2006 Acharya Nagarjuna University Politics M.B.A Business Administration PAPER - I - INTERNATIONAL BUSINESS Question paper
M.B.A.(Third) DEGREE EXAMINATION, MAY 2006
(D-INTERNATIONAL MANAGEMENT )
PAPER - I - INTERNATIONAL BUSINESS
Time: Three hours Maximum: 75 marks
SECTION A - (3 X 5 = 15 marks)
Answer any THREE questions
1. (a) Explain how international business is different from domestic business.
(b) Compare between FDI and contractual entry mode.
(c) Explain neo-factor proportions theory.
(d) What are different levels of Economic Integration?
(e) What is Matrix structure?
(f) What are merits of employing expatriates?
SECTION B - (3 X 15 = 45 marks)
Answer any THREE questions
2. Elaborate on the factors contributing to rapid growth in international business during the past one decade.
3. Discuss this statement: “An understanding of the causes and consequences of performance ambiguity is central to the issue of organsiational design in multinational firms”.
4. Discuss the process of recruitment and training of expatriates.
5. Explain how cultural diversity is managed with suitable examples.
6. Explain the conceptual framework of various types of regional trade agreements.
7. Explain in brief the functions of World Trade Organisation. What are the major principles of multilateral trading system?
SECTION C - (1 X 15 = 15 marks)
8. Strategic R & D by TNCs in Developing Countries
TNCs have had long units in developing host countries for adapting products and processes to the local conditions, and in a few cases, to products for local markets. Since the min-1980s, however, they have also started locating strategic R & D centres in some developing countries, for developing generic technologies and products for regional or global markets. The main incentives for this are : (a) access to highly qualified scientists as shortages of research personnel emerge in certain fields in industrialised countries, (b) Cost differentials in research salaries between developing and industrialised countries, and (c) rationalisation of operations, assigning particular affiliates the responsibility for developing, manufacturing, and marketing particular products worldwide. Th new trends are more visible in industries dealing with new technologies, such as microelectronics, biotechnology, and new materials. In these technologies, the location of R & D can be geographically de-linked more easily from the location of manufacturing. It is also possible to separate R & D in core activities from that in non-core activities. Consequently, countries like India, Israel, Singapore, Malaysia or Brazil serve TNCs as good locations for strategic R & D.
For instance, Sony Corporation of Japan has around nine R & D units in Asian developing countries. It has three units in Singapore conducting R & D on core components such as optical data shortage devices, integrated chip design for audio products and CD-ROM drives, and multimedia and microchip software. It has three units in Malaysia working on video design, derivative models and circuit blocks for new TV chases, radio cassettes, discman and hi-fi receiver designs. It has one unit in Republic of Korea focusing on the design of compact discs, radio cassettes, tape recorders, and car stereos. It has one in Taiwan designing and developing video tape-recorders, minidisk players, video CDs, and duplicators. Finally, it has one unit in Indonesia focusing on the design of audio products.
Such units often work in collaboration with science and technology institutes in the host country. For instance, Daimler Benz has established such a unit in Bangalore, India, in collaboration with the Indian Institute of Science to work on projects related to its vehicles and avionics business. Current work includes interface design of avionics landing systems and smart GPS sensors for use by the group’s business worldwide.
Source: World Investment Report 1999.
(a) Explain why MNCs have located R & D centres in developing countries?
(b) Mention the areas where R & D activities can easily be decentralised.
Return to question paper search