MBA402 – Internal Business Management

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SMU

Masters of Business Administration - MBA Semester 4

MBA402 – Internal Business Management

Assignment Set 1

Q1. Explain:-

A) The Heckscher - Ohlin Trade Theory

B) Product Lifecycle Theory

Answer. The Heckscher - Ohlin Trade Theory

The Heckscher-Ohlin (H-O) theory further improvises on the absolute cost advantage and comparative cost advantage theory. It tries to explain the crucial question of why countries trade goods and services with each other.

Q2. Explain detail structure of WTO with diagram?

(Structure of WTO with Diagram.)

Answer. WTO

WTO was established on 1st January 1995. In April 1994, the Final Act was signed at a meeting in Marrakesh, Morocco. The Marrakesh Declaration of 15th April 1994 was formed to strengthen the world economy that would lead to better investment, trade, income growth and employment throughout the world. The WTO is the successor to the General Agreement of Tariffs and Trade

Q3. Write a short note on international regulatory bodies.

European Union

United Nations

OECD

IASC

IFA

Answer. European Union

European Union is pro-active in the harmonisation process. European Commission sets directives, which are orders to the member countries, to bring their laws in line with EU needs, within some transition period

Assignment Set 2

Q1. What are the four methods of payment for the international Transactions?

Answer. Payment Methods

Since international trade deals with exchange of goods, there are various ways in which the payment terms (finance) will be handled. Bothe seller and trader should be careful about the method of payment as they are at different locations and transactions happen without face-to-face interaction. There

Q2. Explain in detail about short term credit and long term credit.

Short term credit

Long term credit

Answer. Short term credit

The short term credit is provided in the form of pre-shipment and post shipment finance. This can be provided by the commercial banks that are authorised dealers in the foreign exchange. Short term credits are covered by RBI and provide credits at lower rate of interest. In relation to this type of credit, there are two schemes that are explained as follows:-

Q3. What are the various advantages of global sourcing?

Answer. Advantages of Global Sourcing

As business operations diversified in the global production chain due to globalization, companies have to evaluate their choices, decisions and strategy for outsourcing different components at a cost effective level from all around the world.

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