Description

SESSION JUL – AUG 2024
PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER IV
COURSE CODE & NAME DMBA402 INTERNATIONAL BUSINESS
MANAGEMENT

1. Explain the Importance of International Business. Explain the Challenges Faced While
Doing International Business
Ans 1.
International business refers to the trade of goods, services, technology, capital, and knowledge
across national borders. It plays a pivotal role in the global economy by fostering
interdependence among countries and enabling businesses to expand their operations
worldwide. However, engaging in international business also comes with several challenges.
Importance of International Business
Economic Growth and Development International business contributes significantly to the
economic growth of nations by generating revenue, creating jobs, and promoting
technological advancements. Countries with strong international trade partnerships
experience higher GDP Its Half solved only
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2. Write a Short Note on the Following: Impact of Legal Environment on IB and Impact
of Culture on IB
Ans 2.
a. Impact of Legal Environment on International Business
The legal environment significantly influences international business operations, as companies
must comply with the laws and regulations of the countries where they operate. Key aspects of
the legal environment include:
1. Trade Regulations International businesses must adhere to export-import laws, tariffs,
quotas, and trade agreements. For instance, the World Trade Organization (WTO) sets
rules to facilitate fair trade among nations.
2. Taxation Policies Different countries impose varying tax structures, such as corporate
taxes, VAT, and customs duties. Companies must navigate these complexities to
3. Write Notes on the Following: Positive Impact of Globalization and WTO
Ans 3.
a. Positive Impact of Globalization
Globalization refers to the increasing interconnectedness of economies, societies, and cultures
through trade, investment, and information exchange. Its positive impacts are evident across
various dimensions:
1. Economic Growth Globalization promotes economic development by enabling
countries to access international markets, attract foreign investments, and integrate into
4. What is International Financial Management? Explain the Types of International
Accounting Standards
Ans 4.
International Financial Management
International Financial Management (IFM) involves managing financial resources in a global
business environment. It encompasses investment, financing, and risk management activities
across different countries, currencies, and regulatory frameworks. The goal is to maximize
profitability while minimizing financial risks in international operations.
Key Aspects of IFM
 Foreign Exchange Management: Dealing with currency fluctuations and exchange
rate risks.
 International Investment Decisions: Assessing opportunities for foreign direct
5. Explain FDI? Elaborate the Advantages and Disadvantages of FDI
Ans 5.
Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI) refers to the investment made by a company or individual
from one country into business interests located in another country. Unlike portfolio
investments, which involve passive holdings of financial assets, FDI involves establishing a
lasting interest, such as ownership of property, plants, or businesses. FDI is crucial for
economic globalization and serves as a major driver of international trade and development.
FDI typically takes two forms: Greenfield Investments, where companies establish new
6. Write Notes on the Following: Recruitment of Expatriates and Export Promotion
Schemes
Ans 6.
Recruitment of Expatriates
Recruitment of expatriates refers to the process of hiring employees from a company’s home
country or other foreign countries to work in its overseas operations. Expatriates often play
critical roles in transferring knowledge, implementing corporate policies, and bridging cultural
gaps in international business environments.
One key aspect of recruiting expatriates is identifying individuals with the right technical
expertise, cultural adaptability, and leadership qualities. Candidates must be prepared to