Description

International Business

September 2024 Examination

 

1. Whether or not you produce and sell goods internationally, international business impacts every organization. In light of this statement what in your opinion are the various challenges a firm will face while embarking to International Business. (10 Marks)

Ans 1.

Introduction

In today’s interconnected global economy, no company is completely isolated from international influences, whether they engage directly in cross-border trade or not. The allure of international business is potent, promising new markets and opportunities for growth. However, companies considering this expansion face numerous challenges that can significantly impact their operations and strategic decisions. These challenges arise from the complex interplay of economic, cultural, regulatory, and competitive factors that vary greatly from one country to another. Understanding these challenges is crucial for any firm aiming to succeed on the international stage, as it involves navigating through various unpredictable

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2. While investing in India what is the significance of the role of FII and FDI. How in your opinion does India benefits when Foreign Direct Investments (FDI), and FII invest in India? (10 Marks)

Ans 2.

Introduction

India, with its vast market potential and favorable demographic dividend, has emerged as a hotbed for foreign investment. Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII) play pivotal roles in the nation’s economic architecture. Both forms of investments bring distinctive values and impacts to the economic landscape. FDI involves direct investment in production, which contributes to job creation, technology transfer, and infrastructure development. In contrast, FII pertains to investments in financial markets, enhancing the country’s capital markets and liquidity. Understanding the significance of these investments reveals how they catalyze India’s economic development, modernization, and integration into the global economy, ultimately fostering a conducive environment for

 

 

 

3. Read the following case study carefully and then answer the questions that follow:

The crisis in Ukraine has created a humanitarian crisis of immense proportions and has also dealt a severe blow to the global economy. The brunt of the suffering and destruction are being felt by the people of Ukraine themselves but the costs in terms of reduced trade and output are likely to be felt by people around the world through higher food and energy prices and reduced availability of goods exported by Russia and Ukraine. Poorer countries are at high risk from the war, since they tend to spend a larger fraction of their incomes on food compared to richer countries. This could impact political stability.

The WTO has an important role to play in mitigating the negative effects of the crisis and in rebuilding a post-war global economy. It is important for the international trade and development community to better understand, analyze and monitor the nature, magnitude and spill-over effects of the war on trade and development for developing countries and vulnerable segments, and to assist countries in coordinating trade policy responses. Only with a clear understanding of these impacts, will it be possible to create robust supply chains, to limit further trade and development losses and to avert deepening inequalities between developed and developing countries

a. What in your opinion should the WTO take steps to provide an impetus to trade in that has disrupted trade due to the Ukraine-Russia war? (5 Marks)

Ans 3a.

Introduction

The ongoing conflict between Ukraine and Russia has not only precipitated a humanitarian disaster but also significantly disrupted global trade, with especially profound consequences for energy and food supplies. Given this backdrop, the World Trade Organization (WTO) is uniquely positioned to orchestrate and guide the global response to these disruptions. Effective intervention by the WTO can help mitigate the adverse impacts on international

b. Explain Global macroeconomic and trade effects of war and what are the ways that WTO can mitigate the problem. (5 Marks)

Ans 3b.

Introduction

Wars have a profound impact on the global economic landscape, disrupting trade and causing macroeconomic instabilities. The conflict between Ukraine and Russia, for instance, has led to heightened uncertainty, affecting global supply chains, inflation rates, and economic growth. Such disruptions necessitate a coordinated international response, with organizations like the World Trade Organization (WTO) playing a pivotal role. The WTO can help mitigate