International Business Management Q1). Write a note on Globalization? Ans.

Globalization is a process where businesses are dealt in markets around the world apart from the local and national markets. According to business terminologies globalization is defined as the worldwide trend of businesses expanding beyond their domestic boundaries. It is advantageous for the economy of countries because it promotes in the countries that embrace globalization. Benefits of globalization: The merits and demerits of globalization are highly debatable. While globalization creates employment opportunities in the host countries it also exploits at a very low cost compared to the home country. Let us consider the benefits and ill-effects of globalization some of the benefits of globalization are as follows liberalization of economies. Increases the living standards of people in several developing countries through capital investments in development countries development countries. Benefit customers as companies outsource to low wage countries. Promotes better education and jobs. Leads to free flow of information and wide acceptance of foreign products ideas this best practices and culture Provides better quality of products customer services and standardized delivery models across countries. Increases business travel which in turn leads to a flourishing travel and hospitality industry across the world. Increases sales as the availability of cutting edge technologies and production techniques decrease the const o production. Q2). Why do nations trade? Discuss the relevance of porters diamond model in todays business context. Ans. Porters diamond model In 1990 Michael Porter the reason behind some nations success and other failure in international competition. His theses outlined four broad attributed that shape the environment in which local firms compete and these attributed promote the creation of competitive advantage. They are explained as follows. Factor endowments:Characteristics of production were analyzed in detail. There is detail. Factors like natural resources, climate and location and so on and advanced factors like communications infrastructure, research facilities. Demand conditions:-

The role of home demand improving competitive advantage is emphasized since firms are most sensitive about the needs of their closest customers. relating and supporting industries:The presence of suppliers or related industries is advantageous since the benefits of investment in advanced factors of production spill over to these supporting industries. Successful industries within a country tend to be grouped tend into clusters of related industries. Firm strategy structure and rivalry:Domestic rivalry creates pressure to innovate improve quality and reduce costs which in turn helps create world class competitors.

Q3) why do firms pay so much attention to economic factors while entering in particular market? Justify your answer with practical example. Answer: - International business managers need to understand and assess international economic forces at work. Key variables that need to be examined include gross domestic product per capita regional distribution of GDP levels of investment consumer expenditure labor cost inflation and unemployment. All this may affect a firms operation and profits. The economic refers to the economic conditions under which a business operates and takes into account all factors that have affected it. It is include prime return of profits safety of country political and so on. 1) National economic policies:National economic policies depend on a country economic and cultural ground. All governments aspire to achieve fur major economic objectives:Full employment A high economic growth rate A low rate of inflation Absence of deficit in the country balance of payments 2) Economic structure:International business managers need to understand and assess international economic forces at work. Key variables that need to be examined include gross domestic product per capita regional distribution of levels of investment consumer expenditure labor costs inflation and unemployment. Variables that are examined when assessing national economic include.

3) Economic structure:The structure of a nation economy is determined by the sixe an rate of its population growth income levels and distribution of income natural resources agricultural manufacturing and services sector. 4) Industry structure:The structure of an industry is determined by factors such as: Entry and exit barriers Number of competing firms Market share among firms in that sector Average size of competing units 5) Market growth:It is measured in terms of local currency and adjusted for inflation. Local currency is used because conversions into other currencies are affected by exchange rate fluctuations.

Q4).How has India reacted towards regional integration? Discuss briefly the trade agreements signed by India. Answer: - Overview of regional integration Regional integration can be defined as the unification into as larger whole. It also reflects a country willingness to share into a larger whole. The level of integration of a country with other countries is determined by what are shares. Regional integration requires some compromise on the part of participating countries. It should aim to aim to improving the general quality of life for the citizens of those countries. In recent years we have seen more and more own moving to words regional integration to strengthen their ties and relationship with other countries. This tendency towards integration activated by the European union market integration. This trend has influenced both developed and developing countries to form customs unions and free trade the world trade organization terms these agreements of integration as regional trade agreements. India and trade agreements:India considers trading arrangements as the building blocks towards the objective of trade liberalization. Therefore India participates in a number of RTSs, which include free trade agreements preferential trade agreements and so on. These agreements take place bilaterally or in a regional grouping.

Q5).What is global sourcing? What makes India so attractive for

global sourcing?

Ans. Globalization of the world economy under the WTO has opened abundant opportunities of cost cutting, gaining competitive advantage and saving time for industries worldwide. Indian industries have experienced such development as India is a member of the WTO since1995. Global sourcing is described as the prad6tice of sourcing cost effective and best goods and services across geopolitical boundaries in order to cater to global markets. Global sourcing strategy is aimed at exploiting global in all areas of manufacturing, trading and services to enable offering clients and customer the best possible product or service. Usually efficiencies that prompt firms for global sourcing are low cost skilled labor low cost raw material proximity to key markets time zone differences and other economic factors such as tax exemption and low trade tariffs. Indian industries have successfully levered global sourcing strategies in their global trade operations and sourcing has been the driving force behind the development and expansion of Indian foreign trade the recent past. Global sourcing strategy has made Indian industry more globalised as buyers from all over the world are bidding for Indian goods particularly services to enable executing their contracts on time reduce prices and generate efficiency in the system through increased competition. Indian industries in order to reap the benefits of sourcing opportunities has opened global offices and subsidiaries to tap opportunities on all fronts manufacturing trading skilled services and call centers. As we know manufacturing costs vary from country to country due to factors such as currency conversion and cost of living . Due to different factor endowments of countries, the costs of labor and materials may differ for example cost is for lower in developing countries like India than in North America and Europe. For companies that have labor intensive work this difference in costing results into significant savings in terms of salaries wages post retirement benefits fringe benefits and other benefits India is emerging as a global hub in gems and oil refining engineering equipments textiles sports goods auto components etc. In a globalised set up trade and commerce of skilled services such as it enabled services software development and tasting purchasing engineering and integrated chip designing knowledge process our sourcing off shoring and home shoring growing much faster than trade in merchandise India with its demographic dividends has been benefitted from all such development as the level of skill and knowledge held by Indian professional allows them to provide high quality services to their clients in developed countries.

Q.6).Write short notes on:A) cross cultural management:In international management where people are from different cultures you have to develop and apply your knowledge about cultures and not use a standard process for everyone. This is called cross cultural management. In a global market even if you do not have a diverse group you may have to deal with clients abroad or services providers of different countries. So knowledge about different countries. So knowledge about different cultures is a must. The factors to be considered in cross cultural management are:Cross cultural management skills Handling cultural diversity Factors controlling group creativity Ignoring diversity Cross cultural management skills:The ability to demonstrate a series of behavior is called a sill. It is functionally linked to achieving a performance goal. The most important aspect to qualify as a manager for positions of international responsibility is communication skills. The managers must adapt to other cultures and have to lead its members. The managers cannot expect to force members of other culture to fit into their cultu4al customs. This is the main assumption of cross cultural skills learning. B) WTO:-

Ans. World trade organization(WTO) WTO was established on 1st January 1994, the final act was signed at meeting in Marrakesh morocco. The Marrakesh declaration of 15 th April 1994 was formed to them 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 on tariffs and trade. India is one of the WTO. WTO represents the attempts to create an organizational focal point for liberal trade management and to a global organizational structure to government world affairs. WTO has attempted to create various organization attentions for regulation trade. It is the only international body that deals with the rules of trades between nations.

Objective of function:The key objective of WTO is to promote and ensure international trade in developing countries. The other major functions include: Helping trade flows by encouraging nations to adopt discriminatory trade policies. Promoting employment, expanding productions and trade and raising standard of living and income and utilizing the words resources. Ensuring that developing countries secure a better share of growth in world trade. Providing forum for trade negotiations. Resolving trade disputes.