Nov 2012 University of Mumbai MMS/MBA International BusinessTG-5977

Q. What are the various strategies for entry and operation in internatioanl business?Give
suitable examples in brief for every strategy.
Q. Explain Raymond Vernon's Product Life Cycle theory in international trade. illustrate how
will it help developing countries.
Q. Explain the characteristics of MNCs. How are they different from domestic companies.
How do MNCs take advantage in emerging economics like India and how do they benefit
these economics?
Q. 'WTO is more complex than removing nontariff barriers and reducing tariff barriers '
discuss the above statement in the context of its various provisions impacting developing
countries.
Q. discuss various theories of foreign direct investment.
Q. describe the political, social, economic and other factors in the international business
environment. How do these affect the country selection for new companies planning to
enter international markets.
Q. Ans any two of the following
Offshoring/outshoring in international business
dumping and anti-dumping measures
most favoured nations(MFN)
E-Commerce
Q. case study
NESTLE
Q. How did nestle follow a variety of strategies for expansion
Q. How did the drivers of globalization help nestle to grow at a faster rate
Q. Why did nestle concentrate on responsibility to the community.

2009
Con. 4979-09 DS-5729
(3 hours) Total marks: 60
N.B. (1) Answer any four questions out of seven questions.
(2) Question 8(case) is compulsory
(3) Candidates are required to give clear concepts, illustrations,examples and analysis.
1. "Multinational Corporations contribute immensely for the development of economies in
the world."-Discuss with illustrations. (10)
2. Discuss various methods and modes of entering and operating in International business
with merits and demerits of each method. (10)
3. What do you mean by risk analysis and, to what extent companies use this tool for framing
policies in International business both at the time of entry and operation? (10)
4. Write short notes on the following:- (10)
(a)Balance of payment
(b)Free trade agreements
(c)Trade barriers
(d)International logistics
5. "Foreign direct Investment has become an effective resource mobilization avenue as
compared to Foreign Institutional Investment." Justify the statement with examples and
criteria for selecting investment destinations from investor's point view. (10)
6. "ASEAN region is an attractive destination for India for trade, investment and
manufacturing especially, in recent period."- Discuss the statement with business
opportunities and challenges.
(10)
7. "Competitive advantages of nations, propounded by Michael Porter has a complete
functional value; management inputs and strategic relevance in today's Global Business."Discuss the statement with illustrations. (10)
8. CASE STUDY: (20)
Pharma Offshoring Market: A Bright Future for India
Business Process Outsourcing, Knowledge Process outsourcing and Legal Process
Outsourcing have dominated Indian scene in the current decade. During the close of current
decade India will witness an another major sunrise segment in the business, Pharma
offshoring.
Pharmaceutical offshoring in the country is poised to become a $ 2.5 billion, nearly Rs.
12,000/- crore opportunity, according to Zinnov Management Consulting.
A beneficiary segment, the already booming clinical trials industry, alone will set to become a
$ 608 million (nearly Rs. 3,000 crore) industry by 2012.

RISING R & D COST ABROAD

A key driver of offshoringor outsourcing is the rising cost of R & D which is forcing majors
in the US and Europe to look for low cost R & D destinations such as India, China and other
Asian countries. On the uptrend is the offshoring of processes of the entire drug development
value chain. Other areas are clinical trials, discovery research, clinical data management, biostatistic, medical writing, marketing and sales.
TALENT AND COST RELATIONSHIP
Offshoring itself is aided by the rich pharma talent pool of 13.5 million science graduates and
the spread of pharma educational institutes. There may be a demand for 1.6 lakh pharma
translators by 2010, spurred by increased number of clinical trials that global majors are
conducting in the country.
Another incentive is the cost of basic production in India, which is up to 50% lower than in
the US FDA approved plants. It can be achieved at 30-50% lower costs than in the
established markets in Europe. Contract manufacturing worth $ 680 million was done in India
in 2008 and may grow at 15%.
Tax incentives, though laws on data security and intellectual property related issues have also
helped along with approvals of pharma SEZs, all enabling the growth of the pharma industry,
according to the report of Indian Pharma Offshoring Landscape(POL).
Zinnov's CEO, Mr.Pari Natrajan said, " Today, pharmaceuticals space is one of the most
happening industries globally and India ha the potential to become one of the key global
players and also the backbone of offshore services. The influx of outsourced work from
global pharmaceutical companies has given the necessary impetus for the creation of pharma
SEZs which would be one of the key drivers of outsourced pharmaceutical services growth in
the coming years."
The domestic drug industry, growing at over 7% CAGR is heading towards a $12 billion,
nearly Rs. 54,800 crores approximately. By 2010, it is expected to shift from being
domesticled to exports driven. All Indian companies such as Cipla, Torrent,Cadila,
Himalayas, Dr.Reddy's Lab and Arabindo Pharma are physically present in every continent in
the world. This has brought goodwill through Indian capability in this space.
Mr. Rishikesh Mandilwar, the Director, Zinnov, said, "Clinical trials today dominate the
offshoring market landscape followe dby clinical data management. Marketing and sales is
the another key component of the drug development value chain and is currently a $ 100
million market, which is expected to grow at a CAGR of 36% till 2012."
Yet, Indian Pharmaceutical companies need to penetrate further in the generics market in the
regulated countries and also increase their investment in R & D to gain expertise in a higher
value chain process. In the BPO and KPO segments, india was well prepared to focus well
before other counterparts and grabbed the business opportunities against its counterparts. A
number of drivers such as policies, education, business environment, infrastructure, stability
of the government and payment modes play a catalytic role to boost this sector in India. the
concern is, "Will India maintain the current dominant position consistently for the whole
decade next?"

Questions:
1. Discuss the competitive advantages of India in pharma offshoring markets.
2. Name major potential players who can succeed in such an avenue.
3. Discuss various strategies that can be adopted to win offshoring business.
4. Briefly mention various functions involved in pharma off shoring.

2006
MAY-2006 TOTAL MARKS-100(3 HOURS)
N.N.: 1. Question No. 1 is compulsory.
2. Attempt any four questions out of rest.
3. All questions carry equal marks.
4. Draw suitable diagrams to support your answers.
1. Analyse the case given below and answer the questions using the concepts of
International Business.
DIXON INC.
Dixon Inc. is one of the oldest companies in U.S. with a flagship product of pencil which was
introducedin 1913. The turnover in 1995 was U.S.$ 100 million. The Americans bought an
estimated 4.2 billion pencils in 1999 which was 53% higher than 1991; but an increasing
proportion of these came from China.China entered the American pencil market in 1991 and
by 1994 had 20% share of American market. In1995 U.S. government was persuaded by
Dixon to levy Anti Dumping Duty on Chinese imports of penciland the imports temporarily
fell, but the Chinese kept on making better and cheaper pencils and by 1997achieved the
market share levels of
1994. The Chinese were aggressive in marketing pencils in U.S. and toadd to the problems
exports of
Dixon Inc. also fell drastically by about 200 million units in 1999 ascompared to 1991
figures.By 1999, U .S. imported 50% of
its requirement of pencils from China which forced the U.S. Governmentto impose a
whooping 53% Anti Dumping Duty in 2000 on Chinese pencils. However, it did not
givemajor boost to Dixon as expected.Dixon Inc. during the decade tried to experiment with
cheaper ways to make pencils. The company shiftedfrom California incense cedar wood
(which was expensive raw material) to Indonesia jelutong wood.Dixon also started buying

erasers for its pencils from a Korean supplier instead of traditional local source.During all
this time it not only lost its share
to cheap imports but was also losing money and itstrategically started a lie new
manufacturing unit in Mexico a NAFTA partner. The original idea was tosupplement the U.S.
set up but with a view to be more aggressive it expanded Mexico's unit and startedreducing
the production of its home base, U.S.In the year 2001
,
Dixon created a wholly owned subsidiary in China to manufacture wooden slats - a processed
raw material for manufacturing pencils. These slats were exported by Dixon from China
toMexico where they were turned into pencils. The graphite lead for pencils is still made
in USA; buterasers arc shipped from Korea. .The Chinese subsidiary of Dixon also produces
and sells its products internationally. By 2003 Dixon's performance registered a significant
improvement but, the company decided to be aggressive in
International business and it shut down its U.S manufacturing base at Sandusky, Ohio
and expanded it production in Mexico and have also started manufacturing pencils from it's
China venture.
Questions:
a) Why do you think that the Chinese apparently have a cost advantage in the production of
pencils?
b).Do you think that lobbying in the U.S. government to imposing antidumping duties on
imports of pencils from China is a good way to protect U.S. jobs? Who benefits most from
such duties? Who loses?
c) Why has Dixon become a. multinational company? What are the economic benefits to
Dixon of going global?
d) Why does it not simply import finished pencils from China to the United States, instead of
making those pencils in Mexico?
e). What is the role of tariff and non-tariff barrier in the whole process?
2. State the objectives of International Business. Give an overview of various methods of
doing International Business with suitable practical examples
3. State the advantages and disadvantages of FDI to the home and host country? List out the
problemsfaced by MNEs in the home country and the problems faced by host country due to
MNEs.
4. Risks arc inevitable in International Business. The success is totally depending on the
techniques of handling, risks at every stage. Justify with examples.
5. WTO was formed to foster International Trade. State principle objectives of WTO and list
at least 10activities monitored by WTO. Discuss the impact of WTO on India find other
developing nations with special reference to Hong Kong Ministerial Conference.

6.What is the meaning of globalization? Categorize manufacturing and service sectors of

India having global competitive advantages.
7. Write short notes on:a.Explain salient features of any two Regional Trade Agreements(RTA).
b.Discuss general characteristics of Intellectual Property Rights (IPR).
8. Write short notes on:a.David Ricardo' s Two Country Two Product Theory,
b.Purchasing Power Parity Theory