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Master of
Business Administration - MBA Semester 4
MB0053-International
Business Management
(Book ID:
B1724)
Assignment (60 Marks)
Note: Answer
all questions must be written within 300 to 400 words each. Each Question
carries 10 marks 6 X 10=60.
Q1. Why is Comparative Cost Theory
considered as an improvement upon Absolute Cost Advantage Theory? Explain
Porter’s Diamond Model.
Comparative
Cost Theory as an improvement on Absolute Cost Advantage Theory
Porter’s
Diamond Model
Answer. Comparative Costs theory:
The
principle of comparative costs is based on the differences in production costs
of similar commodities in different countries. Production costs differ in
countries because of geographical division of labour and specialization in
production. Due to differences in climate, natural resources, geographical
situation and efficiency of labour, a country can produce one commodity at a
lower cost than the other.
In this way,
each country specializes in the production of that commodity in which its
comparative cost of production is the least. Therefore, when a country enters
into trade with some other country, it will export those commodities in which
its comparative production costs are less, and will import those commodities
Q2. Explain Hofstede’s Cultural
dimension.
Answer. Hofstede’s cultural
dimensions
Professor
Hofstede carried out a detailed study of how values in the workplace are
influenced by culture. He worked as a psychologist in IBM from 1967 to 1973. At
that time he gathered and analyzed data from many people from several
countries. Professor Hofstede established a model using the results of the
study which identifies four dimensions to differentiate cultures. Later, a
fifth dimension called ‘long-term outlook’ was added.
Q3. “An economic union comprises of a
common market and a custom union.” Explain.
Answer. Customs Union
When two or
more countries agree to remove (essentially) all restrictions on mutual trade
and set up a common system of tariffs and import quotas vis-a-vis non-members,
the result is referred to as a CU. The adoption of a common external tariff
(CET) and joint quotas necessitates closer co-operation with respect to the
sharing of customs revenues collected on non-member imports.
Rules of
origin are no longer necessary: when a common external tariff exists, imports
into the CU–area face the same tariff in each CU-member country; hence there is
no incentive for transshipment of imports between members. The CET effectively
creates “destination-neutrality” for imports into the CU.
Q4. Explain the components of
International Financial Management.
Answer. An International financial
system refers to a
system which enables the transfer of money between investors and borrowers from
two different nations. A financial system could be defined at an international,
regional or organization level. The term “system” in “Financial System”
indicates a group of complex and closely linked institutions, agents,
procedures, markets, transactions, claims and liabilities within an economy.
Q5. What are the differences between
International Accounting Standards and Domestic Accounting Standards?
Answer. Accounting Standards
are the key
mandatory and regulatory
mechanisms for training on
financial reports and
conducting successful audit
for the same. It is used almost in all countries throughout
the world. They are concerned
with the structure
of measurement, rules
for preparation and arrangement of financial statements. They
emerge as a set of authoritative statements related to exact type of
transactions, events, and other costs that are recognized and reported in the
financial statements. They are designed to supply practical information to
diverse users of the financial statements such as shareholders, creditors,
lenders, organisation, investors, suppliers, competitors, researchers,
regulatory bodies. These statements are designed and approved to develop and
benchmark the quality of
Q6. Explain the key component of
International Strategic management.
Answer. Key Components:-
Goal-Setting
The purpose
of goal-setting is to clarify the vision for your business. This stage consists
of identifying three key facets: First, define both short- and long-term
objectives. Second, identify the process of how to accomplish your objective.
Finally, customize the process for your staff; give each person a task with
which he can succeed. Keep in mind during this process your goals to be
detailed, realistic and match the values of your vision. Typically, the final
step in this stage is to write a mission statement that succinctly
Winter-2015
Get solved
assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490
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