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IBO 01: International Business Environment
June 2020
Part A
Q1. Comment on any four of the following:
(a) Managers need to understand the critical functions that a democratic government performs in the economy.
(b) Differences in environmental factors make domestic business different from the international firms.
(c) Cross border mergers and acquisitions have accelerated the pace of globalisation.
(d) Balance of payments deficits and surpluses can influence the trade policy and the value of currencies.
(e) Electronic Commerce offers an excellent scope for domestic products to gain international visibility through the internet.
(f) World trade in the post-war decades has grown faster than the growth of world output.
Part—B
Note: Answer any four of the following questions.
Q2. Critically examine the Heckscher-Ohlin- Samuelson theory of international trade.
Q3. What are the ethical issues in International Business? Do you think that a well written code of ethics is essential for every company? Explain with examples.
Q4. Neo-classical theory focuses on the factor abundance, which determines the pattern of trade. Discuss.
Q5. Discuss the genesis of International Monetary Fund. What are its broad objectives? Has it succeeded in attaining them? Discuss.
Q6. Distinguish between any two of the following:
(a) Absolute and Comparative advantage
(b) Tariff and Non-tariff bathers
(c) Trade Creation and Trade Diversion
(d) Ad valorem and specific duty
Q7. Explain the major problems faced by developing countries in promoting their exports. Suggest your solutions to those problems.
Q8. Write short notes on any two of the following:
(a) International Development Association
(b) Transfer Pricing
(c) Key issues in settlement of trade disputes
(d) Intellectual Property Rights