Assignment

Drive
Program
Semester
Subject code & name

FALL 2016
MBA
4
MK0015 &
INTERNATIONAL BUSINESS MANAGEMENT

Name
Roll No.

JOBANPUTRA DINESHKUMAR S
1502010909

Q-1) Write down the difference between international Vs

global business? And what are the benefits of
globalization?

Write down the difference between international Vs global

business
What are the benefits of globalization
ANS)
Write down the difference between international Vs global
business

ANS)
Differences between international and global strategies
Strategy

International

Global

Location

Selected target countries and

trading areas

Most global businesses

operate in North America,
Europe, Asia Pacific, and
Latin America

Business

Custom strategies to fit the

circumstances of each host
country situation

Same basic strategy

worldwide with minor
country customisation
where necessary

Product-line

Adopted to local culture and

particular needs and
expectations of local buyers

Mostly standardised
products sold worldwide,
moderate customisation
depending on the regulatory
Framework

Production

Plants scattered across many

host countries, each
producing versions suitable
for the surrounding
Environment

Plants located on the basis

of maximum competitive
advantage (in low cost
countries close to major
markets, geographically
scattered to minimise
shipping costs, or use of a
few world scale plants to
maximise economies of
scale)

Source of supply
of raw materials

Suppliers in host country

Preferred

Attractive suppliers from

across the world

Marketing and
distribution

Adapted to practices and

culture of each host country

Much more worldwide

coordination; minor
adaptation to host country

situations if required

Q-4) What are the key objectives and function of

World Trade organization?
What are the key objectives of WTO
What are the key functions of WTO
ANS)
The key objectives of WTO
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 worlds resources.

Ensuring that developing countries secure a better share of growth in world trade.

Providing forum for trade negotiations.

Resolving trade disputes.

The key functions of WTO

The important functions of the WTO as stated in the WTO agreement are the
following

Developing transitional economies Majority of the WTO members are

the developing countries. The developing countries such as India, China,
Mexico, Brazil and others have an important role in the organization. The
WTO helps in solving the problems of developing economies. The developing
states are provided with trade and tariff data. This depends on the countrys
individual export interest and their participation in WTO-bodies. The new
members benefit hugely from these services.

Providing help for export promotion The WTO provides specialized help
for export promotion to its members. The export promotion is done through
the International Trade Center established by the GATT in 1964. It is operated
by the WTO and the United Nations. The International Trade Center accepts
requests the member countries, usually developing countries in assisting to
plan and execute programmers for export promotion. The center provides
information on export market and marketing techniques. The center also
provides assistance in establishing export promotion and marketing services.
The WTO proves its commitment in the upliftment of the world economy
through this.

Cooperating in global economic policy-making The main function of

the WTO is to cooperate in global economic policy-making. In the Marrakesh
Ministerial Meeting in April 1994, a separate declaration was adopted to
achieve this objective. The declaration specifies the responsibility of WTO as,
to improve and maintain the cooperation with international organizations
such as the World Bank and International Monetary Fund (IMF) that are
involved in monetary and financial matters. WTO analyses the impact of
liberalization on the growth and development of national economies which is
the important factor in the success of the economy

Monitoring implementation of the agreement The WTO administers

sixty different agreements that have the statue of international legal
documents. The member-governments sign and confirm all WTO agreements
on attainment.

Providing forum for negotiations The WTO provides a permanent forum

for negotiations among members. The negotiations can be on matters

already stated in the WTO agreements or matters not addressed in the

WTO law.

Administrating dispute settlement The important function of WTO is the

administration of the WTO dispute settlement system. It helps in settling
multilateral trading dispute. A dispute arises when a member country adopts
a trade policy and other fellow members consider it as a violation of WTO
agreements. The Dispute Settlement Body (DSB) is responsible for the
settlement of disputes. The dispute settlement system is prohibited from
adding or deleting the rights and obligations provided in the WTO
agreements. The WTO dispute settlement system helps to:

Preserve the rights and responsibilities of the members.

Clarify the current provisions of the agreements.

Q-5) Explain in detail about

international regulatory Bodies.
Explain in detail about international
regulatory Bodies.
ANS)

International Regulatory Bodies

European Union
European Union is pro-active in the harmonisation process. European Commission
sets directives, which are orders to the member countries, to bring their laws inline
with EU needs, within some transition period. The earlier accounting directives are:

The nature and design of financial statements.

The measurement support on which the financial statements are to be

organized.

The significance of consolidated financial statements.

The need that auditors should ensure that the financial statements reflect a
true perspective of the organizations operations.
Thus, EU organisations listing outside their home-countries must supply the
following two sets of financial statements, they are:

Home-country statements.
Reconciliation statements.

United Nations
The United Nations is interested in international accounting since the early 1970s
and has been operating under a 'Group of Eminent Persons'. This further led to the
establishment of Intergovernmental Working Group of Experts on International
Standards of Accounting and Reporting (ISAR) by the UN Economic and Social
Council.
The ISAR attempts to support the developing countries, by creating
recommendations on the accessibility and comparability of information disclosed by
international businesses.
The ISAR is presently concerned about developing discussions on the international
environment reporting, and the role and responsibilities of accountants and auditors
Organisation for Economic Cooperation and Development (OECD)
The OECD was established by world's 24 developed countries, of which some are
Australia, Austria, Belgium, and Canada. This was set up for promoting world trade
and international economic growth. This looks at matters from the perspective of
economically developed countries. The council of OECD has established a
committee on International Investment and Multinational Enterprises (MNEs). This
committee in turn has established a Working Group on Accounting Standards.
International Accounting Standards Committee (IASC)
International Accounting Standards Committee was created in the year 1973. It has
issued a series of standards to harmonise management of accounting issues
globally. The chief objective of IASC is the encouragement of comparability of
financial statements between countries, by establishing standards for inventory
assessment, depreciation, delayed income taxes, and so on.
An important accomplishment of the IASC has been the creation of the International
Accounting Standards (IAS). The publication and global recognition of these
standards is necessary for the harmonisation efforts of the IASC.

International Accounting Standards Committee (IASC)

International Accounting Standards Committee was created in the year 1973. It has
issued a series of standards to harmonise management of accounting issues
globally. The chief objective of IASC is the encouragement of comparability of
financial statements between countries, by establishing standards for inventory
assessment, depreciation, delayed income taxes, and so on.
An important accomplishment of the IASC has been the creation of the International
Accounting Standards (IAS). The publication and global recognition of these
standards is necessary for the harmonisation efforts of the IASC.
Some

of the other international regulatory bodies are:

Governmental Accounting Standards Board.
Independence Standards Board
International Accounting Standards Board.
International Organisation for Securities Commission.
National Association of State Boards of Accountancy.
Public Company Accounting Oversight Board.
UK Accounting Standards Board.

Q-6) What are the various export promotion schemes

offered by government in order to promote export from
the country?
What are the various export promotion schemes offered
by government.
ANS)

Export Promotion Schemes

Government, in order to promote the exports from the country, offers some export
assistance and export promotion schemes so that exporters can benefit from them.
They can improve their key weaknesses and stand up to compete in the
international market by offering quality Indian products and services. Such exportpromotion measures can be divided into direct and indirect assistance or
programmes from the government agencies to enable Indian exporters to
standardise the products and services as appropriate for the international quality
and aesthetic appeal.
Such
I.
II.
III.
IV.

measures may be targeted on any of the combination of the following:

Market Access Initiatives (for studies, brochures etc.).
Marketing Development Assistance for participation in trade fairs etc.
Providing services to international market.
Marketing in difficult markets like certain African, Latin American and
Commonwealth of Independent States (CIS) markets.

V.
VI.
VII.

Marketing difficult products like those from rural areas.

Special agricultural products and rural industrial products.
High-technology products

India being a developing economy, export promotion schemes are needed to give a
boost to our economy. The needs of the export promotion scheme are explained
below.
As the economy of the country is progressing with the increase in population, there
is a need for more number of imports. We need to have surplus exports to pay our
imports.

It is not wise to depend on external assistances for financing essential

imports, instead exportable surplus needs to be created.

In any country, there are some capital goods, machinery and raw materials
that cannot be produced for some time and it has to be imported from other
countries. In order to pay for such imports, the country needs to have
sufficient funds so that the country has to pay for its exports.

The earning from the exports needs to be increased to generate purchasing

power in order to import the essential goods.

We need to explore the foreign markets in order to expand the capacities of

the existing units and find a market for new units.

To tap our export potentials completely, we need to focus on our strengths

like, price stability, low wages and the industrial bases to increase its exports.

The deficits of payments in Indian economy can be resolved using funds

received through foreign assistance. We need to create the repaying capacity
with the help of exports.