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IBO 01: International Business Environment
June 2019
Q1. Comment on any four of the following statements:
(a) Theory of Comparative Advantage provides the basis for international trade.
(b) Trade policy is an important instrument to regulate foreign trade.
(c) Culture cannot be easily isolated from factors such as economic and political conditions and institutions.
(d) While corporate social responsibility focuses primarily on business policy issues, ethics focuses on individual managerial behaviour.
(e) International capital flows do not strengthen the process of globalization.
(f) Services do not occupy an important place in Indian economy.
Attempt any four of the following questions:
Q2. What are the key features of Foreign Direct Investment (FDI) in India? Distinguish between Direct and Portfolio investments,' clearly pointing out their respective key characteristics.
Q3. Distinguish between an agreement and a contract. Also describe essential elements of a valid contract.
Q4. Discuss the importance of political environment in international business. Explain arid give suitable illustrations in support of your answer.
Q5. Discuss the following multilateral environment agreements:
(a) The Montreal Protocol
(b) The Basel Convention
Q6. How does the home country environment influence foreign business operations of a firm?
Explain.
Q7. What is balance of payments? How does disequilibrium occur in balance of payments?
Describe the methods of correcting the disequilibrium.
Q8. Write short 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