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IBO 01: International Business Environments
June 2018
Part A
Q1. Comment on any four of the following statements, giving reasons in support of your answer.
(a) 'Basic functions, processes and techniques of international business are essentially the same as those involved in domestic business.
(b) 'Free trade is always better than no trade.
(c) 'The concept of trade' in services is not as straight forward as the concept of 'trade in goods'.
(d) 'Law of contract is not applicable to international contracts'.
(e) 'Exchange rates do not influence current account of balance of payments'.
(f) 'New technologies do not lead to economies in the use of raw materials'.
PART - B
Attempt any four questions from this part.
Q2. Why do firms engage in international business? What are the major cultural factors that affect international business ? Give suitable illustrations in support of your answer.
Q3. Briefly explain the major issues in the settlement of international trade disputes. Discuss the role of International Chamber of Commerce (ICC) in this regard.
Q4. Evaluate the advantages and disadvantages of FDI. Explain the role of FDI in the economic development of the host country.
Q5. Describe the various unethical practices prevailing in International Trade.
Q6. Write explanatory notes on any two of the following:
(a) Terms of Trade
(b) International Finance Corporation
(c) Global Trade-Point Network (GTPN)
(d) Non-tariff Barriers
Q7. Describe the various forms of Regional Economic Groupings ? Discuss the impact of Regional Economic Groupings.
What are the challenges that globalization poses for the Indian economy ?
Q8. Describe the Multi-lateral Trade Agreements relating to (i) agriculture and (ii) textiles and clothings.