SECTION – A (Answer any 5 × 2 = 10 marks)

1. a) Define International Business

• International Business refers to commercial transactions (goods, services, capital, technology)

across national borders.

• It includes exports, imports, foreign investments, and collaborations.

b) What is international business environment?

• It includes all external factors (economic, political, legal, technological, and socio-cultural) that
affect international business operations.

• It determines risks, opportunities, and business strategy.

c) Name any two Indian MNCs.

• Tata Group

• Infosys

d) Expand – GATS, EU

• GATS: General Agreement on Trade in Services

• EU: European Union

e) Describe the meaning of Licensing.

• Licensing is an agreement where a company allows another to use its intellectual property (e.g.
brand, patent) in return for a fee or royalty.

• It’s a low-risk method of entering international markets.

f) Write the meaning of technology transfer.

• It is the process by which one organization or country shares technology with another.

• It includes transfer of skills, equipment, methods, or technical knowledge.

g) State the significance of Logistics in International Business.

• Ensures smooth movement of goods globally.

• Reduces costs, enhances customer satisfaction, and improves efficiency in supply chain
management.

SECTION – B (Answer any 3 × 4 = 12 marks)

2. Stages of Internationalisation

• Domestic Stage: Business operates only in its home country.

• International Stage: Starts exporting/importing.

• Multinational Stage: Establishes operations in multiple countries.

• Global Stage: Integrated global operations, central strategy.

• Transnational Stage: Balance between global efficiency and local responsiveness.

3. Impact of Political Environment on International Business

• Changes in government policies can affect tariffs, taxes, and investment rules.

• Political instability can increase risk of doing business.

• Nationalization of industries can affect foreign investors.

• Corruption or bureaucracy may hinder operations.

• Favourable political climate boosts foreign trade and investment.

4. Issues in Technology Transfer

• Lack of infrastructure or skilled labour in the host country.

• Risk of imitation or misuse of technology.

• High costs involved in adapting and training.

• Regulatory and legal issues across countries.

• Cultural barriers may affect technology adoption.

5. Objectives of TRIMs (Trade-Related Investment Measures)

• Eliminate trade-distorting investment practices.

• Promote fair competition in international trade.

• Ensure transparency and predictability in trade policies.

• Encourage foreign direct investment (FDI).

• Align national investment policies with WTO principles.

6. Benefits of Global Supply Chain Management

• Reduces costs through global sourcing.

• Improves delivery time and efficiency.

• Increases access to global markets and suppliers.

• Enhances flexibility and risk management.

• Helps meet international demand effectively

SECTION – C (Answer any 3 × 10 = 30 marks)

7. Modes of Entry to International Business

• Exporting: Selling goods to foreign countries (direct or indirect).

• Licensing: Granting rights to use patents, brands, or technology.

• Franchising: Giving rights to operate business under the parent brand.

• Joint Venture: Partnership with local firms in foreign markets.

• Wholly Owned Subsidiary: Full control and ownership in foreign country.

• Turnkey Projects: Providing ready-to-operate facilities abroad.

• Strategic Alliances: Cooperation between firms without ownership change.

• Merger/Acquisition: Buying or merging with a foreign company.

8. Short Notes
a) Economic Environment

• Refers to economic factors like GDP, inflation, income level, interest rates, etc.

• Determines market potential and business viability.

• Influences consumer spending and investment climate.

b) Demographic Environment

• Population size, age, literacy rate, income levels, etc.

• Affects demand patterns and marketing strategies.

• Businesses must adapt to local consumer demographics.

9. Conditions Favouring Globalisation

• Advances in transportation and communication.

• Liberalized trade policies and FDI incentives.

• Rise of multinational corporations (MNCs).

• Economic integration through trade blocs.

• Technological innovations and digital commerce.

• Consumer demand for global brands/products.

• Improved logistics and supply chain systems.

• Competitive pressure for expansion and cost reduction.

10. Key Functions of WTO

• Formulates and enforces global trade rules.

• Settles trade disputes among member nations.

• Conducts trade negotiations and agreements.

• Monitors and reviews trade policies.

• Provides technical assistance to developing nations.

• Promotes fair, free, and predictable trade.

 • Encourages reduction of trade barriers.

• Facilitates international cooperation in trade.

11. Global Manufacturing Strategies

• Centralized Manufacturing: One key production hub.

• Decentralized Manufacturing: Production units in multiple countries.

• Outsourcing: Contracting third parties for production.

• Lean Manufacturing: Focus on waste reduction and efficiency.

• Just-in-Time (JIT): Producing only what is needed, when needed.

• Flexible Manufacturing Systems (FMS): Adapts to demand changes.

• Cost Leadership: Producing at the lowest cost.

• Quality Differentiation: Emphasis on superior quality and innovation.

Paper 2

SECTION – A (Answer any 6 × 2 = 12 marks)

Each answer in 2-3 points

1.

a) State any 2 features of globalisation

• Integration of economies through trade, capital, and technology.

• Free flow of goods, services, and labour across borders.

b) Expand WTO and SAARC

• WTO: World Trade Organization

• SAARC: South Asian Association for Regional Cooperation

c) Give the meaning of technology transfer

• Sharing of technical knowledge, skills, or processes from one organization/country to another.

• Often includes patents, machinery, and expertise.

d) What do you mean by licensing?

• Licensing is an agreement where a company allows another to use its trademark, brand, or
technology.

• It is a low-risk international market entry method.

e) Define international business

• It refers to commercial transactions (goods, services, capital) that occur across national borders.

• Includes trade, investment, and partnerships between countries.

f) What is export trade?

• Selling domestic goods and services to foreign countries.

• It helps increase market size and revenue.

g) What do you mean by repatriation?

• The process of converting foreign earnings into home currency and transferring them back.

• Often involves profits or investments.

h) State any 2 differences between domestic and foreign companies

• Ownership: Domestic is owned locally; foreign involves overseas ownership.

• Operations: Domestic operates within national borders; foreign operates internationally.

⸻

SECTION – B (Answer any 3 × 4 = 12 marks)

Each answer in 4-5 points

2. Functions of IMF (International Monetary Fund)

• Provides financial assistance to member countries.

• Promotes international monetary cooperation.

• Ensures exchange rate stability.

• Offers policy advice and technical support.

• Facilitates balanced growth of global trade.

3. Difference between Tariff and Non-Tariff Barriers

• Tariff: Tax imposed on imports to protect domestic industries.

• Non-Tariff: Includes quotas, licenses, embargoes, and regulations.

• Tariffs raise import costs; non-tariffs restrict quantities.

• Non-tariff barriers are less visible but equally restrictive.

4. Challenges Faced by Globalisation

• Cultural differences and language barriers.

• Economic inequality and exploitation concerns.

• Loss of domestic industries due to foreign competition.

• Environmental degradation due to industrial expansion.

• Political resistance or anti-globalisation sentiments.

5. Global Supply Chain Management

 • Management of interconnected international suppliers and distributors.

• Enhances efficiency and cost savings.

• Allows businesses to operate across time zones and geographies.

• Involves sourcing, logistics, production, and delivery globally.

• Requires strong coordination and technology use.

6. Impact of Technological Environment on International Business

• E-commerce and digital platforms have expanded global reach.

• Advanced logistics improve supply chain efficiency.

• Technology lowers communication and transaction costs.

• Enables better customer engagement across borders.

• Encourages innovation and competitive advantage.

SECTION – C (Answer any 3 × 12 = 36 marks)

Each answer in 7-8 points

7. Modes of Entry in International Business

• Exporting: Direct and indirect selling to foreign markets.

• Licensing: Permitting foreign firm to use IP.

• Franchising: Granting operational rights under brand name.

• Joint Ventures: Shared ownership with local firms.

• Wholly Owned Subsidiary: 100% ownership in foreign country.

• Turnkey Projects: Delivering ready-made operational facilities.

• Strategic Alliances: Partnerships without equity.

• Selection depends on cost, control, and market risk.

8. Staffing Policy in International HRM & Its Stages

• Ethnocentric: Home country managers in foreign operations.

• Polycentric: Local nationals manage host country operations.

• Geocentric: Best talent selected regardless of nationality.

• Regiocentric: Managers selected from regions, not just countries.

• Stages involve planning, recruitment, training, placement, and evaluation.

• Aligns HR strategy with international business goals.

9. Advantages and Disadvantages of MNCs

Advantages:

• Brings FDI and boosts local economy.

• Creates jobs and introduces new technologies.

• Offers diverse products to consumers.

Disadvantages:

• Can exploit natural resources or cheap labour.

• May dominate local markets, hurting small firms.

• Repatriate profits, reducing local economic benefit.

• Cultural dilution and ethical concerns.

10. Political and Economic Environment of International Business

Political:

• Government stability, policies, legal system, tax laws, trade regulations.

• Political risks include nationalization, corruption, and instability.

Economic:

• Currency exchange rates, inflation, GDP growth, income levels.

 • Determines market attractiveness and risk factors.

• Influences pricing, demand, and profitability.

11. Challenges Faced in International Business

• Cultural and language barriers.

• Legal and regulatory compliance.

• Currency fluctuations and exchange rate risks.

• Political instability or protectionist policies.

• High operational and logistics costs.

• Complex tax systems across countries.

• Intellectual property theft and security issues.

• Adapting products to local preferences

paper 3

SECTION – A

(Answer any five – 2 marks each)

Each answer in 2–3 points

1.

a) Give the meaning of FDI (Foreign Direct Investment)

• Investment by a company or individual from one country into business interests in another country.

• Involves ownership or control over foreign assets.

b) Differentiate between mergers and acquisitions

• Merger: Two companies combine to form one.

• Acquisition: One company takes over another and becomes the owner.

c) What is international business?

• Business activities that involve cross-border transactions of goods, services, or resources.

• Includes exports, imports, joint ventures, licensing, etc.

d) Mention any two export promotion institutions

• Export Promotion Council (EPC)

• Export-Import Bank of India (EXIM Bank)

e) What is an MNC?

• Multinational Corporation: A company that operates in more than one country.

• Has production or service facilities across borders.

f) Give the meaning of balance of payments

• A record of all economic transactions between a country and the rest of the world.

• Includes current account and capital account.

g) What is market research?

• The process of collecting and analyzing data about consumer preferences and market trends.

• Helps in decision-making and product development.

SECTION – B
(Answer any three – 6 marks each)

Each answer in 4–5 points

2. Reasons for Disequilibrium of Balance of Payments

• Excess imports over exports.

• Heavy external debt or interest payments.

• Political instability affecting investor confidence.

• Fluctuation in exchange rates.

• Decline in foreign investments or remittances.

3. Essential Conditions for Globalisation

• Liberalization of trade and investment policies.

• Technological advancements in communication and transport.

• Open economic policies and deregulation.

• Stable political and legal environment.

• Active participation in international trade agreements.

4. Nature of Marketing Research

• Systematic collection and analysis of data.

• Identifies customer needs, preferences, and behavior.

• Reduces business risk by guiding decisions.

• Involves both qualitative and quantitative methods.

• Helps in product development and positioning.

5. Institutions Connected with EXIM Trade

• EXIM Bank: Provides financial assistance to exporters/importers.

• DGFT: Regulates foreign trade policy.

 • EPCs: Promote and support export sectors.

• Customs Authorities: Handle export/import documentation and clearances.

• Help streamline and support international trade.

6. Documentation for Export Trade

• Commercial Invoice: Details of goods sold.

• Bill of Lading: Proof of shipment.

• Certificate of Origin: Specifies product origin.

• Letter of Credit: Payment guarantee from the buyer’s bank.

• Ensures smooth legal and financial processing.

SECTION – C

(Answer any three – 14 marks each)

Each answer in 7–8 points

7. Stages and Challenges of Globalisation

Stages:

• Domestic Stage: Business operates locally.

• International Stage: Begins exporting.

• Multinational Stage: Sets up foreign branches.

• Global Stage: Integrated global operations.

Challenges:

• Cultural and language differences.

• Political risks and trade barriers.

 • Currency fluctuation.

• Legal and regulatory differences.

• Environmental and ethical concerns.

• Rising competition.

8. FDI and EXIM Policy

FDI:

• Long-term investment by foreign companies.

• Helps in technology transfer, employment, and capital flow.

EXIM Policy:

• Regulates exports and imports.

• Provides incentives like duty drawbacks and subsidies.

• Encourages export competitiveness.

• Administered by DGFT under Ministry of Commerce.

9. Reasons for Growth of MNCs

• Access to new markets and larger customer base.

• Availability of cheap labor and raw materials.

• Technological innovation and efficiency.

• Government incentives and liberal FDI policies.

• Global branding and increased revenues.

• Economies of scale and risk diversification.

• Competitive edge through global presence.

• Strategic mergers and acquisitions.

10. Nature and Benefits of International Business

Nature:

• Involves cross-border economic activities.

• Includes trade in goods, services, and capital.

Benefits:

• Access to larger markets.

• Increased revenue and profit.

• Exposure to new ideas, innovation, and technology.

• Improved global competitiveness.

• Economies of scale.

• Employment generation.

• Enhances diplomatic and cultural ties.

11. Challenges Faced by India in Export Trade

• Poor infrastructure and port facilities.

• Complex export procedures and documentation.

• Fluctuating exchange rates.

• Lack of product standardization and quality control.

• Stiff competition from other developing nations.

• High logistic and compliance costs.

• Limited global marketing and branding.

• Delays in incentives and government support.

Paper 4

Here are the complete answers for International Business – Paper 6.1 (August/September 2023) as per
your format:
⸻

SECTION – A

(Answer any five – 2 marks each)

Each answer in 2–3 points

1.

a) What is MNC?

• A Multinational Corporation (MNC) operates in more than one country.

• It has production or service facilities across various nations.

b) What is market research?

• Market research is the process of collecting, analyzing, and interpreting data about a market.

• Helps businesses understand consumer needs and make informed decisions.

c) What is importing?

• Importing is the process of bringing goods or services into a country from abroad.

• It is a part of international trade.

d) What is foreign exchange market?

• A global marketplace for buying and selling currencies.

• Determines exchange rates and facilitates international trade.

e) What is franchising?

• A method where a business (franchisor) allows another (franchisee) to operate using its brand and
system.
 • Common in sectors like food, retail, and education.

f) State any two forms of international business

• Exporting and Importing

• Licensing and Franchising

g) What is transnational company?

• A company that operates globally without a strong national identity.

• It integrates operations across multiple countries.

SECTION – B

(Answer any three – 6 marks each)

Each answer in 4–5 points

2. Essential Conditions for Globalisation

• Free trade policies and liberalization of economies.

• Technological advancements (communication, transportation).

• Global financial institutions and capital mobility.

• Political stability and favorable business environment.

• Participation in international agreements (WTO, FTA).

3. Methods of Payment in International Business

• Advance Payment: Buyer pays before shipment.

• Letter of Credit (LC): Bank guarantees payment.

• Bill of Exchange: Written order for future payment.

 • Open Account: Payment after delivery.

• Consignment: Payment after sale by the importer.

4. Merits and Demerits of FDI

Merits:

• Brings in capital and foreign exchange.

• Improves technology and management practices.

• Generates employment.

Demerits:

• Can dominate local industries.

• May repatriate profits out of the host country.

• May affect national sovereignty in sensitive sectors.

5. Features of Marketing Research

• Systematic process involving problem definition, data collection, and analysis.

• Helps in identifying customer preferences and behavior.

• Supports product development and pricing strategies.

• Reduces risk in decision-making.

• Enhances market competitiveness.

6. Nature of MNCs

• Operate in multiple countries with centralized or decentralized control.

• Large-scale operations with global branding.

• Access to international markets, resources, and talent.

• Adaptable to local conditions while maintaining core values.

• Contribute to economic development and globalization.

⸻

SECTION – C

(Answer any three – 14 marks each)

Each answer in 7–8 points

7. Advantages and Disadvantages of Globalisation

Advantages:

• Increases trade and investment across borders.

• Access to a larger customer base and markets.

• Promotes innovation, technology transfer, and employment.

• Enhances cultural exchange.

Disadvantages:

• Can lead to economic inequality.

• Loss of local businesses due to competition.

• Cultural homogenization.

• Environmental concerns and exploitation of resources.

8. Nature and Benefits of International Business

Nature:

• Deals with cross-border economic activities like trade and investment.

• Involves complex legal and financial systems.

• Requires adaptation to cultural and political environments.

Benefits:

• Access to larger and diversified markets.

 • Cost advantages through global sourcing.

• Enhances competitiveness and profitability.

• Encourages innovation and knowledge transfer.

9. FDI and EXIM Policy

FDI:

• Investment by foreign entities in domestic businesses.

• Encourages capital inflow, employment, and technology.

EXIM Policy:

• A government policy to promote exports and regulate imports.

• Provides incentives like tax relief, subsidies, and infrastructure.

• Ensures a favorable balance of trade and foreign exchange.

• Implemented by DGFT (Directorate General of Foreign Trade).

10. Information Requirements for International Marketing

• Market demographics and consumer behavior.

• Legal and regulatory frameworks of target countries.

• Economic conditions like inflation, exchange rates.

• Cultural and social factors affecting product design and messaging.

• Competitor analysis and market entry barriers.

• Logistics, distribution channels, and pricing structures.

• Demand forecasts and political environment.

11. Role of MNCs in Indian Economy

• Bring in FDI and advanced technology.

• Generate employment and improve productivity.

• Contribute to export earnings and GDP.

• Introduce global best practices in management.

• Enhance competition and product quality.

• Participate in infrastructure and development projects.

• Support skill development and industrial growth.

• Help integrate India with the global economy.