It aids in wage and salary administration (1M) g. Communication is easier at all levels of organizational hierarchy (1M) h. It provides sound basis for effective planning (1M) i. It results in increased cooperation and a sense of pride among members of the organization (1M) j. It encourages creativity (1M) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 207149 QUESTION_TEXT Explain in detail the different types and benefits of Foreign Direct Investment. (Explanation of each point in detail) Types SCHEME OF EVALUATION a. Vertical (2M) b. Horizontal (1M) c. Conglomerate (2M) d. Green-field entry (1M) e. Foreign takeovers (1M) Benefits f. Benefits to investor (1M) g. Benefits to investor’s economy (1M) h. Benefits to the economy receiving FDI (1M)